Portuguese utility EDP has announced its investment strategy for the next few years, laying out a €25 billion plan to achieve 33GW of deployed renewable energy capacity by 2026. Eighty-five percent of the total investment plan will be for renewable energy, and the company plans to use 40 percent of its new capacity in the next three years for utility-scale solar photovoltaic power generation and another 12 percent for distributed solar power generation. Onshore wind will account for another 40%, with offshore wind, energy storage and hydrogen projects taking up the remainder. The vast majority of investment plans are concentrated in Europe and North America for a total of 80%, while 15% will be deployed in South America and 5% will be deployed in the Asia-Pacific region.

Today, our ambition to lead the energy transition has grown through a competitive and resilient portfolio, strong financials, an empowered team and a willingness to contribute to a climate positive world for future generations. This business plan reinforces our growth ambitions while furthering our commitment to the planet and delivering exceptional value for all, said EDP CEO Miguel Stilwell d'Andrade.

In terms of financial targets, the company said it aims to reach recurring EBITDA of EUR 5.7 billion and a compound annual growth rate of 6% by 2026. It also said it was targeting recurring net revenue of 1.5 billion euros in 2025. The company issued a 100% tender offer to acquire all the shares of its listed subsidiary EDP Brasil, whose current shareholding ratio is 56.05%. Abu Dhabi Investment Authority, GIC and CTG have secured a total of EUR 600 million in capital support, aiming to raise EUR 1 billion.

EDP said the full integration of its Brazilian subsidiary would simplify its corporate structure. The transaction is scheduled to close in the second half of 2023. The business plan announcement also included a €4 billion commitment to develop the transmission network, including 400,000 kilometers of distribution lines, nine million smart meters and 12 million connection points, and a €3 billion plan to further digitize its operations and improve efficiency and innovation.Editor/XingWentao