Europe

Capacity

+538 MW added in 2011

EDPR’s wind installed capacity in Europe totalled 3,977 MW, a 538 MW increase over 2010 and a 22% annual growth rate since 2007.

The largest growth in MW occurred due to the 265 MW increase in Eastern Europe, with the completion of Cernavoda I & II (138 MW), Sarichioi (33 MW), and Vutcani (24 MW) wind farms in Romania and Korsze (70 MW) in Poland. This represents a significant achievement as Romania and Poland are two of the fastest growing countries in Europe and deliver higher than portfolio average remuneration schemes.

In Portugal, advancements in the ENEOP project, a consortium to develop 1.2 GW (in which we hold a 40% stake), already has more than 800 MW in operation of which EDPR added 87 MW in 2011.

In France, EDPR completed the construction of the Marcelois & Massigny wind farms totalling 22 MW, which is also EDPR’s first wind farm in the Bourgogne region.

EDPR added 151 MW of installed capacity in Spain to reach over 2.2 GW, representing the largest percentage of the European portfolio.

Development

160 MW under construction

As EDPR continues to execute on its strategy, it has projects under construction in Poland (80 MW), Spain (58 MW), Portugal (2 MW), and is beginning its first wind farm in Italy (20 MW).

EDPR’s pipeline in Europe of over 9 GW ensures long-term optionality and flexibility in choosing the best projects.

2011 was an important year for EDPR UK. In June 2011 EDPR’s interest in offshore projects increased from 1.5 GW to up to 2.4 GW through the establishment of a joint venture with Repsol Nuevas Energias.

“The European platform achieved significant milestones during 2011, including the start of construction of EDPR’s first wind farm in Italy and adding to our leading position in the fastest growing markets.”

João Paulo Costeira, Chief Operating Officer (COO) Europe

Production

+10% GWh increase YoY

EDPR’s electricity production in Europe totalled 7,301 GWh, a 669 GWh increase over 2010 and a 26% growth rate since 2007, outpacing capacity growth.

The largest growth driver for electricity production is due to 412 GWh increase in Eastern Europe as a result of the new capacity brought online and the stable production from the remaining countries.

25% net capacity factor

Despite the healthy increase in electricity production in Europe, net capacity factors were impacted by a lower wind resource compared to historical averages, reaching 25% in 2011.

However, EDPR continues to leverage on its competitive advantages to maximize wind farm’s output and on its diversified portfolio to mitigate the wind volatility risk.

Tariff

+5% YoY increase

EDPR’s average selling price in Europe reached €88.0/MWh, a €3.8/MWh increase over 2010 and a 5% year over year growth rate.

All countries posted positive year over year evolutions. Poland was the only exception in Euro terms due to the devaluation of the Polish Zloty.

Several factors contributed to the positive price evolution, namely due to Spain, Portugal, and the greater weight of Central and Eastern European geographies.

EDPR’s average selling price in Spain increased 4% YoY due to the strategic option of selecting the fixed tariff option for the RD661/2007 capacity, the inflation update to all the regulated prices under RD661/2007, and lastly to the recovery of the realized pool price (+36% YoY).

In Portugal, prices increased over last year reflecting the CPI indexation and benefiting from a lower price received in 2010 due to the working hour’s adjustment factor from the above average production achieved.

The weight increase of Poland and Romania in the 2011 output was one of the main drivers for the increase in average selling price. EDPR Polish assets received €109/MWh under attractive long term contracts; lower than 2010 due to the devaluation of the Polish Zloty. In Romania, the price reached €89/MWh, reflecting the wind farms’ trial period and the receivable of only one green certificate per MWh (the full implementation of the second green certificate scheme, approved by law in July 2011, only occurred during late 2011).