Way forward

EDPR is a leading clean energy company with 2011 revenues of more than 1,000 million euros, reflecting the 16.8 TWh of CO2 free production. The company has executed a strong expansion plan in the last years having multiplied its onshore wind power capacity by approximately 3x since 2007. As a result of this continuous growth EDPR is currently operating over 7.5 GW of onshore wind power. This extraordinary growth came hand in hand with a selective geographical expansion strategy that, starting in Iberia, steadily evolved to Central and Eastern Europe, North America and Brazil.

Our Path

EDPR has been growing by expanding to new countries, either by greenfield development or through strategic transactions of projects in early stage of development. Leveraging on its in-house skills, EDPR has carefully picked its markets, considering a set of principles that have been applied in every entry into a new country.

When considering a new market, EDPR embarks on a multi-year program by contacting all relevant players, understanding the concerns of the main stakeholders, identifying the main risks and constrains, discussing with potential partners and also technically assessing in detail a handful of particular projects available in that market. An entry-decision in a new market usually brings with it several non-entry-decisions in other markets that have been thoroughly analyzed, but discarded for not reaching EDPR’s required standards or for not being competitive enough at that time.

EDPR places a strong focus not only on the reliability and sustainability of the country’s renewable tariff scheme, but also on the market’s potential to allow a high value creation during the development phase of the projects. Therefore, extreme care and effort is put in place in every market to access top tier pipeline of projects, as well as local skills to deliver them on time.

EDPR has teams constantly monitoring and appraising the reality and the potential of wind markets worldwide, from different angles: from a more analytic standpoint as the analysis of macro-economic indicators, the energy market structure and dynamics, the different renewable regulations in place and regulation drafts under discussion, the credibility of official renewable targets, the long term electricity price forecasts and the financial features, to the more specific local business opportunities.

Consistent with its growth strategy, EDPR constantly analyzes the commercial outlook of a wide range of renewable energy technologies that will contribute to a sustainable growth in the future. As a result of such analysis, in 2010 EDPR chose to enter the offshore wind industry in the promising UK market.

The success of EDPR’s selective growth strategy is best illustrated in its international track-record, where the combination of its capabilities places the company at the forefront of the global top wind energy developers and operators.

Delivering future growth

In the short-term, EDPR has adapted its growth in response to continued uncertainty in global energy markets. Despite the harsher economic environment, EDPR continues to mine growth opportunities in a number of target countries.

In 2012, growth will be primarily driven by markets with favourable development opportunities and where EDPR has or can achieve a leading position. This applies to core-markets such as Poland, Romania, Spain, USA and Portugal (ENEOP consortium) but may also include additional countries where EDPR sees major potential for selective and attractive growth.

Rapid-growth markets, with a high rising demand for electricity, such as some emerging markets in Europe and Americas are examples where EDPR has been continuously identifying several options and is currently assesing a number of them. These markets share promising characteristics, with wind energy projects showing strong economic viability, diminished regulatory risk and strong market sustainability.

EDPR business development efforts will also continue in markets which have gone into a consolidation phase, such as Italy, France, Belgium, Canada, in order to ensure organic expansion.

EDPR constantly analyzes the commercial outlook of a wide range of early-stage renewable energy technologies as a way to move forward. The WindFloat project, led by EDP Inovação in partnership with EDPR provides evidence of this approach.