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EDP Anticipates 2025 Financial Targets, Ramps Up Investment in the Energy Transition

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EDP’s €25 billion investment plan until 2026 will boost renewable additions and support the group’s new net zero targets. Intended capital rise at EDP and EDPR to support the growth ambition. Delisting of EDP Brazil unlocks value creation and promotes corporate simplification.


Houston, Texas, March 2, 2023 — EDP, EDP Renewables (EDPR), the fourth-largest producer of wind and solar energy globally, and EDP Renewables North America (EDPR NA), a wholly-owned subsidiary headquartered in Houston, Texas, is scaling up its ambition to lead the energy transition by pushing its investment plan and targets further in the updated Business Plan 23-26, presented on March 2, 2023, in London. In a context in which climate emergency and security of supply are ever more preeminent, the group will increase its global investment to 25 billion euros to boost renewables, reinforce its position in electricity networks and support its clients in the transformation to a more sustainable world.

The 23-26 Business Plan will support EDP’s net zero commitments and follows a selective and disciplined approach, allocating 85% of the total investment to renewables, clients, and energy management and 15% to electricity networks across fast-growing and low-risk markets in 4 regional hubs: Europe (40% of the investment plan), North America (40%), South America (15%) and Asia-Pacific (5%). EDP’s yearly investment rate will increase by 30% to 6.2 billion euros while maintaining sustainable growth and ESG excellence within a future-proof organization.

  • €25 Bn investment plan: €21 Bn focused on Renewables and €4 Bn focused on electricity networks, representing an annual gross investment of ~€6.2 Bn – 30% higher versus the previous Business Plan
  • Renewables deployment to increase to 4.5 GW per year, totaling 18 GW gross additions by 2026, aiming to a renewables installed capacity of 33 GW by 2026 and with the ambition to reach more than 50 GW by 2030
  • Renewables investments diversified by technologies including Wind Onshore (40%), Solar PV Utility Scale (40%), Solar Distributed Generation (12%), Wind Offshore (5%), and Storage & Hydrogen (3%)
  • We are leveraging our superior portfolio and infrastructure as a competitive advantage for increased renewables deployment based on hybridization and repowering
  • €3Bn investment in digitalization and innovation to foster efficiency and a sustainable growth
  • Reiterated commitment to be coal-free by 2025, 100% renewables generation by 2030, with a Net Zero emissions target by 2040 (SBTi approved)
  • Future proof organization creating 3000 new jobs by 2026 and communities’ empowerment through a €200m investment in social impact initiatives
  • Reiteration of BBB credit rating commitment, FFO/Net Debt of 21% in 2026
  • Recurring EBITDA of €5.7 billion by 2026, with a 6% CAGR in 2022-26
  • Recurring net income €1.4-€1.5 billion by 2026, with 12%-14% CAGR 2022-26
  • New dividend policy, with a target payout ratio between 60-70% and an increase in dividend floor to €0.20 per share in 2026


“Today, we ramp up our ambition to lead the energy transition supported by a competitive and resilient portfolio, strong financials, an empowered team, and the will to contribute to a climate-positive world for the coming generations. This Business Plan reinforces our growth ambition while pushing even further our commitment to the planet and creating superior value for all”, says Miguel Stilwell d’Andrade, EDP’s CEO.

Investment plan combines conventional and emerging technologies

Onshore wind and solar utility scale will each account for 40% of the 21 billion investment plan in renewables, complemented by emerging technologies such as solar distributed generation (12%), storage, and hydrogen (3%). Offshore wind will represent 5%, with capacity scaling up through the joint venture Ocean Winds and providing significant visibility on growth over the next 10-15 years. A diversified renewables technology mix that is strengthened and supported by a hydro portfolio with a strong cashflow generation profile while also providing flexibility and storage capabilities.

On the electricity networks segment, for which a 4 billion euros investment plan is compromised, EDP will continue growing and diversifying its portfolio, acting as a stabilizer for the group. The updated business targets include reaching 400 thousand kms of distribution lines, 9 million smart meters (+500 thousand vs. 2022), and 12 million connection points (+2.5 Mn vs. 2022).

The updated Business Plan will also leverage customer franchise to accelerate growth and value creation, focusing on a cross-selling offer strategy that combines multiple client solutions such as solar distributed generation, corporate PPA, electric mobility, services, energy efficiency, demand side flexibility, and storage.

Innovation and digitalization will remain at the core of our strategy, driving change and accelerating the energy transition with a reinforced investment of 3 billion euros by 2026.

Net zero targets recognized, and 3000 new hires

EDP will continue laying the path for a better tomorrow through its target to become net zero by 2040 across all scopes and evolve the entire value chain, from clients to partners. The Science Based Target Initiative (SBTi) has recently validated this commitment, which recognized EDP’s best practices in climate action in total alignment with the science-based 1.5ºC temperature mitigation target. It’s an ambitious target that reinforces EDP’s global positioning on ESG strategy and in building a more sustainable planet.

EDP’s people – more than 13.000 employees around the globe from 63 different nationalities – drive and diversity uphold the group’s ambitious targets. The updated Business Plan foresees 3000 new hires by 2026 to a net total of 14.000 employees. The objective is to reach 31% of women in leadership positions, basing the talent strategy on attraction, experience, and development and renewing its recognition as a top employer across the regional hubs.

EDP will also continue to empower communities for an active role in the energy transition, protecting the planet for the coming generations and engaging its partners for an impactful transformation. The group will invest up to 200 million euros in social impact initiatives by 2026.

Strong financials with improved shareholder remuneration

EDP will leverage its distinctive asset rotation model to crystalize value and further empower growth. Following a 20 billion euros asset rotation track record in the last decade, the group expects to reach 7 billion euros in proceeds and capital gains by 2026. And at the same time, it remains fully committed to a strong BBB rating which will structurally support the investment cycle ahead and maintain a strong liquidity position covering refinancing needs beyond 2025.

The group is also committed to delivering superior value through sustained earning per share (EPS) growth and a solid dividend policy with an increased floor for shareholders. With the recurring net income expected to reach 1.4-1.5 billion euros by 2025, the dividend per share (DPS) floor will gradually increase from 0,19 to 0,20 euros, while the target pay-out will be revised to 60-70%. EDP Renewables improved its dividend policy to a 30-50% pay-out ratio through a scrip dividend, providing a flexible and competitive remuneration to its shareholders, aligned with the market.

Capital raises to support growth ambition

To promote corporate structure simplification, EDP announced today the launch of a 100% tender offer over its listed subsidiary EDP Brasil, 56.05% (consolidates 57,55%) owned, to acquire the shares held by the minority shareholders. To finance the tender offer, EDP intends to raise equity, through the increase of share capital, in an amount of €1 billion. The launch and completion of this transaction will be subject to corporate approvals and favorable market conditions being met.

EDP already has the commitment of CTG, ADIA and GIC in an aggregate amount of up to €0.6 billion, subject to final market terms. The delisting of EDP Brasil is expected to be concluded in the second half of 2023.

Brazil is a sizable market with solid fundamentals and energy transition opportunities, where EDP will continue to focus on networks and renewables through a portfolio reshuffling. Since 1995, EDP Brasil has grown to 2 electricity distribution concessions with 3,8 million clients, transmission lines with over 2 thousand kms, and 2GW of hydro capacity. EDP Renewables Brazil, founded in 2009, has 1.1 GW of renewables in operation. This operation will strengthen the focus on renewables and network segments, reducing the exposure to hydro and exiting from thermal.

Simultaneously, and to partially finance its updated investment plan, EDP Renewables intends to raise equity and entered into an investment agreement with Lisson Grove Investment Pte Ltd, an affiliate of GIC Pte Ltd., Singapore’s sovereign wealth fund and a leading global long-term investor, in which the latter committed to subscribe c.€1.0 billion worth of new shares in a capital increase. The commitment by GIC to subscribe shares in EDPR shall be subject to the decision of EDPR to launch the transaction at an appropriate time vis-à-vis market conditions.

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About EDP Renewables North America:

EDP Renewables North America LLC (EDPR NA), its affiliates, and its subsidiaries develop, construct, own, and operate wind farms and solar parks throughout North America. Headquartered in Houston, Texas, with 58 wind farms, nine solar parks, and eight regional offices across North America, EDPR NA has developed more than 8,800 megawatts (MW) and operates more than 8,200 MW of onshore utility-scale renewable energy projects. With more than 950 employees, EDPR NA’s highly qualified team has a proven capacity to execute projects across the continent. For more information, visit

About EDP Renewables:

EDP Renewables (Euronext: EDPR) is the fourth-largest renewable energy producer worldwide with a presence in 28 markets across Europe, North America, South America, and Asia Pacific. Based in Madrid and with main regional offices in Houston, São Paulo, and Singapore, EDPR has a robust development portfolio with first-class assets and a market-leading operational capability in renewables. These include wind onshore, utility scale and distributed solar, wind offshore (through its 50/50 JV – OW) and technologies complementary to renewables such as batteries and green hydrogen.


EDPR’s employee-centered policies resulted in its recognition as a Top Workplace 2022 in the United States, Top Employer 2022 in Europe (Spain, Italy, France, Romania, Portugal, and Poland) and Brazil, as well as its inclusion in the Bloomberg Gender-Equality Index.


EDPR is a division of EDP (Euronext: EDP), a leader in the energy transition with a focus on decarbonization. Besides its strong presence in renewables (with EDPR and hydro operations), EDP has an integrated utility presence in Portugal, Spain, and Brazil including electricity networks, client solutions, and energy management. EDP – EDPR’s main shareholder – has been listed on the Dow Jones Sustainability Index for 14 consecutive years, recently being named the most sustainable electricity company on the Index.


EDP Capital Markets Day Event Photo
EDP at Capital Markets Day Event in London on March 2, 2023

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