Investor Presentation
March 2024
www.edpr.com
Ávila Hybrid Spain
Agenda
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Our Sector
EDP Group Vision
EDPR at a Glance
Our Strategy
FY23 Results & Updates
Appendix
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Our Sector
Our Sector
The energy transition is ever more pressing to address climate change…
in 2022…
5th | Record high |
warmest year since 1880 | CO2 emissions |
8 ocean stations | Antarctic Sea ice |
observed water levels at an | reached its |
all-time high | lowest min. extent |
+100m | +100,000 ha |
people living in coastal areas at high risk of rising sea levels
of forest burnt in Europe in a given week vs. long-term average 2006-21
Source: NASA, World Economic Forum, EUMETSAT, US National Ocean Service, Copernicus | 4 |
Our Sector
- and is further reinforced by the need for endogenous, affordable and reliable energy
Shifting global dynamics…
Decrease in gas flows
~50% reduction of Russian gas flows to Europe, driven by ongoing conflict1
Increase in energy prices
~7x increase in wholesale prices in Europe3 , ~3x in the US2,3
Rising inflation and interest rates
7-8pp increase in inflation rate in Europe and the US from 2020 to 2022 bond yields in the Eurozone and the US, respectively3
Supply chain challenges
97% of global solar wafers coming from China (evaluating a tech export ban)
Increasing CAPEX costs
20-30% CAPEX/MW increase estimated for 2023-26 vs. 2020-214
… further emphasize the need for
(Clean) Energy independence
Affordable energy
Reliable supply chains
1. vs. 2021 | 2. Data for Indiana Hub RT Peak (MISO price hub) | 3. vs. 2020 | 4. Europe and US, considering Solar Utility Scale and Wind Onshore
Source: EURACTIVE, Ember, IEA, Eurostat, US Federal Reserve Bank of St. Louis, WoodMackenzie, Press search | 5 |
Our Sector
Many reactions came with unprecedent strategic commitments to accelerate the energy transition
Change is already happening...
Inflation Reduction Act
> $400bn in climate spending to reduce emissions >40% by 2030
Expansion and extension of PTCs and ITCs with 10+ years of full- value credits visibility, adjusted for inflation
New tax credits implemented for clean hydrogen (up to $3/kg tax credit) and storage (eligible for ITCs for the first time)
REPowerEU
>€200bn in grants by 2027 to achieve 45% RES generation and x2.5 RES capacity (vs. 2021) by 2030
Green Deal Industrial Plan & Market Design reflection
Predictable and simplified regulatory environment (access to funding, skills, and open trade for resilient supply chains)
The Wind Power Action Plan
Improve & simplification of auction's design, digitalization commitments, action plan on grids & ensure fair market standards
… with existing challenges being addressed
Long-term, predictable
policy frameworks
Simplified, effective
administrative procedures
United Nations Net Zero by 2050
Unprecedented and structural tailwinds for the energy transition
APAC Net Zero Path | Larger scale grid |
Increasing commitments, with RES generation targets scaling up | interconnections |
Source: IRA, European Commission, Press search | 6 |
Our Sector
Triple renewables capacity between 2022 and 2030 is required to reach the 1.5oC target
+50%
EU recommends net | At the core of the |
greenhouse gas emissions | |
90% reduction by 2040, | energy transition |
compared to 1990 levels |
90%
EU recommends net
greenhouse gas emissions 90% reduction by 2040, compared to 1990 levels
Upwards revision targets 2023-27
Including key markets where we are present: Germany, Brazil & US
US Grid connection | |
Offshore | improvements |
FERC released to reduce | |
Auctions | |
interconnection queue backlogs, | |
Upward revision of expected | creating strict timelines |
auction prices in UK & US |
Data source: International Energy Agency and US Federal Energy Regulatory Commission | 7 |
EDP Group Vision
EDP Group Vision
EDP Group - Segments fully aligned with energy transition
We are an energy transition leader, creating superior value for all stakeholders
Distribution &
Transmission <€5.0bn €7.0bn €7.5bn ~€8.0bn
Networks RAB
100% | ||
93% | ||
Renewables | 74% | |
Generation | 60% | >50 GW |
33 GW
Renewables | 22 GW | |||||||
Installed Capacity | ||||||||
EBITDA + Equity | 11 GW | 4.8 GW | ||||||
Average Gross | <0.7 GW | 2.4 GW | ||||||
Additions | ||||||||
2011 | 2012 | 2021 | 2022 | 2025 | 2026 | 2027+ | 2030 |
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EDPR at a Glance
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Disclaimer
EDP Renovaveis SA published this content on 18 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 March 2024 21:30:36 UTC.