EDP expects to invest €24B in energy transition up to 2025
The company disclosed this Thursday its strategic plan for the next four years.
EDP plans to invest 24 billion in the energy transition by 2025, according to the strategic plan update sent to the market regulator on Thursday. The Portuguese company aims to be 100% renewable by 2030. Net income is expected to grow 8% per year and will be distributed to shareholders as dividends.
“EDP has updated its strategic plan for the period 2021-2025, which will strengthen its position as a leader in energy transition with an unprecedented investment plan,” the company announced in a statement, adding that “in four years, 24 billion euros will be invested in the energy transition. 80% of this amount will be invested in renewable energy, through various technologies – wind, solar, green hydrogen and energy storage.”
With the development of 4GW per year, the company’s solar and wind capacity is set to double by 2025. “This new plan will pave the way for the company to become carbon neutral by 2030,” explained EDP.
The focus on renewables will be the growth engine of the company’s activity and results. After having ended 2020 with a net profit of 801 million euros, EDP is anticipating an increase of 8% on a year-over-year basis, reaching 1 billion euros in 2023 and 1.2 billion euros in 2025. From this, the company expects to distribute between 75% and 85% in dividends to shareholders (at a minimum of €0.19 per share). The target is therefore unchanged from the previous strategic plan.
