EU push towards renewable energy should be visible within a year, says EDP Renováveis

  • ECO News
  • 27 July 2022

"You are already seeing governments taking concrete steps to simplify" the licensing of renewables since the European Commission launched the Repower EU programme, says EDPR's CEO.

Miguel Stilwell de Andrade, CEO of EDP and EDP Renováveis, believes that within 12 to 18 months concrete results of the effort made to speed up the licensing of renewable energy at the European level should be noticed.

The head of the company explained, on a call with analysts regarding EDP Renováveis’ H1 results, that “we are already seeing governments taking concrete steps to simplify” the licensing of renewable energy, since the European Commission launched a programme that motivates this: the Repower EU.

Portugal was one of the examples given, after having launched last week, and intended for public consultation, a plan for the simplification of environmental licensing. However, the dynamism is also felt beyond borders, he guarantees. “If we go country by country, some have not yet made it public, but I would say that almost all of them are talking to associations and companies” in order to launch their acceleration plans.

Given the current movements, within a year to 18 months, Stilwell de Andrade expects acceleration plans to already proliferate and projects that, as such, between 2024 and 2025 there will already be “further growth” in implementing renewable projects resulting from this. “I don’t think I’m being too optimistic. It seems like a reasonable timeframe,” he said.

Rise in interest rates does not worry EDP Renováveis

“We are seeing interest rates going up but energy prices are also going up. They are offsetting each other, or more than that, with some geographies,” said Miguel Stilwell de Andrade, also assuring that “there is good demand and good valuations for the assets.”

EDP Renováveis saw its net debt rising in 2022, which totalled €5.23 billion at the end of June, an increase of €2.3 billion compared to December. However, the CEO expects this upward trend to normalise by the end of the year.

In terms of acquisitions, the CEO does not expect to make “anything as big as Viesgo” in the near future. The company expects €300 million in earnings from the asset rotation planned for this year, with “two transactions closed, one signed and other deals under negotiation.”

EDP Renováveis increased profits by 87% to €265 million in the first half of the year, a result that compares with gains of €142 million recorded a year ago.