EDP shifts Brazil renewables into local subsidiary

EDP announced it will integrate EDP Renewables’ operations in Brazil into its wholly owned local subsidiary EDP Brasil, in a portfolio reshuffle that will allow EDPR to focus on markets with stronger growth potential. The move changes the group’s exposure in Brazil and sharpens EDPR’s focus on higher-rated markets in the US and Europe.

In a statement filed with Portugal’s securities market regulator CMVM, EDP said it had agreed for EDP Brasil to acquire 100% of EDP Renováveis Brasil, which is currently owned by EDP Renewables. EDP owns 71.3% of EDPR and 100% of EDP Brasil.

The company said the equity value of EDPR Brasil in the deal is about 4.1 billion reais, or roughly €0.7 billion using an exchange rate of 6.0 reais per euro, subject to customary adjustments until closing, which is expected by the end of 2026. It said the transaction implies an enterprise value of about €1.5 billion.

EDP said bringing generation, trading and electricity supply together under EDP Brasil would strengthen the group’s agility, competitiveness and risk management in Brazil’s free electricity market, which it said is developing as smaller companies and retail segments are “gradually liberalised”.

In a separate statement, EDPR said it has 1.8 gigawatts of installed capacity in Brazil, including 1.1 GW of onshore wind and 0.7 GW of utility-scale solar. It added that, “given limited market prospects for new renewables projects in Brazil”, its 2026-2028 business plan did not include capacity growth there.

EDPR said the transaction would increase the share of EBITDA coming from A-rated growth markets for wind, solar and batteries to more than 95% from about 90%, mainly in the US and Europe, while also supporting greater financial flexibility.

Originally published at Eco.pt