EDP Expands Solar Portfolio with Brazil Acquisition

• EDP strengthens its Brazilian footprint with a BRL 218 million solar acquisition, aiming for 500 MWp capacity by 2026. Bright future ahead as construction begins!

EDP - Energias de Portugal SA has acquired 44.3 MWp of solar distributed generation parks in Brazil for BRL 218 million (approximately USD 37.5 million). The purchase, made from Brazilian solar company Grupo Tangipar, includes 16 solar assets located across the states of Bahia, Mato Grosso, Mato Grosso do Sul, and Paraná. Of these assets, five are operational, while the remaining eleven are under construction, expected to be completed by 2025.

This acquisition advances EDP’s goal of reaching around 500 MWp of installed capacity by 2026, as it currently holds 258 MWp. The deal is pending approval from Brazil's antitrust regulator, CADE.

How does EDP's acquisition of solar parks impact its 2026 capacity goals?

EDP's recent acquisition of solar parks in Brazil is a strategic move that aligns with its broader capacity goals for 2026. Here are additional insights into how this acquisition impacts its plans:

• Increased Capacity Towards Target: With the acquisition of 44.3 MWp of additional solar capacity, EDP is incrementally moving closer to its target of 500 MWp by 2026, increasing its current capacity from 258 MWp to 302.3 MWp.
• Strengthening Portfolio Diversity: The diverse geographical distribution of the solar assets across Bahia, Mato Grosso, Mato Grosso do Sul, and Paraná allows EDP to leverage different regional solar markets, enhancing the resilience of its portfolio.
• Operational vs. Under Construction Assets: The inclusion of five operational assets immediately boosts capacity, while the eleven assets under construction are expected to contribute significantly to future capacity, enhancing EDP's growth potential in the coming years.
• Renewable Energy Commitment: Acquiring solar parks reinforces EDP's commitment to renewable energy, aligning with global trends towards sustainable energy practices and responding to increasing demand for clean energy solutions.
• Financial Implications: The acquisition cost of BRL 218 million (USD 37.5 million) underscores EDP's investment strategy in renewable assets, aiming for long-term capital growth through sustainable energy investments.
• Regulatory Approval Considerations: The pending approval from Brazil's antitrust regulator, CADE, emphasizes the need for compliance and strategic navigation of regulatory frameworks, which could affect the timing and availability of these new assets.
• Market Positioning and Competitiveness: Enhancing solar generation capacity enhances EDP's market positioning in Brazil, providing a competitive edge in a rapidly growing renewable energy sector, especially as countries push for decarbonization.
• Future Growth Trajectory: Meeting or exceeding the 500 MWp target could unlock further investment opportunities for EDP, as demonstrating a solid track record of capacity growth may attract additional funding and partnerships in future renewable projects.
• Contribution to Climate Goals: By expanding its solar capacity, EDP makes a significant contribution towards national and global climate targets, helping reduce greenhouse gas emissions through enhanced renewable energy production.
• Job Creation and Local Economy Impact: The construction and operation of solar parks can stimulate local economies and create job opportunities, which may further enhance EDP's reputation and community relations in Brazil.

In summary, EDP's acquisition is a crucial step in its transition towards a more significant renewable energy footprint and aligns with its strategic capacity goals for 2026.