EDPR Reports 5% Growth in Renewables Production

• EDPR's renewable output hit 26.5 TWh in 2024, despite challenges from low winds in Brazil. With new solar capacity underway, growth momentum is set for a strong finish!

EDP Renovaveis SA (EDPR) reported a 5% year-on-year increase in renewable power production, totaling 26.5 TWh in the first nine months of 2024. Despite this growth, generation was hindered by below-average wind resources, particularly in Brazil, and some curtailments in the U.S. and Spain. The company anticipates most new capacity to be commissioned in the last quarter of the year.

In the regional breakdown, the U.S. experienced a significant 15% increase in production, while Brazil and Chile saw a 30% decline. During this period, EDPR added 1.3 GW of new solar capacity, mainly in North America, and currently has 4.1 GW under construction worldwide.

What factors impacted EDPR's renewable power production despite a year-on-year increase?

Here are the factors that impacted EDPR's renewable power production, despite a year-on-year increase:

• Weather Conditions: Unfavorable weather patterns, particularly below-average wind resources, significantly impacted production, especially in Brazil, where wind energy generation is critical.
• Geographical Variability: Different regions experienced varying degrees of renewable resource availability. While the U.S. showed a 15% production increase, Brazil and Chile faced considerable declines, illustrating the importance of local climatic conditions.
• Operational Constraints: In some countries, particularly the U.S. and Spain, operational curtailments took place, which limited the effective use of existing renewable resources, causing delays in energy generation despite increased capacity.
• Regulatory Environment: Changes in local and national regulations can influence operational efficiency. In regions with stringent regulations or delays in permitting, projects may experience slower ramp-up times or operational hiccups.
• Infrastructure Challenges: The transmission infrastructure may face limitations in capacity, affecting the ability to transmit generated power to end-users effectively. This can lead to excess generation that cannot be utilized.
• Market Demand Fluctuations: Variability in market demand for energy can affect how much renewable energy is prioritized or utilized, especially in regions where renewable energy is not the default or priority source.
• Maintenance and Technical Issues: Scheduled maintenance or unexpected technical failures can disrupt generation, even if the installed capacity has increased.
• Investment and Development Cycles: The timing of investments in new facilities and the construction timelines of renewable projects could lead to variations in production capacity from one year to the next.
• Economic Factors: Inflation, supply chain disruptions, or economic downturns can impact the operational costs and viability of renewable energy projects, potentially stalling production increases.
• Growth Strategy Priorities: As EDPR anticipates most of its new capacity to come online in the last quarter of the year, production increases are often contingent upon strategic planning and execution of expansion projects, which may not yield immediate results.

By analyzing these factors, one can understand the complexities that influence renewable energy production levels, even in the face of overall growth.