EDP charts expansion outside Iberia

SPAIN: EDP renewables this week unveiled plans for expansion beyond Iberia into other wind markets and offshore technology up to 2015.

by Richard Weyndling 24 May 2012

The move comes amid a backdrop of poor growth prospects in an Iberian market blighted by the suspension of feed-in-tariffs.

EDP’s partnership with China Three Gorges group (CTG) is crucial. CTG officially bought 21% of EDP’s shareholding on May 11.

CTG will acquire €2 billion of minority stakes in current assets which, along with €3.8 billion cash-flow from operations and a potential €1 billion from project finance. This will give EDP significant investment capital for new projects.

The growth plan projects an extra 2.3GW of wind capacity up to 2015, with 60% coming in established growth markets such as Poland, Romania and Brazil and another 12% in promising new markets such as Italy, France, Belgium, Mexico, Turkey and Morocco.

EDP says it is tracking several EU offshore projects  but wants to "avoid the early entrant risk in a still non-mature technology".