Madrid-headquartered EDP Renovaveis (EDPR) mentioned in the present day (Wednesday) its internet revenue shrank 50% to €309m ($334m) in 2023, because of the influence of decrease power costs on falling revenues
EDPR, which is managed by Portugal’s EDP group, mentioned its energy era elevated 4% in 2023, averaging 34.6TWh, and the corporate added 2.5GW extra renewables capability.
However annual revenues of €2.24bn had been nonetheless 6% decrease than the earlier yr reflecting decrease costs in Europe, in comparison with 2022’s extraordinary ranges.
The promoting worth for EDPR’s electrical energy fell 6% from the earlier yr earlier to common €61MWh in 2023, the corporate acknowledged.
EDPR, which is ranked as one of many prime 5 wind energy producers on the planet, additionally reported that output from its US wind portfolio was negatively impacted by El Nino climate patterns.
The corporate booked €460m from divestments on three wind farm property in Spain, Poland and Brazil, totalling 700MW of capability, with €1.7bn proceeds together with €460m positive aspects, however monetary returns had been offset by the general decline in revenues.
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Acquisitions within the yr included a 49% minority curiosity in 1GW-capacity of working onshore wind farm property in Europe for €570bn.
The 1.7GW of recent renewables capability that was added within the ultimate quarter of a 2023 alone was described as a file, and the corporate mentioned it expects to put in one other 4GW in 2024.
Its put in capability reached 16.6GW on the finish of 2023, breaking down into 1GW of onshore wind and 1.5GW of photo voltaic.
In photo voltaic power, EDPR highlighted its progress in diversifying its provide chains for Europe and the US, with 9 totally different suppliers.
Wind points
In offshore wind, by way of the Ocean Winds three way partnership, EDPR described 2GW of tasks beneath development in France and UK, together with 1.7GW beneath superior growth in Poland and the US.
The principle impairment reported was a €178m hit in Colombia for wind undertaking delays, though €10m for the cancellation of the PPA for the SouthCoast offshore wind farm within the US was additionally talked about.
The delays on Colombia’s 500MW Alpha & Beta wind farm was described as referring to consultations with indigenous communities and renegotiation and arbitraiton points affecting the 15-year PPAs in query.
In an earnings name with analysts, EDPR CEO Miguel Stilwell d’Andrade mentioned environmental permits are anticipated to be in place for the Colombian undertaking round October, and he added the Vestas generators that shall be used on the Colombian wind farm are already within the nation.
On SouthCoast, the corporate mentioned it’s analyzing a possible bid into first multi-state PPA public sale within the US, which was delayed to 27 March.
On Poland’s Baltic Sea BC-Wind undertaking, EDPR mentioned it had received approval for the connection of an 101MW of capability for a complete of 500MW.
Capability additions in 2023 had been evenly break up between onshore wind and photo voltaic photovoltaic, with Europe and North America representing 76% of the full.
EDPR’s earnings earlier than curiosity, taxes, depreciation and amortisation (Ebitda) had been reported as €1.83bn in 2023, down 15% from the earlier yr.
“We all know that 2023 was difficult. We are going to proceed to face some challenges in 2024, however we’re working by way of these points, and we now have a really clear view of the headwinds and the best way to resolve them,” mentioned Stilwell d’Andrade.
“We’re working very laborious to ship the 4GW (pipeline). We are going to preserve our eye on the ball, and deal with medium and long run targets. We’re not anticipating an excessive amount of from the primary quarter, however we predict some restoration over course of the yr.”
