Portugal’s state-owned power company EDP has announced in a filing with the Portuguese Securities Market Commission that its strategic update for 2019-2022 will include more investment in renewables and a plan to dispose of conventional generation assets.
The statement was made by the company after Reuters reported EDP was preparing a sale of generation assets and the ECO website said the utility could invest up to €7 billion in new renewable energy projects.
EDP said more details would be given in a presentation to the market in London today. Reuters reported the plan to divest generation assets in Portugal was down to a campaign by activist investor Elliott Management, which is opposing state-owned Chinese power company the China Three Gorges Corporation’s bid to acquire EDP.
The Iberian power company in May rejected an offer of €3.26 per share which was made by Three Gorges’ European unit and which, according to Reuters, would have valued the deal at $10.8 billion. “The price offered does not adequately reflect the value of EDP and … the implied offer premium is low, considering what is customary for European utilities where the offeror has acquired control,” EDP reportedly said at the time.
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The utility’s strategy to expand its renewable energy business – thus far mainly focused on wind – includes investment in storage, solar, off-grid and hybrid wind-solar projects.
EDP’s power generation assets in Portugal meet approximately 90% of the country’s electricity demand. Globally, the utility’s total installed generation capacity stood at around 26.8 GW at the end of 2017.
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