EDP to divest in hydro and coal fired energy in Brazil by 14% to 2026 despite mulling takeover bid or EDP Brasil

 In EDP, Energy, News, Renewables

Portugal’s energy giant EDP plans to reduce its interests in Brazil  from is current 25% in EDP Brasil to 14% by 2026 according to the company’s new strategy plan to 2026.

EDP’s focus will now be more on electrical energy networks while reducing its interests in hydroelectric and coal-fired energy by rotating assets and selling off dams.

One probable divestment involves the Pecém thermal power station which has lost €130 million and was put down as an impairment in EDP’s accounts for 2022. The company is concerned about uncertainties in relation to the future of the 720 MW coal-fired power station.

EDP’s goal is to be 100% green by 2030 and offload its coal-fired assets by 2025 even though this coal-fired power station in Ceara has an operations licence to 2044 and an energy sale contract until 2027.

According to the business title Negócios, even if this is not really a divestment by EDP in the Latin American market – Brazilian analysts are arguing that a possible take-over bid (Public Acquisition Offer (OPA) for a possible 100% of EDP Brasil would increase the company’s focus in the country – one thing is certain: EDP has clear plans to reorganise its portfolio of assets in Brazil, reducing its interests in hydro-powered and coal-fired stations, and shifting its focus on solar and wind energy and grid networks.

“Brazil is a huge market with solid bases with several opportunities for energy transition where EDP will continue to invest in renewable energy by reorganising our portfolio”, states the company that plans to invest €5.6 million in the country over the next five years.