EDP Renováveis (EDPR) Status Update summary

Decision to halt Colombian wind projects

• Investment in Alpha and Beta wind projects in La Guajira, Colombia will not proceed due to ongoing delays, increased risks, and risk-return misalignment.

• Key issues included repeated delays in transmission line permits, complex Indigenous community consultations, and regulatory changes.

• Projects required an 81 km transmission line, with environmental license now expected in February 2025 after full community protocolization.

• Despite advanced development, renegotiated PPAs, and stored turbines, financial viability was undermined by inflation, currency devaluation, and legislative changes.

• COVID-19 lockdowns and new government consultations contributed to delays, with over 80% of committed energy suspended for more than two years.

Project overview

• La Guajira wind projects had a net capacity factor of 53% and expected annual generation of 2.5 TWh.

• Total capacity was 504 MW, with 90 Vestas V162-5.6MW turbines stored at port.

Financial impact and accounting

• Estimated losses could reach up to EUR 0.7 billion at EDPR level, including EUR 0.5 billion impairment and EUR 0.2 billion in future liabilities.

• Net profit impact at EDP level is about EUR 0.5 billion after minorities.

• Losses will be treated as non-recurring, with no impact on recurrent net income or dividend policy for EDPR and EDP shareholders.

• 2024 net profit impact is expected to be EUR 70 million at EDPR level, with no further P&L impact expected in 2025.

• Strong capex inflation since 2019, with an additional ~€0.4bn needed for completion.