(Reuters) – Portugal’s largest utility, EDP (EDP.LS), on Thursday said it would invest 25 billion euros ($27 billion) over four years with the aim of nearly doubling its installed renewable energy capacity to 33 gigawatts (GW) by 2026.
In its strategic plan through 2026, EDP said 21 billion euros would be invested by its wind and solar unit EDP Renovaveis (EDPR.LS) – the world’s fourth-largest renewable energy producer – and 4 billion euros would be directed towards electricity grids.
This would increase average annual investment to 6.2 billion euros, 30% above what it projected in a previous plan that ran to 2025.
“This plan represents a clear commitment to the energy transition, through an acceleration of investment and sustainable growth,” EDP said in a statement.
More than 90% of the investment would be in onshore wind and solar, with the rest going to offshore wind, batteries and hydrogen. As of December, EDP had installed capacity of 18 GW.
EDP said it would maintain its focus on “core low risk markets” and expected North America to have 7.4 GW in new renewable capacity by 2026, while Europe would have 5.6 GW.
It also plans to install 2.2 GW of new capacity in South America and 1.2 GW in the Asia Pacific region, through Singapore-based renewables subsidiary EDPR-Sunseap.
The company expects recurring profit to grow at a compound annual growth rate (CAGR) of between 12% and 14% to reach between 1.4 billion and 1.5 billion euros by 2026, while seeing its recurrent earnings before taxation, depreciation and amortisation (EBITDA) growing at 6% a year to 5.7 billion euros.
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It said EDPR (EDPR.LS) intends to raise 1 billion euros through a share sale to fund part of the investment.
Lisson Grove Investment, an affiliate of Singapore sovereign wealth fund GIC, has committed to subscribe to the issue at a price between 19.25 euros and 20.5 euros per share, EDP said.
EDPR shares jumped 2.8% to 19.89 euros in morning trade.
Reuters reported on Tuesday that EDPR has been sounding out investors, including sovereign wealth funds, to take a stake in the company to help finance its push for green growth.
($1 = 0.9399 euros)
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