EDPR’s core strategy is based on three main pillars: focused growth, controlled risk and superior profitability. in addition to this broad guiding strategy, EDPR has engaged in a number of strategic initiatives that focus on benefiting from important market trends affecting the renewables market. the swift execution of these strategic initiates is vital for maintaining edPr front-runner status and shaping edPr’s tomorrow.
SECURING VISIBLE CASh-FLOW FROM ThE INSTALLED ASSET BASE
Ensuring that EDPR’s current portfolio generates stable cash- flow throughout its lifetime is critical for the sustainability of our business model. Achieving this objective involves ensuring a low risk approach to market exposure, with assets under long- term regulatory frameworks or PPAs. In addition we target the highest standards in operational efficiency, maximizing output, with top-class availability and a continued improvement in Opex metrics. Achieving these goals is a cornerstone for EDPR’s success.
ShIFTING GROWTh INTO EMERGING WIND MARKETS AND NEW TEChNOLOGIES
As an early entrant in many of its 11 current geographies EDPR has developed core competences that allow it to successfully enter other promising wind markets. The entry into some of its current growth markets such as Poland and Romania is testament of this capacity. EDPR’s objective is to extend this process with entry into new emerging wind markets that are expected to fuel its future growth.
The development of new technologies to further diversify EDPR’s portfolio and provide additional growth avenues is a key objective of the company. EDPR focuses on investing in mature competitive renewable technologies with high growth potential. The first steps of this strategy have been achieved with its first solar PV projects, in Romania.
EDPR has implemented a new asset rotation strategy aimed at crystallizing the value generated through the de-risking of the project and recycling cash. This strategy consists of selling minority stakes of operating assets to interested investors. In the process EDPR is able to realize the value created during the, riskier, development and construction phases of the project. The proceeds generated from the sales can then be used to reinvest in new projects or other value accretive uses. During 2012, EDPR has already been able to successfully complete two assets rotation transaction involving US and Portuguese assets.