News

EPD’s Conservative Pivot: A New Strategy for the Era of Expensive Capital

In recent days, EDP (Energias de Portugal) announced a €12 billion strategic plan for 2026–2028, marking a clear transition: from a company focused on “growth at any cost” to a utility centered on profitability and stability.

This new approach prioritizes consolidation, deleveraging, and predictable returns, aligning with today’s environment of higher interest rates and tighter capital availability. It’s a strategic shift that embraces the principle of “value over volume.”

The American Pivot: Powering the AI Era

Of the €7.5 billion allocated to EDP Renewables (EDPR), roughly 60% will be invested in the United States — a €4.5 billion commitment to solar and energy storage (BESS) projects.

This strategic decision reflects two key growth drivers:

• The Inflation Reduction Act (IRA), which ensures long-term tax incentives for clean energy;

• The surging energy demand driven by Artificial Intelligence and data centers, expected to double by 2030.

EDP aims to position itself as a key supplier in this new frontier of clean, reliable electricity, reshaping its portfolio to meet 24/7 energy demand, a crucial requirement for major tech players.

Value, Stability, and Dividends

The plan emphasizes reducing net debt to around €15 billion by 2028 and strengthening its credit rating (BBB). The target FFO/Net Debt ratio is set to improve from 19% to 22%, reinforcing a more conservative financial profile.

Even with a moderate net income growth of 6–8%, the focus is clear: ensuring financial sustainability and consistent shareholder returns, including a 5% increase in the dividend floor by 2028.

A Strategic Slowdown

Compared to the previous plan (2023–2026), which envisioned €25 billion in investments and 4.5 GW/year of new renewable capacity, the new roadmap scales back to €12 billion and approximately 1.7 GW/year.

This “slowdown” reflects a conscious adjustment to a new macroeconomic reality — higher capital costs and the need for financial discipline.

Conclusion: A Prudent Strategy for a New Cycle

EDP is trading volume for value, and doing so deliberately. By focusing on the U.S. market and adopting a more solid and predictable model, the company aligns itself with the global shift toward resilient, defensive utilities.

Despite the market’s initial reaction, the plan signals maturity: less speculative growth, greater financial sustainability, and a focus on markets with high demand and regulatory stability.

In this new era of expensive capital, EDP is betting on discipline, predictability, and strategic intelligence — a path that may redefine the role of European utilities in the global energy transition.

UGREEN

This Is Your Chance to Lead the Sustainable Transformation

There are moments when it’s not enough to follow the future — you need to lead the change.

The UGREEN Pre–Black Friday has officially started, and BATCH1 is now live!

Get lifetime access to ALL complete UGREEN courses on sustainable architecture, urbanism, and construction — under a truly unique condition. An offer never seen before in our 9 years of history.

• 30+ complete courses

• UGREEN Methodology: from theory to real-world application

• International certifications, comfort, performance, and measurable impact

BATCH1 is already active, but be aware: prices increase weekly as new lots open. So, the sooner you secure your access, the better the deal!

Get your access now!

Join the exclusive WhatsApp link and make the most of the UGREEN Pre–Black Friday.

UGREEN

The Live Event for Those Who Want to Build a Sustainable Future

On November 13 (next Thursday), at 12 p.m. (BRT), we at UGREEN will open the doors to our methodology in a strategic technical live session.

And you’re invited to join us! It’s a 100% online and free event that will change the way you see sustainability in architecture and construction.

What You’ll Discover:

• How to apply sustainable strategies in real projects — without compromising design or cost.

• A step-by-step look at the UGREEN Methodology, used in projects for brands like L’Oréal, Lindt, Guararapes, and Boticário.

• How to combine design, efficiency, and positive impact practically and measurably.

Secure Your Spot

If you want to be part of the future of sustainable construction, this is your chance.

Click the link to learn everything about the upcoming UGREEN Advisory!

Video

Balneário Caboriú: Luxury on the Brink of Collapse?

How did a city once built on a devalued strip of sand become a symbol of power, status, and one of the most expensive square meters in Brazil?

And more: what happens when this model of success starts to threaten the very reasons the city exists — the sun, the beach, and its quality of life?

This Is Balneário Camboriú

From “the neighboring city’s dump” to “the Brazilian Dubai,” Balneário has become a symbol of status, success, and speculation. But behind the glass towers and promises of luxury, lies a question that must be asked: what happens when the model of growth begins to destroy exactly what made it valuable?

Shadowed beaches, polluted waters, collapsing infrastructure, health risks — the same luxury that brought in millions in investments is now forcing the city to rethink its future. In this new reality, sustainability is no longer an option — it’s a necessity.

Balneário Camboriú may be facing a turning point: will it remain a symbol of excess or reinvent itself as a laboratory for urban resilience in the 21st century?

Want to learn more?

If this topic sparks your curiosity and you want to understand how history, tourism, agribusiness, and urban planning shaped this giant, check out our full video on YouTube!

Disclaimer: The video is in Brazilian Portuguese, but simultaneous translation and subtitles are available in multiple languages.