Slide 1: Sustainable Development
S Sustainable Development February 2016 Dow Jones | . Sustainability Indices In Collaboration with RobecoSAM @®
Slide 2: Keeping a distinctive profile amongst European Utilities
Visibility on profitable growth driven by renewables Balance between Growth & Deleverage Deleverage commitment Improved visibility of medium term FCF potential Keeping a low risk profile: Controlled >85% weight of EBITDA from Regulated and LT Contracted Attractive Risk Value of portfolio diversifica
Slide 3: A worldwide renewable market leader
Wind & Solar Power 25% of EBITDA (10% North America; 6% Spain; 4% Portugal; 5% Other) Listed subsidiary: EDP Renováveis (EDP has 77.5%) IPO in Jun-08 Wind & Solar Power: 8.1GW A worldwide renewable market leader Portugal Spain EDP Brasil 44% of EBITDA 14% of EBITDA 17% of EBITDA Privatisation in 199
Slide 4: Embraced the new Sustainable Development Goals
Contributed to WBCSD SDG Compass Guide Embraced the new Sustainable Development António Mexia participated in the SDG Business Forum, at the Goals, launched in September 2015 UN Sustainable Development Summit, NY Reduce CO2 specific emissions Increase % of renewable generation Set 5 ambitiou
Slide 5: Key measures to accomplish 2oC goal and EDP Commitments
Key measures to accomplish 2oC goal EDP Commitments The existence of a global agreement binding all countries of the world. 1. Reduce CO2 specific emissions by 75% before 2030 (compared to 2005 levels); The direct participation of corporations in defining individual commitments. The creation o
Slide 6: EDP is committed with…
EDP is committed with… …Environment and Society …People Assumption of social/environmental responsibilities Professional conduct combining rigour, enthusiasm and (Involvement/alignment with communities and their initiative to emphases' team work representatives ) Development of individual skil
Slide 7: EDP Corporate Bodies
EDP Corporate Bodies Remuneration of Executive Board of Directors General and Supervisory Board (Non-Executive): Remuneration policy defined by a Remuneration Committee Oversees management activity and guarantees permanent appointed by the General and Supervisory Board; monitoring and supervisio
Slide 8: Sustainability governance structure
Purpose: monitor and supervise Corporate issue strategy related with General and sustainability and internal codes Governance & Supervisory of ethics/conducts Sustainability Purpose: advise the Executive Board (GSB) Committee (CGSC) Board of Directors in environment Environment and sustainability re
Slide 9: Continue to grow, preserve low risk profile, climate change, improve efficiency
CONTINUE PRESERVE LOW RISK CLIMATE IMPROVE TO GROW BUSINESS PROFLE CHANGE EFFICIENCY 1 Investments in Renewable Energy • Growth focused on CO2-free technologies where EDP has recognized competitive advantages: increase of electricity generation from renewable energy sources exceeding 75% of EDP Grou
Slide 10: EBITDA and key metrics 2005-2014
EBITDA 1 (€Bn) +78% 3,6 2,0 2005 2014 Δ% 05-14 % EBITDA outside 46% 56% +22% Portugal % Installed capacity 47% 70% +49% hydro & wind Adjusted Net 4.3x 4.0x -0.3x Debt/EBITDA Recurrent ROE 11.8% 10.4% -12% EPS (€/Share) 0.16 0.25 +60% DPS (€/share) 0.10 0.185 +85% 9
Slide 11: EDP Group installed capacity by technology
EDP Group installed capacity by technology(1) 1 (GW) Nuclear, Fuel and Other 2.0x Coal 24.7 Gas and Cogen. 1% Wind and Solar 14% Hydro 15% 12.3 38% To exceed 75% of overall installed 17% capacity by 2020 22% 70% 14% 3% 33% 43% 47% 2005 2015E 11GW of new capacity added has PPAs or feed-in tariffs red
Slide 12: Generation portfolio with low exposure to CO2, NOx or nuclear lifecycles
Average Residual Useful Life of EDP’s Generation Portfolio by Technology Dec-2017E (1) Average Residual Useful Life of 1 (Years) EDP’s Generation Portfolio (Years) Coal with Coal without Hydro CCGT Wind & Solar Nuclear DeNOx DeNOx (% weight on total GW) +44% Concession End Dates 23 (34%) 35 16 (14%)
Slide 13: Net Investments 2014-2017E
1 Net Investments(1): 2014-2017E Breakdown of accumulated consolidated Capex (€bn) (%) 3% Other 8% Brazil ~ 1.6 Regulated Networks Iberia 25% ~ 1.2 24% Generation Iberia (mostly new hydro) 40% EDP Renováveis Avg. Avg. 2014-2017E 2014-2015E 2016E-2017E Maintenance capex mostly in our regulated networ
Slide 14: Focused on wind & hydro greenfield projects
Focused on wind & hydro greenfield projects Capacity additions 2015-2017E (1) (GW) 1 Already online Hydro Portugal (pumping/storage): 4 plants (91% 0,4 4.1 completed) to be commissioned in 4Q15 and 2016 0,1 2,1 Wind (PPA/feed-in tariff): 0.5GW under construction; +0.9GW PPAs awarded mostly US, M
Slide 15: Reduce CO2 specific emissions by 75% before 2030
CO2 emissions 1 (ton/MWh) Accumulated growth -75% 0,63 0,28 0,16 2005 2014 2030E Renewable Energy: 47% 71% % of Total output Hydro factor Portugal (x) 0.4 1.27 Reduce CO2 specific emissions by 75% before 2030 (compared to 2005 levels) 14
Slide 16: New hydro capacity in Portugal
Expected Total Output Net of Pumping EDP - Capex in New Hydro Capacity in Portugal(3) Plant Type MW (€ bn) Start-up date (GWh)(1) (GWh)(1) Ribeiradio/ Jun-15 New plant 81 139 139 1 Ermida Repowering 0,5 Salamonde II 4Q15 207 386 94 0,5 With Pumping New plant (2) 0,4 Baixo Sabor 1Q16 173 460 200 With
Slide 17: Hydro gross profit and pumping activity spreads
EDP - Hydro gross profit per MW installed (1) EDP Pumping activity (1) – Spreads versus avg. pool price 1 (€/MW installed) (€/MWh produced) (2) Premium / (Discount) versus pool price Without Pumping With Pumping +85% -30% +30% -60% ~45% Gap ~15% Gap 51 45 Dry Year Wet Year Selling Pumping Spread Sel
Slide 18: Reduce environmental and social impacts from new plants
1 Reduce environmental and social impacts from new plants: Achieve ‘no net loss’ or ‘net gain’ on biodiversity; Shared decision-making process Avoidance, Minimisation and Compensation Measures Environment & Agriculture, based on a local socio-economic dynamic as development factor Promoting the crea
Slide 19: EDPR installed capacity by country
1 Canada Offshore wind project under development Other Europe: 30 UK Long Term PPAs or market price + green certificates - Belgium US - - 71 Poland 1% 3,904 44% - 299 France 392 4% ~90% LT PPAs/Hedged Offshore wind project 77 ~10% Merchant price under development 340 4% Romania Spain 48 Portugal
Slide 20: A worldwide renewable market leader with a solid 2014-17 strategic plan
1 A worldwide renewable market leader… …with a solid 2014-17 strategic plan 10 >500 Diversified portfolio OPERATING Investing in quality projects MW/YEAR COUNTRIES Young assets with long 6 Growth through projects with >90% YEARS AVERAGE residual life LT contracts already awarded VISIBLE LIFE 30% Inc
Slide 21: Growth Profile: growth based on projects with PPAs
1 Growth Profile Growth based on projects with PPAs +329 MW +99 MW +299 MW +755 MW US added in 2014 added in 9M15 under. constr. with PPAs LT visibility for growth in selected countries >500 MW growth/year • +250 MW mainly in France, Italy and Poland EU • ENEOP +74 MW in 2014 | +80 MW from Asset Spl
Slide 22: Wind competes with all technologies… supported by growth drivers
1 Wind competes with all technologies… …supported by identified growth drivers Levelised Cost of Energy (LCoE) (1) Electrification of the Economy (€/MWh, 2014) • OECD countries: (+) Transports’ electrification; (-) Energy EDF CfD for new nuclear plant in UK (2): efficiency • 2012: £92.5/MWh • Emergi
Slide 23: EDP Brasil: Geographical footprint
EDP Brasil: Geographical footprint (1) 1 Hydro Power Plant Thermal power plant Distribution Concession Area Electricity Generation: C. Caldeirão 219MW (50%) +25%(2) capacity increase till 2017 Jari 373MW (50%) (due in 2017) (due in 2015) Avg. Price: R$102/MWh Total Installed Capacity in operation:
Slide 24: EDP Brasil: GSF losses and hydro reservoirs
1 EDP Brasil: Quarterly Evolution of GSF Losses(1) Hydro reservoirs – Southeast/Center-West Regions (2) (R$m) (%) 200 EDP Brasil GSF losses (R$m) 38,8% 37,4% PLD (R$/MWh) 37,4% 167 165 1200 36,3% 36,3% 34,3% 2014 32,4% 150 133 1000 124 36,0% 36,1% 28,5% 34,4% 710 751 800 33,5% 27,6% 675 100 600 29,9
Slide 25: EDP Conventional generation – Installed capacity in Iberia
EDP Conventional generation – Installed capacity in Iberia 1 (MW in Sep-15) Others 1% Highly competitive technical features in a context of low working hours: - Minimum operating level of 20%-40%, allowing to concentrate in the best hours; CCGT 30% - Capable to move up/down by 100MW in 15 min, bod
Slide 26: Demand Side Management
Demand Side Management 2 ≈ 18 M€ invested and 173 GWh saved in 2014 Energy Efficiency Load optimization Fuel Switching Energy Services Invoicing ≈ 66 M€ (1) | PROGRAMS, PROJECTS AND INITIATIVES Voluntary activities supported by the regulator Energy auditing and certification Integra (SMEs) and F
Slide 27: Innovation strategic areas
Objective: Transform EDP into an agile client/product Objectives: Lead the development of smart grid infrastructure driven company & applications with client/operations focus 3 Key Topics: Smart Pricing and Key Topics: Bundling Smart Grids Energy Efficiency Energy Management / Increase Ele
Slide 28: Floating Offshore Wind – key area of R&D
3 Floating Offshore Wind key area of R&D • Windfloat is the first floating wind turbine for deep offshore waters: 100% developed in Portugal by EDP and its partners (1). • Phase 1 (Prototype)- In operation since December 22th, 2011 (more than 2 years). 1st year mostly for testing and inspection pu
Slide 29: Cutting edge solutions for offshore wind technology
3 EDP has just been granted European funding (Horizon 2020 programme) to develop new technology for offshore wind power. DEMOGRAVI3 aims to develop an innovative gravity based foundation for offshore wind turbines The project will last four years and will include a full-scale demonstration in
Slide 30: Inovgrid smart grid project
3 Inovgrid is aligned with the most important world technological trends and already a reference in Europe Benefitting costumers and offering a technological leap forward in network service and capabilities Cutting-edge Smart Grid project (32,000 EDP Boxes) is being commercially tested in the Port
Slide 31: EDP A2E projects around the world
EDP A2E (1) 4 Projects around the world Guinea Bissau Benin Kenya East Timor Peru Sao Tome Mozambique Brazil Angola Executed Pipeline (1) Access to Energy 30
Slide 32: Access to energy: Kakuma and Cabiri
4 SOLAR PV SYSTEMS FOR LIGHTING AND ICT 50 kWp | 11 public buildings; 31 street lights; 147 households; Capacity building Direct Impact Kakuma (1) 6,000 refugees 300 families SOLAR LANTERNS FOR STUDENTS 4,500 units | School attendance; Study by night; School-home safety Savings of 50,000 l/year of d
Slide 33: Decentralized Energy Applications in Developing Countries
4 Decentralized Energy Applications – Promoting the Concept “Sun to Save Diesel” Uptake of Renewable Energy in Developing Countries Hybridization of 100% diesel systems UNEP's ultimate objective from its current with Solar PV and promotion of mini-grids program is to prove commercially- social and e
Slide 34: HR strategic axes (2014-2017)
5 Results of our priorities in HR strategic axes (2014-2017) People challenges in EDP Group people management Organizational climate/employee satisfaction Reinforce and align one corporate culture survey since 2006: 2013 = 80% overall satisfaction rate (biannual application logic). Corporate mobilit
Slide 35: Sustainability is one of the most significant trends in financial markets
1990 2000 2010 2015 (1) (2) Olá “Sustainability is one of the most significant trends in financial markets for decades” (3) (1) In partnership with Ethibel Forum; (2) In partnership with NYSE Euronext; 34 (3) From the Stockholder to the stakeholder, University of Oxford and Arabesque Partners, Septe
Slide 36: Sustainability indices and number of member companies
MSCI WORLD ESG INDEX (USD) 816 FTSE4Good Global Index 801 Number Of member companies (2016) ECPI Global Developed ESG Best in class Equity 550 STOXX® Europe Sustainability 473 STOXX Global ESG Leaders 346 Dow Jones Sustainability World Index 317 Thomson Reuters CRI Europe ESG Index (USD) 249 ESI Exc
Slide 37: EDP is a Dow Jones Sustainability World Index member since 2008
EDP is a Dow Jones Sustainability World Indice member since 2008 | Rating (0 – 100) OEKOM - EDP is one of the best in the electricity sector EDP 90 Best (Industry) 86 87 88 89 The “Prime” status is assigned to companies 83 84 84 81 79 77 which are among the world’s best companies 76 within the same
Slide 38: DJSI scores by criteria
Scorecards/Measurement system Well defined hedging strategies. Best Integration of sustainability perspectives in the Price risk management scorecards. Score=100 Public commitment to UN Declaration of Human Labor practice indicators and human rights Rights. Codes of conduct/compliance/corrupti
Slide 39: EDP listed for the 8th year in a row in the DJ Sustainability Indices
EDP is listed for the 8th year in a row in the DJ Sustainability Indices being ranked as an utility Top worldwide Response to climate change: EDP’s business case is strongly committed with COP21 challenges EDP is present in 14 countries; 32 nationalities of employees. Guaranteed respect for equal op
Slide 40: Annexes
Annexes
Slide 41: Performance Highlights: Financial strength
Financial strength Management of environmental issues Management of Human Resources Identification of material issues Performance Highlights EDP Sustainability Index 22,5 GW 11,798 €1.0bn €43bn EDPR business case 40 40
Slide 42: EDP Shareholder Structure
EDP Shareholder Structure (November 10th, 2015) Dec-11: CTG won the privatisation of a 21.35% stake in GUOXIN CHINA THREE EDP (@€3.45/share: 50% above market price on date of INTERNATIONAL, GORGES; 2.0% 23,4% announcement): Commitment to 4-year lock-up and FREE FLOAT; standstill period until May-2
Slide 43: European Utilities: Net Debt/EBITDA vs. Business Mix
European Utilities: 2014 Net Debt/EBITDA vs. Business Mix (1) (x;%) 5,5 SNAM 5,0 Verbund REN 4,5 National Grid Net Debt/EBITDA 2014 (x) Enagás 4,0 RWE E.ON EDP Iberdrola REE 3,5 A2A 3,0 Gas Natural EDF 2,5 Fortum GDF Suez ENEL 2,0 Centrica 1,5 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Weight of 20
Slide 44: Forward electricity prices in Iberia
Spain – Forward baseload electricity price for 2017 Forward Energy Prices for 2016(1) (€/MWh) (€) 50 Dec-14 Jun-15 Dec-15 48 Brent (€/bbl) 52.7 56.3 33.6 46 TTF (€/MWh) 21.0 20.7 14.5 44 Coal (€/Ton) 63.3 55.1 43.8 42 CO2 (€/Ton) 7.2 7.4 8.2 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Sales to clients in Fre
Slide 45: Portugal: Electricity System Regulatory Receivables
Portugal: Electricity System Regulatory Receivables (€bn) Flat YoY 5.3 5.2 ~5.3 4.8 4.9 4.0 4.3 2.4 3.0 3.0 Other 1.9 EDP 2.2 2.4 2.3 2.2 0.5 2012 2013 2014 Set-15 2015E 2016E 2017E 2020E 2015 2015E ERSE 2015(4) Demand(1) (YoY; %) -1.8% -0.1% 0.3%(2) Demand (YoY; %) +1.8%(3) +0.3% Pool Price (€/MWh)
Slide 46: €0.185 dividend per share as a floor
EDP’s dividend performance 2011-2014 (€ cents; %) Dividend per share (€ cent) Dividend Payout Ratio (%) 67% 67% 65% 60% 18,5 18,5 18,5 18,5 2011 2012 2013 2014 Dividend 676 676 676 676 Amount (€M) €0.185 dividend per share as a floor; target payout ratio in the 55%-65% 45
Slide 47: Change in Net Debt: Sep-15 vs. Dec-14
Change in Net Debt: Sep-15 vs. Dec-14 (€ billion) +€0.3bn -€0.4bn 17.0 1.3 0.7 16.6 0.7 17.3 0.1 0.4 0.6 2.5 2.4 2.4 Regulatory Receivables 14.5 14.2 14.9 Net Debt Free Cash Regulatory Hybrid Expansion Dividends Net Debt Pecém Net Debt Dec-14 Flow (1) Receivables Capex & Net (Before Sep-15 investmen
Slide 48: ~90% Long Term Contracted and Regulated Activities
Liberalised Liberalised generation and supply in Portugal and Spain: Activities Iberia 11% 7.8GW: 48% CCGT; 19% Coal; 31% Hydro; 2% Nuclear Brazil 17% EBITDA: ~50% electricity generation; ~50% electricity distribution Generation: 1.8GW hydro; PPA contracts (inflation updated) Distribution: reg
Slide 49: Risks and Mitigation
Risks Mitigation Recovery of demand Progressively recovering Market Decrease of inflation with negative impact in regulated Hedge provided by floating rates (~49%) environment activities Energy market prices Hedging Policy ForEx and Market volatility in credit spreads Strong financia
Slide 50: Performance Highlights: Management of environmental issues
Financial strength Management of environmental Management of Human Resources Identification of material issues Performance Highlights EDP Sustainability Index 22,5 GW 11,798 €1.0bn €43bn EDPR business case 49 49
Slide 51: Biodiversity SWOT: Strengths, Weaknesses, Opportunities, Threats
Strengths Weaknesses Strong experience on renewable energies High negative impacts on environment Environment integrated at strategic level Operations on high sensitive ecological regions High technical competences of our HR (Biodiversity Hotspots) and inside protected areas/high Transpa
Slide 52: 4 major focus areas
4 major focus areas Fostering Biodiversity Chair 1 Biodiversity Fund Knowledge Long term studies Local community engagement in the implementation of compensatory measures Adaptive Scientific follow up (monitoring) 2 Habitat and Ecosystems orientation Management LOAM – Landscape Outcome
Slide 53: Performance Highlights: Management of Human Resources
Financial strength Management of environmental Management of Human Resources Identification of material issues Performance Highlights EDP Sustainability Index 22,5 GW 11,798 €1.0bn €43bn EDPR business case 52 52
Slide 54: Plan, Attract & Recruit
Recognizing the importance of guaranteeing that the human capital and talent management strategies run parallel to our business goals as a multinational company, EDP runs a global workforce planning exercise annually. EDP has promoted many programs to attract talent based on its relationship wit
Slide 55: Manage & Retain: Employee Engagement Measurement Model
Employee Engagement Measurement Model Manage & Retain 54
Slide 56: Develop: Amplify – EDP Group's skills model
Amplify – EDP Group’s skills model Develop 55
Slide 57: Reward
In EDP recognition and reward policies play an essential role in attracting and keeping the best talent, as they contribute significantly to the construction of a work environment that motivates the best people to work enthusiastically and productively. We manage our policies globally while resp
Slide 58: Performance Highlights: Identification of material issues
Financial strength Management of environmental Management of Human Resources Identification of material issues Performance Highlights EDP Sustainability Index 22,5 GW 11,798 €1.0bn €43bn EDPR business case 57 57
Slide 59: Stakeholder Management Highlights
Highlights During 2014 EDP developed its own Stakeholder Management Methodology . This methodology was formalized in 2015 and applied in all EDP’s Portuguese BUs, arousing the need to perform the alignment of this methodology in all EDP geographies. This alignment began through an effort of clar
Slide 60: Material issues
1- CLIMATE CHANGE 2- IMPACT ON COMMUNITIES 3- WELL-BEING, HEALTH AND SAFETY 4- ENVIRONMENTAL PROTECTION 5- ENERGY MARKET 6- INNOVATION 7 – SUSTAINABLE SUPPLY CHAIN 8 - ACCESS TO ENERGY 9 – CUSTOMER 10 –ETHICS AND GOVERNANCE 11 – FINANCIAL SUSTAINABILITY 12 - REPUTATION AND TRUST 13 - CITIZENSHIP 14
Slide 61: Performance Highlights: EDP Sustainability Index
Financial strength Management of environmental Management of Human Resources Identification of material issues Performance Highlights EDP Sustainability Index 22,5 GW 11,798 €1.0bn €43bn EDPR business case 60 60
Slide 62: Economic, Environmental and Social indicators
Economic Environmental Revenues 16,294 € million Installed Capacity 22,469 MW Net Income 1,264 € million Renewable Installed Capacity(3) 15,816 MW Market Capitalization(1) 11,767 € million ISO 14001 Environ. Certification 21,353 MW Distributed Economic Value* 15,373 € million CO2 specific emissions(
Slide 63: Environmental Management
Corporate Environment Management System (SIGAC): Certification ISO 14 001 since 2008. Higher number of installations certified under ISO 14 001: - 294 of generation facilities in 2014 (1) (+26 than in 2013), corresponding to 96% of net maximum installed capacity; Environmental - 175 of electrici
Slide 64: Water consumption, waste and biodiversity
-1.2% of water consumption per net electricity generation in 2014 (vs. 27,465 m3/GWh in 2013). Water As part of its operational management, EDP has several initiatives at its generation centers to reduce water Consumption consumption. In 2012, EDP defined Corporate Water Management Policy to pro
Slide 65: Human resources indicators
EDP Trainee is a program of the recruitment and selection process. EDP began the second EDP Trainee Program in 2014, which was acknowledged by the market as a distinctive program in the market. The number of positions and cultural background in the program was extended. Around 4,000 applications w
Slide 66: Contribution to the community
In 2014, the total of community volunteer investment of the EDP Group amounted to € 26.3 million, directed towards 728 different projects from 1,237 entities and promoting organizations. More than 4.6 million people Contribution to benefitted or contacted with the projects and initiatives. the com
Slide 67: Stakeholder Engagement
Since 2004 EDP Group includes the engagement with its stakeholders in the Company’s sustainability strategy, through the establishment of EDP Principles for Sustainable Development, which were adopted in all EDP Companies. Since 2009, EDP has implemented an internal process to assess the company
Slide 68: Ethics and customer relationship
2014: Dissemination and adaptation of the new EDP Code of Ethics throughout the EDP Group. In a first phase, a training program in an eLearning format, identical for all BUs and all hierarchical levels, was launched covering Ethics about 80% of EDP employees in Portugal. The Ethicis Index (1) had a
Slide 69: Performance Highlights: EDPR business case
Financial strength Management of environmental Management of Human Resources Identification of material issues Performance Highlights EDP Sustainability Index 22,5 GW 11,798 €1.0bn €43bn EDPR business case 68
Slide 70: Source: OEKOM Corporate Responsibility Review 2015
1 Source: OEKOM. Corporate Responsibility Review 2015; 69 2 1 billion = 109.
Slide 71: Market Capitalization of sustainability indices
Market Capitalization (billion € (1); (2016) MSCI WORLD ESG INDEX (USD) 16.959,3 Dow Jones Sustainability World Index 8.613,5 STOXX Global ESG Leaders 8.028,9 Thomson Reuters CRI Europe ESG Index (USD) 6.446,9 STOXX® Europe Sustainability 5.899,5 ESI Excellence Europe 3.301,0 Storebrand/SPP’s Sustai
Slide 72: EDP Sustainability Index
EDP Sustainability Index EDP Sustainability Index: Environmental Dimension (points) (points) Weight: 33% +3 +2 102 105 100 102 2013 2014 2013 2014 EDP Sustainability Index: Economic Dimension EDP Sustainability Index: Social Dimension (points) (points) Weight: 37% Weight: 30% +1 +5 105 106 107 100 2
Slide 73: Performance Highlights: EDPR business case
Financial strength Management of environmental Management of Human Resources Identification of material issues Performance Highlights EDP Sustainability Index 22,5 GW 11,798 €1.0bn €43bn EDPR business case 72
Slide 74: Wind energy costs are unrelated to commodities
Wind Energy competes with the …and is expected to show most efficient conventional technology… ongoing improvement Wind vs CCGT: LCoE1 Wind LCoE1 (€/MWh) LCoE Recent oil Wind €/MWh prices load factor -24% -15% 120 110 100 21% 90 23% 80 25% 70 29% 60 34% 50 40 30 Oil price 30 40 50 60 70 80 90 100 11
Slide 75: 2014-2020 Worldwide Additions
2014-2020 Worldwide Additions 2014-2020 Renewables Additions 2014-2020 Wind Onshore Additions (GW) (GW) (GW, ex-China) Wind Renewables 594 265 onshore Europe 36% Decentralised Regions with Coal and oil 454 143 EDPR presence solar PV 74% North 22% Centralised America Gas 301 109 solar PV Latin 16% Wi
Slide 76: EDPR: leaders in new wind PPA in the US market
Economics of PPA EDPR: leaders in new wind PPA in the US market (1) already secured average metrics Load Factor 43% 250 MW (2016/17) 155 MW (2016/17) 200 MW 100 MW Price $48/MWh 99 MW (2016/17) (2015) (PPA first year) (2014) 200 MW (2014) 99 MW (2015) 100 MW (2015) 250 MW Projects’ IRR > 10% RPS dem
Slide 77: Drivers for US Wind Demand
Drivers for US Wind Demand Forecast US Annual Wind Additions (GW) PTCs • 5 years extension Production Tax Credits • 20% p.a. phase down in 2017-19 excludes CPP early adoption +9 GW >8 GW RPS • 29 States (+ DC) have mandatory RPS Renewable Portfolio Standards • 8 states have renewable energy goals +5
Slide 78: NREAP Forecast and EU targets for 2030
2015-2020E Growth Beyond 2020, Europe is expected to be again (wind onshore) at the forefront of the renewable energy growth NREAP EU targets for 20301… …defined under a common vision National Renewable +49 GW Energy Actions Plan • 40% cut in greenhouse gas emissions • New governance based on nation
Slide 79: Sustainability and IR Contacts
Sustainability and IR Contacts Sustainability: E-mail: sustentabilidade@edp.pt Investor Relations: E-mail: ir@edp.pt Phone: +351 210012834 Visit EDP Website Next Events Site: www.edp.pt March 4th: YE2015 Results Link Sustainability: http://www.edp.pt/en/sustentabilidade/Pages/ HPSustentabilidade.asp