EDP Renovaveis expects to beat wind power capacity goal by 2020

Portuguese wind energy group EDP Renovaveis said on Wednesday it expected to exceed its 2020 goal for increasing capacity by more than 10 percent.

EDPR, a subsidiary of EDP Energias de Portugal, also said in a presentation it had secured projects to add capacity of more than 1 gigawatt after 2020, adding that its growth strategy was not affected by adverse cyclical factors that have weighed on its earnings this year.

EDP and EDPR are both targets of a takeover offer by China Three Gorges, which is still subject to regulatory approvals in various countries.

Shares in EDPR, which earlier posted a 30 percent drop in nine-month profit due to weak wind conditions and foreign exchange impacts, were 0.3 percent higher at 1500 GMT.

EDPR said the additional capacity target, which had been set at 3.5 GW under its 2016-2020 business plan, is now projected to reach 3.9 GW, with 1.2 GW already added in 2016-17 and North America leading the main growth.

After 2020, EDPR expects to add solar power capacity in the United States and Brazil, and more onshore wind energy production in Brazil, with the total reaching 1 GW.

EDPR, which manages operating assets of 11.2 GW in 11 countries, also expects to bring two large European offshore wind projects, in which it owns stakes of between 43 and 57 percent and which have a total capacity of almost 2 GW, online.

The Portuguese company said regulatory implications of the China Three Gorges takeover were “not clear and may impact EDPR strategy and growth prospects”, particularly the U.S. business.

China Three Gorges has held talks with European utilities to gauge their interest in buying EDP’s and EDPR’s U.S. renewables business as it looks to smooth the path for its planned takeover, sources said.