Energias de Portugal – Renováveis (EDP-R): Reaping the Winds of Change (A)

Energias de Portugal –Renováveis (EDP-R) is the fourth largest player in today’s global renewable energy industry. This case analyses the strategic decisions behind EDP-R’s development from its inception as an offshoot of the recently privatized Portuguese Electricity Utility EDP, through its listing as an autonomous renewables company to its current status as the fourth largest global renewables player.
Case A centres on the period from 2006 to 2012 and focuses on EDP-R’s rapid growth from its inception in 2007, through its initial moves into the international wind energy market via greenfield site acquisitions and its €1.57 billion IPO in 2008, to the financial crisis and its heavy impact both on political and public support for continued governmental incentives for renewables development, and on the availability and cost of borrowing for further investment. The case focuses on the decisions facing the CEO of the company at this critical turning point in its history.
The case provides a broad base for discussion with Masters, MBA or Executive students on the main drivers of value and the changing market environment in the renewables and broader energy industry, and can be used as the basis for discussion in general or specialised strategy courses, to highlight the strategic formulation process, the importance of maintaining and communicating strategic clarity, and the importance of coherent focus in rapidly-changing markets. It provides good insights into the renewables sector, allowing for discussions on cost structures, operating requirements and the future of the industry.

Author: Nadim Bou Habib, Richard Fleming
Reference Number: NSBE-15-18001
Number of pages: 19
Publisher: Nova School of Business and Economics
Teaching Notes: Yes
Language: English
Price: € 3,50