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

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 B analyses the period from the financial crisis through to 2017. It looks at how EDP-R built a strategy to not only survive the global crisis, but to build a successful and highly sustainable business model, helping it to recover from the dramatic impact of the crisis to again become an attractive prospect for investors searching for low-risk returns which could outperform traditional safe havens. It then presents the changing nature of the renewables landscape, with rapidly falling prices for renewable energy, in particular for solar and offshore wind power, requiring EDP-R to question its future strategy and the extent to which its current competitive advantages remain valid.
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-15-18002
Number of pages: 10
Publisher: Nova School of Business and Economics
Teaching Notes: Yes
Language: English
Price: € 3,50