(Montel) Portuguese utility EDP is in talks to sign long-term power purchase agreements (PPA) for 2.5 GW of renewables capacity, amid strong demand in the market, the CEO said late on Thursday.
The company had already secured long-term contracts, including PPAs and contracts for difference (CfDs), for 6.4 GW of new renewable capacity, totalling 32% of its goal to build 20 GW green by 2025, he added.
In the last two months, the utility has signed 0.5 GW of green PPAs, 20% of them in Spain and the rest in the US, he added.
In power trading, meanwhile, EDP had already hedged 70% of its 2022 power production and 25-30% of its 2023 generation by the end of March at an average price of EUR 50/MWh, said the company's CFO Rui Teixeira.
The executive noted this figure was "above" EDP's initial price forecasts, as in February it had eyed an average power price of EUR 47/MWh for 2023.
EDP would "benefit" from a current spike in European power prices when marketing its unhedged production for 2022-23, Rui Teixeira added.
The company posted a 17% year-on-year drop in its Q1 earnings before interest and tax (Ebit) to EUR 496m.