EDP, Portugal’s leading utility company, is reevaluating its U.S. business plan and growth projections in response to President Trump’s recent decisions on wind power. While existing onshore projects remain unaffected, the company is adjusting its long-term strategy.
Trump’s suspension of new federal offshore wind leasing, pending environmental and economic review, has significantly impacted the outlook for U.S. wind energy development. Analysts predict minimal chances for new projects in the current climate. This shift necessitates a strategic recalibration for companies like EDP, heavily invested in renewable energy expansion.
EDP CEO Miguel Stilwell d’Andrade, speaking at the World Economic Forum, confirmed that the company’s current U.S. onshore wind projects remain operational and are anticipated to continue without disruption. However, with 40% of its planned $9 billion investment through 2026 allocated to the U.S. market, focused on achieving a two-gigawatt increase in global renewable energy capacity by 2025, EDP is actively revising its capital expenditure program.
This revision aims to incorporate the implications of the Trump administration’s policies and executive orders. Stilwell indicated that updated figures, reflecting growth expectations through 2030, will be presented in the coming months. While not formal guidance, this revised outlook will provide crucial insights into EDP’s adjusted strategy.
Approximately $2-$3 billion is earmarked for U.S. investment over the next two years. Stilwell expressed confidence that a majority of these projects, primarily focused on solar power and battery storage, will proceed as planned, as they fall outside the scope of the recent executive orders. These sectors represent significant growth opportunities within the U.S. market.
EDP’s subsidiary, EDP Renovaveis, ranks as the world’s fourth-largest wind energy producer. Its global operations leverage Ocean Winds, a joint venture with Engie, specializing in offshore wind energy. One notable project, the SouthCoast Wind farm off the coast of Massachusetts, is in advanced development and projected to generate up to 2.4 gigawatts of energy by 2030.
Despite the challenges posed by recent policy changes, Stilwell remains optimistic about the U.S. market. He anticipates continued growth in power demand driven by advancements in artificial intelligence, digital transformation, and the reshoring of manufacturing.
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While acknowledging the need for careful risk assessment regarding potential tariffs and reliance on imported materials, Stilwell expressed overall confidence in EDP’s ability to navigate these challenges and capitalize on the long-term growth potential of the U.S. energy market.
EDP’s proactive response to the evolving political landscape underscores its commitment to sustainable growth and its ability to adapt to market dynamics. The company’s strategic shift towards solar and battery storage, coupled with its continued investment in key projects, positions it to maintain a strong presence in the U.S. renewable energy sector. The updated business plan will provide further clarity on EDP’s revised growth trajectory and its long-term vision for the American market.
