The power outage on April 28 underscored the urgent need for a more robust, reliable, and adaptable electrical system, noted Miguel Stilwell d’Andrade, CEO of EDP Renováveis. He emphasized the critical role of renewable energy in this evolution.
“It is very clear to us that renewable energies will play a crucial role in the energy system of both the present and the future,” stated Stilwell during a conference call with analysts, held as part of the presentation of the company’s first-quarter results.
“It’s the only technology ready to immediately address electrification needs,” he added.
However, he asserted that this growth should be accompanied by “a greater sophistication of the electricity system.”
“If the energy transition is happening, the increased penetration of renewable energies must be complemented by a more sophisticated electricity system to create a clean, reliable, and accessible system,” he emphasized.
The cause of the outage is still under evaluation, Stilwell noted, but he stressed the event highlights the importance of ensuring the robustness, reliability, and adaptability of the electrical system.
Looking ahead, the CEO stressed that one lesson from this incident is the necessity for ongoing investment in networks as well as energy storage solutions and other sources.
“This includes continuous investment in grid infrastructure, energy storage, and other flexibility sources, as well as advanced control mechanisms, including auxiliary services,” he detailed.
During the conference, Stilwell praised E-Redes, the group’s electricity distribution business, for quickly restoring power on the day of the outage, describing the event as “an unprecedented occurrence.”
EDP Renováveis reported profits of 52 million euros for the first quarter of the year, marking a 24% decrease compared to the same period in 2024.
EBITDA (earnings before interest, taxes, depreciation, and amortization) rose by 5% to 476 million euros.
The company attributed a negative impact of 13 million euros on its results to “non-recurring items” linked to “accelerated depreciation” of the Meadow Lake IV wind project in the United States, which is undergoing a repowering plan.
Electricity sales increased by 5%, with production up by 10% and the average sales price down by 5%, compared to the first three months of 2024.
EDP Renováveis, headquartered in Madrid, is a subsidiary majority-owned by the EDP Group (Energias de Portugal), operating in the renewable energy sector.
Last year, the company reported a net loss of 556 million euros, which it attributed to negative impacts from “non-recurring items” totaling 777 million euros.
These items are primarily related to the decision to not proceed with projects in Colombia and a “preventive decision” by Ocean Wind, a joint venture with Engie, to record an impairment of 133 million euros in the U.S. business due to regulatory uncertainties surrounding offshore projects.
