George Lonzo's questions to EDP ENERGIAS DE PORTUGAL (EDPFY) leadership • Q1 2025
Question
George Lonzo of Bernstein requested more detail on EDP's energy hedging levels in Iberia for 2025, 2026, and 2027. He also asked if solar CapEx outside the U.S. was expected to decrease materially, which could boost project profitability.
Answer
CFO Rui Teixeira provided hedge levels, stating they are around €70/MWh for 2025 and €63/MWh for 2026 on a significant volume. Regarding solar CapEx, he noted that with module prices already at lows, a major further reduction is not anticipated. He explained that EDP's strategy is to lock in CapEx when signing PPAs to protect margins, meaning any cost shifts would likely be reflected in PPA prices to maintain target returns.