EDP Renewables (EDP-R), co-owned by China Three Gorges (CTG) is to benefit from the policies of the new United States Government, according to analysts at Goldman Sachs.
EDP-R is one of three European energy companies, alongside Danish Oersted and German RWE, with greater exposure to the growth of renewable energy in the United States, a ‘key’ market for new president Joe Biden, Goldman Sachs said in a note to investors.
Biden, who took office on January 20, signed orders to suspend new oil and gas leases on public land, a review of leases that have already been granted and a doubling of energy production from offshore wind by 2030, the investment bank added.
European majors should benefit from having a market share of around 20% to 25% in renewables in the USA and around 10% in electricity networks, Goldman highlights.
The European ‘Green Deal’ could reach EUR 10 billion – of which 60% is related to investments in infrastructure for ‘green’ energy, such as wind, solar, power grids and batteries – and Goldman Sachs believes the scale of U.S. efforts will be even bigger.
Goldman Sachs stresses that EDP-R has 50% EBITDA exposed to the USA, and its parent EDP Energias de Portugal 23%.
EDP shareholders, including China Three Gorges, met last month at an extraordinary general meeting to elect a new executive president for the next three years, that is revising the company’s strategy.