By Brazil Stock Guide – EDP (ELI: EDP) announced on Thursday (Nov. 6) a global investment plan worth €12 billion ($13 billion) for the 2026–2028 period, with €1.3 billion ($1.4 billion) set aside for Brazil. The funds will focus on expanding power distribution and transmission networks while the company studies new opportunities in battery storage to address growing curtailment challenges in its renewable portfolio. The announcement was first reported by Agência iNFRA.
Speaking to reporters in London, CEO Miguel Stilwell d’Andrade said the company is holding off on new large-scale solar and wind developments in Brazil until regulatory conditions improve. “We have a portfolio of renewable investments, but in Brazil we don’t have new generation projects at the moment because we’re waiting for regulatory changes that allow compensation for curtailment. That’s been significantly hurting the profitability and attractiveness of these projects,” he said.
The executive described the approval by Brazil’s Congress of compensation mechanisms under Provisional Measure 1,304 as a “good sign.” “We received good news on the MP last week and hope it will soon be regulated,” he added.
Despite the current pause in new renewable ventures, Stilwell d’Andrade noted that the situation opens new fronts for EDP in Brazil’s power sector. “We’re looking at battery storage, which could become part of our mix in Brazil and certainly help reduce curtailment,” he said. The CEO also welcomed Brazil’s ongoing market liberalization process, saying it could unlock new commercial opportunities for EDP, which already operates one of the country’s largest energy trading units.
Financial results and investment breakdown
In its most recent quarterly results, EDP reported EBITDA growth of 6% year over year, supported by stable performance in Europe and Latin America. The company’s net debt stood at €15.2 billion, while renewable generation increased 4% in the same period, driven by wind and hydro assets.
Of the planned €12 billion global investment through 2028, approximately €700 million ($750 million) will go toward distribution networks in Espírito Santo and São Paulo’s coastal region, and another €600 million ($645 million) into transmission lines. The average annual investment in Brazil will be around €400 million ($430 million).
Stilwell d’Andrade noted that Brazil’s current macroeconomic conditions remain a limiting factor. “Brazil has high interest rates and low inflation, so it’s not an ideal time for major expansion. That’s why we continue focusing on distribution and transmission — solid, long-term, and profitable investments,” he said.
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