EDPR ASSET ROTATION STRATEGY: CRYSTALIZING VALUE WHILE ACCELERATING COMPANY´S GROWTH

In this business case will be studied the use of AR strategy at EDPR, one of the major multinational renewable energy production, development, and operation companies. To do so, the current context of the renewable energy industry will be initially addressed, as well as all the theoretical aspects of AR that make it suitable for this capital-intensive industry. Then we will focus on EDPR and its business, to understand the fundamentals of this strategy in the company, its theoretical basis, the decision process, and its advantages. The goal of this case is firstly to understand what AR means and how it works, and if this strategy is an added value to EDPR's business strategy. After a theoretical analysis of the implementation of AR in the company, and its benefits for EDPR's business, accounts and credit reputation, the conclusion was that AR is an enhancement for the company and fits with its present and future goals. Moreover, through a practical example from EDPR, it was possible to compare the outputs of a wind project embedded in the AR strategy compared to a project held till the very end of its useful life, with AR once again proving its advantage in financial terms.