WINDS OF SUCCESS
EDP Renewables has grown extensively to become the world's fourth-largest wind energy producer.
BIOGRAPHY
João Manso Neto studied economics at the Instituto Superior de Economia before completing a postgraduate degree in European economics from the Universidade Católica Portuguesa. In the past five years, he has served as Chairman of EDP Gestão da Produção de Energia S.A., CEO and Vice Chairman of Hidroeléctrica del Cantábrico S.A., along with numerous other senior management positions. Prior to these positions, he was a member of the board of Banco Português de Negócios, as well as head of the international credit division at Banco Português do Atlântico.How does the company currently contribute to Portugal's energy mix through its installed capacity of wind farms? We began in Portugal and Spain, which today are two important markets, and have been developing from the beginning. We represent around 24% of the Portuguese installed capacity. Renewables not only reduce our import bill in terms of energy, but also have an important impact on local communities. Traditionally, renewable energy is located in areas with low levels of development, and the wind industry has been able to distribute income to those areas. An important part of our portfolio was linked to an industrial cluster in Portugal. About 10 years ago, there was a competition wherein developers not only had to build wind farms but also bring together an industrial cluster. Today, there are more than 1,000 people linked to that. It is important because this electrical production not only supplies the domestic market, but most of this production is exported. Our work in Portugal not only has a direct impact in terms of balance of payments and population, but also developing the industry itself.
EDP Renewables plans wind farms throughout the construction, development, and operation of the project. How does this meticulous process enable your company to fully maximize the value of your assets?
This is not a short-term activity but something we need a long-term view for. If we want to extract value, we have to go through the entire value chain, from the identification of the country and place to the kind of renewable energy available. We also have to obtain permits, which are extremely important. Renewables are important; however, they also have environment impacts that have to be mitigated. Subsequently, we focus on the optimization of the layout and construction, as well as operation and maintenance throughout the entire project. In the past, things were different, and we were just focused on production and generation. Today, we have to know how to sell in the markets and be able to manage market risks and have a better forecast of the wind. This enables us to be better prepared throughout the entire value chain.
What is your company's commitment to world-class engineering and construction standards?
The plants we build should be first-class plants. We do not build plants to have the maximum amount of MW but efficient. Wherever there is sun or wind, we must be available in order to generate power. Having a high quality of construction and first-class management is extremely important. Construction is just the first phase. We also need excellent operation methods; otherwise, we do not extract value. Before, developers externalized everything. We are increasingly internalizing activities to take care of what is going on in terms of operation. We have increased the quality of our work as well as the yield.
What have been the key factors contributing to EDP Renewables' successful international expansion?
Our core markets were Portugal and Spain, and we decided to go abroad to export our experience throughout the entire value chain. We began with France, though the big jump was with the US. Today, the US represents about 50% of our total capacity and has been the most dynamic market. We are proud when we go abroad to act as a local company. We have centralized expertise; however, when we go out to the field, we act as locals. Therefore, we are not seen as a foreign company. It is important that we do not have an obsession with centralization but with efficiency, respect, and understanding the local market. Today, Portugal represents no more than 15% of our EBITDA. Spain is still important, though the US is one of the most important areas in terms of growth.
WINDS OF SUCCESS
TABLE OF CONTENTS
Focus: Community of Portuguese Language Speaking Countries
Making an Impact
Established in 1996, the Community of Portuguese Language Speaking Countries (CPLP) is a mechanism geared at linking and sharing the experience of Lusophone countries. Besides Portugal, this includes Brazil, Portugal, Cape Verde, Angola, Mozambique, Guinea-Bissau, and São Tomé and Príncipe.
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Don’t Mind the Disruption
Having won the 2017 Eurovision Song Contest, Lisbon hosted the 2018 event. The relevance? Well, the contest began back in 1956 as a showcase not only of song, but of then-nascent live television broadcast technology. Today, Portugal is on the cutting edge of new technological developments.
read articleInterview
João Pedro Soeiro de Matos Fernandes , Minister , Environment and Energy Transition
The Ministry for the Environment and Energy Transition is focusing on decarbonizing the economy, valuing the territory and its habitats, and striving for a more circular use of the country's resources.
read articleInterview
António Braz Costa , General Manager, Portuguese Technological Centre for the Textile & Clothing Industries (CITEVE)
CITEVE has transformed the industry by promoting value addition, adopting the latest technologies, and ensuring the highest standards of environmental sustainability.
read articleFocus: New airport
Right Time to Seize Missed Opportunities
Portugal has seen its air traffic figures increase by as much as 80% in the last five years. As a result, its transportation infrastructure, and Lisbon's airport in particular, cannot cope with the rising numbers. A new airport project that will turn a military base into a commercial airport is now under discussion to bring much-needed relief to air traffic.
read articleInterview
Germano de Sousa , President, Grupo Germano de Sousa
Grupo Germano de Sousa's success can best be summed up by its understanding that science and medicine only really progress when technological development is combined with a deeper respect for human values and professional ethics.
read articleInterview
Isabel Capeloa Gil , Rector, Universidade Católica
Having pioneered the introduction of multiple subject areas to Portugal's tertiary education scene, Universidade Católica is aspiring to establish the country's first private medical school and introduce cutting-edge digital transformation.
read articleInterview
Carlos Guillén Gestoso , President, Escola Universitária de Ciências Empresariais, Saúde, Tecnologias e Engenharia & President, Atlantica University
Atlantica University differentiates through its company-university model and an MBA program in partnership with the University of California, Berkley, among other initiatives, to produce practical theoreticians.
read articleFocus: Public teaching staff
An Age-old Problem
Over a decade of austerity measures combined with an ageing population have seen the average age of the Portuguese public teaching staff progressively climb to one of the highest in the OECD. With frozen salaries, an extended retirement age, and precarious working conditions, today the sector faces one of its biggest challenge yet.
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Pedro Queiroz , General Manager, Federation of the Portuguese Agri-Food Industry (FIPA)
Portugal's economic recovery has seen its F&B sector emerge with annual turnovers of EUR16 billion, thanks to FIPA's undeterred focus on stable policies, excellent nutrition standards, and sustainability.
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