Edp managing a new electricity era: the birth of ocean winds - financial risk management in offshore joint ventures

Abstract

Since entering renewables, wind was EDP’s main focus. From onshore, they moved to floating offshore, entering later the fixed-bottom market. The case has two pillars: WindFloat Atlantic, the first floating offshore project, and Ocean Winds, an offshore joint venture. Those allowed EDP to achieve a leading position in offshore energy production in Portugal. The project evaluation report focused on the analysis of the risks and regulations that Ocean Winds carries on, and its current strategies. The teaching note further explains financial topics, like SPV’s approach importance, financial risk management methods, and the origin of fundings in renewables’ projects