Shake-up and restructuring of EDP .jpg

Shake-up and restructuring of EDP

ELECTRICITY giant, EDP, is to make 1,100 workers redundant in Portugal and Spain by 2010.

Most of the jobs will be through natural wastage and early retirement, but the company will also take on around 650 new graduate and skilled trainees.

The move, announced on January 22 during the presentation of its Strategic Plan 2007-2010, is part of an overall shake-up and restructuring programme which will see the company’s overseas and foreign activities expand.

During the same period, the company is to invest an overall 7.6 billion euros in the energy sector – two-thirds will be in renewable energy.

EDP expects to reduce the number of its workforce by approximately 12 per cent, which translates into 600 jobs in Portugal and 60 in Spain in the distribution sector of the business, 300 in production and 40 in the commercial side of the company.

Around 46 per cent of EDP’s energy production in 2010, will come from so-called “clean energies” said EDP CEO António Mexia. EDP’s aeolic capacity will climb from 952 MW to 4,200 MW by 2010.

Power distribution, which has so far been concentrated on the Iberian Peninsular, will also be sold to other markets, such as France and Belgium.

Clean energy

EDP is currently studying the possible acquisition of aeolic wind generators in Italy, the UK and Germany, while the company is already prospecting in the US.

The expectation is that ‘clean energy’ sources will increase from 35 per cent to 46 per cent by 2010, although renewable energy is likely to take up the lions share of EDP’s investment up until 2010.

Of the 7.6 billion euros investment, 2.6 billion euros has been earmarked for aeolic wind generation, with 1.7 billion euros in the Spanish market.

Some 290 million euros is to be invested in clean and renewable energy sources in Portugal and 630 million euros in other markets, of which biomass and solar energy will take up 280 million euros of the investment cake.

The company’s Strategic Plan is also looking to sign up an extra one million new clients by 2010, of which 900,000 will be electricity clients and 100,000 gas clients.

At the same time, EDP intends to capture a 15 per cent quota of the liberalised gas market, worth 290 million euros.

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