Company: EDP Renováveis, S.A.
Industry: Renewable Energy, Wind Energy
Country: Spain
Sector: Utilities
Company type: S.A.
Revenue (EUR): 2007000000
Employees: 3000

Reported EU Taxonomy activities:
Electricity generation using solar photovoltaic technology
Electricity generation from wind power
Installation, maintenance and repair of renewable energy technologies

EU Taxonomy KPIs (currency: EUR, units: millions)
Turnover:
totalTurnover: value: 2301.8
percentage: 100%
eligibleTurnover: value: 2297.2
percentage: 99.8%
alignedTurnover: value: 2297.2
percentage: 99.8%
nonEligibleTurnover: value: 4.6
percentage: 0.2%
CapEx:
totalCapex: value: 5055.7
percentage: 100.0%
eligibleCapex: value: 5045.4
percentage: 99.8%
alignedCapex: value: 5045.4
percentage: 99.8%
eligibleNotAlignedCapex: percentage: 0%
nonEligibleCapex: value: 10.3
percentage: 0.2%
OpEx:
totalOpex: value: 272.2
percentage: 100%
eligibleOpex: value: 265.5
percentage: 97.6%
alignedOpex: value: 265.5
percentage: 97.6%
nonEligibleOpex: value: 6.6
percentage: 2.4%

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Image /page/0/Picture/0 description: The image shows a field of solar panels and wind turbines at sunset. The text "We Choose Earth" is superimposed on the image.

# Annual Report 2023

Image /page/0/Picture/2 description: The image shows the logo for EDP Renewables. On the left is a circular design with four concentric circles in purple, green, blue, and cyan. To the right of the circle design is the text "edp" in a dark blue sans-serif font, with the word "Renewables" below it in a smaller font.

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Image /page/1/Picture/0 description: The image shows a landscape with solar panels in the foreground and wind turbines on a hill in the background. The sky is a gradient of colors, suggesting a sunset or sunrise. The text "We Choose Earth" is superimposed on the image in a large, sans-serif font.

Our choice is part of who we are. The Earth is the heart of our company, and as a pure 100% renewable player, we're commied to tirelessly protect and sustain our precious home.

The energy sector stands at a crucial juncture and despite the challenging year for the renewable energy industry, we remain at the forefront of this vital change.

Proudly dedicated to a greener future, we continue to work on expanding our porolio of renewable energy projects. Our focus remains on innovating and delivering new models all around the world with technologies to accelerate the crucial transition to cleaner energy sources.

Through sustainable innovation, we reinforce our ambition to become Net Zero by 2040. We're creating superior value that protects the Earth and human life. That's our choice, give power to every leaf, every drop, every wind blow, and every sunrise.

We Choose Earth

Image /page/1/Picture/6 description: The image shows the logo for EDP Renewables. The logo consists of a circular design with three concentric rings in different colors: purple, green, and blue. To the right of the circular design is the text "edp" in white, with the "p" extending downwards. Below "edp" is the word "Renewables" in white.

Annual Report 2023 Manifesto

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Annual Report 2023Purpose

Image /page/2/Picture/16 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a sans-serif font, with the "e" and "d" in a smaller size and the "p" in a larger size. The word "Renewables" is written in a smaller sans-serif font below the "edp" letters. The entire logo is white and is set against a blue background.

003

# Our energy

and heart

# drive a beer

Image /page/2/Picture/15 description: The image contains a set of three horizontal lines stacked vertically on top of each other, resembling a menu icon. Below the lines, there is a circular arrow pointing counterclockwise, suggesting a refresh or reload action.

tomorrow

Speaks of our stamina, our track record and what drives us to continuously deliver green energy

Highlights our people and their key role in delivering our commitment to our clients, partners and communities

ive

Reflects our ambition and leadership

Reflects our ambition and leadership in making change happen

# Purpose

The reason why we work every day

ergy
of our stamina, our track

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Image /page/3/Picture/2 description: The image is a teal-colored screen with the number 004 at the top. Below the number are three horizontal lines stacked on top of each other. At the bottom of the screen is a partial view of a circle.

Annual Report 2023Index 

Image /page/3/Picture/10 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in white against a blue background. Below the letters, the word "Renewables" is written in white.

# Index

| Chairperson letter             | 7                            |
|--------------------------------|------------------------------|
| Message from the CEO           | 9                            |
| PART I                         | PART II                      |
| Management Report              | Financial Statements 318     |
| 01 Our company                 | 12                           |
| 02 Our strategic approach      | 31                           |
| 03 Our performance             | 56                           |
| 04 GRI report                  | 100                          |
| 05 Corporate governance report | 216                          |
| 06 Remunerations report        | 304                          |
|                                | Concepts and definitions 48- |

{4}------------------------------------------------

# Part I Management Report

Image /page/4/Picture/1 description: The image shows the logo for EDP Renewables. On the left is a circular design made of three concentric circles in purple, blue, and green. To the right of the circle design is the text "edp" in white, with the word "Renewables" in white below it.

< 005 >

Part I

Annual Report 2023
Management Report

edp
Renewables

{5}------------------------------------------------

Part I

006

Image /page/5/Picture/6 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a sans-serif font, with the "e" and "d" in a light blue color and the "p" in white. Below the letters, the word "Renewables" is written in a smaller, sans-serif font, also in white. The background is a solid light blue color.

# Part I Management Report Index

| Chairperson letter               | 7  | Natural capital                                                      | 88  |
|----------------------------------|----|----------------------------------------------------------------------|-----|
| Message from the CEO             | 9  | Digital capital                                                      | 92  |
| <b>01</b> Our company            | 12 | Innovation capital                                                   | 95  |
| EDPR in brief                    | 14 | Sustainable development goals                                        | 99  |
| 2023 in review                   | 18 | <b>04</b> GRI Report                                                 | 100 |
| Organisation                     | 21 | Materiality assessment                                               | 102 |
| <b>02</b> Our strategic approach | 31 | Materiality topics                                                   | 104 |
| Business Environment             | 33 | Annex I: Alignment with TCFD<br>recommendations                      | 174 |
| Strategy                         | 41 | Annex II: Taxonomy alignment. KPIs<br>under article 8 of EU taxonomy |     |
| Risk management                  | 48 | Annex III: Non-financial information<br>statement                    | 199 |
| <b>03</b> Our performance        | 56 | Annex IV: GRI content index                                          | 205 |
| Financial capital                | 58 | Annex V: Independent verification<br>report                          | 212 |
| Human captal                     | 68 |                                                                      |     |
| Supply chain capital             | 72 |                                                                      |     |
| Social capital                   | 77 |                                                                      |     |

| 05 Corporate Governance Report<br>Part I – Information on shareholder,<br>organisation and corporate<br>governance | 216 |
|--------------------------------------------------------------------------------------------------------------------|-----|
| Part II – Corporate governance                                                                                     | 218 |
| assessement                                                                                                        | 278 |
| Annex I – Curricula vitae of the Board<br>of Directores EDP Renováveis S.A.                                        | 289 |

#### **06 Remunerations Report 304**

{6}------------------------------------------------

# Chairperson leer

António Gomes Mota Chairman of the EDPR Board of Directors

007

**Dear Stakeholder,**

This was a critical year for EDPR, one for acceleration across the entire industry with the world witnessing global uncertainly and the ongoing conflict in Ukraine and the Middle East.

The renewables sector experienced a period of volatility with rising inflation, increased capital expenditure, ongoing supply chain pressures and security issues, and a challenge around the world's ability to deliver on climate commitments. These trends combined have driven concern around the prospect of a sustainable and profitable long-term growth for our sector.

I would like to say that I remain confident in the future of our sector and EDPR's ambitions

of growth.

#### Several positive moves towards triple renewables by 2030

In 2023, we witnessed a remarkable milestone in the renewable energy sector as the International Energy Agency (IEA) recently reported a noting 50% increase in renewable energy capacity, totalling almost 510 GW in 2023. This phenomenal progress underscores the growing momentum and potential within the renewable energy market. This same report highlights the upwards revision of 2023-2027 targets for renewable electricity capacity forecast, including key markets where we are present: Germany, Brazil & US.

Furthermore, regulatory bodies and international organizations, such as the European Union, are advocating for substantial reductions in greenhouse gas emissions. The EU's recommendation of a 90% reduction in net greenhouse gas emissions by 2040, compared to 1990 levels, sets a significant benchmark for our collective efforts towards net zero.

Recent developments such as the upward revision of offshore auction prices in the UK and the US signify the growing value and potential in offshore renewable energy projects. Additionally, improvements in the US grid connection infrastructure, facilitated by FERC's initiatives to reduce interconnection queue backlogs and enforce strict timelines, present promising opportunities for streamlined operations and enhanced efficiency.

# EDPR is well-positioned to capture renewables growth potential

despite 2023 challenges

At EDPR, we are well-positioned to meet these challenges as a climate energy leader while driving increased value for all our global stakeholders. In March, we announced our revised Business Plan for 2023-2026, reinforcing our company's ambitions to lead the energy transition. At the heart of this plan sits a €20 billion global investment, directed to Wind Onshore (40%) and Solar Utility Scale (40%) as well as emerging technologies (20%) such as Solar DG, Wind Offshore, Storage and Hydrogen. With this updated Business Plan, we reiterated our mission to create superior value by championing ESG excellence and a climate positive world, supporting our employees, clients, communities, shareholders, and

partners in this transition.

We have successfully completed a 1 billion euros capital increase to partially finance the company's growth plan aracting long term investors to the shareholder's structure. We also implemented the Scrip Dividend Programme to offer to our shareholders a flexible remuneration mechanism, replacing the ordinary dividend corresponding to the year 2022, with a shares conversion rate of 92%, a clear indication of a highly positive view from the shareholders regarding the company's future. In 2024, EDPR's Board of Directors will propose in the 2024 general shareholder meeting to continue with the scrip

dividend programme.

On risk management, we continuously monitor supply chain and permiing processes to mitigate the risks of delays and capital expenditure inflation, while also balancing the mix of merchant and long-term contracted revenues. EDPR prioritizes the preservation of a high weight of long-term contracted and hedged revenues, with 90% of its porolio generation secured under stable pricing arrangements in 2024, protecting the company from

short-term volatility in energy markets.

Despite encountering challenges in 2023 such as delays in grid connection permiing for our wind projects in Colombia and unexpected solar panels supply chain bolenecks in US, which implied a delay in the commissioning of some of our solar projects there, we were

able to add 2.5 GW capacity in 2023 and we are on track to add 4 GW for 2024.

There were also some externalities that penalized our profitability, namely the El Niño effect, generating a below average wind resource and contracyclical windfall energy taxes in Europe. Nonetheless, we were able to deliver a solid Asset Rotation execution, with strong

valuation multiples, compensating a very challenging high interest rates environment.

On the other hand, our DNA strongly linked to ESG remained intact and we reaffirmed our ambition to achieve net zero emissions by 2040, as we collaborate closely with our suppliers to drive an impacul and lasting transformation. Empowering our local communities and reinforcing our commitment on protecting biodiversity are also key areas

on our ESG strategy.

Leaner and more efficient Corporate Governance structure

The year of 2023 concluded a cycle of important progress in the governance of EDPR. We have reformed EDPR's Board substantially over the course of the 2021-2023 mandate. We reduced the size of the Board from 15 to 12 Directors, elected an Independent Chairperson, increased the representation of Independent Directors from 40% to 50% and, critically, increased the representation of women from 20% to 33%. We also ensured commiees are composed exclusively of Independent Directors. In 2022, we established a new commiee dedicated entirely to ESG, within the Board of Directors, clearly highlighting the central role of sustainability in the management of EDPR. We also updated EDPR's Remuneration Policy of the Board of Directors for the 2023-2025 period, moving to an incentive-based system aligned with ESG best practices. All these changes clearly align

EDPR's governance model with the best market practices.

On behalf of EDPR's Board of Directors, I want to thank our global employees for their effort, commitment, and enthusiasm. You are at the heart of our successful history and of the bright future that I believe that lies ahead. A word of appreciation is due to our contractors, suppliers, clients, and partners, for your belief in the present and in the future of business. One final word to our shareholders that despite a very challenging environment have continued to support us and to believe in our commitment to deliver a sustainable creation

of value.

Although in 2024 we will continue to work on a very demanding environment, I am fully convinced that EDPR will be able to navigate in these challenging times, continuing to contribute to the decarbonization of the economy and to respond to the interests of its

stakeholders.

Part I

{7}------------------------------------------------

**Dear Stakeholder,**

This was a critical year for EDPR, one for acceleration across the entire industry with the world witnessing global uncertainly and the ongoing conflict in Ukraine and the Middle East.

The renewables sector experienced a period of volatility with rising inflation, increased capital expenditure, ongoing supply chain pressures and security issues, and a challenge around the world's ability to deliver on climate commitments. These trends combined have driven concern around the prospect of a sustainable and profitable long-term

growth for our sector.

I would like to say that I remain confident in the future of our sector and EDPR's ambitions

of growth.

Several positive moves towards triple renewables by 2030

In 2023, we witnessed a remarkable milestone in the renewable energy sector as the International Energy Agency (IEA) recently reported a noting 50% increase in renewable energy capacity, totalling almost 510 GW in 2023. This phenomenal progress underscores the growing momentum and potential within the renewable energy market. This same report highlights the upwards revision of 2023-2027 targets for renewable electricity

capacity forecast, including key markets where we are present: Germany, Brazil & US.

Furthermore, regulatory bodies and international organizations, such as the European Union, are advocating for substantial reductions in greenhouse gas emissions. The EU's recommendation of a 90% reduction in net greenhouse gas emissions by 2040, compared

to 1990 levels, sets a significant benchmark for our collective efforts towards net zero.

Recent developments such as the upward revision of offshore auction prices in the UK and the US signify the growing value and potential in offshore renewable energy projects. Additionally, improvements in the US grid connection infrastructure, facilitated by FERC's initiatives to reduce interconnection queue backlogs and enforce strict timelines, present

promising opportunities for streamlined operations and enhanced efficiency.

EDPR is well-positioned to capture renewables growth potential

despite 2023 challenges

At EDPR, we are well-positioned to meet these challenges as a climate energy leader while driving increased value for all our global stakeholders. In March, we announced our revised 008

Annual Report 2023 Chairperson leer

Business Plan for 2023-2026, reinforcing our company's ambitions to lead the energy transition. At the heart of this plan sits a €20 billion global investment, directed to Wind Onshore (40%) and Solar Utility Scale (40%) as well as emerging technologies (20%) such as Solar DG, Wind Offshore, Storage and Hydrogen. With this updated Business Plan, we reiterated our mission to create superior value by championing ESG excellence and a climate positive world, supporting our employees, clients, communities, shareholders, and partners in this transition.

We have successfully completed a 1 billion euros capital increase to partially finance the company's growth plan aracting long term investors to the shareholder's structure. We also implemented the Scrip Dividend Programme to offer to our shareholders a flexible remuneration mechanism, replacing the ordinary dividend corresponding to the year 2022, with a shares conversion rate of 92%, a clear indication of a highly positive view from the shareholders regarding the company's future. In 2024, EDPR's Board of Directors will propose in the 2024 general shareholder meeting to continue with the scrip dividend programme.

On risk management, we continuously monitor supply chain and permiing processes to mitigate the risks of delays and capital expenditure inflation, while also balancing the mix of merchant and long-term contracted revenues. EDPR prioritizes the preservation of a high weight of long-term contracted and hedged revenues, with 90% of its porolio generation secured under stable pricing arrangements in 2024, protecting the company from short-term volatility in energy markets.

Despite encountering challenges in 2023 such as delays in grid connection permiing for our wind projects in Colombia and unexpected solar panels supply chain bolenecks in US, which implied a delay in the commissioning of some of our solar projects there, we were able to add 2.5 GW capacity in 2023 and we are on track to add 4 GW for 2024.

There were also some externalities that penalized our profitability, namely the El Niño effect, generating a below average wind resource and contracyclical windfall energy taxes in Europe. Nonetheless, we were able to deliver a solid Asset Rotation execution, with strong valuation multiples, compensating a very challenging high interest rates environment.

On the other hand, our DNA strongly linked to ESG remained intact and we reaffirmed our ambition to achieve net zero emissions by 2040, as we collaborate closely with our suppliers to drive an impacul and lasting transformation. Empowering our local communities and reinforcing our commitment on protecting biodiversity are also key areas on our ESG strategy.

#### Leaner and more efficient Corporate Governance structure

The year of 2023 concluded a cycle of important progress in the governance of EDPR. We have reformed EDPR's Board substantially over the course of the 2021-2023 mandate. We reduced the size of the Board from 15 to 12 Directors, elected an Independent Chairperson, increased the representation of Independent Directors from 40% to 50% and, critically, increased the representation of women from 20% to 33%. We also ensured commiees are composed exclusively of Independent Directors. In 2022, we established a new commiee dedicated entirely to ESG, within the Board of Directors, clearly highlighting the central role of sustainability in the management of EDPR. We also updated EDPR's Remuneration Policy of the Board of Directors for the 2023-2025 period, moving to an incentive-based system aligned with ESG best practices. All these changes clearly align EDPR's governance model with the best market practices.

On behalf of EDPR's Board of Directors, I want to thank our global employees for their effort, commitment, and enthusiasm. You are at the heart of our successful history and of the bright future that I believe that lies ahead. A word of appreciation is due to our contractors, suppliers, clients, and partners, for your belief in the present and in the future of business. One final word to our shareholders that despite a very challenging environment have continued to support us and to believe in our commitment to deliver a sustainable creation of value.

Although in 2024 we will continue to work on a very demanding environment, I am fully convinced that EDPR will be able to navigate in these challenging times, continuing to contribute to the decarbonization of the economy and to respond to the interests of its stakeholders.

—

↻

#### **António Gomes Mota**

Part I

{8}------------------------------------------------

Miguel Stilwell d'Andrade CEO of EDP and EDP Renewables

# **Dear Shareholders and Stakeholders,**

However, over the year, the sector and our business encountered multiple headwinds arising from the severe market dislocations in many areas. Rising inflation and interest rates led to higher costs; inadequate permitting processes continued hindering the development of renewable projects; supply chain restrictions impacted solar panel deliveries, especially in the US, delaying the commissioning of projects. All these factors impacted confidence in the sector's growth value proposition.

2023 was marked by a continued commitment to the energy transition. Governments around the world kept implementing supportive policies and regulations to promote renewaround the world kept implementing supportive policies and regulations to promote renewable energy adoption. Many countries accelerated their transition away from fossil fuels, and clean energy sources continued to outpace traditional fossil fuels in new installations Message from the CEO

> EDP Renewables (EDPR) has remained focused on the medium and long-term goals and objectives, while adjusting to the unprecedented context and short-term volatility. In these uncertain times, the hard work and resilience, anchored on the capabilities and experience accumulated by our teams over the last decades, has paid off. We completely reconfigured the US solar supply chain in record time, we renegotiated PPAs, and we are proactively managing the development of our wind projects in Colombia (0.5 GW) expecting to reach the economic conditions that allow us to move ahead with the projects. We continue to drive efficiency and optimization of CAPEX and OPEX to mitigate the market disruptions. And we have raised the bar with a new Business Plan announced in March 2023 that ramped-up our targets to a yearly deployment of more than 4 GW in renewables corresponding to a €20 billion investment plan in wind, solar, storage and green hydrogen between 2023 and 2026. This revised ambition was supported by the successful execution of a €1 billion capital increase at EDP Renewables level to partially finance the company's growth plan – a testament of the trust of the investors in the company and in the sector.

> > Our growth in the current environment is a testament of our long-term commitment to Renewables, to a safe and affordable energy system, and to a sustainable future for the generations to come.

009

Part I

#### Message from
the CEO O

{9}------------------------------------------------

During challenging times, experience is a key factor to successfully navigate uncertainties and adapt swiftly to changing circumstances. At EDPR our long-lasting presence in the sector and our long-term contracted profile have cemented our position as a Renewables leader. While 2023 was one of the more challenging years we have experienced, our long-term performance to date gives us great confidence in the strength of our business, and the ability to meet the planet's clean energy needs while creating superior value for shareholders and other stakeholders. 

#### Growth across our regional hubs

As we look back on 2023, despite the challenges faced in the sector, EDPR maintained a solid operational performance across markets where we operate. Our global teams jointly added +2.5 GW of new renewables' capacity, representing a 12% YoY increase of installed capacity to 16.6 GW. 

We have commissioned Portugal and Spain's first hybrid projects combining wind and solar power generation at one single location. We have launched the largest European solar project in Poland with an installed capacity of more than 150 MWac, generating clean energy that will prevent the emission of more than 208,000 tons of CO2 annually. In the United Kingdom, we announced the installation of our first stand-alone Battery Energy Storage Systems (BESS), contributing to around 50 MW of capacity to the power grid. 

We continued to grow in North America, having commissioned 1.2 GW in 2023, and by year-end we reached a record high capacity of c. 2.0 GW under construction. Moreover, EDPR North America and Google signed the largest US corporate sponsorship, focused on the development and installation of more than 80 distributed solar PV projects across six US states – an initiative that provides benefits to nearly 25,000 low-to-moderate income families. 

In Brazil, we launched our largest wind farm complex worldwide with an installed capacity of 580 MW and 138 wind turbines. The complex, located in Rio Grande do Norte, can produce enough energy to supply more than 1.5 million people per year.

In the Asia-Pacific region, EDPR has more than doubled our solar installed capacity to more than 1 GWp. We also successfully completed the construction of our largest single solar distributed generation (DG) project undertaken – 19 MWp in China's Anhui province.

In 2023, Ocean Winds, EDPR's 50/50 joint venture with ENGIE dedicated to offshore wind energy, has reached financial close for three offshore wind bottom-fixed projects: Moray

West in the UK and the French projects of the Îles d'Yeu / Noirmoutier and Dieppe-Le Tréport. In total, by year end Ocean Winds holds a secured portfolio of projects in 7 countries representing 16.6 GW of gross capacity, of which 1.5 GW is in operation, 1.9 GW under construction and 13.2 GW under advanced development. Furthermore, as part of our disciplined risk management and focus on returns, we canceled the South Coast PPA in Massachuses, U.S., given the change in market conditions, with a relevant positive impact on the optionality value of the project.

#### Further strides across environmental, social, and governance best

# practices

Alongside our continued growth and solid operational performance, EDPR made further progress in sustainable practices and in creating positive impact with our multiple stakeholders. 

Within our commitment to the circular economy, EDPR North America launched the program "Close the Loop" in partnership with SOLARCYCLE. This initiative, focused on fostering a more efficient use of resources and materials, aims at returning solar supplies back into supply chains to help grow the domestic solar manufacturing industry. 

In addition, we were thrilled to see EDPR ranked as 4<sup>th</sup> in the Power Generation peer group Corporate Knights' 2024 Global 100 List, announced each year during the World Economic Forum in Davos, that ranks the world's most sustainable companies.

EDPR has once more received recognition from the Top Employer Institute for best practice in people management across countries where we operate including Portugal, Spain, France, Italy, Poland, Romania, Brazil and, for the first time, Greece and Colombia. Additionally, our company continues to be part of the Bloomberg Gender Equality Index (GEI), a recognition for good practices of inclusion and equal professional opportunities. This is a testament of the company's dedication to its people, and to their development and well-being. Yet, the best recognition of all is that more than 90% of EDPR's employees are proud to work for the company.

# Superior value creation for EDPR stakeholders

The year was completed with a demonstration of the value that we can offer to our shareholders, despite the challenging context. EDPR has secured đ60% of the 1 § GW additions targeted in the 2023-2026 Business Plan, while keeping a very selective investment approach – looking at investments that not only target returns (>1.4x IRRp/WACC or the min010

Annual Report 2023 Message from the CEO

---

Part I

{10}------------------------------------------------

imum 200 basis points spread IRR to WACC) but also a solid risk profile with at least 60% of the NPV of the new projects being fully contracted, or long term contracted. 

Recurring EBITDA was 1.8 billion euros, -14% versus 2022, and recurring Net Profit totaled 513 million euros, versus 671 million euros year-on-year, impacted by top line headwinds, with El Niño lowering wind load factors namely in North America, and with lower average selling price. These adverse effects were partially compensated by strong execution of Asset rotation transactions, with three deals, in Spain, Poland and Brazil, generating proceeds of 1.5 billion euros and gains of 460 million euros, which contributed to balance sheet strength and the acceleration of accretive growth.

The value delivered to our shareholders came also through the new Scrip Dividend programme aiming at improving the company's dividend policy to a 30-50% payout ratio, to provide a flexible and competitive remuneration to shareholders.

#### Looking ahead

It was the collective performance of our people that enabled us to deliver such achievements in 2023, despite the challenging environment. I want to extend a sincere thanks to all our EDPR teams and to my colleagues of the EDPR Management Team - your hard work and unwavering commitment is what makes EDPR a reference in the sector. I also want to thank the EDPR Board of Directors' Chairman and members for all the advice, support and dedication to the company.

And to our shareholders, thank you for the continued support and trust that you place in us – we are working hard to deliver sustained long-term value creation. To all EDPR Renew– ables stakeholders, thank you for being an integral part of this transformative journey.

As we move forward, let us continue to be the doers of positive change, shaping a future where sustainability thrives, and our collective efforts create a lasting impact.

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We are leading

the energy

Pereira Barreto Solar Park, Brazil Pereira Barreto Solar Park, Brazil012

# transition to create superior value

Annual Report 2023 The Company

Part I

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Part I

Annual Report 2023 Part I – Our company | Index

013

# 01 Our company

EDPR in brief 14 2023 in review 18 Organisation 21

14
18
21

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Our Presence is structured around 4 regional hubs

> 35 TWh total production

total capacity 16.6 GW

>3,000 employees

| Europe         | Madrid, Lisbon, Oporto, Oviedo |          |                                                                     |      |                              |
|----------------|--------------------------------|----------|---------------------------------------------------------------------|------|------------------------------|
| 5,392<br>606   | 11,619<br>1,390                |          |                                                                     |      |                              |
| South America  | São Paulo                      |          |                                                                     |      |                              |
| 832<br>416     | 4,483<br>180                   |          |                                                                     |      |                              |
| North America  | Houston                        |          |                                                                     |      |                              |
| 7,084<br>1,321 | 17,306<br>1,073                |          |                                                                     |      |                              |
| APAC           | Singapore                      |          |                                                                     |      |                              |
| 905<br>        | 1,184<br>400                   |          |                                                                     |      |                              |
|                |                                | <br><br> | Solar Capacity (MW)<br>Wind Capacity (MW)<br>Electricity generation | <br> | Employees (#)<br>Main office |

## ---

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# 1.1.1. Global presence

1.1. EDPR in brief

014

Annual Report 2023 EDPR in Brief | Global presence

edp
Renewables

Part I

{14}------------------------------------------------

Image /page/14/Picture/34 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in white, with the "d" being vertically elongated. Below the letters, the word "Renewables" is written in a smaller font size, also in white. The background is a dark blue color.

# 1.1.2. Business description

# **Operation**

Image /page/14/Picture/13 description: The image shows a circular diagram with four stages: Development, Construction, Operation, and Dismantling/Repowering. The stages are arranged in a clockwise direction, with Development at the top, Construction on the right, Operation at the bottom, and Dismantling/Repowering on the left. Each stage is marked with a colored dot.

# **Construction**

#### Renewable resources analysis

Install meteorogical equipment to collect and study wind profile and solar radiance.

#### Site identification and grid connection

Search for sites with top-class wind conditions or irradiance resource and analyse grid connection feasibility.

#### Obtain permits

Engage with local public authorities to secure environmental, construction, operating and other licences.

#### Design layout & equipment choice

Optimise the layout of the asset and select the best fit of equipment model based on the site characteristics.

#### Origination

Secure long term contracts for energy sale, guaranteeing stable and predictable cash-flows.

#### Project funding

Find appropriate financing for the project.

#### Procurement

Source major equipment and construction contracts globally.

#### Construction

Build access roads, prepare foundations, assemble wind turbines or solar panels, construct substation.

#### Start of operations & deliver clean energy

A beer energy, a beer future, a beer world!

#### Ongoing maintenance service

Keep availability figures at the highest level possible and minimise failure rates.

#### Data analysis

Monitor real-time operational data, analyse performance and identify opportunities for improvement.

#### Risk & Energy management

Mitigate market exposure and manage energy sales.

#### End of life

Once wind farms and solar plants reach the end of useful life (30-35 years), wind turbines and solar panels need to be assessed and replaced.

EDPR increases power generated by reducing the overall number of wind turbines and replacing them with more efficient machines.

#### Efficiency

{15}------------------------------------------------

- EDPR signs its first PPA secured in Greece to sell the green energy produced by a 78 MW wind porolio. **14**
- EDPR announces new Scrip Dividend programme in order to provide a flexible and competitive remuneration to its shareholders. **27**

# **February**

- **29** EDPR buys back 49% stake in 1 GW wind porolio in Portugal, Poland and Italy for €0.57 Bn.
- **30** EDPR completes Asset Rotation deal of a 260 MW wind porolio in Brazil.

#### **December**

- **13** Two of EDPR's main green hydrogen initiatives, a key vector for the energy transition, have been selected by the European Commission to receive funding from the European Union Innovation Funds.
- **25** EDPR closes Asset Rotation deal for a 257 MW wind porolio in Spain.

# **July**

- **02** EDPR informs about a long-term virtual PPAs to develop a 54 MW porolio of wind projects in the region of Galicia, Spain.
- **03** EDPR secures a 15-year PPA to sell the green energy produced by a 150 MWac solar project in Texas, US.

## **May**

- **01** EDPR awarded with a 20-year FiT for 159 MW of renewable capacity in Italy for wind and solar projects.
- Google chooses Kronos Solar EDPR for long-term energy contract of 40 MWac in The Netherlands, EDPR's first PPA in the country. **14**

#### **June**

#### **October**

- **12** EDPR completes Asset Rotation deal of 142 MW from 3 operating wind farms and up to 159 MW of hybrid solar projects under development in Poland.
- **17** EDPR secures a 15-year PPA for a 180 MW solar project in the US.
- 
- **08** EDPR awarded two wind onshore projects under development with CfD for 56 MW in the UK.

# **September**

- **04** EDPR holds its Annual General Shareholders' Meeting and the 11 items of the agenda are unanimously approved.
- **24** Google and EDPR agree to develop 650MWp of solar energy, the largest US corporate sponsorship of distributed PV, while promoting an initiative that provides benefits to nearly 25,000 low-to-moderate income families.
- **27** EDPR secures a PPA for a 110 MWac solar project in the US, commiing to employ women & minorities in positions of leadership on the project, to undertake habitat restoration activities and ensure the project is carbon neutral.

# **April**

**02** EDPR presents its Business Plan 2023-2026, forecasting a global gross investment of €20 Bn until 2026 to boost renewable additions.

> EDPR entered into an investment agreement with GIC in which the laer commied to subscribe ~€1 Bn to help fund EDPR's updated growth plan.

**30** EDPR signs an agreement to secure solar modules for EDPR's US projects with First Solar, which uses a thin film PV technology seing industry benchmarks for quality, durability, and environmental performance.

#### **March**

**28** EDPR strengthens its role in Poland's energy transition by being awarded a long-term contract in the latest tender.

#### **November**

016

- EDPR commissions its first hybrid solar and wind energy plant, the first of its kind on the Iberian Peninsula. **12**
- EDPR distinguished as one of the best companies to work for by Top Employer in 9 countries, including Greece and Colombia for the first time. **17**
- EDPR is once again included in the Bloomberg Gender Equality Index (GEI), improving its overall score compared to last year. **31**

#### **January**

# 1.1.3. 2023 Main achievements

Part I

Image /page/15/Picture/37 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are white, and they are set against a dark blue background.

{16}------------------------------------------------

Stakeholder management is a strategic priority for EDPR, following the ESG (Environment; Social; Governance) growing importance in the business world.

Engaging with stakeholders is an extremely demanding exercise for companies, that involves sharing information and being transparent in their relationship with society and, in particular, with all who are affected by their activities. EDPR seeks to achieve this through four major interaction commitments: comprehend, communicate, trust, and collaborate.

EDPR remains commied to preserving the excellence achieved in this area, constantly seeking to listen to its key stakeholders, adapting and improving its procedures, and incorporating different visions into its action plans.

As a result, in 2023, the EDP Group carried out a global and integrated study among several stakeholder segments in the regions where it operates, with more than 6,000 respondents. This exercise allowed EDPR to assess stakeholders' global perception of the company and its role in leading the energy transition. Following the first global assessment conducted in 2021, there has been steady progress in perceptions and strong reinforcement of our global positioning.

EDPR continues commied to achieving an excellent level regarding stakeholder engagement activities, designing new procedures, and global and unified approaches on its main markets, adapting it whenever necessary regarding cultural and social specificities.

EDPR strongly believes this activity is key to enabling the implementation of the business plan, improving business success, anticipating risks, and also to create value for the stakeholders involved.

Position EDPR as a global company at the forefront of the energy transition, increasing awareness in our key markets, and establishing long-lasting and trusul relations with our main stakeholders will continue to be our main purpose.

Image /page/16/Picture/9 description: The image shows a blue line graph on the left and the word "Market" on the right. The graph is in blue and shows an upward trend. The word "Market" is in white and is written in a simple, sans-serif font. The background is a gradient of dark blue.

# Social and local communities

- Competitors
- Investors & Analysts
- Financial Entities & Tax equity investors
- Shareholders
- Assets Owners
- Market Agents

Image /page/16/Picture/16 description: The image shows a blue handshake icon on the left and the words "Value chain" in white on the right. The background is a gradient of dark blue.

- Employees & Unions
- Suppliers
- Partners
- Universities & Scientific Community
- Offtakers
- Business Associations
- Start-ups
- Clients

Image /page/16/Picture/25 description: The image shows a blue icon of a building with columns next to the word "Democracy" in white text on a dark blue background.

- Governments
- Public Powers & Regulation
- Parliament & Political Parties
- Municipalities
- International Institutions & Associations

- NGOs
- Landowners
- General Public
- Educational Institutions
- Media & Opinion Leaders

#### **Stakeholders**

# 1.1.4. Stakeholder management

017

Part I

Image /page/16/Picture/38 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The text is white and the background is blue.

{17}------------------------------------------------

Annual Report 2023 2023 in review | Key metrics

018

Image /page/17/Picture/33 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are white, and the background is purple.

# Part I **Financial Operational**

16.6 GW

Installed capacity **EBITDA + Net Equity**

Technical availability **vs 98% in 2022**

94%

Renewables generation **+4% YoY**

34.6 TWh

# 1.2.1. Key metrics 1.2. 2023 in review

New additions **EBITDA + Net Equity**

2,491 MW

# **ESG**

3,043

Employees **34% female**

72% Total waste

recovered

100%

Independent members of BoD commiees

**vs 96% in 2022** Employees trained 87%

**Stable YoY** In social impact programs

€2.4 m

# €1,845 m Recurring EBITDA

**vs €2,157m in 2022**

Organic Cash Flow **+14% YoY** €897 m

CAPEX **vs €3,446m in 2022**

# €4,556 m

Recurring net profit **vs €671m in 2022**

€513 m

Asset Rotation Gains €460 m **vs €424 m in 2022**

Net debt **vs €4.9bn in 2022** €5.7 Bn Load factor **-1.7pp vs 2022** 29%

Under construction as of Dec-23 **vs 4.0 GW as of Dec-22**

4.4 GW

Emissions avoided 20 mt CO2

{18}------------------------------------------------

Image /page/18/Picture/14 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark gray color.

==

#### **1.2.2. Share performance**

EDPR has 1,024 million shares listed and admitted to trading in NYSE Euronext Lisbon, following the successful share capital increase in March 2023, where 50,968,400 new shares were issued at a subscription price of 19.62 euros per share for a share premium of 14.62 euros, along with the issuance of 12,451,539 new shares following the scrip dividend program concluded in June 2023, EDPR total share capital is composed of 1,023,978,101 shares with a nominal value of five euros each, fully paid. All these shares are part of a single class and series and are admitted to trading on the Euronext Lisbon regulated market. On December 31st, 2023, EDPR had a market capitalisation of €19.0 billion, and equivalent to €18.53 per share. In 2023 total shareholder return was -9%, considering the dividend paid on May 26<sup>th</sup> of €0.265 per share.

In 2023, the Utilities Sector exhibited total return of +17.7% return in 2023, in contrast to the challenges faced in 2022, where energy markets were adversely affected by rising in energy sourcing costs. Despite the difficulties encountered by renewables players throughout the year, government policies persist in bolstering the performance of electricity markets, thereby promoting the ongoing energy transition. Moreover, the reduction in interest rates is anticipated to contribute to a recovery in energy market stocks.

The global benchmark for clean energy-related businesses, S&P Global Clean Energy Index, registered a TSR of -20.1%, mainly attributed to the underperformance of pure renewables companies compared to utilities, resulting from profit warnings prompted by high interest rates, operational challenges, and disruptions in the supply chain. Consequently, a wave of impairments affected renewable energy players, precipitating a subsequent decline in the clean energy stock market.

EDPR's TSR of -8.8% in 2023 underperformed both European and Utilities benchmark Indexes, impacted by lower resources caused by weather conditions and capacity delays.

The performance of EDPR's share price in 2023 was impacted by several factors. On one hand, the adverse of macroeconomic conditions resulting from the increase in interest rates, supply chain issues and complicated weather condition. On the other hand, the implementation and strong delivery of EDPR's Strategic Plan growth targets in the first year of this plan.

#### **Indexed EDPR Total Shareholder Return vs. S&P Clean Energy & Euro Stoxx Utilities SX6E**

| EDPR IN CAPITAL MARKETS                                | 2023   | 2022   | 2021     | 2020   |
|--------------------------------------------------------|--------|--------|----------|--------|
| Opening Price (€)                                      | 20.58  | 21.90  | 22.80    | 10.42  |
| Minimum Price (€)                                      | 13.89  | 17.00  | 16.17    | 8.82   |
| Maximum Price (€)                                      | 21.77  | 26.55  | 25.69    | 23.00  |
| Closing Price (€) (adjusted for dividend and splits)   | 18.53  | 20.58  | 21.90    | 22.80  |
| Market Capitalisation (€ Millions)                     | 18,969 | 19,768 | 21,036   | 19,889 |
| Total Traded Volume: Listed & OTC (Millions of shares) | 792.0  | 712.6  | 1,016.10 | 381.9  |
| of which in Euronext Lisbon (Millions of shares)       | 418.4  | 379.3  | 552.2    | 48.0   |
| Average Daily Volume (Millions of shares)              | 3.11   | 2.77   | 3.95     | 1.49   |
| Turnover (€ Millions)                                  | 7,558  | 13,989 | 20,079   | 4,966  |
| Average Daily Turnover (€ Millions)                    | 29.64  | 54.43  | 77.85    | 19.32  |
| Rotation of Capital (% of Total Shares)                | 77%    | 74%    | 106%     | 44%    |
| Rotation of Capital (% of Floating Shares)             | 269%   | 296%   | 423%     | 195%   |
| Total Shareholder Return                               | -9%    | -6%    | -3%      | 120%   |
| Total Number of Shares (Millions)                      | 1,024  | 961    | 961      | 872    |

Image /page/18/Figure/7 description: This image shows a line graph comparing the performance of three different indices over time. The x-axis represents time, spanning from December 2022 to December 2023. The y-axis represents the value of the indices, ranging from 0 to 140. The black line represents the S&P Clean Energy index, the light green line represents the EDPR index, and the gray line represents the Euro Stoxx Utilities SX6E index. The S&P Clean Energy index has decreased by 20% over the time period, the EDPR index has decreased by 9%, and the Euro Stoxx Utilities SX6E index has increased by 18%.

{19}------------------------------------------------

Image /page/19/Picture/15 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark blue color.

|    | RELEVANT EVENTS |                                                                                                                          |
|----|-----------------|--------------------------------------------------------------------------------------------------------------------------|
| 1  | 20-Jan          | EDPR informs about gender equality plan                                                                                  |
| 2  | 30-Jan          | Closing of Asset Rotation deal of a 260 MW operating wind portfolio in Brazil                                            |
| 3  | 14-Feb          | EDPR secured its first PPA in Greece                                                                                     |
| 4  | 27-Feb          | EDPR informs about the increase of its target dividend payout ratio to 30-50% and announces new Scrip Dividend programme |
| 5  | 27-Feb          | EDPR informs about FY 2022 Results                                                                                       |
| 6  | 02-Mar          | EDPR informs about its Business Plan 2023-2026                                                                           |
| 7  | 02-Mar          | Intention from EDPR to pursue equity raise of ~€1 billion                                                                |
| 8  | 02-Mar          | Approval of non-preemptive capital increase                                                                              |
| 9  | 03-Mar          | Notice of the General Shareholders Meeting of April 4th, 2023                                                            |
| 10 | 03-Mar          | Capital increase completion and final terms                                                                              |
| 11 | 06-Mar          | Registration of share capital increase of EDPR                                                                           |
| 12 | 07-Mar          | Admission to trading of shares of EDPR                                                                                   |
| 13 | 09-Mar          | Notification of qualified shareholding of GIC                                                                            |
| 14 | 13-Mar          | Resignation of a member of the Board of Directors                                                                        |
| 15 | 30-Mar          | Agreement with First Solar to secure solar modules                                                                       |
| 16 | 04-Apr          | EDPR informs about resolutions of the Annual General Shareholders Meeting                                                |
| 17 | 17-Apr          | EDPR secured PPA for a wind project in the US                                                                            |
| 18 | 27-Apr          | EDPR secured PPA for a solar project in the US                                                                           |
| 19 | 02-May          | EDPR secured long term VPPAs for a 54 MW wind portfolio in Spain                                                         |
| 20 | 02-May          | Scrip Dividend Programme launch and approval of the informative document                                                 |
| 21 | 03-May          | EDPR secured PPA secured for 150 MW solar project in the US                                                              |
| 22 | 04-May          | EDPR informs about 1Q23 results                                                                                          |
| 23 | 25-May          | Registration of share capital increase of EDPR                                                                           |
| 24 | 01-Jun          | EDPR awarded 20-year FiT in the eleventh GSE auction in Italy                                                            |
| 25 | 02-Jun          | Admission to trading of shares of the Company                                                                            |
| 26 | 14-Jun          | EDPR secured its first long-term PPA in the Netherlands                                                                  |
| 27 | 26-Jun          | EDP increases its participation in EDPR as a result of Scrip Dividend program                                            |
| 28 | 25-Jul          | EDPR closes Asset Rotation deal for a 257 MW wind portfolio in Spain                                                     |
| 29 | 26-Jul          | EDPR informs about 1H23 results                                                                                          |
| 30 | 27-Jul          | EDPR informs about Asset rotation deal signed for a renewables portfolio in Poland                                       |
| 31 | 07-Aug          | Management transaction related with the acquisition of shares by the Member of the Executive Board of Directors          |
| 32 | 29-Aug          | EDPR signs Asset Rotation deal for a 260 MW wind portfolio in Brazil                                                     |
| 33 | 5-Sep           | Blackrock notifies change in qualified shareholding in EDPR                                                              |

-Sep EDPR awarded with CfD for 56 MW of wind onshore in the UK

-Oct EDPR on Ocean Winds sells minority stake in its 950 MW Moray East offshore project

-Oct EDPR completes Asset Rotation deal of a 300 MW renewable portfolio in Poland

|    | RELEVANT EVENTS |                  |
|----|-----------------|------------------|
| 34 | 8-Sep           | EDPR o           |
| 35 | 2-Oct           | EDPR o           |
| 36 | 12-Oct          | EDPR o           |
| 37 | 17-Oct          | EDPR s           |
| 38 | 31-Oct          | EDPR i           |
| 39 | 29-Dec          | EDPR b<br>€0.57b |
| 40 | 29-Dec          | EDPR o           |

-Oct EDPR secures a PPA for a 180 MW solar project in the US

-Oct EDPR informs about 9M23 Results

-Dec EDPR buys back 49% stake in 1 GW wind portfolio in Portugal, Poland and Italy for €0.57bn

-Dec EDPR completes Asset Rotation deal for a 260 MW wind portfolio in Brazil

Source: BLOOMBERG / EDPR

Image /page/19/Figure/2 description: The image shows a line graph of share price and volume over time. The x-axis represents time, ranging from January 2023 to December 2023. The left y-axis represents the share price in euros (€), ranging from 5.0 to 25.0. The right y-axis represents the volume in millions, ranging from 0.0m to 10.0m. The share price is represented by a dark green line, which fluctuates over time. There are also blue diamond markers on the share price line. The volume is represented by light green vertical bars, which vary in height depending on the volume for that period.

**Volume Euronext Lisbon Last Price Events**

{20}------------------------------------------------

# Annual Report 2023 Management Report | Organisation

Image /page/20/Picture/14 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark color, possibly dark blue or black, against a white background.

# 1.3. Organisation

## **1.3.1 Shareholder structure**

EDPR shareholders are spread across 40 countries, being EDP the main shareholder.

## Major shareholders, the EDP Group

The majority of the Company's share capital is owned by EDP Group, holding 71.27% of the share capital and voting rights. EDP Group is a global company operating in all parts of the energy industry chain, from generation to the distribution and supply of gas and electricity. Over the past four decades, the company has built a significant position in the global energy landscape, establishing a presence in 4 continents. With over 13,000 employees, EDP supplies electricity and/or gas to over 9 million customers and is a sustainability partner for its clients, offering products and services in solar energy, energy efficiency, electric mobility, among others.

By the end of 2023, EDP had an installed capacity of 28.9 GW, generating 56.4 TWh of energy, of which 87% came from renewables. In this context, sustainability is part of the company's DNA, which is why the EDP Group has been a member of the Dow Jones Sustainability Index for more than 15 years.

#### Own shares

As of December 2023, EDPR did not hold own shares and no transactions were made during the year.

## Other qualified shareholders

Besides the qualified shareholder EDP Group, GIC – Government of Singapore Investment Corporation – communicated to CNMV the 9th of March 2023 an indirect qualified position, as collective investment institution, that surpassed the 3.00% shareholding threshold in EDPR share capital and voting rights and therefore becoming a qualified shareholder, as well as Blackrock Inc., who communicated to CNMV the 5th of September 2023 an indirect qualified position surpassing the 3.00% shareholding threshold in EDPR.

As of December 31<sup>st</sup>, 2023, GIC and Blackrock owned 4.25% and 3.39% of EDPR share capital and voting rights.

**EDPR shareholder structure**

Image /page/20/Figure/12 description: This image is a donut chart with four categories: EDP, Blackrock, GIC, and Other. EDP accounts for 71% of the chart, Blackrock accounts for 3%, GIC accounts for 4%, and Other accounts for 21%.

{21}------------------------------------------------

Image /page/21/Picture/17 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a simple, sans-serif font. The letters "ed" are connected, while the "p" is separate. Below the letters is the word "Renewables" in a smaller, lighter font.

#### Broad base of investors

EDPR has an international base of investors. Excluding EDP Group, EDPR shareholders comprise more than 35,000 institutional and private investors spread worldwide.

Within institutional investors, which represent about 96% of shareholder base (ex-EDP Group), sustainable and responsible funds (SRI) are the major type of investor, followed by investment funds.

In this context, EDPR is a member of several financial indexes that aggregate top performing companies for sustainability.

#### Worldwide shareholders

EDPR shareholders are spread across 40 countries.

The United Kingdom is the most representative country accounting for 24% of EDPR's shareholder base (ex-EDP Group), followed by the US, Singapore, France, Portugal, Germany and Sweden. In the Rest of Europe, the most representative countries are Switzerland, Spain, Belgium, Norway and Austria.

Image /page/21/Figure/7 description: This image is a donut chart with the following percentages: 63%, 30%, 1%, 4%, 2%, 1.1%, and 0.2%.

#### **Shareholders (Ex-EDP) by Type**

Corporations Investment Fund Others Pension Funds Retail Sovereign funds SRI

**Shareholders (EX-EDP) by Country**

Image /page/21/Figure/12 description: This image is a donut chart with the following data: France 15%, Germany 4%, Portugal 5%, RoE 14%, Others 2%, Sweden 2%, Singapore 15%, US 19%, and UK 24%.

{22}------------------------------------------------

Annual Report 2023 Organisation Management Report | 

Image /page/22/Picture/18 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a simple, sans-serif font, with the "e" and "d" connected. The letters are in a dark blue color. Below the letters, in a smaller font, is the word "Renewables" in the same dark blue color.

#### **1.3.2. Organisation structure**

EDPR has grown significantly in a short period of time and will continue to step-up its growth, in line with its ambitious objectives for 202 6. In this context, the Company's operative model is evolving to have an adequate organisation to cope with the strategic ambitions and enhanced growth standard.

Accordingly, EDPR's organisation structure was defined based in the following
fundamentals:

- Ensure corporate functions enable growth, maximize efficiency, and promote one global company.
- Empower core regions (Europe, Latin America, North America, and Asia -Pacific) to lead growth and development.
- Leverage existing transversal logic in key business functions, with central and local resources.
- Ensure new technologies (such as storage and hydrogen) are nurtured and amplified by
regions and foster further continuous and disruptive innovation.

As a result, EDPR's organisation model is organised around five main elements: a Corporate Holding, Onshore Europe & Latin America (EU & LATAM) platform, Onshore North America (NA) platform, Onshore Asia-Pacific (APAC) platform, and Offshore platform. Each platform includes different business units specialised in each of the market's specificities.

This structure provides a perfect balance between the global view necessary to further develop EDPR's leadership in global renewable energy and the local approach that is critical for the successful development of our wind farms and solar plants, ensuring alignment with the defined strategy, optimising support processes and creating synergies.

ONSHORE

Europe & Latin America

North America

=

{23}------------------------------------------------

Image /page/23/Picture/43 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters "ed" are connected, and the "p" extends down to the baseline of the word "Renewables". The logo is in a dark color, possibly dark blue or black, against a white background.

---

# Organisational model principles

The principles on which EDPR bases its organisational model are defined by the Management Team. These are a set of performance aspects that define the characteristics of the relationships, grant the rights between EDPR Holding and the business units, and ensure optimal efficiency and value creation.

Image /page/23/Picture/2 description: The image shows a light purple circle with a white bar graph inside. The bar graph has three bars of different heights.

Critical KPIs and span of control should be hierarchically aligned at
project, country, platform and holding level to endure accountability
tracking, and to take advantage of complementarities derived from
end-to-end process vision.

Image /page/23/Picture/5 description: The image shows a simple icon of a person. The icon is a white outline on a light purple circle. The person is represented by a circle for the head and a curved line for the body.

Corporate areas function as competence support centers and are internal
service providers to all business units for all geographical non-specific
needs. Business priorities and needs are defined by local businesses, and
best practices are defined and distributed by corporate units.

Execution of activities at holding level are held only when significant value
is derived, coherently with defined EDPR holding role.

Ensure proper country-balance dynamics to ensure multiple-perspective challenge across functions

Image /page/23/Picture/12 description: The image shows a white outline of a balance scale centered on a light purple circle. The scale is symmetrical, with two pans hanging from a central beam supported by a base. The background is a gradient of light purple, with the color being slightly darker around the edges of the circle.

Platforms organization models should remain similar, to allow for:

- 
- 

# EDPR holding

EDPR Holding seizes value creation through the dissemination of best practices in the organisation and the standardisation of corporate processes to the platforms and the business units to improve efficiency. The internal coordination model and interface with EDP Group impacts functions and responsibilities of both the Company's processes and structure. The assignments of the main responsibilities and activities of EDPR Holding to fulfil their respective missions include:

- Define internal structures.
- Ensure a global budget and its periodic monitoring.
- Manage the essential human resources.
- Provide appropriate management information.
- Compete for a culture of excellence throughout the Group.
- 

- 
- 
- 
- 

uctures.

• Integrate risk management and compliance in each area of responsibility, ensuring the monitoring and effectiveness of controls.

bjectives;
ad procedures;
semination of the

- 
- 
- 
- 
- 
- 

{24}------------------------------------------------

Image /page/24/Picture/19 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark color, possibly dark blue or black, against a white background. The "d" in "edp" has a long vertical stroke that extends upwards, visually connecting the two parts of the logo.

## EDPR platforms

The four platforms are defined as: Onshore Europe & Latin America, Onshore North America, Onshore Asia-Pacific and Offshore.

#### **Onshore Europe & Latin America platform**

After its consolidation in Spain since 1997 as one of the leading companies in the renewable industry, EDPR continued to expand its business in Europe in 2007 with the entry, throughout these years, in other markets such as Portugal, France, Belgium, Italy, Poland, Romania, and more recently Greece, Hungary, UK, Germany and Netherlands.

In South America, EDPR's history began in 2009 through Brazil, entering in the Colombian market ten years later and in the Chilean market in 2021.

In this platform, the technologies that represent the installed capacity are wind and solar photovoltaic (PV).

#### **Onshore North America platform**

As part of its growth strategy, EDPR entered the US market in 2007, having more than doubled its wind power production capacity since.

This first approach to the North American market was followed by EDPR's activity in Canada and Mexico and reinforced by its recent entry into distributed solar (DG) power generation in the US in 2021.

On the North American Onshore platform, along with solar DG, wind and solar PV make up the installed base of technologies.

#### **Onshore APAC platform**

EDPR entered in Asia through a solar PV project in Vietnam in 2021.

In February 2022, EDPR concluded the acquisition of a majority stake in Sunseap, which has become the most established home-grown clean energy solutions provider in Singapore, being the largest owner and developer of rooftop PV systems. Backed by its strong market position as a leading Pan-Asian solar player, Sunseap is the largest distributed solar player in SEA and top 4 largest solar player in SEA, with an expanding presence.

As a result, EDPR is currently present in 9 APAC markets: Vietnam, Singapore, China, Taiwan, Japan, Cambodia, Malaysia, Thailand, and Indonesia.

The APAC Onshore platform's installed technologies are solar photovoltaic (PV) and distributed solar (DG).

#### **Offshore platform**

EDPR has a 50:50 Joint Venture with ENGIE (Ocean Winds) for offshore wind energy since 2020, which grants the development of projects in the United Kingdom, Portugal, France, Belgium, Poland, South Korea, and the United States.

Ocean Winds develops both bottom-fixed and floating offshore wind farms.

{25}------------------------------------------------

edp

## **1.3.3. Integrity and ethics**

EDPR is global energy company, focused on creating value, innovation and sustainability, which operates a business based on a commitment to excellence, serving its stakeholders and making a decisive contribution to a responsible energy transition. One of its most valuable assets is its reputation, which is why EDPR is committed to carrying out all its activities ethically in the different markets in which it operates and acting on principles that derive from its identity. In this context, EDPR is committed to act in accordance with the highest ethical and compliance standards.

#### Ethics

During 2023, the Ethics area of EDPR, led by the Company's Ethics & Compliance Officer and their team, supported by EDPR's Ethics Ombudsperson, focused on two essential aspects:

Firstly, in **managing the reports received through the Speak up channel**, following the established process: investigation of the situations presented, synthesis of conclusions and proposals for opinions, and finally analysis and deliberations by the Company's Ethics Committee, then forwarded to its executive management. This year, with the transposition of the European Directive on Whistleblower Protection into Spanish legislation, the process for managing reports was naturally adjusted to the new provisions, which were in effect during the latter part of the year, although without changes that influence the essence of the process. It is believed that as a result of the work to encourage the appropriate use of the Speak up channel, the number of reported concerns showed a positive evolution. In 2023, there were sixteen (16) claims submitted through the Speak Up channel, of which 4 were considered as founded, 5 as unfounded, 3 as inconclusive (there is not enough evidence to confirm the infraction) and 4 were under analysis by the end of the year.

Secondly, in **disseminating the ethical principles and commitments** established in the Company's Code of Ethics: through ethics **training** for managers in various locations, as well as through various **communication** initiatives that reinforce the various themes of the Code among employees. Additionally, in an effort to ensure good coordination between the perspectives of Ethics and Compliance, several knowledge-sharing meetings were held with local teams in various locations where EDPR operates.

In this sense, and with the aim of strengthening an ethical culture from the outset, new employees undergo specific online training introducing the Code of Ethics: "Ethics is value: let's live our code of ethics," and all employees receive the Code of Ethics to become familiar with it and commit to upholding its principles. Other employees also received the Code of Ethics during 2023 to become familiar with it and adhere to its principles; and whenever there is an update, they are required to review it again.

Additionally, during 2023, specific training sessions were conducted for the members of the EDPR Board of Directors, and all of them also completed the following training: "Ethics is value: let's live our code of ethics."

In 2023, EDPR also conducted an **Ethics survey** among its population, which recorded a participation rate of 52%, 25 percentage points higher than previously recorded (52% vs. 27%), and with important positive findings such as the increase in knowledge about how to communicate ethical concerns or observed misconduct, which rose by 21 percentage points compared to the previous survey (77% vs. 56%).

# Compliance

EDPR is committed to carrying out its activity in strict compliance with the legislation and regulations, as well as to act in a responsible and oriented way by the highest standards of ethics and integrity, maintaining the idea of establishing Compliance as a strategic part of the Company's corporate culture. This commitment applies to all EDPR entities and to their administrators, collaborators and service providers who act on their behalf.

In this sense, EDPR assumes a zero tolerance Compliance policy regarding any noncompliance with the applicable legal and regulatory requirements, especially regarding bribery, corruption or money laundering.

To put this commitment into practice, EDPR has adopted the Compliance Management System Implemented by the EDP Group, which is aligned with the best international practices, namely with the ISO Standard 37301:2021 - Compliance Management Systems - and with the COSO (Committee of Sponsoring Organizations of the Treadway Commission) reference of risk management, internal control and fraud prevention (Fraud Risk Management).

This System is developed at Group level, allowing the harmonization of Compliance management guidelines and methodologies throughout the organization and to different regulatory scopes, covering all activities, businesses, and geographies. Whenever necessary, corporate guidelines are specified by business units in order to meet their respective particularities. The Compliance Management System is essentially based on nine components, which can be framed in three levels of action (as illustrated).

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Image /page/26/Figure/0 description: The image shows a circular diagram of a compliance management system. The diagram is divided into nine sections, each representing a different stage of the compliance management process. The stages are: 1. Governance Model, 2. Risk Assessment and Management, 3. Standards, policies and procedures, 4. Training and communication, 5. Communication channels and incident management, 6. Monitoring (Compliance) and testing (internal and external audit), 7. Report, 8. Implementation of improvement opportunities, and 9. Continuous Improvement/Risk Reassessment. The diagram also includes the words Prevention, Design, Detection, Implementation, Response, and Evaluation.

Through the work developed over the years, EDPR currently has different mechanisms, such as a specific governance model – including a Compliance & Internal Control Global Unit (C&IC) with the responsibility for the coordination of the Program and an appointed Compliance Officer -, specific policies and procedures, periodic training/awareness initiatives and monitoring and reporting instruments that enable the identification of situations to consider from continuous improvement perspective, responding to internal and external challenges. EDPR also provides a whistleblowing channel (the SpeakUp channel), whose management is ensured by an independent and impartial area.

The Compliance Management System integrates specific programs (SCPs) depending on the risks affecting the Group namely: (1) Integrity/Anti-corruption; (2) Prevention of Money Laundering; (3) Personal Data Protection; (4) Prevention of Criminal Risks; (5) Internal Control System for Financial Reporting.

The Compliance Management System, as well as the respective SCPs, are continuously monitored by the C&IC and periodically subject to internal audits, in accordance with the annual activity plan of the Internal Audit Department or subcontracted to third-parties, and external audits, which may result in the identification of opportunities for improvement, considered for the purpose of improving the Compliance management.

Also, from a continuous improvement perspective, a Compliance Survey is conducted every 2 years for all Group employees, from all Business Units and geographies, with the aim of assessing their perception and positioning regarding Compliance matters, including their knowledge about the application of the existing Compliance mechanisms in the Group. The last Compliance Survey was conducted in 2022, resulting in the development of an action plan that provided for the reinforcement of awareness and training actions. Also aiming at the improvement of the Group's Compliance Management System, and an evaluation survey by their main interlocutors.

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Image /page/27/Picture/14 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font. The "d" is taller than the "e" and "p". Below the letters, in a smaller font, is the word "Renewables".

# ==

#### Integrity, Anti-bribery and corruption

This Specific Compliance Program has as its central axis the Integrity Policy, which defines the commitments, general principles of action, and duties of the entities of the Group, its employees, service providers, and business partners, regarding the prevention of illicit acts. This Policy complements the set of existing norms and compliance mechanisms at both the corporate level, including the Supplier Code of Conduct, the Code of Conduct for Senior Management and Senior Financial Officers and the Related Party Transactions Policy, in addition to the Group's own Code of Ethics and the available reporting channels, as well as the prevention and control models of criminal liability previously implemented by EDPR.

The Integrity Policy is approved by the Board of Directors, periodically reviewed (last review conducted in 2023), made available to all employees - being a mandatory reading document, with registration of acknowledgement - and is available on the EDPR website. This Policy reinforces the zero-tolerance policy regarding corruption or bribery practices, clarifies the prohibition of facilitation payments, and details the principles related to the prevention of conflicts of interest, donations and sponsorships, contributions to political parties, prevention of money laundering and combating the financing of terrorism, as well as guidelines regarding the performance of integrity due diligence of third parties, the relationship with politically exposed persons (PEPs), the acceptance and allocation of offers and invitations to events, and the monitoring of international sanctions. In the context of whistleblowing, the Integrity Policy reinforces the principle of non-retaliation, listing the different available channels at the internal and external levels, and addresses the process of investigating potential non-compliance situations and identifying and implementing any corrective actions.

The principles and guidelines set out in the Integrity Policy are embodied in specific internal procedures, of which we highlight the following:

• The Third-Party Integrity Due Diligence Procedure, namely suppliers, business partners/counterparties, beneficiaries of sponsorship/ donations, employee applicants and other third parties, evaluating the various integrity risks (if necessary, using specialized external consultants), foresees the analysis of possible existing legal proceedings, adverse news, involvement with PEPs, inclusion in sanctions lists, situations of conflict of interest, etc. The analysis carried out results in the assignment of a rating and the issuance of an opinion that includes specific recommendations regarding the approval of the transaction, the adequacy of its contractual conditions, and the monitoring of the contract's execution.

• The Procedure for relations with PEPs provides for specific rules of action, foreseeing the need to record and communicate certain types of interaction.

- 
- 
- The Procedure for offers and invitations to events defines rules of action and thresholds for its award and acceptance, as well as review and approval mechanisms.
- The procedure for the attribution of donations and sponsorships, requires an integrity due diligence of the respective beneficiaries as well as the monitoring of the actual application of the support granted.
- The conflict-of-interests management procedure establishes rules that guarantee impartiality and transparency in decision-making and to prevent misconduct or inappropriate behavior.
- 

• The Complaint Management Procedure defines the principles of action and rules to be followed in the management of complaints received and in the investigation process, involving five phases: preliminary analysis, documentary investigation, interviews, investigation, and the release of a final report.

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---

In the operationalization of this SCP in 2023, the following stands out:

- The analysis of 824 third parties (2022: 693), as part of the Integrity Due Diligence (IDD) procedure.1
- The development of training and awareness-raising actions to ensure the strengthening of the compliance and integrity culture, complemented by specific initiatives developed locally according to identified needs, namely:
	- Global training on the Speak Up whistleblowing channels and on the Complaints Management Procedure.
	- Monthly global publication of the Compliance Golden Rules, raising awareness of the main principles of different compliance areas, including specific topics related with the Integrity procedures.
	- Communication campaigns to disseminate integrity topics as the celebration of the Compliance Officer day, the Compliance day and Anticorruption day.
	- Trainings online to reinforce specific procedures as Integrity Due Diligence Procedure and Intermediary Agreements Procedure.
	- Trainings in person on the Compliance Model in the geographies.

In this context, a total of 2,836 participations (2022: 645) were recorded in the various sessions made available, corresponding to a total of 1,6582 training hours (2022: 47 hours).

In terms of continuous improvement, the following initiatives stand out throughout 2023:

- Review and update of internal regulations on Integrity, considering changes in context and continuous adherence to best practices.
- Automation of some of the existing control mechanisms.
- Strengthening the monitoring of the application of the implemented procedures.

EDPR Specific Integrity Compliance Program is certified according to the requirements of ISO 37001 - Anti-Bribery Management Systems.

processes.

#### **Prevention of Criminal Risks**

The Prevention of Criminal Risks Program was first approved in December 2017 and was updated during 2022.

Under this Compliance programs EDPR has implemented in Spain a management system that includes supervision and control measures to prevent the occurrence of crimes or, highlighting the topics of corruption prevention, bribery, and other similar offenses prevent crime, reduce risk and foster an ethical and legally compliant business culture (benefiting of synergies with other Compliance programs such as the Integrity Compliance Program).

This Compliance Program is certified according to the UNE 19601:2017 Standard - Criminal Compliance Management Systems.

#### **Personal Data Protection**

The strict respect for privacy and the protection of personal data of all its stakeholders is assumed by the EDP Group as a commitment to be followed in its activity, throughout the value chain. In this context, the Specific Personal Data Protection Program is one of the main cross-cutting programs of the EDP Compliance Management System. This commitment is reflected in the Group's Data Protection Policy, adopted by EDPR's Board of Directors, according to which such commitment is ensured by observing the following principles: (1) Lawfulness and Purpose; (2) Transparency and Fairness; (3) Proportionality; (4) Control; (5) Privacy since "0" moment; (6) Responsibility; and (7) Security.

These principles are embodied in the different global data protection norms and procedures and that address, in particular:

#### • **Privacy by Design** processes.

• Risk assessments of the processing activities and data protection impact assessments.

t of **processors**.

- 
- The management of **processors**.
- 
- 

• The process of responding to the **exercise of data protection rights**.

• The management of personal **data breaches**.

<sup>2</sup> For the purpose of calculating this indicator, in 2023, EDPR considers the number of training hours attended by the total of

participants.

<sup>1</sup> For the purpose of calculating this indicator, in 2023, EDPR considers the number of third parties analysed, regardless of the number of times each of them has been subject to analysis.

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Image /page/29/Picture/18 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark gray color.

Annual Report 2023 Management Report | Organisation

These global procedures may be complemented by specific procedures and controls defined at the level of each Business Unit for the entire life cycle of processing activities, according to their exposure to risks of Personal Data Protection.

In their relationship with data subjects, the Group companies provide information on the data processing carried out, both by EDPR and by their processors, namely through Privacy Policies available on their respective websites or informative disclaimers provided in contractual clauses or data collection forms.

In these documents, the EDP Group entities identify, among other aspects, the purposes for which the data is processed, the respective legal basis, retention periods, if applicable, whether the data is shared with other parties, as well as provide the contacts of the entity responsible for data processing and the contacts of the respective Data Protection Officer (DPO), through which data subjects can exercise their rights regarding personal data protection, request information or clarifications about their data and submit complaints.

The management of this Specific Compliance Program is based on a specific governance model, based on the Compliance Management System, which establishes the responsibilities and the relationship paradigm between the different stakeholders, with the coordination of the Compliance & Internal Control Global Unit, specific teams responsible for promoting the dissemination, knowledge, training, and implementation of the Compliance program in their respective areas of activity, and with the Internal Audit Global Unit, in the third line of defense, conducting specific audit work to verify the adequacy and effectiveness of the control mechanisms implemented. Whenever legally required, this Governance Model also includes a DPO.

As part of the Personal Data Protection Compliance program, in 2023, a total of 1,523 participations were recorded in the available sessions, corresponding to a total of 453 training hours. In this context, the launch of the "The World of Data Protection" global learning stands out, with the objective of refreshing basic concepts, principles, and obligations regarding personal data protection.

Regarding continuous improvement initiatives developed in 2023, the following stand out:

- Personal Data Mapping and Gaps identified of EDPR APAC platform.
- Personal Data Compliance Roadmap of EDPR APAC platform.
- Personal Data Action Plan of EDPR APAC platform.
- Approval and dissemination of specific Employee Privacy Notice + consent language for EDPR APAC platform.
- Data Protection Workshops addressed to EDPR's corporate legal department.
- Identification of international transfers of personal data within EDPR.
- Development of Biding corporate rules together with the EDP Group.

#### **Internal Control System for Financial Reporting**

EDPR, within the scope of its financial reporting obligations, has an Internal Control System for Financial Reporting (ICFR), consisting of a model for the evaluation and mitigation of financial reporting risks, through the monitoring of the execution of control activities and the identification of potential improvement actions and their implementation. The EDP Group's ICFR was developed and implemented based on the criteria established by the internal control regulatory framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO 2013") in relation to business processes and overall controls, and by the Control Objectives for Information and related Technologies ("COBIT") in relation to general information technology controls. In 2023, the ICFR mapped and monitored a total of 1,068 controls that contribute to mitigating the risks in Financial Reporting, including those of fraud and information systems.

Annually, the ICFR is audited by an external independent entity and since 2010 it has been considered, in all materially relevant aspects, an appropriate and effective internal control system and is certified by the external auditor without conditions and comments.

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Moray East Offshore Wind Farm, Scotland

Image /page/30/Picture/0 description: The image shows a wind farm at sea with the text "Why we choose wind offshore" superimposed on the image. The wind turbines are tall and white, with three blades each. The blades are spinning slowly in the wind. The sea is calm and blue, and the sky is clear. The text is white and sans-serif, and it is placed in the upper left corner of the image. The text is easy to read and understand. The image is well-composed and visually appealing. The text "Moray East Offshore" is in the bottom right corner.

**Bong Bong Marcos**

031

Annual Report 2023 Strategic Approach

Part I

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Part I

Annual Report 2023 Part I - Our strategic approach | Index

032

# 02 Our strategic approach

Business Environment 33 Strategy 41 Risk management 48

33
41
48

——
↺

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Image /page/32/Picture/14 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark color, possibly dark blue or black, against a white background.

# 2.1. Business environment

# **2.1.1. 2023 overview**

2023 was marked by efforts to recover from what happened in the previous years. After a global pandemic and the immediate effects of the war in Ukraine, the impacts on the global economy still last. The different global economies still struggle to get back on track and the energy sector is finding its way back to lower volatility.

While in 2022 inflation rates were at very high levels, 2023 was the year to start seeing more stable indexes. In the Eurozone inflation was 5.4% by 2023, a drop from 8.4% in 2022, while in the United States, it stood at 4.1% against 8.0% in 2022 (source: Focus Economics). Monetary policy measures played a big role in 2023, with consecutive increases in interest rates both by the European Central Bank and by the US Federal Reserve. The higher cost of capital creates a challenging environment for investors, cautiously considering where to put their money next.

In 2023, the energy sector recovered from the environment of uncertainty and high volatility from 2022. Coal annual average prices decreased more than 55% in 2023, as API#2 – a widely used European price reference for coal – was around 129 \$/ton compared to 290 \$/ton in 2022.

The Brent price was somewhat stable during the first half of 2023 but following cuts in Saudi Arabia, Russia, and OPEC+ countries production, it reached the maximum of 95.4 dollars per barrel (\$/bbl) by September. The year ended with an average price of 83 \$/bbl, a lower reference compared to the 101 \$/bbl of 2022.

There was a significant decrease in gas prices, as Henry Hub – reference index in the US reached an average price of 2.5 dollars per million British thermal units (\$/MMBtu), 54% lower than the previous year. The European reference gas index (TTF) price at the beginning of the year was 63 €/MWh (average price in January) but started to decrease to the range of 30-45 €/MWh as EU gas storage reached a level of 86% at the end of the year. The TTF had an average price of 41 €/MWh in 2023, almost three times lower than the 2022 price of 121 €/MWh.

In Europe, the reference carbon price of the European Emissions Trading System (ETS) was on average 84 €/ton in 2023, a slight increase from the 81 €/ton average price in 2022.

Having a sustainable and secure energy system is a clear priority to many countries, after everything that happened in 2022. Accelerating the energy transition is on the political agenda of so many countries, as well as on the strategic plans of private sector corporations. Throughout the year 2023, several policies were put in place, with the main focus of boosting investors' confidence back and strengthening industries' competitiveness, so that economies can keep on recovering and businesses have a favourable environment to strive.

#### **Global warming in 2023**

2023 has become the warmest year on record, according to the European Earth Observation Programme, "Copernicus". Unprecedented global temperatures from June onwards led 2023 to become the hottest year since we have registers, overtaking 2016, the previous warmest year. In the past months, global temperatures were 1.48° C warmer than the 1850-1900 pre-industrial level and therefore, close to the 1.5°C limit agreed upon in the Paris Climate Agreement. According to the report, it is likely that a 12 month period ending in January or February 2024 will already exceed the 1.5°C threshold.

The Intergovernmental Panel on Climate Change (IPCC) made a call in March 2023 for urgent climate action, as the planet seems to be at an inflection point regarding climate change, as chances to keep the 1.5°C temperature goal are narrowing. According to the report, limiting global warming to 1.5°C, requires a peak of emissions before 2025, and reducing them by 43% by 2030, 60% by 2035 and reaching net-zero in early 2050.

Global warming has already caused devasting disruptions in ecosystems, populations and economies all around the globe, and impacts seem to be increasingly catastrophic. The year 2023 was no exception and important climate-related events caused widespread damage all around the world. In Libya, and Turkey, torrential rains fell in volumes rarely seen, leading to devastating floods. China was hit by the Doksuri Typhoon, one of the strongest storms in years, that caused significant rainfall and flooding across the country. Extreme hot and dry conditions led to a large number of catastrophic wildfires all around the globe, including Greece (that experienced the largest wildfire ever seen in Europe), Canada, South America and Australia, among others. On the other hand, record droughts were recorded in different regions, including the Amazon rainforest, Mexico and western Africa.

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edp
Renewables

---

#### Renewable Energy Directive

The Renewable Energy Directive is the legal framework for the development of clean energy across all sectors of the EU economy. Given the need to speed up the European clean energy transition as mandated in the "Fit for 55" package, the Renewable Energy Directive EU/2018/2001 for the period 2020-2030, was revised in 2023. The revised Renewable Energy directive, the so-called "RED III" was published on 31 October 2023 and entered in force 20 days later.

The RED III aims to increase the share of renewable energy in the EU's overall energy consumption to 42.5% by 2030, with a further indicative target of 2.5%. To achieve this target, the Directive calls for an acceleration of permitting procedures and sub-targets on the industry, transport and buildings sectors are also imposed.

Regarding the acceleration of permitting procedures, the Directive includes measures to considerable speed up permitting for new projects. A key measure is the definition of socalled "Renewable acceleration areas" that have to be defined by Member States (MS), and in which renewable projects will benefit from shorter and simplified permitting processes. In particular, RES projects (or collocated energy storage facilities) in these areas will be exempted from the Environmental Impact Assessment and permitting times shall not exceed one year (two years for offshore projects) and six months for repowering of plants and for new installations with an electricity capacity of less than 150 kW. Outside such areas, the process should not exceed 24 months. The Directive furthermore mandates that the lack of an answer from the administration within the prescribed deadlines will result, in some cases, in tacit approval of the specific administrative step. Under the new Directive, the deployment of RES will also be of "overriding public interest" limiting the grounds of legal objections to new installations.

Member States must transpose the RED III to national law by mid-2025.

## Wind Power Package

The European Commission launched the so-called "Wind Power Package" (WPP) in October 2023, which aims to accelerate the roll-out of wind energy in Europe and to strengthen the competitiveness of European wind energy manufacturing. The WPP tackles specific challenges faced by the European wind power sector, such as the uncertain demand for wind turbines, high inflation, shortages and increasing costs of raw material costs, and slow and cumbersome permitting processes. The final goal is to achieve the 510 GW of wind energy that the REPowerEU targets by 2030.

The WPP proposes a Wind Power Action Plan which sets out 15 concrete and immediate actions, structured in 6 key pillars.

Some measures aim at accelerating the deployment of wind through an increased predictability and faster permitting, with a strong emphasis on the digitalization of national permitting processes.

The WPP also aims at improving auction design. MS will ensure auction prices are indexed to reflect increase in costs and will use prequalification criteria in critical areas such as cybersecurity. The WPP also calls for an increased visibility through wind pledges, publication of the mid-term auction schedules and of long-term plans for renewables deployment.

Access to finance is another key pillar. The EC aims to double the EU Innovation Fund budget for clean technologies and to increase support for wind-related activities in the

#### **Climate negotiations: 28th Conference of the Parties of the UNFCCC (COP 28)**

The 2023 United Nations Conference of the Parties (COP) took place in Dubai, in the United Arab Emirates (EAU) from 30 November to 12 December.

For the first time, countries agreed on the need to "transition away from fossil fuels in energy systems" in a "just, orderly and equitable manner" to achieve net-zero by 2050. This was the main conclusion to the first Global Stocktake (the inventory on global climate action and support that informs the updates to countries' Nationally Determined Contributions or NDCs). However, the deal did not include concrete actions and no timescale was specified. Besides, given the omission of the terms "phase-out" or "phase-down" could be a sign of lack of ambition according to some countries.

Countries home to at least half the world's renewable energy capacity also signed a pledge to triple the world's renewable energy capacity by 2030 to at least 11 TW and double global energy efficiency improvement rates from around 2%/year now to more than 4%/year by 2030. The renewables' target will require an unprecedented acceleration in renewables' deployment, although according to the International Energy Agency, it is an "ambitious, yet achievable goal".

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edp
Renewables

---

revised Strategic Energy Technology Plan (SET Plan) focusing on research and innovation in the wind manufacturing sector. On this regard, the EC launched a €4bn call under the Innovation Fund with grands aimed to support investment in clean tech manufacturing. Likewise, the European Investment Bank changed its lending rules to support factory investment and launched a new €5bn counter-guarantees scheme for wind turbines manufacturing.

To ensure commitment from Member States, a dedicated Wind Power Charter was released in December 2023, and was signed by 24 Member States and endorsed also by Bulgaria and Croatia and more than 300 companies from the wind energy sector (such as EDP Renewables).

#### Market Design Reform

Throughout the year 2023, the EU worked on the electricity market design reform, and in December 2023 the proposal was approved. This reform intended to build an energy system based on clean technologies, while at the same time promoting a competitive environment for businesses and a stable price setting for consumers.

To reach such goals, different proposed measures are moving forward, some of them highlighted here:

- Investments in new generation such as wind, solar, geothermal, hydro without reservoir, and nuclear, will be backed through public support in the form of two-way contracts for difference, or an equivalent scheme.
- Member states shall provide public guarantees to promote new renewable power purchase agreements under certain conditions.
- Suppliers (with more than 200 thousand customers) will be obliged to offer fixed-term and fixed-price contracts with a duration of at least 1 year.
- Member states may apply flexibility support schemes to non-fossil technologies, including storage and demand-side response, in the form of capacity payments.

#### Net-Zero Industry Act

The Net Zero Industry Act was published in March 2023 to strengthen European manufacturing capacity and promote measures to overcome barriers to the scaling up of such capacity. Some specific targets were set to achieve these outcomes, namely increasing the production of zero-impact technologies, in order to meet at least 40% of the EU's annual needs for the deployment of strategic zero-impact technologies by 2030. Solar photovoltaic, onshore wind, offshore wind, batteries, and electrolysers are some of the technologies among the list considered in this Act.

To ease conditions and stimulate investment, this legislation sets several proposals,

namely:

• Accelerating permitting and lowering the administrative burden to the implementation of net-zero technology manufacturing projects.

• Facilitating market access, for example, by including sustainability and resilience criteria for public procurement and auctions.

• Attracting investment through the Net-Zero Europe Platform and the EU Hydrogen

- 
- 
- Bank.
- 

• Fostering innovation through the creation of regulatory sandboxes.

# Critical Raw Materials Act

Clean technologies rely heavily on critical materials, and so the demand for these is expected to rise significantly in the coming years. To secure the supply of strategic raw materials, the European Commission proposed in March 2023 the Critical Raw Materials Act. The legislation identifies a list of strategic raw materials that are needed for key technologies, which in turn are critical for the EU to pursue its green ambitions and goals.

The Act sets a target of having no more than 65% of the EU's annual consumption of each strategic raw material at any relevant stage of processing from a single third country by 2030. By diversifying the supply chains, the EU will be able to mitigate the risk of external dependencies.

The legislation is in provisional agreement by the Council and the Parliament, and it sets the following non-legally binding targets:

• At least 10% of the EU's annual consumption of strategic raw materials by 2030 must come from internally conducted extraction.

• At least 40% of the EU's annual consumption of strategic raw materials must come from internally conducted processing by 2030.

• At least 25% of the EU's annual consumption must come from internally conducted

- 
- 
- recycling by 2030.

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## EU Action Plan for Grids

On 28 November 2023, the EU Commission (EC) presented the "Action Plan for Grids", a 14-point plan to modernize Europe's electricity grid, both at the transmission and distribution level, with the goal of enabling and facilitating the clean energy transition.

Delayed grid connections are one of the main barriers that are hindering the deployment of renewables. The Plan aims at bringing visibility on available grid capacities and will require system operators to increase transparency both on available grid and on connection requests volumes.

The Plan seeks to improve the long-term planning of grids to accommodate more renewables and higher electricity demand due to a higher electrification of the economy, including hydrogen. To this purpose, it focuses on anticipatory investments and will propose guidance identifying conditions under which the approval of anticipatory investments should be expected. These investments could be particularly relevant in "Renewable Acceleration Areas" as stated in the Renewable Energy Directive.

The modernization, expansion and smartening of the EU electricity networks will require important investments. The EC estimated that around €584 billion in investments will be necessary from now to 2030. The Plan says the European Investment Bank (EIB) will identify financing tools to support grid investments, including guarantees or similar mechanisms to catalyse private financing.

The Plan also includes several actions to strengthen grid supply chains, focusing on supply chain standardization for grids.

#### US Regulatory Update 2023

The Inflation Reduction Act, which came into effect on January 1, 2023, is the most significant legislation in the history of the United States. It aims to provide funding, programs, and incentives (such as tax credits) to accelerate the transition to a clean economy. This is intended to reduce the costs of renewable energy for organizations, NGOs, businesses, and academic institutions.

The Treasury has informed how investment tax credits will apply to offshore wind and batteries, while also detailing how domestic content and apprenticeship tax credit-adders can be applied. The Department of Energy (DOE) has announced 3.5 billion USD to boost domestic production of batteries, 1.3 billion USD for transmission expansion, and various smaller grants for equal justice and innovation projects focusing on low-income and coal

communities.

The Federal Energy Regulatory Commission (FERC) published Order No. 2023 on September 6, 2023. This rule will go into effect on April 3, 2024, and is meant to both reduce backlogs of projects seeking to connect to the transmission system and provide more concrete deadlines throughout the process. The rule will adopt a cluster study approach for examining gris upgrades and additions rather than studying individual proposals.

The Environmental Protection Agency (EPA) proposed greenhouse gas emissions limits for coal- and gas-fired power plants in May 2023. The limits vary based on plant size, whether they are existing or new, and how often they are online. These proposed limits would require the affected plants to either add carbon capture technology, co-fire with 'green' hydrogen, or retire. These rules are not yet final and there has already been pushback from various states and RTO/ISOs citing reliability concerns. It is expected that the final version issued by the EPA will undergo heavy legal scrutiny.

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## **2.1.2. The evolution of renewables around the world in 2023**

#### Global Overview

According to the International Energy Agency (IEA), in 2023, the amount of renewable energy capacity added to energy systems grew by 50% globally compared to the previous year, the fastest growth rate in the last two decades, estimating that 507 GW have been added. Photovoltaics contributed to a third of the increase in global capacity.

The IEA expects an even faster growth in the next 5 years, increasing the chances of achieving the goal of tripling renewables global capacity by 2030 as agreed at the COP 28 Climate Change Conference. According to the IEA, solar PV and wind will account for 95% of global renewable additions through 2028. Supportive policy environments and the improving economic attractiveness of these two technologies remain the most important drivers behind the expected growth.

The astonishing renewables growth in 2023 was mainly driven by China, that installed as much solar PV as the entire world did in 2022. The growth was also supported by all-time records of new renewable additions in Europe, the US and Brazil.

## Wind

According to IEA estimations, global wind additions could have reached 108 GW in 2023, the highest figure ever seen. Long-term fundaments remain strong for the coming years,
and supportive policies in China, the US and Europe in particular, are expected to boost wind additions in the coming years. However, short and medium-term challenges in project execution remain.

New installations in China could have hit a record and grow to 59-65 GW<sup>1</sup> as provinces are accelerating to meet the targets set out in their five-year plans. India could have commissioned more than 3 GW of new wind projects, the highest figure since 2017.

In the US, new installations have grown at a moder[ate](https://euc-word-edit.officeapps.live.com/we/wordeditorframe.aspx?ui=en%2DUS&rs=en%2DUS&wopisrc=https%3A%2F%2Fedponcloud.sharepoint.com%2Fteams%2FO365_CorporateSustainability%2F_vti_bin%2Fwopi.ashx%2Ffiles%2F0b5c396bf520406aa98bfc41cb019e1e&wdlor=cB3196E6D-77F6-49E7-9810-CE142E3CF060&wdenableroaming=1&mscc=1&hid=7AA5F606-8E53-47FA-ABD7-2DB1640B7FD3&wdorigin=Outlook-Body.Sharing.ServerTransfer&wdhostclicktime=1706708899896&jsapi=1&jsapiver=v1&newsession=1&corrid=cad7f070-8cf5-4d25-91d4-e1358c3a1376&usid=cad7f070-8cf5-4d25-91d4-e1358c3a1376&sftc=1&cac=1&mtf=1&sfp=1&instantedit=1&wopicomplete=1&wdredirectionreason=Unified_SingleFlush&rct=Normal&ctp=LeastProtected#_ftn3) pace, with around 7-9 GW built in 2023. Although developers seem to be taking advantage of new tax credits from the Inflation Reduction Act, it still takes time to bring projects online. At the end of Q3 2023, nearly 147 GW of onshore wind were operating in the US, according to the American Clean Power Association (ACP). Additions are expected to pick up in 2024.

The European Union built a record 17 GW of new wind capacity in 2023, according to preliminary data from Wind Europe. Wind energy is expected to be a fundamental piece of Europe's clean energy transition, but these figures are still well below the required capacity to hit the 2030 target (30 GW/year). In particular, onshore wind energy still faces some significant obstacles that contribute to the delay, namely difficulties in obtaining licensing, network restrictions and increased costs in the production chain.

Germany was the largest market, followed by the Netherlands and Sweden. Germany2 installed 2.9 GW of onshore wind power in 2023, more than the previous year (2.4 GW). In addition, around 7.5 GW were approved in 2023 and 6.4 GW awarded in tenders, figures never seen before.

Spain commissioned 1.6 GW of onshore wind facilities, a very promising figure but still below the 4 GW per year that would be necessary to reach the 63 GW 2030 wind target proposed in the National Energy and Climate Plan (NECP) submitted to the European Commission for approval.

In Latin America, Brazil remains the largest wind market, with record additions of around 4.9 GW3. This growth could bring Brazil's total installed capacity to nearly 28 GW, making it the country's second largest generating technology, after large-scale hydro.

Regarding offshore wind, around 12-14 GW of new offshore installed capacity were globally added in 2023, surpassing the 2022 figure (9 GW). Rising costs and supply-chain bottlenecks have hindered the industry, resulting in projects delays and cancellations. China remains the main market, with around 7-8 GW installed.

According to Wind Europe preliminary data, Europe (including the UK) installed 4.2 GW of offshore wind capacity, up 40% on 2022. Netherlands led offshore, as it commissioned the 1.5 GW Hollandse Kust Zuid wind farm, the world's largest operational wind farm, followed by UK and France.

<sup>1</sup> At the time of preparation of this report, final data from the Global Wind Energy Council (GWEC), the American Clean Power Association (ACP) or Wind Europe, had not been released. Experts consulted include IEA, S&P, Bloomberg New Energy Finance, Wood

MacKenzie. <sup>2</sup> Data from BWE.

<sup>3</sup> Data From National Electricity Energy Agency (ANEEL).

{37}------------------------------------------------

#### Solar PV

2023 is on course to become another record-breaking year for solar PV, with the IEA forecasting around 373 GW of new installed capacity, a 63% increase compared to 2022. This shows the enormous growth potential of the technology, continuously braking records in the last years. All solar PV segments have witnessed considerable growth in in 2023. According to the IEA, around 55% of new solar PV capacity would be utility-scale projects and the remaining ones small-scale (mainly residential and commercial systems).

China could have added between 180 and 200 GW of solar PV capacity, according to data released by the National Energy Administration (NEA). The growth was supported by China "30-60" goal of reaching peak emissions by 2030 and net zero in 2060. Other major markets in Asia include India (~10 GW expected), Japan (~8 GW) and Republic of Korea (~3.5 GW).

In the US, approximately 31-33 GW of solar PV capacity could have been added in 2023, according to analysts consulted1 . Solar PV is the fastest-growing source of electricity in the US, making up almost half of all new power capacity in the first three quarters of 2023. According to the American Clean Power Association, more than 83 GW of solar PV were operating at the end of the third quarter of 2023.

The EU installed a record 56 GW of solar capacity in 2023, well above the 40 GW added the previous year, according to SolarPower Europe. In 2023, Germany returned to the top spot with 14.1 GW of new capacity, followed by Spain with 8.2 GW, Italy with 4.8 GW, Poland with 4.6 GW and the Netherlands with 4.1 GW. In Central and Eastern Europe, Czech Republic, Bulgaria and Romania crossed the 1 GW threshold for annual solar additions.

In Latin America, Brazil is expected to remain the main market in 2023, with around 12 GW installed, according to the Solar Association ABSOLAR.

#### Storage

Energy storage systems allow energy consumption to be separated in time from the production of energy. Electricity storage and, more in particular, battery energy storage systems (BESS), are a key tool in achieving a low-carbon future, as they allow to accommodate larger shares of variable renewables (typically wind and solar PV) allowing to achieve a greater system flexibility. Batteries can not only shift excess renewable energy to hours when there is less production, but they can also provide a wide range of services to the system, such as frequency response, reserve capacity, black-start capability among other grid services. In addition to providing grid stability services, BESS could also be used by TSO and DSOs to defer costly grid investments. All in all BESS, can be a valuable tool to reduce curtailment, an increasingly important challenge in countries with high renewables' penetration.

Batteries offer enormous deployment and cost reduction potential, according to analysts. In that sense, utility-scale battery storage deployment is already happening on a very large scale, and its capacity is expected to increase nearly 85-fold by 20502.

However, many challenges lie ahead. On the one side, BESS supply chains are today highly geographically concentrated. According to the IEA, China concentrates around 75% of the manufacturing capacity, and the share is not expected to significantly decrease in the next years. Therefore, countries need to diversify supply chains and/or develop industrial strategies for batteries' manufacturing. The access to critical minerals, essential for BESS production, is also a key challenge for most of the countries.

On the other side, regulatory and market conditions are not always well-suited to compensate batteries for all the services they can provide, and in most of the countries BESS projects are not attractive to investors. Therefore, it is important to enhance the returns they can yield, monetizing positive externalities and minimizing the risks associated with the projects. This can be achieved through different options including: (i) allowing BESS participation in capacity markets (which need to provide long-term contracts); (ii) designing ancillary services well-suited for BESS; (iii) allowing BESS participation in auctions (standalone or paired with renewables); (iv) granting aids or grants when necessary; and (v) enabling the PPA market.

<sup>2</sup> Source: IEA (WEO 2023) according to the data of the Stated Policies Scenario (STEP).

{38}------------------------------------------------

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# 2.2. Strategy

The energy transition has become increasingly critical for addressing climate change and the pressure has never been greater. Over the past decade we have witnessed continuous breaking of warmest year records, all-time high-water levels, and record high CO2 emissions. Climate change has become the biggest challenge that society faces today.

Furthermore, there has been a shift in global dynamics showcasing the higher need for endogenous, affordable, and reliable energy. This shift has been aggravated by the impact of macro movements, that have promoted the volatility of energy markets, supply chain disruption and concerns about energy security. 2023 has shown signs of stability mainly reflected in normalized energy prices.

The World recognizes that renewables play a key role in the global solution to energy independence and a sustainable planet. The energy transition is an opportunity to create more resilient, efficient, and sustainable energy systems that will meet future energy needs while reducing greenhouse gas emissions. Governments worldwide are taking decisive action to support the transition to low-carbon energy systems. Legislative frameworks such as the Inflation Reduction Act in the United States and REPowerEU in Europe, are evidence of clear targets and incentives for companies, cities, and countries to take decisive action towards the decarbonization of the economy.

To take early action in the energy transition and be better positioned to seize the opportunities presented by this shift, EDPR released in March 2023 its new Business Plan for 2023-26, where it clearly restates the Company's commitment to step-up to the Net Zero challenge and create superior value as a leading pure renewable global player.

Pure 100% Renewable Player

> 4 GW/year
>  Renewables deployed
>  in 2023-26

Double
Wind & Solar Capacity
by 2026 vs 2020

Net Zero

By 2040

# **2.2.1. Ramping Up Growth**

EDPR, as a leading pure renewables player, is focused on profitable and diversified growth. Through its robust pipeline and diversification strategy, EDPR is targeting a ramping up growth of ~17 GW of renewable capacity additions until 2026. EDPR's strategy of growth is supported by a flexible pipeline which allows to capture opportunities and respond effectively to market conditions. The Company sustains a clear diversification both geographically and technologically with focus in its main markets in Europe and US along with a bet in solar technology to diversify even more its current operating portfolio and reinforce it resilience.

EDPR has now secured ~60% of the ~17 GW additions targeted for 2023-26.

Image /page/40/Picture/13 description: The image shows a list of renewable energy sources. The first item is "Wind Onshore" with a green circle containing a wind turbine icon. The second item is "Solar Utility scale" with a green circle containing a solar panel icon. The third item is "Solar DG" with a light blue circle containing a solar panel on a house icon. The fourth item is "Wind Offshore" with a light blue circle containing a wind turbine in the ocean icon. The fifth item is "Storage + H2" with a purple circle containing a battery icon and a purple circle containing a hydrogen icon.

|  | Europe            | North America | South America | APAC |                 |
|--|-------------------|---------------|---------------|------|-----------------|
|  | ~1.5              | ~2.1          | ~1.3          | ~0.1 | Gross additions |
|  | ~3.9              | ~4.1          | ~0.9          | ~0.5 |                 |
|  | -                 | ~0.7          | -             | ~0.6 |                 |
|  | ~0.7              | -             | -             | -    |                 |
|  | ~0.1              | ~0.4          | -             | ~0.1 |                 |
|  | ~17 GW in 2023-26 |               |               |      |                 |

{41}------------------------------------------------

Part I

Image /page/41/Picture/13 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The text is white and the background is teal.

Annual Report 2023 Management Report | Strategy

# *The three hybrid parks will prevent the emission of more than 250,000 tons of CO2.*

**Differentiator factor:** Both the wind-solar hybrid project in Spain and the Przykona photovoltaic plant in Poland feature innovative technologies, with the solar installations utilizing bifacial panels to maximize renewable energy production. The wind-solar hybrid project in Spain is expected to prevent the emission of more than 24,000 tons of CO2 annually, while the Przykona photovoltaic plant in Poland will generate close to 220 GWh of clean energy, preventing the emission of more than 208,000 tons of CO2. Additionally, in Portugal increases the complex's renewable energy production to over 39 GWh per year, contributing to the reduction of greenhouse gas emissions and environmental sustainability.

**What lies ahead:** 15 wind-solar hybridization projects under construction and development in Spain, adding more than 230 MW of renewable capacity to the country.

Image /page/41/Picture/0 description: The image shows a landscape with a combination of wind and solar energy generation. In the background, there are two wind turbines with white blades against a clear blue sky. The turbines are situated on a hill with sparse vegetation and some rocky outcrops. In the foreground, there is a large array of solar panels, arranged in rows and angled towards the sun. The panels are dark in color, contrasting with the lighter-colored ground and vegetation around them. A simple wire fence runs along the edge of the solar panel array. The overall scene conveys a sense of sustainable energy production in a rural setting.

# Hybridization in Europe

Advancing renewable energy through hybridization.

**Our approach:** EDP Renewables has achieved significant milestones in renewable energy across Europe, including the successful connection of Spain's first wind-solar hybrid project, the unveiling of the largest photovoltaic plant in Europe in central Poland, and the commissioning of the first hybrid solar and wind energy park in Portugal. The main advantages of these projectsare aimed at optimizing existing infrastructures, efficiently using interconnection, reducing costs on grid investments, granting connection rights using existing wind farm rights, and mitigating development risk. The hybridization of wind and solar technologies and the adaptation of pre-existing assets demonstrate our commitment to increasing efficiency, utilizing existing infrastructure, and reducing environmental impact.

Image /page/41/Figure/4 description: The image is a stylized, minimalist world map with a teal background. The continents are outlined in white, blocky lines, giving the map a pixelated or low-resolution appearance. Two areas, likely representing countries or regions, are filled in with green. One of these green areas is located in Europe, possibly representing the British Isles, while the other is also in Europe, possibly representing France.

**Countries:** Portugal, Spain and Poland

9

{42}------------------------------------------------

edp
Renewables

---

## Leveraging on New and Superior Assets

EDPR is leveraging its superior portfolio and infrastructure as a competitive advantage for increased renewables deployment:

# **2.2.2. Backed by a Solid Investment Plan**

EDPR's ambitious growth will be backed by a €20 billion gross investment plan for 2023-26. Despite pursuing growth, EDPR will maintain a selective investment approach that considers both returns and risk profiles. Investment will be diversified across growth technologies and geographies in differentiating value propositions, leveraging on its expertise and experience.

# €20 billion in Gross Investments for 2023-26

Image /page/42/Figure/19 description: The image shows a color-coded block chart with text labels. The largest block, colored green, is labeled "~40% Solar Utility scale". Below this, there are three smaller blocks. From left to right, they are colored light blue, blue, and purple, and are labeled "~5% Offshore wind", and ">5% Storage + H2" respectively. There is also a light green block on the left side of the image.

l\$^{(1)}\$ player with extensive track record along the full value chain with highly
d teams.

ping up quickly, leveraging presence in growing markets, through traditional
chnologies (e.g., floating solar).

et, leveraging on developed capabilities and portfolio, global footprint
ersal segments and business models, and synergies with utility scale.

growth opportunity with medium term value crystallization, and CAPEX
in post 2025.

Markets starting to materialize by 2025; target mainly Storage co-located
opportunities and H2 partnerships.

Image /page/42/Picture/2 description: The image shows four sections describing different energy strategies. The first section, titled "Hybridization," discusses EDPR's use of existing grid connections to combine wind and solar energy, with plans to have ~1GW in Europe from 60 projects and having already installed 100 MW of hybrid projects in Portugal, Spain, and Poland as of Dec-23. The second section, "Repowering," highlights EDPR's approach to increasing project capacity and longevity, with an expected ~70 MW in Europe across 8 projects. The third section, "Storage," mentions EDPR's aim to add ~0.5 GW of battery storage capacity between 2023-26, primarily through co-located projects, with ~90% derived from North America and 0.2 GW of storage under-construction in the US as of Dec-23. The fourth section, "Hydrogen," describes EDPR's deployment of RES and strategic partnerships to scale up, with an expected gross installed capacity of ~1.5 GW by 2030, benefiting from its involvement in transition projects in the Iberian region. The image also includes text indicating "€20 billion in" and "~40%" along with "Onshore wind" and "~10% Solar DG".

{43}------------------------------------------------

# Source of Funding

#### **Whilst maintaining diversified sources of cash to deliver growth**

EDPR will maintain a diversified range of cash sources supporting the ~€20 billion of Gross Investments for 2023-26. Starting with ~€6 billion that will be generated from Asset Rotation deals, excluding capital gains, and an additional ~€4 billion from TEI structures in the US. As a result, EDPR will present a Net Investment of ~€10 billion.

Furthermore, around ~€6 billion will come from the Organic Cash Flow and ~€1 billion from a Capital Increase, that has already been successfully executed during 2023. Finally, the remaining ~€4 billion will be obtained through Net Debt.

#### **Keeping our Value-Adding Asset Rotation Model**

EDPR's Asset Rotation strategy has been an important part of the Company's performance proved with a consistent track record since 2012 of multiple successful transactions crystalizing close to €20 billion of proceeds since 2012. EDPR will continue creating value through this self-funding strategy by selling majority stakes in operational or underdevelopment assets, being able to de-risk its portfolio, crystallizing future value upfront and recycling capital for future project.

Asset Rotation plan will be based in selling ~30% of all annual capacity additions from 2023 to 2026, selling a total of 5 GW for the period and generating a total of ~€7 billion of proceeds. These transactions will reflect expected capital gains of ~€0.3 billion each year.

Image /page/43/Figure/7 description: The image contains text and a bar chart. The text at the top states that by the end of 2023, EDPR had executed and signed approximately 35% of the approximately 7 billion euro Asset Rotation program for 2023-26. The bar chart shows the breakdown of the program for 2023-26, with approximately 70% allocated to 'Build to Own' and approximately 30% to 'Build to Sell'. The chart also indicates a rate of approximately 4 GW per year. Additionally, there are three boxes with the following information: 'AR Proceeds for 2023-26' with approximately 7 billion euro, 'AR Proceeds executed+signed' with approximately 35%, and 'Cap gains/capex of AR deals' with approximately 40%.

#### **Always keeping an eye for value-adding opportunities**

In December, EDPR announced that it had agreed with China Three Gorges the buy-back of a 49% stake in EDPR's wind portfolio in Portugal, Poland and Italy.

This transaction is in line with EDPR's value creation strategy, allowing the consolidation of the Company's position in core markets, by increasing its exposure to the European market and to accretive renewable projects with immediate contribution to the P&L. The deal also provides higher flexibility to manage the portfolio for potential hybridization and repowering.

# **2.2.3. Ensure Delivery at the Highest Excellence Standards**

EDPR will keep on managing the value chain in its entirety in order to ensure the delivery of competitive and quality projects at the highest excellence standards. Supplier base diversification, strong ESG audit requirements and manufacturing origin are the key elements that define our procurement strategy.

#### **Development**

EDPR possesses local development knowledge and a multi-partnership network, with a track record in asset financing and tax equity structuring in the US, as well as strong commercial capabilities and risk management expertise in the CPPA market, allowing to secure shaped PPAs at premium prices.

#### **Procurement and Construction**

By leveraging EDPR's global scale, the Company engages in competitive procurement processes, partnering with local OEMs to ensure flexibility, and benefiting from an experienced E&C team with over 15 GW built in the past 15 years, supported by agile project management practices.

#### **Operations and Maintenance**

With strong O&M expertise, EDPR implements predictive maintenance strategies to maximize asset value, that are backed by Global Energy and Risk Management strategies for effective operational and risk mitigation measures.

Wind & Solar Grow

<sup>1</sup> As of Dec-23.

Image /page/43/Picture/22 description: The image shows three text blocks on a light blue background. The first text block contains the word "wth". The second text block contains the text "~50% Portfolio with In-House O&M". The third text block contains the text ">20 years Relationship with Top Tier Suppliers".

{44}------------------------------------------------

Annual Report 2023 Management Report | Strategy

Image /page/44/Picture/21 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are dark blue.

==

# We are working every day towards Net Zero, operating with the best ESG practices along the value chain

| Ambition                                                                                       | Goal                                                             | 2023  | 2026<br>target | 2030<br>ambition |
|------------------------------------------------------------------------------------------------|------------------------------------------------------------------|-------|----------------|------------------|
| <b>Decarbonize</b><br>for a climate-positive world                                             | Renewable capacity additions<br>(GW/year)                        | 2.5   | 4              | -                |
| <b>Communities</b><br>Empowering our<br>Communities for<br>an active role in<br>the transition | Global investment in communities,<br>cumulative1                 | €6.5m | €16m           | €28m             |
|                                                                                                | New hires, number                                                | 639   | >2,000         | >4,000           |
|                                                                                                | Training in upskilling program,<br>% training2                   | 37%   | 45%            | >45%             |
| <b>Planet</b><br>Protecting our<br>planet contributing<br>to its regeneration                  | Total recovered waste3 per year                                  | 72%   | 85%            | >90%             |
|                                                                                                | Projects with Net Gain Biodiversity<br>tracking system worldwide | 22%   | 100%           | 100%             |
|                                                                                                | Biodiversity Net Gain in new projects                            | -     | -              | 100%             |
| <b>Partners</b><br>Engaging our<br>Partners for<br>an impactful<br>transformation              | Suppliers compliant with ESG Due<br>Diligence4                   | 42%   | 100%           | 100%             |
|                                                                                                | Purchases volume aligned with<br>EDPR ESG goals5                 | >50%  | 90%            | >90%             |
| <b>ESG Culture</b><br>A strong ESG<br>culture protecting<br>and empowering<br>human life       | Fatal accidents, number                                          | 1     | 0              | 0                |
|                                                                                                | Women employees                                                  | 34%   | 36%            | 40%              |
|                                                                                                | Women employees in leadership                                    | 28%   | 31%            | 35%              |
|                                                                                                | Employees received ESG training                                  | 60%   | 70%            | >90%             |

Accumulated OPEX 2021-2026. Includes voluntary & mandatory investment + management costs. 2Excludes transversal training. 3 Includes construction, operational & dismantling phases. 4Purchases >25k€. In 2023, this indicator was improved. Prequalification assessment already considers IDD, Environment & H&S, as well as other risk mitigation stages: desk assessments/audits/inspections, during contract period. With this new approach, in 2023, 42% of critical suppliers are fully analysed with an ESG due diligence. 5The volume of purchases associated with critical suppliers whose decarbonization, environmental (biodiversity & circular economy), and human rights goals are consistent with EDPR's. In 2023, more than 50% of EDPR's purchasing volume is considered aligned with EDPR's ESG goals.

# **2.2.4. Resulting in a Delivery of Superior Value, While Keeping a Sound Balance Sheet and Risk Profile**

**Business Plan, 2026 targets**

Step-up delive

Deployment
GW/year

EBITDA

Recurring
Net Profit
€bn

Recurring
Net Debt
€bn

Net Debt/
EBITDA¹

X

Scrip dividend providing optionality to shareholders, who can choose
to receive dividend in shares or in cash

| 26 targets                                              |      |                      |                      |                        |
|---------------------------------------------------------|------|----------------------|----------------------|------------------------|
|                                                         | 2022 | 2024                 | 2026                 |                        |
|                                                         |      |                      |                      |                        |
| ery                                                     | 2.1  | ~3.9<br>avg. 2023-24 | ~4.9<br>avg. 2025-26 | +~2.6<br>2026 vs. 2022 |
| ults with superior renewables portfolio                 | 2.2  | ~2.5                 | ~3.0                 | ~9%<br>CAGR 2022-26    |
| th through accretive investments in attractive projects | 0.67 | ~0.7                 | ~0.9                 | ~9%<br>CAGR 2022-26    |
| e sheet                                                 |      |                      |                      |                        |
|                                                         | 5    | ~7                   | ~9                   | +~4<br>2026 vs. 2022   |
|                                                         | 2.8  | ~3.2                 | ~3.2                 | +~0.4<br>2026 vs. 2022 |

**Target payout ratio 30-50%**
converging to renewables peers

{45}------------------------------------------------

#### **2.2.5. Targets supported by a top-class global team**

#### Talent strategy **Strong value proposition**

# Recognized as top employer across markets • Global strategy for well-being, flexibility and inclusion • Global compensation and benefits framework • Top talent retention and sucession planning

Image /page/45/Picture/18 description: The image shows a collection of logos and emblems. There are ten red rectangular logos with the text "top EMPLOYER 2023" and a country name. The countries are BRAZIL, GREECE, PORTUGAL, POLAND, FRANCE, COLOMBIA, ITALY, SPAIN, and ROMANIA. There is also a blue rectangular logo with the text "top EMPLOYER EUROPE 2023". To the right of these logos is a gold emblem with the text "TOP WORK PLACES 2023 USA". Finally, there is a circular emblem with the text "Bloomberg Gender-Equality Index 2023".

# Experience **Nurturing an unrivaled workplace**

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# Araction

- Boost employer branding strategy
- Scale-up sourcing strategy
- Broader and diverse talent pool

#### **Bringing on-board the best talent**

- Global collaboration and mobility
- Fostering leadership growth
- Continued re/upskilling

# Development **Preparing for the future, empowered**

Image /page/45/Picture/19 description: A group of people are sitting in a room, watching a presentation on a screen. The presenter is standing next to the screen, pointing at something on the screen. The screen shows a presentation about "MANTENIMIENTO DE PLANTAS FV". The room is well-lit, and the people are all dressed casually. The text on the right side of the image says "Annual Report 2023", "Management Report | Strategic Approach", and "Part I".

{46}------------------------------------------------

Part I

Image /page/46/Picture/10 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a light blue, sans-serif font. Below the letters, in a smaller font, is the word "Renewables" in the same light blue color. The background is a solid teal color.

Integrated Annual Report 2023 Management Report | Strategy

# *This collaboration represents the largest US corporate sponsorship of distributed PV.*

**Differentiator factor:** The entire program is expected to provide savings in the form of electric bill credits to ~25,000 low moderate income households (LMI Beneficiaries) while targeting a specific cash yield.

**What lies ahead:** The first projects are targeted to be operational by the end of 2024, with a goal of adding 3 GW in decentralized solar energy projects for the 2023- 26 period for EDP Renewables. The immediate focus is on development in Ohio, with a secondary focus in the PJM Territory, paving the way for a sustainable and impactful future in solar energy development.

# Google and EDPR Synthetic Community Solar Partnership

Empowering local communities and advancing Environmental Justice through solar energy.

**Our approach:** Over the last two years, EDPR NA DG created an environmental product called the ImpactREC, designed to democratize community solar benefits for low-income communities. The platform has secured a commitment from Google to acquire ImpactRECs generated from an initial 500MWac portfolio (the "Portfolio"), to be developed by EDPR NA DG. This initiative is part of the "Clean Energy Financial Benefit Sharing Program," aimed at promoting environmental justice and reducing energy burden for low-to-moderate income families across six US states. Projects are expected to be compensated under a structure where revenue is generated through participation in either the PJM wholesale market, qualified facility contracts set up with the local utility, or a combination thereof.Energy rates are expected to be hedged by a VPPA (or similar instrument), and the ImpactRECs will be sold to Google under a quasi-put structure with a price of \$15/MWh, for a contracted period of 15 years.

Image /page/46/Figure/3 description: The image is a stylized world map with a pixelated design. The landmasses are outlined in white, and two areas, likely representing North America and Greenland, are filled in with green. The background is a gradient of teal, transitioning from a lighter shade at the top to a darker shade at the bottom.

**Country:** US

{47}------------------------------------------------

# 2.3. Risk management

In line with EDPR's controlled risk profile, Risk Management process defines the mechanisms for measurement and management of risks and opportunities impacting the business, increasing the likelihood of the Company in achieving its financial, operational and ESG targets, while minimising fluctuations of results.

#### Risk management process

EDPR's Enterprise Risk Management Process is an integrated and transversal management model that ensures the minimisation of the effects of risk on EDPR's capital and earnings, as well as the implementation of best practices of Corporate Governance and transparency. The process aligns EDPR's risk exposure with the company's desired risk profile.

The Enterprise Risk Management Framework was first approved in 2016, in accordance with the guidelines agreed at its Board of Directors level and is inspired by the Basel Committee directives.

Based on this risk framework, the Company developed a Risk Management System through individual risk policies and procedures for most relevant risks, where it is defined the methodology to calculate probability of occurrence and impacts, as well as mitigation measures and thresholds.

In addition, these risk policies and procedures establish the process for control, periodic evaluation, and eventual adjustments. The approvals necessary to proceed with this system are submitted to the Management Team who, in turn, keeps the Board of Directors informed of the progress.

#### Risk governance model

Risk management at EDPR involves three organizational functions, which refer to the 3 lines of defence that perform their responsibilities on an articulated but independent manner among them:

• Risk Manager (Management): Responsible for day-to-day operational decisions and for implementing approved risk policies. They constitute the first line of defence and are composed by the members of the different Business Units/Departments.

• Risk Profiler (Strategy): Responsible for identification and analysis of risks, defining policies and limits for risk management within the company, as well as its monitoring. This role is performed by the Global Risk and the Compliance & Internal Control departments, which constitute the second line of defence.

• Risk controller (Controlling): Responsible for the follow-up of the results of risk-taking decisions and for verifying alignment of operations with general policies approved by the Management Team, in an independent and objective manner. This role is performed by both the Internal Audit Department, as well as external auditors, and they represent the third line of defence and provide sturdiness to the management process of the 1st and

- 
- 
- 2nd lines.

Additionally, Risk Management is closely followed and supervised by the Audit, Control and Related Party Transactions Committee; an independent supervisory body composed of non-executive members in charge, among others, of supervising the functioning of the internal risk management and control systems, as well as evaluating those systems and proposing the adequate adjustments according to the Company's necessities.

The Audit, Control and Related Party Transactions Committee receives information from the Global Risk director, on a quarterly basis, on the company's risk management status and evaluation. During these meeting, a detailed review of the level of each risk category within the risk taxonomy is conducted, comparing it with the maximum thresholds established in the ERM Framework. In addition, a comparison is made with the results from the previous quarter and the previous year, in order to assess the evolution of risks and take preventive measures if necessary.

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During 2023, the Committee received reports on EDPR's risk management status in March, June, September, and December. These reports allowed the Committee to be updated about the risks and make informed decisions to protect the interests of EDPR and its shareholders. The quarterly review of the risk taxonomy is an essential practice to ensure effective management of business risks and maintain the financial stability of the company.

Risk Management at EDPR is also endorsed by the Management Team, supported by the Risk Committee, and implemented for investment and day-to-day decisions by all managers of the Company.

The Risk Committee is the forum where the different Risk Functions discuss the policies to be implemented and control the risk exposure of the company. EDPR's Risk Committee integrates and coordinates all Risk Functions and assures the link between corporate's risk appetite and defined strategy and the operations of the company.

EDPR created three distinct meetings of the Risk Committee in order to separate discussions on execution of mitigation strategies from those on the definition of new policies:

- **Restricted Risk Committee**: Held every month, it is mainly focused on execution risk and counterparty risk, as well as providing visibility on the decisions on energy hedging strategies taken in the Global Energy Management (GEM) Steering Committees, where EDPR's risk officer is one of the permanent members. Currently, the Restricted Risk Committee is the forum to:
	- Discuss the status of projects under development and construction;
	- Review exposure to offtakers, suppliers and financial institutions;
	- Track merchant exposure and provide visibility on hedging decisions taken in the GEM Steering Committees;
	- Monitor compliance with risk thresholds defined in EDPR's risk policies (market, counterparty, operational and country risk).

Main participants in the Restricted Risk Committee include EDPR's Management Team and several Corporate and regional teams involved in the decision making of these topics.

- **Financial Risk Co**
and discuss the ex
liquidity risk, com
relevant risks revie

• **Financial Risk Committee**: Held every quarter, it is a forum to review main financial risks and discuss the execution of mitigation strategies. Exchange rate risk, interest rate risk, liquidity risk, commodities risk and credit risk from financial counterparties are most relevant risks reviewed in this committee.

Main participants of the Financial Risk Committee include EDPR's CEO and CFRO and selected members of the Finance, Planning & Control, Accounting & Consolidation, M&A and Global Risk teams.

- **General Risk Co**
analyses are discu
the Management
with EBITDA@Risk

• **General Risk Committee**: Held every quarter, it is the forum where new strategic analyses are discussed, and new policies and procedures are proposed for approval to the Management Team. Additionally, EDPR's overall risk position is reviewed, together with EBITDA@Risk and Net Income@Risk.

Main participants of the General Risk committee include EDPR's Management Team, Global Risk, Internal Audit, Compliance & Internal Control, and other directors of the Company from selected departments. Additionally, the members of the Audit, Control and Related Party Transactions Committee are permanently invited participants of the General Risk committee.

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Annual Report 2023 Management Report | Risk management

Image /page/49/Picture/9 description: The image contains the logo for EDP Renewables. The logo consists of the letters "edp" in a simple, sans-serif font, stacked above the word "Renewables" in a smaller, similar font. The letters and word are in a dark color, possibly dark blue or black, against a white background.

---

# Risk map at EDPR

Risk Management at EDPR is focused on covering all risks of the Company. In order to have a holistic view, they are classified in six Risk Categories, which are Energy Market, Financial, Strategic, Counterparty, Operational and ESG.

Risk categories and description

**Energy Market Risk**
It refers to the risk to EDPR resulting from movements in energy market prices. Due to the relationship between wind and solar production and energy price, production risk is considered within market risk. Moreover, liquidity risk is also included due to its relationship with extreme changes in energy prices.

**Financial Risk**
It refers to risks affecting EDPR's ability to fulfil its financial obligations due to movements in the financial markets. It includes movements in Interest Rates, Exchange Rates (FX), Inflation and Commodity prices. It also includes Capital Gains risk, due to the importance of EDPR's asset rotation strategy in its business.

**Strategic Risk**
It refers to risks coming from macroeconomic, political, social, or environmental situation in geographies where EDPR is present, as well as those coming from a change in competitive landscape, from technology disruptions, or from supply chain issues. Investment Decisions criteria and Reputational issues also fall under this category.

Risk Groups

. Energy Price Risk

. Energy Production Risk

. Liquidity Risk

. Interest Rate Risk

. Exchange Rate Risk

. Inflation Price Risk

. Commodity Price Risk

. Capital Gains

. Country Risk

. Regulatory Risk

. Competitive Landscape Risk

. Technology Disruptions Risk

. Investment Decisions
Criteria and Energy planning

. Supply Chain Risk

. Reputational Risk

Likelihood Impact

. Close
defin
. Hedg
long t
or sho
contr

. Execu
. Execu
rate e
. Natur
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. Execu
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. Execu
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. Caret
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. Follow
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. Activ
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. Diver
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. Cons
scend
mark
asset

Within each Risk Category, risks are classified in Risk Groups. In addition, for each risk category and risk group, EDPR implements a series of mitigation strategies with specific measures. The full description of the risks and how they are managed can be found in chapter 5. Corporate Governance. The Risk Categories, the Risk Groups and the Risk Management mitigation strategies are summarised below.

- se analysis of natural hedges to
ane best alternatives
- dge of market exposure through
gterm purchase agreements (PPA)
- hort and medium term financial
tracts.
- ecution of interest rate hedging
- ecution of pre-hedging for interest
e exposure for new financing needs
- Cural FX hedging, with debt and
enues in same currency
- ecution of FX hedging for net
estment (after deducting local debt)
- ecution of FX hedging to eliminate
nsactional FX risk, mainly in Capex
- Natural geographical
diversification
- Hedge of wind volumes through
financial derivatives
- Close follow up of liquidity needs
in the company
- Execution of inflation hedging
- Alternative funding sources such
as Tax Equity structures and
Multilateral/Project Finance
Agreements
- Execution of commodity (capex
raw materials) prices hedging
- Execution of FX hedging to
eliminate Capital Gains volatility
- eful selection of energy markets
sed on country risk and energy
rket fundamentals
- ow-up of regulation changes to
ust strategy if needed
- ive involvement in major industry
ociations in all EDPR markets
- ersification in markets,
nuneration schemes and
hnologies
- nsideration of stress case
narios in the evolution of energy
rkets for new investment and
et rotation decisions
- Follow-up of cost effectiveness of
renewable technologies and potential
market disruptions
- Worst case profitability analysis of every
new investment considering all risk
factors
- Risk-return metrics at project and equity
level as well as profitabiity resilience
metrics
- Signing of medium-term agreements wit
equipment suppliers to ensure visibility of
prices and availability of supply
- Relying on a large base of equipment
suppliers to ensure procurement needs

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| Risk Categories and description                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Risk Groups                                                                                                  | Likelihood | Impact |                                                                                                                                                                                                                                                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Counterparty Risk<br>Risk that a counterparty to a transaction could default before<br>final settlement of the transaction's cash flows. A direct<br>economic loss would occur if transactions with the counterparty<br>had positive economic value at the time of default. Even in the<br>case of not defaulting, it may not comply with its contract<br>obligations (timing, quality, etc.), implying additional higher<br>costs due to its replacement or to delays in fulfilling the contract; | Counterparty Credit Risk Counterparty Operational Risk                                                       |            |        | Counterparty risk is managed at ED Collateral management Inclusion of clauses in contracts Monitoring                                                                                                                                           |
| Operational Risk<br>Defined as the risk of loss resulting from inadequate or<br>failed internal processes, people and systems or from<br>external events (such as an increase in equipment default<br>rates, increasing O&M, or natural disasters), including the<br>effect of a loss created by not being able to ensure<br>business continuity;                                                                                                                                                  | Development Risk Construction Risk Operation Risk IT/OT Risk Legal Claims Risk Personnel Risk Processes Risk |            |        | Partnership with local communities Inclusion of socio-economic clauses Supervision by qualified engineering teams Flexible contractual penalties Recurrent site development Close follow-up by panels available Insurance coverage for business |
| ESG Risk<br>It refers to risks related with Environment, such as Climate<br>change or Circular economy; Social, such as Communities or<br>Health & Safety, and Governance, which includes risks related<br>to Corporate Governance or Business Ethics. They help define<br>a set of standards for a company's behaviour used by socially<br>conscious investors to screen potential investments.                                                                                                   | Environmental Risk Social Risk Governance Risk                                                               |            |        | ESG policies TCFD analysis Contingency planning and environmental impact Health & Safety Compliance                                                                                                                                             |

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Image /page/50/Picture/26 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font. The "e" and "d" are lowercase, while the "p" is lowercase but has a tall ascender that extends above the other letters. Below the letters, in a smaller font, is the word "Renewables" in the same dark blue color.

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# Risk analysis highlights during 2023

In 2023, following both external and internal assessments carried out on the maturity of its ERM Framework, EDPR reviewed its Risk Taxonomy and made some additional updates to its Enterprise Risk Management Framework, to act on the audits' recommendations and further strengthen its risk governance, policies and procedures. The revised ERM Framework and the new Risk Taxonomy, which now includes a specific section dedicated to ESG Risks, were approved during the second half of 2023.

Also, an historical analysis was performed on the profitability of EDPR's projects at the time of approval, to understand how the different profitability risk metrics for the portfolio have evolved in the last decade and to provide higher visibility on the risk-return relationship, at approval, for different technologies and geographies. Slight changes in methodology were proposed and a set of recommendations were issued to further improve resilience of current profitability risk metrics being used.

Additionally, a deep dive on EDPR's historical and projected structural merchant exposure was performed, to understand how future capacity additions could impact the company's desired long term risk profile. The analysis provided insights on current trends, how average contracted life of EDPR's assets is evolving and offered recommendations to ensure exposure is aligned with the company's desired risk profile for the following years.

Another initiative developed in 2023 is related to the review of EDPR's Net Investment FX Risk strategy, which aims to mitigate the potential impact of exchange rate movements in the Group's net assets denominated in foreign currency. A thorough review of the methodology was carried out and adjustments were made to better align the Net Investment Strategy with EDPR's Business Plan and desired risk profile, while seeking out the optimization of the risk-return trade off.

In addition, in 2023 EDPR reassessed its internal Operational Risk, executing a bottom-up analysis across all departments, while also relying on historical data. The analysis provided an updated visibility on the main operational risks impacting the company, how they have evolved over time and whether they could be seen as representative for the future, as EDPR implements its current Business Plan.

Likewise, throughout the year, other specific analyses were carried out, covering different

subjects:

- 
- 
- 
- 

• Task Force on Climate-Related Financial Disclosure (TCFD): Review of current process for annual assessment of climate risks and their impacts on the company's performance, while issuing some recommendations to further improve resilience of current disclosures under the ESG Risk management pillar.

• Counterparty risk: Overview of the current policy and its limits implemented at EDPR, with proposed amendments to better align them with current company & market reality.

• DG Community Solar: Deep-dive analysis on the risk profile of the DG Community Solar business in the US vs other DG opportunities, while recommending mitigation measures to align exposure with desired risk profile.

• Country risk: Detailed annual assessment of country risk for those geographies in which EDPR is currently present and for those that could potentially be part of EDPR's portfolio.

Finally, during 2023, a comprehensive series of trainings were performed across the organization to reinforce EDPR's risk culture and promote awareness of risk management topics among its employees. Main trainings carried out throughout the year were as follows:

• Counterparty Risk: Reinforce the importance of the topic in EDPR and the main fundamentals on how to manage it. Training was provided to the Procurement, Purchasing, Origination and M&A teams, across all platforms.

• Operational Risk: Present the results of the Operational Risk analysis carried out in 2023, including main conclusions and recommendations. Training was provided to all senior

• Profitability and FX Risk: Overview of risk metrics and sensitivity analyses performed on FX and project profitability for investment approval. Training was provided to the M&A

- 
- management of the company.
- teams across all platforms.
- 
- 

• Business Continuity and Crisis Management: Detail Crisis Management Policy, processes, and procedures, while reinforcing importance of employees' awareness to prevent crises. Training was provided to all employees in the company.

• Commodities Risk: Overview of main raw materials indexes and their liquidity and how to project future prices for cost estimations. Training was provided to the Procurement, Purchasing and Storage teams in Europe, LATAM and NA.

Some of these trainings have been incorporated in EDPR's knowledge catalogue and will be provided on a recurrent basis to maintain the level of risk awareness and promote a risk culture across the company.

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edp

---

# EDPR risk matrix by financial impact

EDPR's risk matrix is a qualitative assessment of likelihood and potential financial impact of the different risk groups within the Company. It is dynamic and it depends on market conditions and future internal expectations and scenarios.

Image /page/52/Figure/16 description: The image is a risk assessment matrix with likelihood on the y-axis and potential financial impact on the x-axis. The matrix is divided into nine quadrants. Each quadrant contains one or more numbered circles, each representing a different risk. A legend below the matrix lists each risk and its corresponding number. The risks are: 1 Energy Price, 2 Energy Production, 3 FX, 4 Interest Rate, 5 Supply Chain risk, 6 Development risk, 7 Counterparty, 8 Regulatory, 9 Execution/Construction, 10 Legal, 11 Operation (damages, equip. perf), 12 Comm. Price, 13 Inflation, 14 IT, 15 Personnel, 16 Processes, 17 Liquidity, 18 Strategic, 19 Business Continuity, 20 Environmental risk, 21 Social Risk, and 22 Governance Risk. A key in the upper right corner indicates that the risks have been reviewed in 2023.

# Emerging risks at EDPR

Gap in labour market and availability of talent for renewable energy

# companies

Increased competition for labour resources, both skilled and unskilled, structural changes in work culture (driven by remote working) and digital transformation are some of the factors creating an emerging gap in the supply-demand labour market.

The rapid growth of the global renewable energy industry, expected for the next couple of decades, together with an ageing world population, could originate a mismatch between the availability of skilled and professional labour and the demand from industry players, including EDPR.

A shortage of qualified personnel could impact team sizing and productivity, lead to an increase in workforce costs and create the need to go further on the benefits provided in order to attract and retain talent in the organisation.

To tackle the problems caused by this emerging risk, EDPR is putting in place some mitigation measures, such as the development of youth-targeted programs, an increase in social media presence geared towards recruiting and networking initiatives, the advancement of work-inclusive methodologies and the flexibilization of work, in line with the new reality and work culture.

#### Potential misalignment between regulatory risk on energy market design with international commitments for climate transition

The marginal remuneration system has been a staple of the wholesale electricity market design in Europe and North America for many decades. However, in recent years, this operating model has seen its fair share of challenges, as a growing number of intermittent, zero-marginal cost technologies (such as wind or solar) have increased its share in the overall production, leading to higher generation uncertainty and price volatility within electricity markets.

These structural challenges, coupled with the aftermath of a worldwide pandemic, the constraints in global supply chains and the invasion of Ukraine in 2022, created an unprecedented situation of high electricity prices, especially in Europe, leading many

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governments to implement short-term regulatory changes in the hopes of easing the economic impact on consumers and businesses alike.

For energy companies, the emerging discussions on potential modifications to the current marginal design of electricity markets, can create a situation of deep uncertainty and affect their strategic outlooks.

Structural changes with retroactive consequences on existing projects' profitability could discourage any new investments in renewable installations and promising technologies, thus jeopardising the fulfilment of the ambitious long term climate goals put forth by those same countries. This could, in turn, lead to a downwards revision of those same climate transition objectives.

To address this emerging risk of regulatory changes not being aligned with long-term climate goals, EDPR's mitigation strategies entail a close follow-up of the regulatory developments, an active participation in national and international discussions, a strategic approach to geographically diversify its presence and the creation of contractual resilience, in order to share the risk stemming from potential structural changes in market design.

#### Supply chain disruptions due to shortage of commodities (raw materials)

For the last few years, demand for some commodities such as Lithium, Cobalt or Nickel has been increasing considerably, as they represent key materials used in the production of electric vehicles, electronic components and devices, and batteries for renewable energy projects. Lithium, in particular, appears especially relevant as is not only facing challenges from the demand side, but also because resources are concentrated in specific parts of the world.

As net zero targets become an increasingly important part of countries' development policies, the expected global transition from the internal combustion engine to electric vehicles in the medium/long term might lead to an exponential surge in demand for lithium which could, in turn, generate disruption in the supply chain through price increases, delays in production, and eventually shortage of supplies.

On the supply side, most of the supply chain for lithium batteries is owned by China, leading to questions regarding concentration of resources and how geopolitics could play a role in the global availability of the resource.

Additionally, lithium typically requires very high volumes of water, leading to sustainability and ethical issues, especially when considering some of the largest lithium reserves are found in drought-prone regions.

For EDPR and the whole renewable energy sector, the potential shortage of lithium could negatively impact the expansion of energy storage in renewable energy systems, which could play a crucial role in storing excess energy generated during off-peak production periods and releasing it during time of high demand or when other renewable sources are not actively generating power. A material increase in the cost of lithium could impact the economic viability of energy storage solutions and could also impact already approved projects that contemplate a potential repowering in the future.

In order to mitigate this potential emerging risk, EDPR is working to create a wide base of suppliers from whom to contract and is algo negotiation framework agreements to ensure long-term supply and visibility on its supply chain. Additionally, EDPR is also actively working with suppliers to tie contract price indexation to liquid indexes, so that hedging strategies can be put in place to mitigate increases in prices.

Flawed decision-
mainstream use o

#### Flawed decision-making based on outputs developed through the mainstream use of AI within the company

As new technologies and processes are integrated into EDPR's day-to-day business, it becomes more natural to leverage on the output obtained from automation tools to make more informed decisions. However, when these decisions are made using data that is unconsciously skewed or incomplete, it can lead to misguided strategies, poor resource allocation or, ultimately, suboptimal outcome.

Artificial Intelligence is still at its early stages and its use at EDPR is applied within a controlled environment, but the expectation is that, in the future, it will become a mainstream technology and a key component by helping drive the decision-making process at the company.

Because AI relies on databases and historical information to operate, there is a risk that if EDPR's databases show some sort of bias, even unconsciously, this could lead to flawed recommendations, with unintended consequences. Additionally, because decisionmaking processes from AI systems are complex and difficult to understand, this could also lead to a void in holding people accountable for possible errors or misguided strategies.

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Annual Report 2023 Management Report | Risk management

Image /page/54/Picture/8 description: The image contains the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark blue color.

biased data, EDPR is prioritizing data quality, by investing in robust data collection systems, establishing clear data governance policies, and implementing che cks to ensure the integrity and objectivity of the information used for decision -making purposes. Moreover, a culture of transparency, critical thinking and collaboration is also being promoted, together with training to employees, with the goal of putting in place the proper

# checks and balances and increasing accountability. Climate and environment -related litigation The last few years have seen an increase in climate

To mitigate the impact of flawed decisions from the future mainstream use of AI, based on -related litigation: well organized and well -funded NGOs bring litigation proceeds against governments and states (initially) and corporates (most recently), as a way to compel them to pursue more ambitious climate change mitigation and adaptation goals. These cases typically focus on claims of lack of ambitious targets to reduce greenhouse gas emissions or even accusations of green washing. The litigation brought forward by these players could not only generate a meaningful financial impact to the companies being sued, but also encompass significant reputational risk.

Being a 100% pure renewable energy player, EDPR appears to be somewhat protected from these potential claims. However, as climate litigation against corporates becomes more widespread and plaintiffs more sophisticated, one cannot exclude the possibility of EDPR being subject of a future lawsuit, should its growth targets be deemed not ambitious enough.

Furthermore, environment -related litigation appears to be expanding beyond only reducing greenhouse gas emissions, and further embracing other types of environmental degradation, such as decline in nature and biodiversity, which could basically turn any company into a potential target.

In order to mitigate the risk of climate-related litigation, EDPR has implemented an Environmental Policy that takes a proactive approach to environmental management, with the goal of delivering on EDPR's 3 key environmental commitments: mitigate climate change, promote a circular economy and protect biodiversity.

---

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Image /page/55/Picture/0 description: The image shows a rooftop covered in solar panels with the text "Why we choose solar DG" superimposed on the image. The text is white, green, and blue. The background is a sunset.

La Gavia Solar DG, Spain

< 056 >

Part I

Annual Report 2023
Performance

edp
Renewables

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Part I

Annual Report 2023 Part I – Our performance | Index

edp

057

Image /page/56/Picture/0 description: The image shows a close-up of a flower with the text "Because We Choose Earth" superimposed on it. The flower petals are a mix of yellow and green hues, creating a soft, diffused background. The text is in a bright green color, contrasting with the flower's colors and making it stand out. The words are arranged in three lines, with "Because" on the top, "We Choose" in the middle, and "Earth" at the bottom. The overall composition is visually appealing, with the text and flower complementing each other.

# 03 Our performance

| Financial capital             | 58 |
|-------------------------------|----|
| Human capital                 | 68 |
| Supply chain capital          | 72 |
| Social capital                | 77 |
| Natural capital               | 88 |
| Digital capital               | 92 |
| Innovation capital            | 95 |
| Sustainable development goals | 99 |

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Annual Report 2023 Management Report | Financial capital

Image /page/57/Picture/6 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a simple, sans-serif font, stacked above the word "Renewables" in a smaller font. The color of the text is a dark blue or gray.

# 3.1. Financial capital

## **3.1.1. Operational performance**

| OPERATING PORTFOLIO | INSTALLED CAPACITY 2023 (MW) |        |       |          | NET CAPACITY FACTOR (%) |      |         | ELECTRICITY GENERATION (GWh) |        |        |
|---------------------|------------------------------|--------|-------|----------|-------------------------|------|---------|------------------------------|--------|--------|
|                     | DEC-23                       | ADDED  | AR(1) | ∆ YTD(2) | 2023                    | 2022 | ∆PP YOY | 2023                         | 2022   | ∆% YOY |
| Europe              | 5,535                        | +775   | -398  | +377     | 26%                     | 26%  | +0.01pp | 11,619                       | 11,778 | -1%    |
| Spain               | 2,042                        | +131   | -256  | -124     | 25%                     | 26%  | -1pp    | 4,491                        | 4,885  | -8%    |
| Portugal            | 1,413                        | +245   |       | +245     | 27%                     | 27%  | -0.3pp  | 2,701                        | 2,715  | -1%    |
| Rest of Europe      | 2,080                        | +399   | -142  | +257     | 28%                     | 26%  | +2pp    | 4,428                        | 4,178  | +6%    |
| France              | 244                          | +30    |       | +30      | 28%                     | 24%  | +4pp    | 525                          | 411    | +28%   |
| Belgium             | 11                           |        |       |          | 34%                     | 27%  | +7pp    | 29                           | 24     | +24%   |
| Poland              | 798                          | +207   | -142  | +65      | 28%                     | 28%  | +1pp    | 1,749                        | 1,739  | +1%    |
| Romania             | 521                          |        |       |          | 28%                     | 26%  | +3pp    | 1,284                        | 1,163  | +10%   |
| Italy               | 412                          | +117   |       | +117     | 26%                     | 25%  | +0.4pp  | 747                          | 737    | +1%    |
| Greece              | 80                           | +35    |       | +35      | 22%                     | 24%  | -1pp    | 86                           | 93     | -8%    |
| UK                  | 5                            |        |       |          | 21%                     | 24%  | -3pp    | 9                            | 10     | -11%   |
| Netherlands         | 9                            | +9     |       | +9       |                         |      |         |                              |        |        |
| North America       | 7,813                        | +1,166 |       | +1,163   | 30%                     | 33%  | -3pp    | 17,306                       | 18,362 | -6%    |
| US                  | 6,891                        | +869   |       | +866     | 30%                     | 33%  | -3pp    | 15,428                       | 17,029 | -9%    |
| Canada              | 427                          | +297   |       | +297     | 27%                     | 32%  | -5pp    | 394                          | 360    | +9%    |
| Mexico              | 496                          |        |       |          | 35%                     | 45%  | -9pp    | 1,484                        | 973    | +53%   |
| South America       | 1,248                        | +394   | -260  | +134     | 41%                     | 39%  | +2pp    | 4,483                        | 2,625  | +71%   |
| Brazil              | 1,165                        | +311   | -260  | +51      | 41%                     | 39%  | +2pp    | 4,483                        | 2,625  | +71%   |
| Chile               | 83                           | +83    |       | +83      |                         |      |         |                              |        |        |
| APAC                | 890                          | +190   |       | +178     | 17%                     | 16%  | +1pp    | 1,184                        | 636    | +86%   |
| Vietnam             | 402                          | +9     |       | -2       | 21%                     | 19%  | +3pp    | 743                          | 393    | +89%   |
| Singapore           | 315                          | +85    |       | +85      | 13%                     | 12%  | +0.4pp  | 296                          | 184    | +61%   |
| Rest of APAC        | 172                          | +96    |       | +95      | 15%                     | 16%  | -1pp    | 145                          | 59     | +146%  |
| Total EBITDA level  | 15,485                       | +2,525 | -658  | +1,852   | 29%                     | 30%  | -2pp    | 34,593                       | 33,401 | +4%    |

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Image /page/58/Picture/15 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, with the "d" extending vertically to create a taller, more prominent element. Below the letters, in a smaller font size, is the word "Renewables".

| OPERATING PORTFOLIO     | INSTALLED CAPACITY 2023 (MW) |        |       |          |
|-------------------------|------------------------------|--------|-------|----------|
|                         | DEC-23                       | ADDED  | AR(1) | △ YTD(2) |
| Europe                  | 462                          | -36    | -     | -36      |
| Spain                   | 120                          | -36    | -     | -36      |
| Portugal                | 31                           | -      | -     | -        |
| Rest of Europe          | 311                          | -      | -     | -        |
| North America           | 592                          | -      | -     | -        |
| US                      | 592                          | -      | -     | -        |
| APAC                    | 16                           | +1     | -     | +1       |
| Rest of APAC            | 16                           | +1     | -     | +1       |
| Total Equity level      | 1,070                        | -35    | -     | -35      |
| TOTAL (EBITDA + Equity) | 16,555                       | +2,491 | -658  | +1,817   |

(1) AR stands for Asset Rotation; (2) YTD variation considers a decommissioning of a ~3 MW wind turbine in the US and ~12 MW variation in APAC due to ac/dc real conversion.

#### EDPR continues to deliver selective growth

With a top-quality portfolio, EDPR has a strong track record and proven capability to execute superior projects and deliver on targets. The installed asset base of 16.6 GW is not only young, on average 9 years, it is also mostly certified in terms of environmental and health and safety standards.

As of 2023, EDPR had, in terms of EBITDA + Equity capacity, 5,997 MW installed in Europe, 8,405 MW in North America, 1,248 MW in South America and 905 MW in APAC.

In terms of technology, EDPR continued its effort to diversify its portfolio, which translates into 12,985 MW of wind onshore, 322 MW of wind offshore and 3,248 MW of solar technology, that includes both solar PV utility-scale and solar DG. 78% 20% 2%

Image /page/58/Figure/7 description: The image shows two horizontal bar charts. The first chart shows the distribution of something across different regions: Europe (36%), North America (51%), South America (8%), and APAC (5%). The second chart, titled "Capacity by Technology (%)", shows the distribution across different technologies: Wind Onshore (78%), Solar (20%), and Wind Offshore (2%).

Image /page/58/Figure/9 description: The image contains two horizontal bar charts. The first chart shows the distribution of something (unspecified) across different regions: Europe (36%), North America (51%), South America (8%), and APAC (5%). The second chart, titled "Capacity by Technology (%)", shows the distribution of capacity across different technologies: Wind Onshore (78%), Solar (20%), and Wind Offshore (2%).

#### **Capacity by Region (%)**

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edp
Renewables

Annual Report 2023 Management Report | Financial capital

# =

↻

#### 2023 installations were global and mainly driven by solar

During 2023, EDPR added a total of 2,526 MW globally, with Europe and North America representing 76% of the total installations, and a larger percentage of solar capacity vs. wind.

More specifically, EDPR added 958 MW of wind onshore, corresponding to 277 MW in Europe, namely 117 MW in Italy, 65 MW in Spain, 35 MW in Greece, 26 MW in France, 22 MW in Portugal and 12 MW in Poland. In North America, 499 MW were installed coming from a project in US and another one in Canada. Lastly, in South America, EDPR added 182 MW of wind onshore, including 83 MW in Chile.

In terms of solar capacity, EDPR added a total of 1,569 MW, corresponding to 667 MW in the US, 223 MW in Portugal, 212 MW in Brazil, 195 MW in Poland, 66 MW in Spain, 9 MW in Netherlands, 4 MW in France, 85 MW in Singapore, 9 MW in Vietnam and 97 MW in the Rest of APAC.

Pursuing its Asset rotation strategy, EDPR successfully concluded three Asset rotation deals that amounted to c.0.7 GW of capacity. In detail, EDPR sold 100% stake in a 256 MW wind portfolio in Spain, 100% in a 142 MW wind portfolio in Poland and 100% in a 250 MW wind portfolio in Brazil.

All in all, in 2023, EDPR consolidated portfolio net variation was +1.8 GW.

#### 4% increase Year on Year in generation

EDPR produced 34.6 TWh (+4% YoY) of clean energy in 2023 and achieved a 29% load factor (vs 30% in 2022) reflecting a 94% renewable index.

The YoY evolution has been affected by the increase of 12% in installed capacity with a high concentration of annual additions in the last quarter or the year along with the asset rotations closed in mid-2023 for wind assets in Europe. In terms of resource, generation has been impacted by the increase of solar capacity weight, with lower load factors vs wind, as well as wind resources below LT average in US from El Niño weather phenomenon, where EDPR has more than 45% of its renewable portfolio.

The Company continues to leverage on its competitive advantages to maximise the projects' output andon its diversified portfolio across different geographies to minimise the renewable resource volatility risk.

# EDPR diversified portfolio delivers balanced output

In 2023, Europe output decreased -1% YoY to 11.6 TWh and represented 34% of the total output, reflecting a 26% load factor (flat YoY). Specifically, in Spain, load factor during the year was 25% (-1pp YoY), in Portugal load factor was 27% (flat YoY) and in the Rest of Europe, load factor was 28% (+2pp YoY) mainly driven by north of Europe.

In North America, output decreased -6% YoY to 17.3 TWh, reflecting mainly a weaker renewable resource at 30% (-3pp YoY) related to El Niño weather phenomenon. North America represented 50% of EDPR's total output in 2023.

EDPR's production in South America, more precisely in Brazil, increased to 4.5 TWh (+71% YoY), mainly explained by higher installed capacity along with higher load factor (41%, +2pp YoY). The region represented 13% of all EDPR generation in the year.

Finally, APAC load factor stood at 17% (+1pp YoY) with production during the period reaching1.2TWh (vs. 0.6TWh in 2022) following the full integration of Sunseap acquisition and solar capacity additions in the platform. In 2023, APAC represented 3% of all EDPR generation.

Image /page/59/Figure/15 description: The image is a stacked bar chart titled "Generation by Region (%)". It compares the percentage of generation by region in 2023 and 2022. In 2023, Europe accounts for 34%, North America for 50%, South America for 13%, and APAC for 3%. In 2022, Europe accounts for 35%, North America for 55%, South America for 8%, and APAC for 2%.

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Image /page/60/Picture/15 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a bold, sans-serif font, stacked above the word "Renewables" in a smaller, lighter font. The letters and word are in a dark color, possibly black or dark blue, against a white background.

# . EDPR manages a portfolio of 16.6 GW with 4.4 GW of capacity under construction

As of December 2023, EDPR had 4.4 GW of capacity under construction, fostering portfolio diversification with >60% related to solar. This capacity under construction includes 2.1 GW located in US (out of which 0.2 GW of collocated storage), including the solar projects postponed from 2023, with an important share planned to be commissioned

during the first half of 2024. EDPR is committed to install 4 GW during 2024.
In terms of wind onshore, under construction capacity amounted to 90 MW in Europe, with 70 MW in Greece and 20 in Spain, and in South America 83 3 MW were under construction,

corresponding to Brazil and Colombia. 
Regarding solar capacity under construction, 404 MW were in Europe, more precisely, 155
MW in Italy, 140 MW in Spain, 74 MW in Hungary, 21 MW in Netherlands and 15 MW in France. In North America, EDPR had 2,074 MW under construction, all of them coming from the US. In South America, 255 MW were under construction in Brazil. Finally, EDPR also had 64 MW of capacity under construction in APAC.

Image /page/60/Figure/10 description: The image contains three bar charts and some descriptive text. The first chart, titled "Capacity Under Construction by Technology (%)", shows that 21% of capacity under construction is wind onshore, 63% is solar, and 16% is wind offshore. The second chart, titled "Capacity Under Construction by Region (%)", shows that 27% of capacity under construction is in Europe, 47% is in North America, 24% is in South America, and 1% is in APAC. The third chart, titled "Assets Average Age & Useful Life (years)", shows the average age and useful life of assets in different regions. Spain has an average age of 14 years, Portugal has 12, France has 3, Belgium has 3, Poland has 6, Romania has 12, Italy has 4, Greece has 1, UK has 12, Netherlands has 10, US has 1, Canada has 4, Mexico has 3, Brazil has 3, Chile has 3, Vietnam has 3, Singapore has 1, RoAPAC has 9, and EDPR has 9.

In terms of wind offshore, EDPR had, through its JV with Engie, Ocean Winds, 728 MW under construction at equity level coming from the Moray West project in the United Kingdom and the three projects under construction in France totalling 309 MW, which translates into a total of 1,896 MW gross capacity.

EDPR has a young portfolio with 9 years of average operating age, with an estimate of over 22 years of useful life remaining to be captured.

Image /page/60/Figure/8 description: This image is a horizontal bar chart titled "Capacity Under Construction by Region (%)". The chart displays the percentage of capacity under construction in different regions. Europe accounts for 27%, North America accounts for 47%, South America accounts for 24%, and APAC accounts for 1%.

#### **Capacity Under Construction by Technology (%)**

Image /page/60/Figure/7 description: The image shows a horizontal bar that is mostly green, with a smaller portion that is light purple. The number 21% is written in black in the middle of the green portion of the bar.

| 21%          | 63%   | 16%           |
|--------------|-------|---------------|
| Wind Onshore | Solar | Wind Offshore |

#### **Assets Average Age & Useful Life (years)**

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—

Annual Report 2023 Management Report | Financial capital

Image /page/61/Picture/17 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark blue color.

—

## **3.1.2. Financial performance**

#### Income Statement

Revenues reached €2.2 billion and EBITDA summed €1.8 billion.

Revenues totalled €2,239 million (vs. €2,371 in 2022) on the back of additional installed capacity (+€161 million vs 2022), lower average selling price (-€28 million vs 2022), Asset rotation effect (-€158 million vs 2022), worse wind resource (-€68 million vs 2022) and forex translation and others (-€39 million vs 2022).

Other operating income amounted to €583 million (+11% vs 2022), largely driven by €460 million related to capital gains from Asset rotation transactions closed during the year in Europe and Brazil.

Since 2021, macro environment has rapidly changed worldwide with supply chain unbalances and higher assets under management leading into higher costs. EDPR continued to growdespite such circumstances. During 2023, Operating Costs (Opex) were also impacted by regulatory clawbacks mainly related to Poland and Romania along with more assets under management. In this context Opex totalled €1,001 million (+9% vs 2022).

In 2023, EBITDA summed €1,835 million (vs €2,157 million in 2022) mainly driven by short term headwinds, namely theweak wind resource in the USdue El Niño weather effect (€178 million), US solar projects delay (~1 GW of solar panels on supply chain issues), clawback taxes in Europe (€106 million) and the impact from Colombia projects delay (€53 million). Other drivers were also the lower electricity price in Europe (€93/ MWh vs €106/ MWh in 2022) along with a lower contribution from Ocean Winds which compares with an extraordinary contribution in 2022. All in all, these negatives were partially compensated by €460 million of capital gains.

Net Financial Expenses decreased to €313 million (vs €449 million in 2022) mainly on the back of higher capitalized financial expenses in line with operational assets timing and positive impact from forex and derivatives. Non-controlling interests totalled €150 million (vs €201 million in 2022), in line with top line performance.

During the period, EDPR was impacted by non-recurring events, mainly €178 million from an impairment at D&A level related to delays in Colombian projects, €10 million from the Massachusetts offshore PPA cancellation and €12 million from a provision in Romania related to regulatory clawbacks, leading to a Recurring EBITDA of €1,845 million and a Recurring Net Profit of €513 million.

#### **CONSOLIDATED INCOME STATEMENT**

Revenues
Other Operating Income
Operating Costs
Supplies and Services
Personnel Costs
Other Operating Costs
Share of Profit of Associc
EBITDA
REC. EBITDA
EBITDA/Revenues
Provisions
Depreciation and Amorti
Amortisation Governmer
EBIT
Financial Income/ (Exper
Pre-tax Profit
Income Taxes
Profit of the Period
Non-controlling Interests
Net Profit
REC. NET PROFIT

| CONSOLIDATED INCOME<br>STATEMENT | 2023   | 2022  | ∆% YOY |
|----------------------------------|--------|-------|--------|
| Revenues                         | 2,239  | 2,371 | -6%    |
| Other Operating Income           | 583    | 526   | +11%   |
| Operating Costs                  | -1,001 | -920  | +9%    |
| Supplies and Services            | -475   | -439  | +8%    |
| Personnel Costs                  | -244   | -241  | +1%    |
| Other Operating Costs            | -283   | -240  | +18%   |
| Share of Profit of Associates    | 14     | 179   | -92%   |
| EBITDA                           | 1,835  | 2,157 | -15%   |
| REC. EBITDA                      | 1,845  | 2,157 | -15%   |
| EBITDA/Revenues                  | 82%    | 91%   | -9pp   |
| Provisions                       | -16    | 6     | -      |
| Depreciation and Amortisation    | -965   | -771  | +25%   |
| Amortisation Government Grants   | 21     | 20    | +6%    |
| EBIT                             | 875    | 1,412 | -38%   |
| Financial Income/ (Expense)      | -313   | -449  | -30%   |
| Pre-tax Profit                   | 561    | 962   | -42%   |
| Income Taxes                     | -102   | -145  | -30%   |
| Profit of the Period             | 459    | 817   | -44%   |
| Non-controlling Interests        | -150   | -201  | -25%   |
| Net Profit                       | 309    | 616   | -50%   |
| REC. NET PROFIT                  | 513    | 671   | -24%   |

{62}------------------------------------------------

=

↻

Annual Report 2023 Management Report | Financial capital

# In 2023 total equity increased by €2,082 million.
Total Equity of €12.6 billion increased by €2,082 million in 2

| Balance sheet                                                                                                                                                                                                   | STATEMENT OF FINANCIAL POSITION                   | 202<br>3 | 202<br>2 | YOY<br>∆ |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|----------|----------|----------|
|                                                                                                                                                                                                                 | Property, Plant and Equipment, net                | 20,252   | 17,891   | +2,361   |
| In 202<br>3<br>total equity increased by €2,08<br>2<br>million.                                                                                                                                                 | Intangible Assets and Goodwill, net               | 2,787    | 2,883    | -96      |
| Total Equity of €1<br>2.6 billion increased by €2,08<br>2<br>million in 202<br>3, of which €1,371<br>million are                                                                                                | Financial Investments, net                        | 1,104    | 1,201    | -96      |
| attributable to reserves and retained earnings. Equity attributable to EDPR shareholders                                                                                                                        | Deferred Tax Assets                               | 622      | 625      | -<br>4   |
| increase is mainly explained by the +€993 million from the capital increase, +€309<br>million<br>from Net profit in the period<br>and +764<br>million from variation in fair value cash flow hedges,            | Inventories                                       | 88       | 80       | +8       |
| along with<br>-€21<br>million from dividend distributions to EDPR shareholders<br>and<br>-<br>€<br>9<br>million of                                                                                              | Accounts Receivable<br>–<br>Trade, net            | 559      | 606      | -47      |
| the exchange rate effects                                                                                                                                                                                       | Accounts Receivable<br>–<br>Other, net            | 1,743    | 1,987    | -244     |
| Total Liabilities increased €472million year on year to €1<br>7<br>4billion, mainly explained by the<br>increase in financial debt (+€<br>1<br>,080<br>million), deferred tax liabilities (+€219<br>million),   | Right<br>-of<br>-use asset                        | 936      | 988      | -53      |
|                                                                                                                                                                                                                 | Collateral Deposits                               | 67       | 50       | +17      |
| provisions (+€49 million) and institutional partnerships (+€9 million), offset by the<br>decrease in other liabilities (<br>-<br>€817<br>million), rents due from lease contracts (<br>-€3<br>5<br>million)     | Cash and Cash Equivalents                         | 1,372    | 1,172    | +200     |
| and deferred revenues from Institutional partnerships (<br>-<br>€33million). Liabilities were mainly                                                                                                            | Assets Held for Sale                              | 517      | 9        | +507     |
| composed of financial debt (<br>4<br>2% vs 3<br>6% in 202<br>2), liabilities related to institutional<br>partnerships in the US (8%; flat vs<br>202<br>2) and other liabilities (3<br>3% vs 39% in 202<br>2).   | TOTAL ASSETS                                      | 30,047   | 27,493   | +2,554   |
|                                                                                                                                                                                                                 | Share Capital + Share Premium                     | 7,374    | 6,402    | +973     |
| Liabilities to tax equity partnerships in the United States decreased by €24<br>million to                                                                                                                      | Reserves and Retained Earnings                    | 3,379    | 2,007    | +1,371   |
| €2,188<br>million. Deferred revenues related to institutional partnerships primarily represent<br>the non<br>-economic liability associated to the tax credits already realised by the institutional            | Net Profit (Equity Holders of EDPR)               | 309      | 616      | -307     |
| investor, arising from accelerated tax depreciation, and yet to be recognised as income by                                                                                                                      | Non<br>-controlling Interests                     | 1,590    | 1,545    | +45      |
| EDPR throughout the remaining useful lifetime of the respective assets. Deferred tax<br>liabilities reflect the liabilities arising from temporary differences between the accounting                           | Total<br>Equity                                   | 12,652   | 10,571   | +2,082   |
| and the tax basis of assets and liabilities. Accounts payables include trade suppliers, PP&E<br>suppliers, deferred income related to investment grants received and derivative financial<br>instruments.       | Financial Debt                                    | 7,239    | 6,160    | +1,080   |
|                                                                                                                                                                                                                 | Institutional Partnerships                        | 1,431    | 1,423    | +9       |
|                                                                                                                                                                                                                 | Rents due from lease contracts                    | 1,005    | 1,040    | -35      |
| As total assets summed €30<br>0<br>billion in December 202<br>3, the equity ratio of EDPR reached                                                                                                               | Provisions                                        | 319      | 270      | +49      |
| 42%. Assets were 6<br>7% composed of net PP&E<br>–<br>property, plant and equipment<br>representing €20<br>3<br>billion (+€<br>2<br>,361<br>million vs 202<br>2). In detail it included +€4.<br>5<br>billion of | Deferred Tax Liabilities                          | 857      | 638      | +219     |
| capex,<br>-€0.<br>7<br>billion of depreciation charges along with a negative impact of<br>exchange                                                                                                              | Deferred Revenues from Institutional Partnerships | 757      | 790      | -33      |
| differences and others of<br>-<br>€<br>1.5 billion.                                                                                                                                                             | Other Liabilities                                 | 5,786    | 6,602    | -817     |
| Net intangible assets of €3.0 billion mainly include €2.<br>2<br>billion from goodwill registered in                                                                                                            | Total Liabilities                                 | 17,394   | 16,922   | +472     |
|                                                                                                                                                                                                                 |                                                   |          |          |          |

Net intangible assets of €3.0 billion mainly include €2.2 billion from goodwill registered in the books, for the most part related to the acquisitions made in the period.

#### **STATEMENT OF FINANCIAL POSITION 202**

edp
Renewables

| Property, Plant and Equipment, net                | 2023   | 2022   | $Δ$    |
|---------------------------------------------------|--------|--------|--------|
| Intangible Assets and Goodwill, net               | 2,787  | 2,883  | -9     |
| Financial Investments, net                        | 1,104  | 1,201  | -9     |
| Deferred Tax Assets                               | 622    | 625    | -      |
| Inventories                                       | 88     | 80     | +      |
| Accounts Receivable – Trade, net                  | 559    | 606    | -4     |
| Accounts Receivable – Other, net                  | 1,743  | 1,987  | -24    |
| Right-of-use asset                                | 936    | 988    | -5     |
| Collateral Deposits                               | 67     | 50     | +1     |
| Cash and Cash Equivalents                         | 1,372  | 1,172  | +20    |
| Assets Held for Sale                              | 517    | 9      | +50    |
| TOTAL ASSETS                                      | 30,047 | 27,493 | +2,554 |
| Share Capital + Share Premium                     | 7,374  | 6,402  | +97    |
| Reserves and Retained Earnings                    | 3,379  | 2,007  | +1,37  |
| Net Profit (Equity Holders of EDPR)               | 309    | 616    | -30    |
| Non-controlling Interests                         | 1,590  | 1,545  | +4     |
| Total Equity                                      | 12,652 | 10,571 | +2,08  |
| Financial Debt                                    | 7,239  | 6,160  | +1,08  |
| Institutional Partnerships                        | 1,431  | 1,423  | +      |
| Rents due from lease contracts                    | 1,005  | 1,040  | -3     |
| Provisions                                        | 319    | 270    | +4     |
| Deferred Tax Liabilities                          | 857    | 638    | +21    |
| Deferred Revenues from Institutional Partnerships | 757    | 790    | -3     |
| Other Liabilities                                 | 5,786  | 6,602  | -81    |
| Total Liabilities                                 | 17,394 | 16,922 | +47    |
| TOTAL EQUITY & LIABILITIES                        | 30,047 | 27,493 | +2,55  |

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Annual Report 2023 Management Report | Financial capital

Image /page/63/Picture/15 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, lighter font. The letters "ed" are connected, and the "p" is a separate letter with a long vertical stroke that extends below the baseline of the other letters. The color of the text is a dark gray or blue.

==

#### Cash flow statement and Investment activity

#### Operating cash flow impacted by top line performance

In 2023, EDPR generated Cash-Flow from Operations of €1,304 million (-11% vs 2022), due to a lower top line performance. Cash-Flow from Operations is nothing more than the EBITDA net of income tax, changes in working capital, and non-cash items.

Cash flow evolution was mainly impacted by Net Expansion Investments of €2,889 million (+15% vs 2022), driven by the higher levels of Capex at €4,556 million (+32% vs 2022) and offset by lower Financial Investments of €209 million (vs €1,701 million in 2022), impacted in the previous year by the acquisition of Sunseap.

All in all, Net Debt increased €867 million during the year.

| CASH FLOW                             | 2023   | 2022   | Δ% YoY |
|---------------------------------------|--------|--------|--------|
| EBITDA                                | 1,835  | 2,157  | -15%   |
| Non-cash Items                        | -274   | -381   | -28%   |
| Income Tax Paid                       | -157   | -57    | -      |
| Changes in working capital            | -100   | -249   | -60%   |
| Cash-Flow from Operations             | 1,304  | 1,470  | -11%   |
| Net Interest Paid                     | -175   | -446   | -61%   |
| Minorities/Partnerships               | -131   | -219   | -40%   |
| Other                                 | -27    | -16    | +65%   |
| Organic Cash-Flow                     | 972    | 788    | +23%   |
| Net Expansion Investments             | -2,889 | -2,512 | +15%   |
| Dividends paid to EDPR Shareholders   | -21    | -88    | -76%   |
| Forex                                 | 110    | -206   | -      |
| Other (including one-off adjustments) | -41    | 14     | -      |
| Capital Increase                      | 1,000  | -      | n.a.   |
| DECREASE/(INCREASE) IN NET DEBT       | -867   | -2,003 | -57%   |

#### Net debt

Supporting the investments that are behind the growth plan

As of December 2023, Net Debt totalled €5,805 million (vs €4,938 million in 2022) reflecting the investments made in the period with record levels of capacity under construction, and therefore Capex increasing to €4.6 billion (vs. €3.5 billion in 2022), to support the company's growth targets.

Image /page/63/Figure/9 description: The image contains two bar charts. The first bar chart, titled "Net Debt (€m)", shows the net debt in 2022 and 2023. The net debt in 2022 is 4,938, and the net debt in 2023 is 5,805. The second bar chart, titled "Debt Maturity (%)", shows the debt maturity in 2024, 2025, 2026, and >2026. The debt maturity in 2024 is 16%, in 2025 is 5%, in 2026 is 8%, and in >2026 is 70%.

Image /page/63/Figure/10 description: The image shows two bar charts. The first bar chart shows the net debt in billions of dollars for the years 2022 and 2023. The net debt for 2022 is 4,938, and the net debt for 2023 is 5,805. The second bar chart shows the debt maturity in percentage for the years 2024, 2025, 2026, and >2026. The debt maturity for 2024 is 16%, for 2025 is 5%, for 2026 is 8%, and for >2026 is 70%.

Image /page/63/Figure/12 description: The image shows two bar charts. The first bar chart shows the net debt in cm for 2022 and 2023. The net debt in 2022 is 4,938, and the net debt in 2023 is 5,805. The second bar chart shows the debt maturity in percentage for 2024, 2025, 2026, and >2026. The debt maturity in 2024 is 16%, in 2025 is 5%, in 2026 is 8%, and in >2026 is 70%.

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#### Income statement by region

#### Europe

In 2023, revenues in Europe amounted to €1,069 million (-16% vs 2022) due to lower production at 11.6 TWh (-1% vs 2022) and lower prices (-12% vs 2022 extraordinary levels). Net Operating income (Other operating income net of Operating costs) amounted to €22 million (vs -€80 million in 2022), primarily explained by the higher capital gains in the year. All in all, EBITDA in Europe totalled €1,087 million (-13% vs 2022), reflecting an EBITDA margin of 102%.

#### North America

In North America, revenues increased to €960 million in 2023 (+1% vs 2022) on the back higher average selling price (+8% YoY), partially offset by lower resource in the period due to the impact of El Niño weather event (-6% YoY of production despite higher MW in operation). Net Operating costs increased to €332 million, reflecting operating costs increase of +7% vs 2022 in line with higher assets under management. North America EBITDA totalled €584million (vs €655 million in 2022), reflecting an EBITDA margin of 61%

| INCOME STATEMENT               | EUROPE |       |        | NORTH AMERICA |      |        |
|--------------------------------|--------|-------|--------|---------------|------|--------|
|                                | 2023   | 2022  | ∆% YOY | 2023          | 2022 | ∆% YOY |
| Revenues                       | 1,069  | 1,279 | -16%   | 960           | 952  | +1%    |
| Other Operating Income         | 459    | 308   | +49%   | 43            | 89   | -52%   |
| Operating Costs                | -437   | -389  | +12%   | -450          | -421 | +7%    |
| Supplies and Services          | -230   | -205  | +12%   | -215          | -202 | +6%    |
| Personnel Costs                | -65    | -54   | +21%   | -117          | -124 | -6%    |
| Other Operating Costs          | -142   | -130  | +10%   | -118          | -94  | +25%   |
| Share of Profit of Associates  | -5     | 49    | -109%  | 30            | 35   | -14%   |
| EBITDA                         | 1,087  | 1,248 | -13%   | 584           | 655  | -11%   |
| EBITDA/Revenues                | 102%   | 98%   | +4pp   | 61%           | 69%  | -8pp   |
| Provisions                     | -13    | 6     | -      | 0.3           | 0.1  | -      |
| Depreciation and Amortisation  | -220   | -247  | -11%   | -459          | -417 | +10%   |
| Amortisation Government Grants | 1      | 1     | +6%    | 17            | 17   | -2%    |
| EBIT                           | 855    | 1,008 | -15%   | 142           | 256  | -45%   |

#### South America

In South America, mainly Brazil, revenues increased to €128 million (+44% vs 2022) on the back of higher renewable resource and electricity generation (+71% vs 2022). Net Operating income amounted to €27 million, due to the €70 million of other operation income registered in 2023 mainly explained by the gains generated from the Asset rotation. All in all, EBITDA in South America totalled €156 million, (vs €177 million in 2022) reflecting an EBITDA margin of 121%.

#### APAC

In APAC, revenues amounted to €114 million (+35% vs 2022) on the back of solar installations during the period. With Net Operating costs amounting to €50 million in the period, EBITDA in APAC totalled €68 million (vs. €35 million in 2022) reflecting an EBITDA margin of 59%.

| INCOME STATEMENT                  | SOUTH AMERICA |      |        | APAC |      |        |
|-----------------------------------|---------------|------|--------|------|------|--------|
|                                   | 2023          | 2022 | ∆% YOY | 2023 | 2022 | ∆% YOY |
| Revenues                          | 128           | 89   | +44%   | 114  | 85   | +35%   |
| Other Operating Income            | 70            | 122  | -43%   | 1    | 3    | -52%   |
| Operating Costs                   | -42           | -33  | +27%   | -51  | -52  | -2%    |
| Supplies and Services             | -32           | -23  | +41%   | -30  | -30  | +1%    |
| Personnel Costs                   | -6            | -4   | +29%   | -16  | -21  | -22%   |
| Other Operating Costs             | -5            | -6   | -26%   | -4   | -1   | -      |
| Share of Profit of Associates     | -             | -    | -      | 3    | -    | -      |
| EBITDA                            | 156           | 177  | -12%   | 68   | 35   | +96%   |
| EBITDA/Revenues                   | 121%          | 200% | -78pp  | 59%  | 41%  | +18pp  |
| Provisions                        | -4            | -    | n.a    | -    | -    | n.a    |
| Depreciation and Amortisation     | -30           | -19  | +60%   | -60  | -23  | -      |
| Amortisation Government<br>Grants | -             | -    | n.a    | 3    | 1    | +106%  |
| EBIT                              | 122           | 159  | -23%   | 11   | 13   | -13%   |

| Revenues                          |
|-----------------------------------|
| Other Operating Income            |
| Operating Costs                   |
| Supplies and Services             |
| Personnel Costs                   |
| Other Operating Costs             |
| Share of Profit of Associate      |
| EBITDA                            |
| EBITDA/Revenues                   |
| Provisions                        |
| Depreciation and Amortisation     |
| Amortisation Government<br>Grants |
| EBIT                              |
| Note: Income statements only ta   |

Note: Income statements only take into consideration countries with operating capacity

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=

↻

# Other reporting topics

#### Subsequent events

#### **EDPR informs on Asset Rotation deal for a solar portfolio in North America**

Madrid, January 4th 2024: EDP Renováveis, S.A. ("EDPR") signed a Sale and Purchase Agreement with a major energy global player to sell an 80% equity stake in a portfolio of 340 MWac from 2 operating solar projects in Ohio and 1 operating solar project in Texas.

The total consideration of the transaction corresponds to an Enterprise Value of \$0.4 billion (for the 80% stake).

The transaction is subject to conditions precedent, regulatory and other usual conditions for a transaction of this nature.

With the transaction announced today, EDPR has executed and secured >25% of the €7 billion Asset rotation program for 2023-26 as announced in EDPR's Capital Markets Day in March 2023, allowing EDPR to accelerate value creation while recycling capital to reinvest in accretive growth.

#### **EDPR secures its first PPA in Germany**

Madrid, January 24th 2024: EDP Renováveis, S.A. ("EDPR") through Kronos Solar EDPR ("Kronos") has secured a 15-year Power Purchase Agreement ("PPA") with Lhyfe S.A ("Lhyfe"), a European producer and supplier of green and renewable hydrogen with whom EDPR has a partnership agreement to create value and leverage upon complementary skills and synergies in the promotion of renewable H2 projects.

The PPA entitles the sale of the renewable energy generated by a 39 MWac (55 MWdc) solar project in Germany with start of operations expected during 2025.

This PPA is the first closed by EDPR in Germany, the first one with a hydrogen company and the first materialization of the industrial agreement between the two companies. It will provide renewable power for Lhyfe's future green hydrogen production sites in the region, that will be used to mobility and industrial processes, thus consolidating its sustained growth.

EDPR entered Germany in 2022 through the acquisition of Kronos Solar EDPR and currently has a capacity of 8.5 GWdc in different stages of development in solar utility scale, including agri-PV projects. Although EDPR's business in Germany is focused on solar technology, the company has the ambition of developing wind projects in the country by the end of the decade.

Germany announced in 2022 ambitious renewables capacity targets of 360 GW of renewable capacity to be installed until 2030. To reach that target, Germany has committed to install 155 GW of solar capacity, representing close to 40% of the expected EU solar additions and making it one of the largest and fastest growing solar markets in the world.

EDPR has currently secured >55% of its total capacity out of the ~17 GW established for the 2023-26 period.

EDPR's success in securing new PPAs reinforces its low-risk profile and growth strategy based on the development of competitive projects with long-term visibility, fostering the acceleration of the energy transition and the decarbonization of the economy.

#### **EDPR informs on PPA secured for a 250 MW portfolio in Spain**

Madrid, February 7th 2024: EDP Renováveis, S.A. ("EDPR") has secured a 15-year Power Purchase Agreement ("PPA") with a global corporate client to sell the green energy produced by a 250 MW portfolio in Spain.

The portfolio consists of 4 solar projects amounting to 205 MWdc (168 MWac) and 1 wind project with 45 MW of capacity, all of them expected to enter in operation in 2025.

This pay-as-produced PPA supports EDPR's value creation thresholds, and with it EDPR has now more than 55% of the capacity secured out of the ~17 GW target additions for 2023-2026 announced in EDPR Capital Markets Day in March 2023.

EDPR's success in securing new PPAs reinforces its low-risk profile and growth strategy based on the development of competitive projects with long-term visibility, fostering the acceleration of the energy transition and the decarbonization of the economy.

#### **EDPR informs on CfDs secured for 100 MW of onshore wind in Italian auction**

Madrid, February 12th 2024: EDP Renováveis, S.A. ("EDPR") has been awarded with 20 year contracts for difference ("CfD") for 100 MW of wind renewable capacity, at the latest

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Image /page/66/Picture/18 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark gray color.

==

renewable auction in Italy promoted by the Gestore Servizi Energetici ("GSE"). These CfDs were attributed to 3 onshore wind projects located in the south of Italy, which are expected to enter in operation by 2026.

The auction, that has delivered 1 GW of new clean energy, achieved a clearing price of €77.6/MWh, a significant increase from last year's €66.5/MWh in the twelfth auction. CfD auctions play a pivotal role in supporting the green transition and ensuring competitive projects.

With these new contracts, EDPR has now 57% of the capacity secured out of the ~17 GW targeted additions announced in EDPR Capital Markets Day in March 2023.

EDPR's success reinforces its low-risk profile and growth strategy based on the development of competitive projects with long-term visibility, fostering the acceleration of the energy transition and the decarbonization of the economy.

#### **EDPR informs on completion of Asset Rotation deal for a solar portfolio in North America**

Madrid, February 15th 2024: Following the information released to the market on January 4th 2024, EDP Renováveis, S.A. ("EDPR") is pleased to announce the completion of a Sale and Purchase Agreement with a major energy global player, to sell an 80% equity stake in a portfolio of 340 MWac from 3 operating solar projects, 2 in Ohio and 1 in Texas, for an Enterprise Value of \$0.4 billion (for the 80% stake).

With the conclusion of this agreement, EDPR has executed and signed ~35% of the €7 billion Asset rotation program for 2023-26 as announced in EDPR's Capital Markets Day in March 2023, allowing EDPR to accelerate value creation while recycling capital to reinvest in accretive growth.

#### **EDPR informs on Asset Rotation deal for a wind project in Canada**

Madrid, February 14th 2024: EDP Renováveis, S.A. ("EDPR") signed a Sale and Purchase Agreement with Connor, Clark & Lunn Infrastructure ("CC&L Infrastructure") to sell an 80% equity stake in a 297 MW operating wind project located in Alberta, Canada for an estimated Enterprise Value of C\$0.6 billion (for the 80% stake).

This is EDPR's second transaction with CC&L Infrastructure, having previously sold a 560 MW portfolio of wind and solar assets in theUnited States. EDPR will retain a minority equity interest in the project and continue to operate and manage the asset

The transaction is subject to conditions precedent, regulatory and other usual conditions for a transaction of this nature.

This transaction comes in the context of the €7 billion Asset rotation program for 2023-26 announced in EDPR's Capital Markets Day in March 2023, allowing EDPR to accelerate value creation while recycling capital to reinvest in accretive growth.

#### Information on average payment terms to suppliers

In 2023, total number of invoices paid by Spanish companies within the legal payment period amounted to 36,259 invoices, 93% of total invoices, while the payments made within the legal payment period amounted to €184,710 thousand, which represents 91% of total payments. The average supplier payment period was of 33 days, below the payment period stipulated by law of 60 days.

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# 3.2. Human capital

#### **People management**

#### Our purpose

The EDP Group is committed to evolving as a global, agile, and efficient organisation with a people-centred approach that seeks to attract, develop, and retain the skills needed to meet future challenges.

For EDPR to be a truly future-proof organisation, an ambitious People and Organisation (P&O) strategy has been defined to fulfil the following in the coming years:

- Provide its people with a human and meaningful experience through a global purpose and skills and concrete measures of well-being and flexibility.
- Focus on attracting and retaining internal talent through a strong global strategy of employer branding and onboarding, as well as a customised succession and development strategy.
- Foster growth opportunities for all employees in an engaging manner, in line with a global development mindset.
- Invest in collaboration and internal mobilities as a way of sharing knowledge and individual and organisational development.
- Treat diversity, equity and inclusion as catalysts for innovation.
- Promote agility and efficiency through the improvement and digitalisation of processes to reduce decision-making time.
- Use the global tools of people analytics as instruments to support decision-making and strategic planning.

The major events of 2023 continue to transform the global labour market, reinforcing the importance of preparing EDPR for the challenges of the future whilst meeting the needs of its population:

- A total of 3,043 employees, considering the inclusion of 3 new markets, representing 3 new nationalities (57 nationalities in total).
- Increase of women in global representation (+1pp YoY, totalling 34%).
- 
- 

• Generations Y and Z represent around 75% of the population.

• 12% of people working outside their country of origin, in a reality where 73% of the population continues to work in a hybrid model.

In the dynamic landscape of the contemporary job market, marked by transformative phenomena such as the Great Resignation and other impactful trends, EDPR registered a voluntary turnover of 14.2%. EDPR continues to strategically navigate these challenges, recognizing the evolving nature of workforce dynamics, and prioritizing talent retention initiatives across the employee journey described throughout this section and the following pages.

Considering EDPR's global presence, the work developed in terms of people management in 2023 was based on the consolidation of a new people narrative through the integration of a global purpose in the main people management processes, strengthening the sense of belonging and pride in employees:

Our energy

This purpose dimension represents the strength, legacy, and motivation of EDPR's people to deliver green energy continuously, leading to an increasingly empowered organisation.

Organisation

EDPR remains committed to promoting simple and agile organisational practices, supported by digital tools suitable for fulfilling its objectives.

In this sense, in 2023, EDPR continued to promote efforts to provide greater empowerment and autonomy to its people through improvements in terms of the span of control and simplification of organisational layers in different regions, making it possible to increasingly decentralise decision-making and increase accountability.

To guarantee EDPR's global alignment and the speed with which commitments are delivered, key performance indicators (KPIs) are defined annually based on EDPR's organisational performance model, which is divided into three axes of action: Attractive Returns, ESG Excellence, Future-Proof People & Organisation.

#### **Our energy and heart drive a better tomorrow**

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#### Efficiency and decision-making

In 2023, the efficiency of the P&O and decision-making systems was also ensured with the implementation of various improvements that allowed for the reduction of more than 430 hours of work.

These improvements are related to the follow-up of the 3-year digital roadmap that aims to increase the digital maturity of people management processes which includes other achievements such as the implementation of a tool to automate and standardise the global workforce planning process, automation of the estimation of short-term incentives (STI) for all employees in Portugal, implementation of a new onboarding platform, standardisation of the recruitment process in a single tool and the construction of scorecards that allow the consolidation of employee data as a way of supporting decision-making by managers and P&O teams.

Speed and efficiency are keywords for any future-proof organisation. In 2023, a new global decision-making model was approved. The main objective of this model is to improve the agility of decision-making processes, simplifying them and empowering employees.

#### Collaboration

EDPR continues to discover new opportunities to bring its people together through digital collaborative tools such as virtual global communities. Currently, there are already nine global communities implemented at EDP Group level (Finance Ahead; ESG; People & Organization; Global Energy Management; Brand & Communication; Innovation; Digital; Generation; Ethics & Compliance), connecting more than 32% of the global population and providing access to content and initiatives in an innovative and customised way to each functional family.

#### Our heart

People are at the heart of EDPR's strategy, and this dimension of its global purpose reflects their importance and fundamental role in delivering the organisation's commitments to our partners, off-takers, communities and employees. Recent years have led EDPR to rethink its working models in favour of a more flexible and balanced working environment and to develop an active listening strategy highlighting the organisation's work in this direction.

#### Organisational climate

The organisational climate constitutes a fundamental, active-listening tool for monitoring different dimensions of employee experience, and the 2023 climate survey had the participation of 93% of EDPR employees.

In terms of engagement, it was found that 84% of employees feel involved with the company, where the majority show pride in working for EDPR (90%) and would recommend EDPR as a great place to work (83%). Regarding empowerment, it was also concluded that 80% of employees have a high perception of organisational support, where 85% feel they can carry out challenging work, 80% believe that their skills and abilities are well used, and 74% feel they have the authority to make decisions necessary to do their job.

#### Rewards and benefits

The work environment at EDPR must also create global conditions of equality and recognition. Therefore, following its implementation in 2023, EDPR's current global compensation framework was communicated to the entire population through different internal channels, contributing to a better understanding of how pay is determined, as evidenced by a 5% increase in the latest organisational climate results compared to the previous year.

This framework, aligned with the best companies in the market, defines a common strategy and language for the entire Group, allowing for global alignment and increasingly transparent communication. As well as clarifying the concepts associated with compensation through a global glossary for all markets, this model makes it possible to define a range of job grades, map all the Group's functions in a functional matrix and group them into organisational segments according to the level of responsibility, autonomy, impact on the company, level of knowledge and skills required.

EDPR globally assigns long-term incentive plans to the Top Management segment and critical positions in the Senior Management segment. The company's Management Team considers the attribution of these incentives as a tool for attracting and retaining talent, focusing on achieving results and complying with the business plan.

In 2023, this global approach was also extended to the different benefits awarded to employees in the different markets where EDPR is present, to define a common global offer complemented by local benefits. This framework was built over the year and is expected to be implemented in 2024.

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lo

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#### Flexibility and well-being

In 2023, the global flexibility measures already implemented were consolidated, with positive employee feedback, as evidenced by the organisational climate results: most employees claim being satisfied with the hybrid working model (87%) and the Flex Fridays measure (83%), and say they feel productive in a hybrid working environment (96%).

Throughout this year, continuity was also given to the global well-being strategy, based on five pillars (physical, social, professional, financial, and emotional). To this end, global awareness campaigns have been developed (e.g., Diversity & Well-being Moments; Mind Your Mind) to encourage the adoption of healthy behaviours, promote the accountability of the organisation's leaders, and remind all the channels and support helplines available.

EDPR believes work-life balance is fundamental to achieving more competitive companies and a fairer society based on flexibility, respect, and equal opportunities. To this end, EDPR has once again been certified by the Fundación Másfamilia as a family-responsible company (efr, in its Portuguese acronym), a recognition awarded for the first time this year to the entire Group, reinforcing the excellence of the various work-life balance measures promoted among the employees in all the markets in which the Group operates.

#### Diversity, equality, inclusion, and sense of belonging

By ensuring fairness and inclusion for its people, EDPR is also creating a more diverse working environment, and according to the organisational climate results, 89% believe all employees, regardless of their differences (age, gender, ethnicity, colour, disabilities, sexual orientation, religion), are treated fairly. Following the adoption of the DEIB (Diversity, Equity, Inclusion and Belonging) acronym and the revision of its global policy in the previous year, the Group continued to promote different awareness-raising initiatives on inclusion issues throughout 2023 and held the second Global Council at which the next strategic priorities were defined, with a focus on the inclusion of people with disabilities.

In 2023, efforts were made to ensure increasingly inclusive recruitment and the 2023- 2024 Gender Equality Plan was launched. This plan, developed annually, presents a set of measures (policies, programmes, incentives and benefits, initiatives, or projects) framed within the following dimensions: strategy, mission statement and values, equal opportunities, awareness and training, work-life balance, and partnerships for progress.

## Our drive

This dimension of EDPR's global purpose reflects its ambition and leadership in making change happen as an organisation prepared for the challenges of the future.

#### Talent attraction

For EDPR, it is essential to develop a strong employer branding strategy that is increasingly global and attractive, which in 2023 meant continuing to review its employee value proposition to reflect the company's global positioning, purpose, and flexible, balanced, inclusive, and development-oriented culture.

Overall, in 2023, the EDP Group impacted more than 32,000 people through more than 140 initiatives and strong positioning on its main social networks, which resulted in more than 400 people-related content. This attractiveness strategy resulted in 639 new hires and 114 internships in EDPR, through an increasingly global, standardised, and digital recruitment process, which has been characterised by a strong investment in upskilling all the stakeholders involved to ensure a competitive position in the market, particularly in the energy market.

In 2023, the Group also implemented its first-ever global onboarding experience and a new internal mobility program, demonstrating its commitment to attracting and retaining top talent. The global onboarding experience provides employees with a structured learning path that fosters a deeper understanding of EDPR's business, brand, and people narratives, while also strengthening their contact networks. Meanwhile, the new internal mobility program empowers employees to explore a wide range of temporary and permanent opportunities worldwide, aligning with their development goals and presenting exciting new possibilities, resulting in more than 196 mobilities registered in 2023.

These efforts resulted in several distinctions, such as new recognitions by the Top Employers Institute. In EDPR, this recognition results from individual certifications in nine markets where the company operates: Portugal, Spain, France, Italy, Poland, Romania, Brazil, and, for the first time, Greece, and Colombia, meaning that the company is positioned as Top Employer in Europe for the fifth consecutive year. This highlights EDPR's strong positioning with candidates and employees and its dedication and commitment to attracting and retaining the best talent.

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Image /page/70/Picture/15 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters "edp" are in a dark color, while "Renewables" is in a lighter shade of gray.

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#### Talent development and management

In 2023, the first holistic assessment cycle was completed, evaluating past individual performance, current skills, and agility to face future challenges, following a global development model implemented the previous year. This cycle showed very high participation results at EDP Group level, proving its importance for the development of each employee: 86% chose peers, 88% carried out their self-assessment, 91% carried out their assessment as managers, and 95% of employees confirmed that they had their development conversation. At the end of this year, a new assessment cycle began, with an improved user experience.

Throughout 2023, efforts also continued to ensure the global development of EDPR's leadership through an approach characterised by a focus on themes related to leadership, people management, culture, digital, innovation, safety, ethics, and compliance. EDPR total training volume in 2023 resulted in more than 84,400 hours of training, reinforced by worldwide access to on-demand content via Udemy, currently with 89% coverage. According to the organisational climate results, 80% of employees believe EDPR provides learning opportunities, experiences, and tools to do their jobs in the best possible way (a significant trend up, considering the 14% increase compared to the previous year's results).

EDPR's succession planning is also crucial to ensure the continuity of the business, acting as an important people management tool. In line with the defined criteria, 64 successors and 135 potential career moves were mapped for 24 Top Management positions, as well as 311 successors and 492 potential career moves for 133 Senior Management and Senior Consultant positions. Considering EDPR's growth, the competitiveness of the market and the shortage of talent, several customised development initiatives were also carried out throughout the year, ensuring that most (76%) of top priority successors were involved in learning and development opportunities and contributing to the retention of more than 97% of the successors and their readiness to assume future roles.

#### A better tomorrow

EDPR's current strategy sets out ambitious commitments for the coming years, allowing it to become a future-proof organisation focused on providing a better tomorrow for current and future generations. In this sense, EDPR's P&O strategy will continue to focus on meeting the challenges of attracting, developing, and retaining the skills needed to meet the challenges of the future, ensuring:

• A global organisational design strategy that represents our global presence.

- 
- Enhanced digital maturity and efficiency of processes.
- Greater collaboration by strengthening our global communities.
- An inclusive and flexible working environment that promotes meritocracy.
- A strong employer branding strategy to attract the best talent.
- A learning and development-oriented culture that fosters accountability.

With people at the heart of its strategy, EDPR will continue to work towards an increasingly attractive, human, and meaningful experience for all its candidates and employees to drive a better tomorrow.

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# 3.3. Supply chain capital

EDPR's market leadership, based in value creation capacity, innovation and relationship with its stakeholders, is much influenced by the performance of one of its main partners, its suppliers. The Company's materiality matrix identifies the supply chain and its management as one of the most relevant aspects for EDPR, based on its importance for society and for the Company's own business.

Suppliers are a key stakeholder for the Company, and also a main partner to achieve its installed capacity growth targets and sustainability goals. Technical excellence, execution performance, economic competitiveness, together with sustainability are the basis of EDPR relationship with suppliers. These results in close collaboration, joint capacity to innovate, but also strengthen the sustainability practices and improve the quality of the Company's operations.

A close relationship with suppliers, especially with those considered core for the development of EDPR's activity, is carried out by engagement actions throughout the supplier relationship phase through specific meetings to discuss technical and ESG aspects.

#### Key Data

| 91%                                              | Total invoice volume                                                                     |
|--------------------------------------------------|------------------------------------------------------------------------------------------|
| local purchases at country level                 | 21% Suppliers in Europe                                                                  |
| +6,800<br>suppliers contribute to EDPR's success | 53% Suppliers in North America<br>24% Suppliers in South America<br>2% Suppliers in APAC |

Note: EDPR defines local purchases as purchases from suppliers in countries where EDPR is present divided by the total volume invoiced on the Region of the Company to which the supplier / contractor supplies in 2023. In Portugal and Spain, only purchases from those specific countries (instead of region) were considered.

# EDPR's supply chain

EDPR has a strong interaction, and a permanent dialogue and engagement process with its supply chain, in particular with the suppliers consider as core, those that supply the critical equipment and services to the Company, understood as WTG (Wind Turbine Generator) & Solar Panels, Inverters, Racking and Structures, PCS and Inverters, Batteries, Hydrogen, Balance of Plant (BOP) and Operation and Maintenance (O&M) contractors. During 2023, EDPR has carried out more than 25 ESG engagement actions with different core equipment suppliers, in addition to the ongoing work with construction and maintenance suppliers.

These suppliers contribute in a meaningful and visible way to the value of EDPR core activities. This close relationship allows EDPR to benefit from all the new technical solutions and innovations available on the market to maximise the value creation in the projects worldwide.

This partnership approach also helps EDPR to anticipate and mitigate supply chain disruption and to minimize impacts during the projects' execution.

#### Supply Chain Management Governance

First, the Board of Directors and the Company's Management Team oversee the purchasing processes and are ultimately responsible for ensuring that the Company's procurement policies and procedures are followed.

In addition, EDPR's global procurement, qualification and process teams, and market-level operational teams are responsible for managing suppliers from the bidding process through to their activities. Procurement teams have staff assigned to coordinate supplier relations with the sustainability teams and coordinate supplier relations and engagement.

Finally, the ESG and Environmental and Health and Safety teams support and are in continuous liaison with the procurement teams to ensure that the Company's ESG priorities are taken into account throughout the contractual relationship with suppliers: tenders, construction and operations.

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EDPR's Procurement Policy establishes the framework under which the Company's procurement process is developed. The Company also has a series of policies and procedures that define EDPR's sustainable procurement process. These policies and procedures are:

- The Sustainable Supply Chain Policy that establishes the principles and commitments to sustainability that are transferred to the purchasing process.
- Sustainable Procurement Protocol that defines the Company's action protocol and due diligence process in processes related to the supply chain. Including the identification of the criticality of suppliers based on their activity with EDPR.
- EDP Supplier Code of Conduct that applies also to EDPR supply chain and acting as a Code that feeds into the purchasing and contract negotiation processes with suppliers to share with them and ensure the alignment of critical suppliers with the Company's ethics and sustainability commitments.

## High quality and sustainable procurement

The supply chain management process depends on the involvement of a number of departments that ensure the management of suppliers and contractors throughout their relationship with EDPR.

#### Risk management in the supply chain

EDPR's entire procurement process is built around an analysis of potential risks that may occur throughout the supply chain, from risks that occur in upstream processes in the manufacture of equipment, to those that could occur in EDPR's own operations and facilities.

Procurement teams implement measures to mitigate technical, operational or ESG risks at different stages. The entire procurement and due diligence process specified below is intended to avoid and mitigate supply chain risks related to:

- a. Equipment efficiency risks due to poor manufacturing or maintenance
- b. Lack of supply due to supply chain disruption.
- c. Possible risks related to ethics and compliance of the partners EDPR works with.
- d. Abolition of human rights risks such as forced labour or child labour, as well as other bad labour practices or lack of safety.

e. Environmental risks due to bad supply chain practices or lack of preparedness.

- 
- f. Other ESG and operational risks.

The risk management process is based on the EDP Group's Sustainable Procurement Protocol, being critical suppliers those with high impacts and risks and therefore those for which engagement and additional measures should be prioritized. Therefore, supplier risk is analyzed is composed of 12 categories, among which the following stand out:

- Supplier access to protected personal data
- Supplier access to reserved data
- Risks of occupational accidents from the contracted activity
- Environmental risks from the contracted activity
- Ethical, human and labor rights of the contracted activity

For more information on the criteria analysed in the criticality matrix, please refer to the Supply Chain Management section in the GRI Reporting Annex.

#### The traceability in EDPR's supply chain

During 2023, EDPR has taken a step forward in terms of equipment traceability. Traceability has become a fundamental element for the Company to avoid the emergence of risks in the supply chain. Traceability is seen by EDPR as a key tool to:

• Ensure a clean supply chain and avoid human and labour rights abuses;

• Be able to measure the environmental impacts generated by the transport of equipment;

• Comply with regulatory requirements, such as Uyghur Forced Labor Prevention Act, Corporate Sustainability Due Diligence Directive (CSDD), Corporate Sustainability Reporting Directive (CSRD), Carbon Border Adjustment Mechanism (CBAM), among

- 
- 
- others;
- 
- 

• Being able to avoid a disruption of the supply chain due to international conflicts;

• Comply and respond to stakeholders demands such as investors and offtakers.

Traceability has become a key element in the engagement that EDPR develops with the suppliers of the main equipment, becoming a tool that allows the origin of the equipment to be tracked during the phases, until the development of the final product that it is supplied.

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Image /page/73/Picture/19 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are all in a dark blue color.

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To tackle this challenge, the company is creating a working group that involves the key teams in this process, to ensure that all the knowledge is available for the development of a traceability tool. This group has already started developing internal traceability protocols based on international frameworks developed in the main markets in which it operates.

Therefore, traceability it is now a main part of the engagement process with suppliers when providing the company with the project traceability map and when they must comply with the specific protocols for equipment. All these topics have become a common element in the engagement and contractual negotiation with its equipment suppliers.

#### EDPR's supply chain due diligence process

EDPR procurement process extends to direct and indirect suppliers and allows EDPR to establish practices and procedures that ensure a high-quality relationship with its suppliers and sustainability practices through the entire supply chain. Some of these practices and procedures are:

- a. Development of activities that promote the exchange of sustainability best practices in procurement processes;
- b. Contribution to the growth and profitability of the business through the promotion of initiatives for the progress and continuous improvement of the supply chain;
- c. Systematic monitoring of suppliers' performance and risk profile;
- d. Dissemination and implementation of EDPR's ESG policies (Environmental, H&S and Human and Labour Rights policies and Code of Ethics) in the acquisition of goods and services;
- e. Involvement and empowerment of all actors in the supply chain.

These practices are only possible through continuous dialogue and engagement with suppliers where the main priorities of both parties are shared at the technical, implementation and ESG levels.

The implementation of the Procurement Policy leads to a better control in the suppliers' management process, assuring EDPR values are respected, high quality standards and minimization of the risks.

EDPR has in place requirements related to ESG, Quality and Risk management that have to be met by its suppliers throughout the main procurement phases and the due diligence process of EDPR: Registration and Qualification, Requests for Proposals and Contracting and, lastly, the Monitoring and Evaluation of the suppliers.

#### Registration and Qualification phase

The registration process is mandatory requirement for any company who intends to become a supplier or apply for a qualification process issued by EDPR. The Corporate System of Supplier Registration of the Company works as the support to search and select suppliers by providing detailed information, validated and updated by credible sources, in order to guarantee their accreditation through financial, technical quality and ESG criteria. EDPR has also its own Supplier Qualification Process in place since 2020 focusing in additional aspects specific to EDPR business. It aims to provide an analysis on critical issues and establishes minimum requirements to ensure that the suppliers EDPR workswith are qualified: Technical capabilities & Quality Management, Financial & Risk, Compliance & Integrity, Health & Safety and Environmental Management criteria. The Company regularly reviews and reassesses the Qualification System criteria to ensure that they reflect the main market trends and regulations and that a high level of quality of the information available from suppliers is maintained.

In addition, during the Qualification Process, the Company shares for suppliers' knowledge: EDPR Code of Ethics, EDPR Integrity Policy and EDP Supplier Code of Conduct. Other policies and requirements are also shared with the suppliers depending on their activity with the Company and the phase where they are involved (manufacturing or operational services).

The qualified suppliers are then included in a Qualified Suppliers List who then are able to participate in the EDPR bidding and contracting process, during the qualification validity period. Only those suppliers who have been qualified and are included in a Suppliers Qualification List will be able to receive a subsequent award.

#### Request for Proposals (RFP) and Contracting phase

The incorporation of adequate criteria in the contracting processes of the Company is essential to ensure in-depth management, mitigation, and avoidance of operational and ESG risks in the supply chain.

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edp
Renewables

#### **Request for Proposals (RFP) from suppliers**

In 2023, EDPR has updated its additional analysis on 5 ESG priorities in its tenders (RFP and other processes) for strategic equipment purchases, mainly solar and wind equipment: Decarbonisation, Circular Economy, Human and Labour Rights, Health and Safety, and Transparency and Biodiversity. EDPR analyses corporate policies, targets, strategies, statements, roadmaps and other corporate documents or procedures that show suppliers' alignment to EDPR's ESG priorities.

This analysis also helps the Company to identify potential ESG risks. During this phase EDPR also performs specific meetings with suppliers to understand their strategies, measures and policies regarding EDPR's ESG main priorities.

Adequate compliance by all EDPR suppliers with applicable H&S and environmental requirements is essential to guarantee the correct performance of the contracted services and works. All these requirements are included on the EDPR Sustainability Guide, shared with suppliers in every tender and included on the final contracts. EDPR has also a Disciplinary and Sanctioning Regime that aims to commit the supplier to compliance with the Sustainability Guide.

Moreover, EDPR has a Third-Party Integrity Due Diligence Procedure which was approved with the goal to reinforce the mechanisms for identifying and preventing possible integrity or corruption risks for EDPR in the relationship with third parties. In this sense, during 2023, 522 Compliance analysis of suppliers were performed (+36% vs 2022) (closed Integrity Due Diligence Analysis). In addition, an internal tool has been developed to facilitate the management of the Integrity Due Diligence analyses. In cases with high risk, it is necessary the approval of the Management Team, its submission to the Executive Board of Directors, and the execution of additional recommendations to the inclusion of the compliance clauses in the agreements, related to corruption, conflict of interest and the inclusion on sanctions lists. These IDD allows the Company to verify public sanction lists, Political Exposed Persons lists (PEPs) and adverse media, in order to avoid any integrity risk.

#### **Supplier Contracting and Awarding**

In addition, during the contracting and awarding phase, the Company also establishes a fluent dialogue and shared of information with strategic suppliers through specific meetings. Through these meetings EDPR and its partners discuss technical and sustainability criteria that are fundamental for the fulfilment and execution of the projects.

During the year 2023 the Company has taken a step forward in the contractual negotiation with suppliers regarding to the ESG requirements requested. Depending on the type of equipment or service, the Company establishes a series of contractual requirements to address any material issues during execution. Some of the contractual clauses are the following ones:

• Traceability of critical equipment throughout the supply chain. With this action, the company intends to know both the map of potential suppliers and factories involved in the manufacture of equipment, as well as to be able to track the specific traceability of

• Alignment with the principles established in the EDP Supplier Code of Conduct and ensure that the same commitments are taken into account in the processes that are generated upstream in the value chain.

• Specific ESG audits to be able to control potential risks occurring in equipment

- the projects.
- 
- manufacturing processes.
- targets.
- 

• Request for information for the fulfilment of the Company's objectives, such as policies, strategies, management systems or certificates. During its contracting process EDPR asks suppliers for environmental information about their equipment. As a 100% renewable company, EDPR needs this information and increasingly sustainable products to achieve its decarbonization targets, such as its recently published SBTi

• Alignment with sustainability and construction guidelines always for the activity of contractors in Europe, as long as their activity is related to activity in EDPR's facilities.

In parallel, financial capacity of the suppliers and their insurance policy are evaluated according to the EDPR's Credit-in procedure that defines the requirements to ensure the compliance with EDPR's Counterparty Risk Policy and the proper follow-up of active guarantees. EDPR Counterparty Risk Policy sets the methodology and process to measure counterparty risk of new contracts, monitor counterparty risk of existing contracts, define in which moments and situations it should be used and establish guidelines and mitigation instruments to reduce counterparty risk when they exceed established limits.

#### Monitoring and Evaluation phase

In order to guarantee that the suppliers comply with the previously mentioned requirements, EDPR monitors strategic suppliers during their services delivery and activity in EDPR's facilities.

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Image /page/75/Picture/20 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font, stacked above the word "Renewables" in a smaller, lighter blue, sans-serif font.

---

EDPR has two mechanisms to ensure that suppliers comply with its contractual obligations: passive mechanism and active mechanism.

- a. The passive mechanisms are those related to suppliers' disclosure when they identify any situation, infringement, or circumstance that may affect the agreement.
- b. The active mechanisms consist in:
- Physical audits of the manufacturing process and the right from EDPR to audit/request information to the supplier. EDPR could audit those factories where its components are manufactured and produced.
- Inspections that EDPR performs during the construction and operation phases, to monitor the suppliers' and contractors' performance regarding environmental and H&S aspects and to identify potential risks. In 2023, EDPR performed 6,214 inspections (+173% than in 2022) to 466 suppliers (+70% YoY) regarding EHS procedures. These inspections and audits are performed by EDPR to ensure best practices among contractors and to guarantee that these services are performed in a rigorous and standardized manner. As a result of these inspections, the Company identifies corrective actions needed and establishes an action plan for continuous improvement.
- The management systems implemented by EDPR are certified and supervised by verified external certification bodies (third parties). The management systems based on ISO 45001 and ISO 14001 cover the correct performance of subcontractors on site, as well as their performance in terms of health and safety or management of environmental aspects in the field.
- In Europe & Latin America, EDPR has a Suppliers Sustainability Guide in place for both construction and O&M operations, providing an overview of the sustainability requirements EDPR expects its suppliers to meet, including H&S, environmental and ethical requirements.
- In addition, EDPR classifies suppliers according to their HSE score and risk. This performance evaluation allows to classify suppliers and then implement an action plan according to other procurement processes, since adequate compliance by all EDPR suppliers with applicable H&S and environmental requirement is essential to guarantee the correct performance of the contracted services and works.

Please refer to chapter 4. GRI Reporting for more information on EDPR's due diligence process.

# EDPR's scope 3 and supply chain decarbonization

EDPR's activity inherently contributes to the achievement of global climate goals. Despite this, scope 3 has become a priority for the Company, as most of the Company's emissions are directly related to the supply chain.

For this reason, EDPR has continued to improve during 2023 the methodology that it launched last year to measure the upstream emissions of the supply chain, for which the commitment with suppliers to know the emissions linked to manufacturing and transportation of the main equipment.

EDPR has set out to expand the scope of the methodology year after year and that is why it has expanded the climate commitment with suppliers in 2023 to include other solar equipment in the methodology. Also, in line with its efforts to ensure the traceability of components, it has included the emissions corresponding to the transportation of the main equipment of most of its wind and solar parks.

Please refer to chapter 4. GRI Reporting for more information on EDPR's scope 3 emissions.

# Partnerships and International Initiatives to manage Supply Chain

During 2023, EDPR has participated in sector initiatives and associations with the objective of promoting the development of knowledge in the solar and wind industry. Some of these initiatives have lines of work to promote better management and a sustainable supply chain. These initiatives include Solar Power Europe (SPE), Solar Stewardship Initiative (SSI), Solar Energy Industries Association (SEIA), among others.

Please refer to EDPR's website to learn more about the different initiatives where EDPR is involved.

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# 3.4. Social Capital

At EDPR, there's a commitment to integrate the social aspects in planning and decisionmaking and to guarantee responsible operations throughout the whole lifecycle of its business. As a result, EDPR undertakes to respect and foster due respect for these practices within the Company and in its supply chain.

Specifically, EDPR believes it is indispensable to contribute to the development of the society respecting both human and labour rights and creating value in different ways, for different people. With this in mind, the Company is guided by three key social responsibility principles: guarantee the highest health and safety standards, respect human and labour rights in the whole value chain and, lastly, support communities.

#### **3.4.1. Guarantee the highest health & safety standards**

The health and safety of those who contribute to EDPR's activities is a key value and a priority for its success. Consequently, the Company aims to promote and build on a positive safety culture in which every employee, service provider and supplier is engaged. According to its Code of Ethics, EDPR undertakes to give priority to the employees and suppliers' safety, health and wellbeing and to ensure the development of appropriate occupational health and safety management systems. The commitment to guarantee the welfare of employees and contractors is further supported by EDPR's Occupational Health and Safety Policy.

EDPR's integrated Health & Safety and Environmental Management System was developed and certified according to international standards ISO 45001 and ISO 14001 for a more global and efficient approach, simplifying processes and managing the potential risks of its activity. The HSEMS, where synergies play a fundamental role, was implemented and jointly certified by an independent certifying organisation. The implementation of this integrated system allows for better management and prevention of accidents, with the objective of zero accidents overall. The commitment to health & safety is further supported through the ISO 45001 certification, which covers c.85% of EDPR's installed capacity by the end of 2023.

<sup>1</sup> Calculation based on 2022YE installed capacity (EBITDA MWs). EDPR certifies the facilities the year after the COD (commercial operating date). Thus, the facilities that have entered into operation in 2023 will be certified in 2024.

#### Key data

During 2023, EDPR registered 47 work-related injuries that resulted in lost workdays for employees and contractors (+21% YoY). One of these injuries was fatal and EDPR has defined an action plan with corrective measures to further mitigate these incidents, which was revised and approved by the Company's Management Team.

In 2023, the injury and the lost day rate were 2.1 work injuries per million hours worked (- 15% YoY) and 65 days lost due to work accident per million hours worked (-61% YoY), respectively. The interannual variations of these ratios are mostly impacted by an increase in worked hours (+45% YoY).

## 2023 highlights

EDPR continuously works to improve its health & safety indicators and to bring awareness to the best practices, having implemented several initiatives throughout the year in this sense.

EDP Group launched *PlayItSafe*, a global safety program transversal to the entire Group which focuses on the continuous improvement of the Company and its procedures, with a special focus on accident prevention. This initiative seeks to sensitise all employees to the importance of adopting safe behaviours and will last for four years.

This program, and the underlying work that englobes, will be done around six priority axes, essential to achieve the objectives of accident reduction. They are:

- The commitment and involvement of our leaders in Prevention and Safety;
- The promotion of safe behaviour and learning from mistakes;
- Digitisation of processes and operations;
- Strengthening skills in the area of Prevention and Safety;
- Communication and involvement with Prevention and Safety;
- Management of the contracting chain.

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Image /page/77/Picture/4 description: A high-angle shot captures a wind turbine against a backdrop of a dense forest in full autumn colors. The turbine's blades extend prominently into the frame, with a maintenance worker visible on top of the turbine's nacelle. The text "078" is visible in the upper right corner, along with the text "Annual Report 2023 Management Report | Social capital" and the "edp Renewables" logo in the lower right corner.

Within the framework of these axes, in 2023 the Group continued to focus on closer and more transparent communication, trying to reach all employees and reinforce its safety culture.

Specifically, a global monthly campaign was developed to talk about the main risks to which employees are subject in their professional context, and fatal accidents were communicated via an email from the CEO to all employees.

This was also the year in which the Group invested in training its team leaders and 
managers, reinforcing its belief in leading by example.

Lastly, as both physical and mental health were once again a global priority in 2023, EDPR also implemented several initiatives focusing on employees' general health and well being. In this context, the Company has a wellness platform to further develop a culture of wellness and encourage healthy habits. The aim of the programs promoted by the platform is to create a culture where employees choose to voluntarily adopt healthy habits by sharing their experiences, form support networks to facilitate the process and motivate each other.

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Part I

Image /page/78/Picture/11 description: The image shows the logo for EDP, a Portuguese energy company. The logo consists of the letters 'edp' in a sans-serif font. The letters are teal in color.

Integrated Annual Report 2023 Management Report | Social capital

*EDPR employees showed adequate stress and wellbeing when carrying out their work and can be considered to be carrying out their activity in a healthy working environment.*

**Differentiator factor:** Until 2018, this assessment was carried out in the sphere of EDP employees in Portugal, due to the fact that it was a legal issue. In 2019, the pandemic we are experiencing challenged our routines and our people-focused corporate culture. The EDP Group therefore wanted to extend this Psychosocial Risks and Well-being assessment to all the Group's employees.

**What lies ahead:** In 2025 a new Psychosocial Risk Assessment will be carried out in all the Group's geographies, including APAC.

Life always comes first

# Psychosocial risks

Work-related psychosocial risks have been one of the major challenges associated with Safety and Health in the workplace, and are directly linked to problems such as stress, violence, harassment, burnout and engagement.

**Our approach:** The Prevention and Safety area once again signed a protocol with the Faculty of Psychology of the University of Lisbon to draw up an "Assessment of Psychosocial Risks and Well-being" across all the business units and geographies where we operate, with the exception of APAC. Between June and July 2023, employees were invited to respond online, and the response rate was very positive. The aim of the questionnaire was to identify the factors associated with the appearance of both stress and well-being, as well as to establish intervention guidelines for building a safer and healthier working environment.

**Main conclusions:** The results indicate stability compared to 2021, with the majority of risk and protective factors remaining unchanged. The absence of overwork, role conflict and job insecurity stand out, as does the presence of a positive social climate and support from colleagues and managers. However, around 32 per cent of employees feel that the company does not look after their well-being, highlighting the need to develop practices to promote well-being. Furthermore, the adoption of a hybrid teleworking model is well received by workers, bringing advantages for the company, team and individuals.

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Annual Report 2023
Management Report | Social capital

Image /page/79/Picture/22 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, with the "p" being taller than the "e" and "d". Below the letters, in a smaller font, is the word "Renewables".

# **3.4.2. Respect human and labour rights**

For the Company, it is a top priority to promote human rights and fair labour practices across the entire value chain and this is reflected in the Company's materiality matrix, where the human and labour rights aspects have a great relevance both for society and the business. EDPR respects and undertakes to promote Human and Labour Rights internally, in its suppliers and the communities where it operates, namely in indigenous communities. This commitment has been reflected in EDPR's Code of Ethics since 2009. However, given the increasing relevance of this topic, EDPR's first Human and Labour Rights Policy was approved in 2022.

To guarantee compliance with human rights' internal policy, EDPR differentiates its approach among direct and indirect stakeholder groups. Direct group includes the ones closely related to the company's value chain, such as: Suppliers; Employees and Contractors; and Local and Indigenous Communities. Indirect stakeholders are those who have an influence on EDPR's activity and determine how the Company's issues and priorities are addressed. These indirect ones include: Civil Society and Governments; Investors and shareholders; and offtakers.

Once the stakeholders have been identified, EDPR carries out an identification of the priority human and labour rights for EDPR and then an analysis of the potential human and labour rights risks that may occur in the value chain. In this regard, EDPR identifies the following as priority human and labour rights for its direct and indirect activity:

- Non-discrimination.
- Integration and inclusion.
- Freedom of association and collective bargains.
- Abolition of modern slavery, forced labour and human trafficking.
- Abolition of child labour.
- Equal pay, remuneration and work environment.
- Health and safety environment.
- Rest and family life conciliation.
- Environmental protection and impact on the land.
- Data protection.

# The Governance of Human and Labour Rights in EDPR

Apart from the more technical departments, the Board of Directors is the body ultimately responsible for overseeing human and labourrights at the Company level. Within the Board of Directors, it is the ESG Committee which has the highest responsibility to oversee all ESG aspects, including human and labour rights.

# EDPR's Human and Labour Rights management framework

To ensure that any risks in this area are mitigated and that the demands and needs of each stakeholder group are met, EDPR has a series of policies, codes, and procedures, which are summarised below.

| Human and Labour rights framework         |                                        |                                          |                                                              |                                       |                                |  |  |  |
|-------------------------------------------|----------------------------------------|------------------------------------------|--------------------------------------------------------------|---------------------------------------|--------------------------------|--|--|--|
| Main stakeholders involved                |                                        |                                          |                                                              |                                       |                                |  |  |  |
| Suppliers                                 | Employees<br>and<br>Contractors        | Local and<br>Indigenous<br>Communities   | Civil Society<br>and<br>Government                           | Investors<br>and<br>shareholders      | Offtakers                      |  |  |  |
| Codes and Policies                        |                                        |                                          |                                                              |                                       |                                |  |  |  |
| Code<br>of Ethics                         | Human<br>Rights Policy                 | Stakeholder<br>Relationship<br>Policy    | Integrity<br>Policy                                          | Personal Data<br>Protection<br>Policy | Supplier<br>Code<br>of Conduct |  |  |  |
| H&S Policy                                | Environmental<br>Policy                | Diversity<br>Policy                      | Training<br>Policy                                           | Volunteering<br>Policy                | Local<br>Engagement<br>Policy  |  |  |  |
| Tools and Management Systems              |                                        |                                          |                                                              |                                       |                                |  |  |  |
| Speak Up<br>System                        | Sustainable<br>Procurement<br>Protocol | Integrity Due<br>Diligence (IDD)         | Supply chain due<br>diligence process<br>(Screening process) | HSE<br>Management<br>Systems          |                                |  |  |  |
| Contractor<br>O&M and BoP<br>Sust. Guides | PlayitSafe                             | Human Capital<br>Management<br>Processes | Community<br>Gatekeeper<br>projects                          |                                       |                                |  |  |  |

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Image /page/80/Picture/20 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, with the "e" and "d" connected. Below the letters is the word "Renewables" in a smaller, sans-serif font.

# Human and labour rights due diligence process through the entire value chain

#### Human and Labour Rights Management Policies and Codes

The Human and Labour Rights Policy applies to all EDPR Group companies and employees, business relationship and activities, in all its geographic locations, regardless of the local practices or level of social and economic development. In addition, it is articulated with the Code of Ethics, the Stakeholder Relationship Policy, and the Supplier's Code of Conduct, and identifies the references, norms, and international conventions to which it is submitted, establishing the principles and procedures that ensure compliance with them.

As stated in its Human and Labour Rights Policy, EDPR is committed to respecting and enforcing all internationally recognised human and labour rights, which translates into:

- Supporting the International Bill of Human Rights, subscribing to and implementing the Principles of the United Nations Global Compact and the instruments to protect vulnerable people and groups;
- Applying the ILO Declaration on Fundamental Principles and Rights at Work and related conventions and the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy;
- Operating a human and labour rights management system that is active and present in all its activities, implementing the United Nations Guiding Principles on Business and Human Rights, the OECD Due Diligence Guidance for Responsible Business Conduct, and the Directive of the European Parliament and of the Council on Corporate Due Diligence and Corporate Accountability.

These commitments are also reflected in EDPR's Code of Ethics, which contains specific clauses regarding non-discrimination and equal opportunities in line with the Company's culture of diversity and respect for human and labour rights. The commitments in this Code are equally applicable to EDPR business partners, representatives and suppliers who are, in any way, entitle to act on behalf of EDPR.

EDPR also requires its suppliers and service providers to comply with its ethical standards. In this way, the alignment with the spirit of EDPR's Code of Ethics is required. Moreover, the Sustainable Procurement Policy references the promotion of respect for dignity and human rights, and the rejection of any form of forced labour or child labour, harassment, discrimination, abuse, or other types of physical or psychological violence.

In addition, as stated in its Code of Ethics, EDPR promotes a culture free from any sort of harassment, understanding this to be systematically undesired behaviour of a moral or sexual nature, in a verbal, non-verbal or physical form, which has the goal or effect of disturbing or embarrassing another person, or affecting their dignity or creating an intimidating, hostile, degrading, humiliating or destabilizing environment. Harassing forms of behaviour in a business context violate the victims' labour rights, and may affect their value as people and workers, causing harm that can have an impact on their self-esteem, physical and mental health, life project and family relationships. Therefore, in addition to the legal obligations to which EDPR is subject to, the Code of Ethics also states that it is the duty of all employees to prevent, confront and report all behaviour that may preclude a situation of harassment.

Please note that there are also other thematical policies that share EDPR's commitments and guidelines for action on Human and Labour Rights.

#### Human Rights Internal Tools and Management Systems

EDPR has in place a Speak Up Channel that is accessible to all employees, customers, suppliers, and other stakeholders that may be adversely impacted by the Company or, irrespective of this, that wish to complain, denounce, clarify, or expose any situation of ethical nature, including those related to human and labour rights. In addition, the Company has an Integrity Due Diligence (IDD) process to identify integrity-related disputes or potential human rights abuses on business partners. Please refer to the 5. Corporate Governance Chapter and the ethics and compliance disclosure in this report for more information regarding Speak Up Channel management.

In addition, the Ethics Ombudsperson, an independent third party that is behind the Speak Up Channel, receives the complaints and doubts submitted through this channel and investigates and documents the procedure for each of them. A preliminary report is then submitted to the Ethics Committee, whose main goal is to ensure compliance with the Code of Ethics within EDPR.

Finally, EDPR has in place several processes to manage potential risks and protect human and labour rights in its entire value chain. In this sense, EDPR has mechanisms and procedures in place to protect human rights in the supply chain, its own operations, and the communities in which it operates.

Along this report, the different measures implemented by EDPR can be found both at the policy level and in specific projects during 2023 and previous years. The sections and

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chapters in which human rights management is addressed are specified below, and the organisation's stakeholder engagement process can be considered as a starting point. This process is essential in order to understand the needs and expectations and to be able to manage the risks related to human rights that arise in the value chain.

Image /page/81/Figure/1 description: The image shows a diagram with a central circle labeled "Human and Labour rights". Surrounding this central circle are eight other circles, each connected conceptually to the center. These surrounding circles are labeled as follows: "Suppliers Management (GRI Report)", "Ethics and Compliance (GRI Report)", "Integrity and Ethics", "Supply Chain Capital", "Human Capital", "Social Capital", "Health and Safety (GRI Report)", and "People Management (GRI Report)", "Community Engagement (GRI Report)". The circles are arranged in a circular pattern around the central circle.

## **3.4.3. Support communities**

# EDPR' social investment – strategic vision

EDPR actively contributes to the sustainable development of the communities in which it operates worldwide, through its own social investment and collaborative initiatives, donations, and volunteering. A social impact is a strategic pillar of EDPR, these initiatives aim to meet social needs in line with the EDP Group's Social Investment Strategy and core themes, namely investment in fair energy transition projects which should represent around 45% of investment by 2025.

Fair Energy Transition projects include support for energy access, projects aimed at protecting natural heritage and biodiversity, and projects promoting energy efficiency and renewable energies, contributing to decarbonisation, and combating climate change.

Culture is also an important area of intervention for EDP Group, with the mission of promoting access to culture, stimulating art, and protecting cultural heritage. Cultural projects are projected to represent around 30% of investment by 2025. Most of the projects under this thematic focus are executed or supported by EDP's foundations – in Portugal, Spain, and Brazil.

In parallel and recognizing the need to continue supporting projects that respond to other social needs of local communities, part of the annual budget is earmarked for investment in various topics such as training, health, social inclusion and response to emergency situations.

In this context, and as an integral part of the communities where it operates, EDPR undertakes to maintain a relationship of proximity with the local communities engaging in regular and open dialogue, seeking to know their needs, respecting their cultural integrity, and looking to contribute to improve the living conditions of local population, taking measures to consider and respect the community interests. Therefore, in line with the EDP Group' Social Investment Policy and the communities' needs and expectations, EDPR has defined a Catalogue of Activities that works as a tool for defining the social investment made in local communities.

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Image /page/82/Picture/14 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, thinner font. The letters and word are in a dark blue color.

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| THEMATIC FOCUSES<br>OF SOCIAL INVESTMENT | EDPR INVESTMENT<br>2023 (M€) | %    | EDP<br>GROUP<br>TARGET<br>2025 (%) |
|------------------------------------------|------------------------------|------|------------------------------------|
| Fair Energy Transition                   | 1.2                          | 49%  | 45%                                |
| Culture                                  | 0.2                          | 8%   | 30%                                |
| Other projects                           | 1.0                          | 43%  | 25%                                |
| Total                                    | 2.4                          | 100% | 100%                               |

Social investment projects developed in the countries where EDPR is present are communicated to the various stakeholders through the EDP Y.E.S - You Empower Society brand, ensuring an integrated narrative about EDPR's social investment. The projects are classified into five main Pillars: Energy, Planet, Skills, Culture and Community, which are framed within the thematic focuses of EDP Group's social investment strategy.

For more information on the social investment projects that are part of each EDP Y.E.Spillar and the respective social investment focused, please see the website edp.com/edp-yes where you can find information about projects supported by EDPR around the world, articles related to the Y.E.S pillars and even a dedicated form where entities can submit requests for EDPR support for projects within the scope of social investment.

Image /page/82/Figure/3 description: The image shows a circular diagram divided into sections, each representing a different aspect of EDP's focus. The central white circle contains the text "EDP". Radiating outwards, the diagram is divided into colored sections. The sections are labeled as follows: "Culture", "Others", and "Fair Energy Transition". Each section contains an icon representing its theme. To the right of the diagram, there is a list of statements, each starting with "Y.E.S." and followed by a specific focus area: "TO ENERGY", "TO PLANET", "TO SKILLS", "TO CULTURE", and "TO COMMUNITY". Each statement is paired with a corresponding icon that matches the icons in the diagram.

# Voluntary contributions – application of the B4SI methodology

EDPR uses the international methodology B4SI - Business for Societal Impact to characterise and assess its **voluntary investment in the community**. This model promotes alignment between the purpose of companies and social needs, facilitating the structuring of priorities and reflecting on their results and benefits for the communities.

In 2023, according to the B4SI methodology, voluntary investment in the EDPR's communities was **1.9 million euros** (80% of total investment in the community), supporting the projects of **120 entities**, resulting in **21.9 thousand direct beneficiaries**.

Of the total amount of voluntary investment, 94% was classified as community investment and 6% as charitable gifts. Cash contributions were the main form of contribution (88%), followed by time contributions (11%) and in-kind contributions (1%). Time contributions, equivalent to 212 thousand euros, correspond to EDPR volunteering initiatives carried out during working hours.

Investment in **Education** was primarily directed at skills development projects, namely training (upskilling and requalification) in renewable energies to respond to future labour needs. An example is the **Keep it Local program**, which in 2023 took place in Italy and Spain. This is a program aimed at young people from rural communities with low employability and at risk of labour exclusion. With the aim of contributing to quality green employment in depopulated areas, this program allows them to work in the sector of renewable energy, namely the installation of solar panels and wind energy.

Investment in **Health** was directed at supporting health institutions and health professionals (equipment, support for health research, among others). Investment in **Emergency Relief** was mostly aimed at supporting local organizations that aim to guarantee the safety of populations in the event of emergencies, as is the case with EDPR's **Safe4Sure program**. This program helps make communities safer and more resilient by supporting local emergency relief organizations such as firefighters and first responders, including funding ambulances and firefighting equipment.

Investment in **Economic Development** gave priority to projects for entrepreneurship and job creation projects. In Brazil, the **EDPR Rural program** aims to support rural producers in communities neighbouring wind farms, with initiatives to support family farming through technical assistance, training focused on rural entrepreneurship and the adoption of new social technologies.

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Image /page/83/Picture/12 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark gray color.

Projects for social inclusion and fighting energy poverty contributed to the investment in **Social Welfare**, promoting the improvement of thermal comfort and living conditions for several families. An example is the **Closer2You program** that provides families near EDPR parks with more dignified conditions according to their needs such as electricity, running water, new walls and roof or even demolishing their house and building a new one.

Voluntary investment in **Environment** was carried out through projects to promote biodiversity, decarbonisation, and climate change awareness-raising. For example, in 2023, several EDPR volunteer employees got involved in environmental actions, such as reforestation and tree planting initiatives in Spain and Chile or cleaning beaches and coastal areas in Singapore and Greece. Another example is the support of the **KidWind Challenge** in the USA, which is a wind energy learning experience for students as they discover the potential of wind energy technology by designing and building a working wind turbine while participating in healthy competition.

In turn, investment in **Arts and Culture** gave priority to projects that contribute to the protection and promotion of communities' cultural heritage, local traditions and access to culture and art, contributing to a more vibrant and creative society, as is example the **EDPR Powering Culture program.**

# Mandatory contributions

In addition to voluntary contributions, EDPR also invests in the communities in which it operates through **mandatory contributions**. These types of contributions correspond to support for projects resulting from counterparts, commercial/legal impositions, or compensatory measures.

In 2023, the mandatory investment in the communities of the EDPR was **492 thousand euros** (20% of total investment in the community), supporting **8 entities**.

In this context, projects were financed in local communities in the USA, Canada, and Brazil, supporting public facilities, infrastructure, community events and public recreational programs, as well as educational and professional training activities related to sustainability or renewable energy.

These projects contribute to improving the living conditions of residents living in the company's area of influence, reinforcing EDPR's presence in communities, contributing to obtaining the social license to operate in these locations.

Although with less weight than voluntary contributions and not recognised by the B4SI methodology as social investment, these contributions promote the sustainable development of the communities where EDPR operates and, at the same time, are an important instrument to obtain the social license to operate in territories where new EDPR infrastructure is to be built or new markets where EDPR begins to operate.

| NATURE OF THE CONTRIBUTION (B4SI) | EDPR VOLUNTARY<br>CONTRIBUTIONS (€k) | %     |
|-----------------------------------|--------------------------------------|-------|
| Education                         | 379                                  | 19.5% |
| Health                            | 30                                   | 1.5%  |
| Economic development              | 373                                  | 19.2% |
| Environment                       | 180                                  | 9.3%  |
| Arts and culture                  | 96                                   | 4.9%  |
| Social welfare                    | 646                                  | 33.2% |
| Emergency relief                  | 10                                   | 0.5%  |
| Other                             | 232                                  | 11.9% |
| Total                             | 1,946                                | 100%  |
| Management costs                  | 2                                    | -     |
| Total with management costs       | 1,948                                | -     |

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edp
Renewables

#### Contribution to the SDGs

In addition to contributions through its operations/business, EDPR also contributes to the Sustainable Development Goals (SDGs) through its social investment programmes, prioritising goals 5, 7, 8, 9, 11, 12, 13, 15 and 17, in accordance with the Social Investment Policy. EDPR reports its contribution to the SDGs not only at the level of the SDG objectives and targets, but also at the level of the indicators set by the United Nations.

In 2023, of all the voluntary contributions recognised by the B4SI methodology, EDPR supported projects that contributed to the SDGs with an investment of 1.6 million euros (84 % of total voluntary contributions) supporting projects of 91 entities. In turn, through mandatory contributions, EDPR supported projects that contributed to SDGs with an investment of 400 thousand euros (81% of total mandatory contributions). For more information on the methodology used by EDP Group for the compliance with the SDGs, see the EDP Group Social Investment Report.

#### EDPR Volunteering

EDPR Volunteering program is a fundamental pillar of the company's relationship with communities and, at the same time, contributes to the development of employees, expanding the purpose and meaning of their activity.

The Volunteering Program's areas of intervention are aligned with the EDP group's Social Investment Policy and focus on social inclusion, empowerment, energy inclusion, biodiversity, and climate action.

Over the years, the Volunteering Program has attracted a growing number of participants, because it allows the allocation of working hours to the various initiatives, reinforcing the important role of volunteering for the EDPR, as well as its visible impact on everyone involved.

In 2023, 1,339 employees (27% of EDPR's employees) participated in all the different actions and projects promoted throughout the year, contributing 5,153 hours during working hours and 70 hours outside working hours, making a total of 5,223 volunteer hours.

The main focus of the Volunteering Program in 2023 was to strengthen training projects, in particular with children and young people, volunteers and leaders and social organizations, while continuing to provide an effective response to the main challenges identified in the volunteering strategy defined for 2022-2025. In particular, communication, recognition of volunteers and raising awareness among leaders on the subject of volunteering, as well as working towards increasingly involving different stakeholders in the initiatives promoted and working on empowering communities.

Additionally, and following the trend of recent years, skills volunteering has been gaining more and more relevance, putting employees' talents and know-how at the service of the community and, in 2023, topics such as fair energy transition, social entrepreneurship and ESG themes began to gain more prominence in this field. In 2023, there were 1,625 hours in skills-based volunteering projects (31% of total volunteer hours) carried out by EDPR employees, of which 1,555 hours took place during working hours.

| CONTRIBUTION OF SOCIAL<br>INVESTMENT TO THE SDGS              | VOLUNTARY<br>CONTRIBUTIONS<br>(€k) | %     | MANDATORY<br>CONTRIBUTIONS<br>(€k) | %     |
|---------------------------------------------------------------|------------------------------------|-------|------------------------------------|-------|
| SDG 5: Gender equality                                        | 7                                  | 0.4%  | -                                  | -     |
| SDG7: Renewable and affordable energy                         | -                                  | -     | -                                  | -     |
| SDG 8: Decent work and economic growth                        | 693                                | 35.6% | 22                                 | 4.5%  |
| SDG 9: Industry, innovation and infrastructure                | -                                  | -     | -                                  | -     |
| SDG 11: Sustainable cities and communities                    | 648                                | 33.3% | 305                                | 62.0% |
| SDG 12: Sustainable production and consumption                | -                                  | -     | -                                  | -     |
| SDG 13: Climate Action                                        | 117                                | 6%    | 18                                 | 3.7   |
| SDG 15: Protecting terrestrial life                           | 16                                 | 0.8%  | -                                  | -     |
| SDG 17: Partnerships for the implementation of the objectives | 7                                  | 0.4%  | -                                  | -     |
| SDG 41: Quality education                                     | 60                                 | 3.1%  | 11                                 | 2.2   |
| SDG 101: Reducing inequality                                  | 79                                 | 4.1%  | 44                                 | 9.0   |
| Total SDG                                                     | 1,628                              | 83.7% | 400                                | 81.4  |
| Total social investment                                       | 1,948                              | 100%  | 492                                | 100   |

<sup>1</sup> Non-priority SDGs for EDP.

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Image /page/85/Picture/4 description: Three women are picking up trash on a beach. They are wearing dark blue t-shirts with the phrase "E tu, quando é que te vais atrever?" printed on the back. The woman in the center is wearing a straw hat with a band that says "PORTUGAL". She is also carrying a tan tote bag with a blue circle on it. The woman on the left is carrying a blue tote bag with a white star on it and the words "LOVE FOR WISH KIDS". The ocean is in the background. The text on the right side of the image says "Annual Report 2023 Management Report | Social capital edp < 086 >".

2023 was also a year of great achievements regarding the Volunteer Program as a global

initiative throughout the markets where EDPR is present. 
On May 25th, during the Energy Campaign, the first Global Volunteer Action was launched under the motto “Move your heart for a greener planet”. The campaign included several 
actions such as beach cleaning, walks and solidarity runs, which contributed to the global organi sations Plant for the Planet and Make-a-Wish Portugal, along with some local organizations, depending on the initiatives promoted. EDPR volunteers participated in various countries: Portugal, Singapore, Spain, the United States, Brazil, Greece, Italy, Poland, Romania, Hungary and the United Kingdom.

On the other hand, a new global campaign was launched – "Go green" – challenging teams from several countries, between September 15th and October 15th, to carry out environmental initiatives. In this new campaign, EDPR volunteers from Brazil, Singapore, Chile, Portugal and Spain were involved, promoting environmental volunteering actions that marked this period and contributed to a greener planet.

All in all, EDPR believes that volunteering can make a difference on the planet, contributing to the development and transformation of the communities where we operate, while also involving our employees, leveraging on their interests, talents and skills to multiply the purpose and meaning of what we do.

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Part I

Image /page/86/Picture/12 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The text is white and set against a teal background.

*EDPR considers prior consultation to be a mechanism that assists in listening to the needs and realities of local communities, as well as guaranteeing their right to participation.*

**Differentiator factor:** With that in mind, the field teams have sought to think ahead and strengthen their relationship with the communities through educational activities in which they can combine their ancestral knowledge with the opportunities that come with working alongside the private sector. One such example of this are the educational spaces and workshops on environmental issues that have been implemented in La Guarija.

**What lies ahead:** The company will continue to ensure that best practices in prior consultation are carried out to promote the path towards intercultural understanding and to recognize a human and ethnic right.

Image /page/86/Picture/0 description: A wide shot depicts a group of approximately 20 people running towards the viewer in a sandy, outdoor environment. The individuals, a mix of adults and children, are wearing what appear to be red headbands or blindfolds. They are spread across the frame, with some closer to the camera and others further back, creating a sense of depth. The background features sparse vegetation, including trees and shrubs, suggesting a dry or arid landscape. The sky above is light blue with a few clouds. In the distance, two children are standing near a wooden structure.

# Reinforce dialogue with communities

A mechanism that guarantees the listening and free participation of the communities in Colombia.

**Our approach:** Prior consultation is a fundamental right of indigenous peoples and other ethnic groups before deciding on actions that affect the self-determination of peoples, either by legislative and/or administrative measures or the implementation of projects, works or activities within their territories. The parameters for prior consultations were defined by Ruling SU-039/97 and they seek to protect the cultural, social and economic integrity of these communities and guarantee their right to participation. In the Sierra Nevada de Santa Marta, EDPR considered the specific governance system and environmental conservation values of the four settlements in the local communities. They initiated a prior consultation with these communities, which is estimated to last three months. The engagement between EDPR and these communities has been positive, and there are plans for meetings and tours to be held. In La Guajira, Colombia, EDPR conducted environmental education workshops with the ethnic communities in the area of influence of the Beta wind farm. These workshops facilitated outreach with the communities, allowed for the exchange of knowledge, and helped EDPR to better understand how the communities perceive the project, ultimately identifying opportunities for improvement.

Image /page/86/Figure/4 description: The image is a pixelated world map outline in white on a green background. There is a green area in the middle of the map.

**Country:** Colombia

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# 3.5. Natural Capital

Wind and solar power are among the most environmentally friendly methods of energy production, contributing to global climate objectives and the decarbonization of the economy. Despite the positive environmental impact of EDPR's operations, the company continues to implement processes and measures to address ESG issues and actively safeguard the natural capital and ecosystems in which it operates. As a result of this commitment, EDPR incorporates ESG considerations into its decision-making, with sustainability playing a pivotal role in the company's Business Plan 2023-26. Specifically, environmental concerns are among the specific ESG targets outlined in the plan.

EDPR's Environmental Policy outlines the company's specific commitments to contribute to climate change mitigation, promote the circular economy, and protect biodiversity. The policy reflects EDPR's approach to complement its strategy through responsible and proactive management of environmental aspects across its entire value chain. EDPR implements measures to prevent, mitigate, rehabilitate, and compensate/offset any environmental impacts, establishing a set of targets to ensure the effective implementation and maintenance of an Environmental Management System at its facilities.

The Health & Safety and Environmental Management System, developed and certified according to the international standards ISO 45001:2018 and ISO 14001:2015, allows EDPR to embrace a global approach to environmental and safety efficiency. This system standardizes processes and enables the company to effectively manage potential risks. Following implementation, the management system is certified by an independent certification organization. As of the end of 2023, ISO 14001 certification encompasses 96%1 of EDPR's installed capacity.

1 Calculation based on 2021YE installed capacity EBITDA. EDPR certifies the facilites the year aer the COD (commercial operating date). Thus, the facilites that have entered into operation in 2022 will be certified in 2023;

2 According to the life cycle assessments of our main turbine suppliers.

With an expected life span of 30 years, EDPR's wind farms will pay back their life-cycle energy consumption in less than one year2, meaning that for the remaining 29 years of their life cycle they will be producing clean energy.

Annual Report 2023

Performance | Natural Capital

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1 Calculation based on 2022YE installed capacity EBITDA. EDPR certifies the facilites the year aer the COD (commercial operating date). Thus, the facilites that have entered into operation in 2023 will be certified in 2024; 2 According to the life cycle assessments of our main turbine suppliers.

# Cruz de Hierro Wind Farm, Spain

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EDPR promotes the development of new renewable energy projects that contribute to achieving global decarbonization goals and fight against climate change.

During the development phase, the Company's highly experienced and qualified EDPR promotion teams locate the best sites for renewable energy generation, based on the necessary resources (wind and sun) and with nearby transmission lines.

During the development phase, EDPR takes into account circular opportunities when designing the facilities. The search for circular solutions in this phase allows the Company to design facilities that are as circular as possible, taking advantage of rainfall resources and taking into consideration

future waste treatment and collection.

EDPR, through its sustainability guides and its engagement with suppliers during the RFPs, shares with them the recyclability and end-of-life solutions

for materials as one of the Company's priorities.

Image /page/88/Picture/5 description: The image shows a white gear icon on a dark teal background. The gear has multiple teeth and a circular center.

In order to identify constraints and select optimal project locations, EDPR conducts environmental viability studies. Through environmental impact assessment studies, EDPR strives to avoid sensitive locations whenever possible by applying the mitigation hierarchy principle. Potential impacts are assessed, avoided, and mitigation actions are proposed at the project level. These studies, conducted by external experts, enhance the company's understanding of the local environment, and enable more efficient management of potential impacts on flora and fauna. When necessary, compensatory actions are proposed. In 2023, EDPR allocated 7.4 million euros to environmental studies for its projects.

EDPR aims to be a reference in the industry for building the most cost competitive, safe and efficient wind farms and solar plants in order to generate clean energy and help protect the climate.

The Procurement, Engineering and Construction teams from EDPR are well equipped to select the best wind turbines and solar panel systems based on each project's specifics. The Company also uses in-house expertise to design the best sites and assure top-class engineering and construction standards.

The construction phase is essential to the circularity of the Company and its operations by romoting the efficient use of natural resources and maximizing the recovery of waste and resources, as well as their reintroduction into the economy as by-products. An example of this is the Company's use of earthworks to backfill and level the facilities.

In addition, the environmental monitoring and surveillance of the construction works ensures a sustainable use of resources, as well as the correct management of the waste generated

The constructio
justments to th

The construction phase is closely supervised. Locally, there are commonly adjustments to the project modifying the physical design of the project in order to reduce risk or mitigate impact. Adequate restoration work to repair areas of temporary project footprint is then undertaken once the works are completed.

In addition, whenever significant impacts occurred, compensation measures start to be implemented and wildlife monitoring procedures, mainly birds and bats, allows the company to be er address and manage potential impacts and to implement the necessary corrective measures. EDPR implements actions to restore areas affected by nonpermanent infrastructure during the construction phase.

**2023-26**  Business Plan Targets

Climate Change

Circular Economy

**17 GW**

Gross additions

Image /page/88/Picture/1 description: The image shows a blue square with a white outline of a plant in the center. The plant has a stem and three leaves. The top leaf is vertical, and the other two leaves are on either side of the stem.

# **85%**

Recovery rate for waste generated in the whole value chain

very
for waste
erated
he whole
ue chain

BiodiversityProjects with Net Gain Biodiversity tracking system worldwide

# **100%**

# 1. Development 2. Construction

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Part I

majority of this waste is associated with essential asset maintenance during their opera-tional phase, while the remaining portion originates from office activities.

Currently, EDPR's operations do not entail significant water consumption. Nevertheless, the company diligently analyzes this variable to ensure its proper management.

During the operation and maintenance phase, all assets have in place an environmental management system, certified in accordance with ISO 14001:2015. Environmental monitoring of biodiversity may vary between 1 to 3 years aer operation starts, depending on the results. Locally, inspections are a core control to guarantee proper monitoring of environmental performance, mostly conducted by external contractors. In 2023, EDPR performed 1,512 inspections to 205 contractors on their environmental procedures during the construction and operation of the Company's projects.

#### EDPR produces renewable energy, which inherently involves contribution to the fight against climate change and the reduction of GHG emissions. Both wind and solar energy are emission-free and do not produce harmful SOx , NOx or mercury emissions, thus protecting air and water resources. During 2023, EDPR's operations allowed the Company to avoid the emission of 20.4 million tons of CO2. In addition, CO2 emissions related to EDPR's activities (including its upstream emissions) represent only 12% of total emissions avoided. EDPR is commied to promoting sustainable and rational resource usage, along with encouraging the reuse of components whenever feasible. In 2023, the company successfully recovered 72% of the total waste generat-ed in its operations, and 92% of the hazardous waste. The the land area per MW. Business Plan Targets Climate Change Circular Economy **17 GW** Gross additions **85%** 3. Operation 4. Dismantling / Repowering

The efficiency of wind turbines and solar panels, as well as their end of life, are evaluated by the Company for their replacement or dismantling. The repowering of wind farms has been one of the solutions applied by EDPR, which consists of reducing the number of wind turbines and replacing them with more efficient models. The new modern models allow the Company to increase installed capacity, CO2 avoided, and clean energy generated, while reducing

In the context of EDPR's dismantling and repowering activities, circular economy principles are being applied to optimize resource use and minimize waste generation. Through careful planning and execution, components from decommissioned assets are being repurposed, recycled, or reintegrated into new projects, contributing to a more sustainable approach to wind farm lifecycle management.

This approach not only reduces environmental impact but also aligns with EDPR's commitment to promoting a circular economy and minimizing the use of virgin resources in its operations.

The Company is commied to cleaning and rehabilitating the land to return it to its initial state, as well as minimizing any potential impact generated.

EDPR has a total provision for dismantling and decommissioning of its assets, including the restauration of the site on which they were located. These provisions totalized €294,730 thousand Euros as at 31 December 2023.

**2023-26** 

Recovery rate for waste generated in the whole value chain

BiodiversityProjects with Net Gain Biodiversity tracking system worldwide

**100%**

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Part I

Image /page/90/Picture/11 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a simple, sans-serif font. The letters are white and are set against a teal background. Below the letters, the word "Renewables" is written in a smaller, sans-serif font, also in white.

*SOLARCYCLE's patented recycling process extracts more than 95% of the value in a panel, including aluminum, silver, silicon, and glass.* 

**Differentiator factor:** One of the key differentiators of the Close the Loop program is its focus on the entire lifecycle of both solar and wind renewable energy projects, including waste from construction to operations and maintenance, to repowering and decommissioning. EDP Renewables is committed to innovative approaches towards sustainability and responsible resource use throughout the project lifecycle.

**What lies ahead:** EDPR NA is supporting the advancement of U.S. renewable energy supply chains tied to a vibrant secondary market for recycled materials through the establishment of specific ESG targets. Globally, EDP Renewables has set a target of 85% waste recovery by 2026, with an ambition to take that figure to 90% total waste recovered by 2030.

Image /page/90/Picture/0 description: The image shows a close-up of several cylindrical objects with a dark blue, grid-like pattern. The objects appear to be stacked or arranged closely together. The grid pattern consists of thin, horizontal white lines that run across the surface of the cylinders, creating a structured design. The cylinders have a slightly curved appearance, and there are some visible imperfections or marks on the surface. The background is blurred, but it seems to be an indoor setting with people and equipment visible in the distance.

# Close the loop program

Tackling the end of life cycle of solar panels.

**Our approach:** EDP Renewables North America launched Close the Loop, a company-wide recycling program. This program supports EDPR's circular economy goal by building structured partnerships with various stakeholders, promoting efficiency in the product life cycle, optimizing resource use while minimizing waste, and ensuring transparent communication throughout the company. Among 19 qualified waste management organizations to cover various materials recycling including solar modules, wind turbine generator components, batteries metals, oils and lubricants, as well as packaging material, EDPR NA's engaged with a key partner: SOLARCYCLE, an advanced technology-based solar recycling company. Founded in 2022, SOLARCYCLE offers tailored recycling solutions, reverse logistics, rapid testing, lowcost and eco-friendly recycling, and advanced environmental reporting for solar panels. The process aims to return those materials back into supply chains to help grow the domestic solar manufacturing industry.

Image /page/90/Figure/4 description: The image shows a pixelated world map with a green background and white outlines of the continents. North America and part of Europe are filled in with green.

**Country:** US

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Annual Report 2023 Management Report | Digital capital

Image /page/91/Picture/34 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue sans-serif font, with the "d" being taller than the "e" and "p". Below the letters, in a smaller font, is the word "Renewables".

---

# 3.6. Digital capital

# **3.6.1. Transforming our Business**

## DGU's mission for Business Transformation

The Digital Global Unit (DGU) has the mission to shape a global technological strategy and vision for the Group, transforming how the business delivers value by seamlessly integrating digital technology.

DGU plays a key role in managing the complexities of energy systems, focusing on three priorities to accelerate digital and technology adoption: (1) consolidate business proximity for a global digital operation, (2) enhanced data and digital ambition, ensuring a groupwide digital strategy and increasing digital maturity, and (3) ensure a high-quality and secure digital ecosystem.

In 2023, DGU concentrated on strengthening data fundamentals and adopting emerging technologies, contributing to EDPR's digital ambition by democratizing AI adoption and advancing data analytics. These efforts set a strong foundation for furthering EDPR's digital goals, promoting disruption, maximizing value, accelerating Data & AI adoption, and expanding digital practices across the organisation.

## Digital Strategy as driver to Energy Transition

The digital strategy is paramount in partnering with the business to tackle key challenges and generate value. Digital transformation is an enabler and accelerator for EDPR to lead the energy transition across all its operations.

Building on the ambitious goals outlined in the 2021-25 strategic plan, EDPR has set even more ambitious digital KPI's for the 2023-26 period. This decision is driven by positive forecasts and the significance of measuring the Digital contribution.

As of 2023, certain D

As of 2023, certain Digital KPI's are heading well towards the targets set for 2026, as per:

## DGU and Digital transformation

To accelerate digital transformation, EDPR has invested a total of ~€60 million Digital TOTEX in 2023 to meet the 2026 expected targets:

• 85% energy assets with advanced analytics,

igitalized.

ser to business

- 
- 95% processes digitalized.

EDPR's digital transformation extends across all businesses and geographies, to digitize processes, tools, and the ecosystem for enhanced agility and efficiency. This inclusive journey involves active participation not only from EDPR's people but also from partners and suppliers, all contributing significantly to the desired digital acceleration at EDPR.

EDPR's digital transformation journey is powered by four strategic priorities:

• Focus on a people-centric organisation

st culture

cyber

- A Global DGU, closer to business
- 
- Push on digital-first culture
- Excel in delivery and cyber

During the year, ~60 digital and technology projects were managed with cross-business and geographies impact.

| KPI                                   | Target 2026 | Value<br>2023 |
|---------------------------------------|-------------|---------------|
| Energy Assets with Advanced Analytics | 85%         | 82%           |
| Digitalized Processes                 | 95%         | 83.7%         |
| Zero trust security                   | $\ge$ 740   | 800           |

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#### Global DGU, closer to Business

DGU continued its journey to become a truly global team, with global functions, hubs, and teams to deliver value and increase proximity across the value chain.

In 2023, several strategic projects were implemented to improve communication between digital and business teams, pursuing high business-value solutions with increased synergies and simplification:

- **DGU Now:** Initiated a program to reshape DGU's organisational model. This involves redefining DGU's operating model, governance mechanisms, operational models for hubs, and people strategy. The goal being to enhance alignment across Global functions, platforms, and hubs, strategically positioning digital at the core of EDPR's overall strategy.
- **Digital Roadmap:** A Digital Roadmap from 2023 to 2026 was created seeking to have an aligned digital vision, focused on higher business value and engaging the organisation toward the digital transformation.
- **Reference Architectures:** defined a set of reference architectures to allow the business to have higher flexibility and faster development in adding new products/services and introducing innovations, with reduced costs and lower architecture disruption. In 2023, the focus was on Client Solutions, Data & AI Strategy and Governance, Generative AI, Integration, Master Data Management and Monitorization reference architectures.

Focus on a people-centric organisation

EDPR's vision is to create a global human-centred organisation and acquire and train talent with new and upgraded skills for critical roles.

To enable the organisation's readiness to adopt a more digital mindset, EDPR has taken action to place people at the heart of the transformation, by investing in the development of digital skills of its people at all professional levels:

- **GenAI workshops:**held of a series of workshop sessions to push GenAI democratization across the group, reaching EDPR's Top Management and the Digital Global Community (~80 participants)
- **Leadership Training:** DGU launched a training program for leaders to cascade down through their teams at all levels, to introduce the DGU new operating model and ways of working, aligned with the Group's Global People Development Strategy

#### Push on digital-first culture

EDPR invested in creating a digital organisational culture and mindset, both by (1) promoting digital awareness and maturity across the company's leadership, with immersive training programs including top management involvement, and (2) developing and improving the key data & AI foundations to accelerate digital impact, with the implementation of new data lakes/hubs and new analytics solutions.

In 2023, the main highlights were:

- **Digital2Leaders:** boosted digital culture across top management, by pushing digital awareness and establishing a common lexicon.
- **Digital Global Community:** virtual community that promotes collaboration and knowledge on digital technologies and methodologies (e.g.: Agile, Blockchain, Cybersecurity, Data & AI, High Tech…), currently with almost ~300 members.
- **IoT Platform:** significant push of IoT Use Cases implementation and cross-pollination, with 3 global references in production.
- **Data & AI Governance:** defined a global strategy to guardrail AI ramp-up at EDPR and implement data governance across geographies and platforms.
- **GenAI Program:** defined the golden rules for deployment of Generative AI solutions and created a pipeline of priority use cases to implement in 2023-24, with 1 initiative completed, 1 initiative planned to start on the first quarter of 2024 and 6 initiatives planned.

Excel in delivery and cyber

In 2023, EDPR has m
through the impleme
to cloud, (2) parallel i
a robust response sy

irst culture

In 2023, EDPR has made significant progress in ensuring that its landscape is future-proof, through the implementation of (1) a multi-cloud strategy, with the gradual migration of apps to cloud, (2) parallel initiatives to optimize cloud storage, and (3) a secure ecosystem, with a robust response system to block or resolve any cyber threats.

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Main highlights in 2023 include:

- **Strategic Tech Partnerships:** consolidated partnerships with a pool of tier-1 global strategic tech partners to build cutting-edge solutions, to power tech evolution and modernization of the application landscape.
- **All Cloud Program:** continued the journey to achieve a future-proof multi-cloud architecture and generate flexibility, scalability and application management autonomy. By the end of 2023, EDPR had migrated all the eligible apps to the cloud.
- **All Cyber Defend EDP as one:** building a cybersecure organisation ensuring a global and robust threat monitoring and response processes. The program has acted on three domains: (1) definition of cybersecurity organisational model (i.e., roles, processes, governance), (2) creation of a framework to ensure documentation and information security, and (3) establishment of global cybersecurity metrics and KPIs.

## **3.6.2. Information security**

The EDP Group's Information Security Policy, updated in 2023, establishes information security as a competitive factor, generating confidence in its stakeholders, but also as a critical responsibility in a social context, due to its role as an operator of critical infrastructures and manager of large volumes of personal data on customers and employees.

The governance of information security in the EDP Group underwent an evolution during 2023, with the Executive Cybersecurity Committee now taking place every quarter to:

- Set guidelines for the strategic planning of information security.
- Assess the company's cybersecurity risks.
- Monitor scenarios of serious incidents in the energy sector and the organisation's cybersecurity risk profile.

The EDP Group's cybersecurity risk is presented annually to the members of the General and Supervisory Board.

# Cybersecurity in 2023

The global cybersecurity landscape has become more challenging, with increased geopolitical tensions posing greater threats to critical infrastructures and with the energy sector remaining a prime target for attackers. Despite this context, the EDP Group's cybersecurity teams were able to:

• Approve of the evolution of the Group's cybersecurity governance model.

- 
- Expand the global SOC (Security Operations Centre).
- 

• Eliminate legacy communication protocols vulnerable to cyberattacks.

Despite the increase in cyber threats and incidents compared to the previous year - largely due to the expansion of the attack surface resulting from the expansion of the organisation's operations –, no incidents with a significant impact on either the EDPR Group's image or its operations were registered.

## Cybersecurity activities and indicators

The Cybersecurity rating adopted – defined as the group's KPI for this area –, observes the EDP Group's behaviour in cyberspace. During 2023, the rating remained at the advanced level, with an average of 800 points, well above the average for the sector.

To support the challenge of secure operations in EDP Group's energy networks and facilities, a "Zero Trust" strategy for cybersecurity was adopted, comprising a plan of initiatives for the years 2021-23, both in the domain of networks and IT systems and in the OT domain. These plans are currently being executed.

Regarding face-to-face training, highlights include the EDP Cyber Range, providing a learning model based on gamification. In 2023, more than 1,600 hours on online courses or presential sessions were completed.

The EDP Group continues to position itself as reference in the use of best practices in the area of information security by participating in several national and international work/study groups, as well as European projects with other European counterparts, academia and governmental organisations.

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Image /page/94/Picture/24 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a simple, sans-serif font, stacked above the word "Renewables" in a smaller font. The letters "edp" are in a dark blue color, while the word "Renewables" is in a lighter gray color.

---

# 3.7. Innovation Capital

#### Overview

Innovation has long been a traditional investment priority for the EDP Group. EDP's innovation operating model is based on a fast adopter logic with a well-defined purpose of accelerating new businesses with impact and promoting the rapid adoption of innovative solutions to lead the energy transition. It seeks to solve the energy transition problems through the integration of new technologies, processes, and products, as well as innovative business models in EDPGroup's business to enhance competitiveness and create value for stakeholders.

Image /page/94/Figure/3 description: The image shows three blue circles in a horizontal line, each containing a white icon and text below it. The first circle contains an icon of five rectangles in a row, decreasing in size from left to right. Below the circle is the text "Internal Delivery" and "Internal incubation projects". The second circle contains an icon of two hands shaking. Below the circle is the text "Open Ecosystem" and "Open innovation pilots". The third circle contains an icon of a hand holding a Euro bill. Below the circle is the text "Venture Investments" and "Investments (VC) in startups".

EDP Innovation (EDPI) follows an Open Innovation philosophy that engages and promotes adoption through three innovation paths that act in parallel and complementary to one another, fed by a transversal sourcing process, namely: internal delivery (innovation portfolio developed internally), external partnerships through the open innovation ecosystem (start-ups, corporates, universities, among others), and external investments through EDP Ventures. These innovation avenues are supported by the right funding and investment, coordination, and expertise development to ensure EDP Group is at the forefront of market trends and innovation. EDPI also ensures the development and management of the infrastructure to disseminate innovation culture and best practices across the organization, fostering both entrepreneurship and intrapreneurship.

EDPI focuses on seven (+one) innovation domains aligned with corporate strategy and market trends, with EDPR focusing on two of these domains:

• Renewable energies, their integration and flexibility, to help the Group achieve its

- renewable energy targets.
- 

• Green hydrogen to support the energy transition in sectors whose activity is preponderantly dependent on carbon-emitting solutions.

# 2023 highlights

#### Internal Incubation

In 2023, four new business opportunities related to RES and H2 were submitted to the global innovation decision committee for evaluation. Below are some of the projects in the funnel:

- 
- 

• In the validation phase: the Scale up O&M project aims to automate the operation and maintenance processes of solar parks, particularly in activities such as aerial inspections, vegetation cutting, and panel cleaning. The main goal is to improve overall solar production and reduce the OPEX of solar plants.

• In the build phase: the Automating PVs Installation project, which has the objective to incorporate advanced solutions to automate critical construction tasks of utility-scale solar PV power plants. Relevant cost savings can be achieved by a mindset shift of the installation process from construction to manufacturing.

#### Open Ecosystem

During 2023, the Energy Starter program was restructured according to the recent innovation and business strategy model of EDPI, with a vertical dedicated to Renewables and Green Hydrogen.

Among the seven pilot projects related to Renewables and Green Hydrogen, the Power to Hydrogen project stands out, with a reversible fuel cell technology solution; the second pilot project to highlight is with Granular Energy, winner of Free Electrons, for managing guarantees of origin for 24/7 energy matching.

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Image /page/95/Picture/13 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" stacked on top of the word "Renewables". The text is white and the background is teal.

*The island's reliance on diesel will also be reduced by nearly 100,000 liters per annum, avoiding 268,000 kg of CO2 emissions.*

**Differentiating factors:** Vanadium flow batteries are ideal for this application of long duration energy storage as they can operate continuously for over 20 years without degradation. It is also a significantly safer technology compared to lithium-ion batteries as they are not flammable, making them ideal for remote applications such as on islands like Pulau Ubin. These unique features of the VRB ESS set it apart from other battery storage systems.

The Solar Green Roof helps to regulate the ambient temperature surrounding the solar panels, optimising the efficiency of the panels by up to 4%.

**The Future:** There are potential plans to extend this microgrid solution to areas outside of Pulau Ubin's Main Village. This could have a significant impact on the sustainability of other areas in Singapore and contribute to the broader national goal of environmental stewardship and energy security. The learnings from the Pulau Ubin Green Micro-grid project can also be applied across other hard-to-electrify areas in the APAC region. The project marks another landmark for Singapore to be a reference for energy transition in the region –what EDPR seeks to lead– while contributing to EDPR's solar and storage capacity as well as net zero targets.

Image /page/95/Picture/0 description: The image shows a building with a large array of solar panels on its roof. The building appears to be a commercial or industrial structure, with a flat roof that is well-suited for solar panel installation. The solar panels are arranged in neat rows and columns, covering a significant portion of the roof's surface. In the background, there is a body of water with some structures on it, possibly a lake or a bay, with trees lining the shore. The presence of solar panels suggests a focus on renewable energy and sustainability for the building.

# Pulau Ubin Green Micro-grid

#### Transitioning from diesel reliance to clean, renewable solar energy.

**Our approach:** EDP Renewables APAC, with the support of Singapore's Energy Market Authority and National Parks Board, has enhanced the micro-grid on Pulau Ubin island in Singapore. The enhanced microgrid now includes a Solar Green Roof with a 328 kilowatt-peak (kWp) solar photovoltaic system together with a 1 Megawatt-hour (MWh) Vanadium Redox Flow Battery (VRB) Energy Storage System (ESS). More than 30 households and businesses will benefit from this enhanced micro-grid.

Image /page/95/Figure/4 description: The image shows a world map made of white lines on a green background. A green circle is drawn around Central America.

**Country:** Singapore

enewable solar energy.

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#### Ventures

Increasingly focused on strategic investments to meet the renewable energy generation objectives of the EDP Group. The EDP Ventures portfolio consists of 38 startups, including six in the field of Renewables and one in green hydrogen. In 2023, Terabase was added to the Renewables portfolio, a startup that developed Terafab, the world's first automated field factory for large-scale solar construction.

#### Research and development

#### Overview

EDP NEW - Centre for NEW Energy Technologies is EDP's Research and Development (R&D) Centre, fully dedicated to the development and implementation of innovative R&D projects in different areas of the energy sector.

NEW adopts a collaborative approach to innovation, partnering with EDP's business units and multiple European institutions, companies and universities to develop large R&D projects leveraged by public competitive funding for Research and Innovation – like the European Commission's Horizon 2020 and Horizon Europe programs. EDP NEW's current project portfolio comprises around 40 ongoing projects covering all the domains of EDP's innovation model. These projects focus on developing, testing, validating and exploiting innovative concepts, technologies and business models that contribute to EDP's objectives and to the global decarbonization targets. This development is carried out in a collaborative manner with NEW's wide network of 700+ top tier partners across Europe.

Due to the nature of its collaborative, impact-oriented R&D activity, NEW maintains strong links with EDP's business units as well as with EDP Innovation, and thus is in constant contact with all areas at EDP to share initiatives and explore future opportunities of mutual interest.

With EDP Renewables, collaboration and contacts with EDP NEW are frequent and are currently materialized either through 1. Direct joint participation of both NEW and EDPR in funded projects or 2. Through interaction between the parties on progress and results of projects implemented at EDP NEW on topics of interest to EDP Renewables.

#### 2023 Highlights – Projects

Throughout 2023 several R&D projects have been implemented at EDP NEW on topics of interest to EDP Renewables. Below is a summary of some of these projects:

#### **Project TALOS**

Project TALOS aims to address some of the key challenges in deploying and scaling-up PV plants by developing robotics solutions for different scenarios, including floating PV and AgriPV settings. The project seeks to lower operation and maintenance costs and enhance plant performance through autonomous robotic systems, also exploring human-robot and robot-robot collaboration, making PV energy safer and more efficient. The project is coordinated by EDP NEW and has initiated in 2023, lasting till 2026.

#### **Project AI4PV**

AI4PV's main goal was the performance optimization of PV farms, both on operational efficiency and economic performance, using digital and predictive tools. The project developed a set of tools – digital twins, AI solutions, etc. – that provide high precision in detecting faults and diagnosing anomalies. An example is a tool that estimated the impact of soiling over PV modules on their energy yield. EDP NEW coordinated this project, which was concluded in 2023.

Image /page/96/Picture/14 description: A solar panel cleaning robot is shown on top of solar panels. The robot is yellow and black and has a long arm with a camera on the end. In the background, there is a power line tower and some trees. The sky is blue and cloudy.

1. Source: SolarCleano

Image /page/96/Picture/16 description: The image shows a close-up of solar panels against a backdrop of a blue sky with wispy clouds. The panels are arranged in a grid pattern, with the lines of the grid running diagonally across the frame. The panels themselves are dark and reflective, with the sky and clouds visible in their surface. The overall tone of the image is one of clean energy and environmental consciousness.

2. Source: project AI4PV

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Image /page/97/Picture/11 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a sans-serif font, with the letters in a dark blue color. Below the letters is the word "Renewables" in a smaller, sans-serif font, also in dark blue.

Annual Report 2023 Management Report | Innovation capital

#### **Smart4RES**

Smart4RES focused on improving short -term forecasting of renewable energy sources production. It brought performance improvements to the whole model and value chain in RES forecasting, with EDP NEW's particular emphasis placed on optimizing synergies with storage and to support power system operation and participation in electricity markets. The project was concluded in 2023. Other topics of future collaboration on R&D for NEW and EDP Renewables – already

planned to initiate in 2024 – include recycling of PV panels, innovative PV cell technologies and digital twins of renewable energy sources.

#### **Pulau Ubin**

-grid

Image /page/97/Picture/9 description: A woman with black and blonde hair is smiling at the camera. She is wearing a pink lace top. The background is blurred, but it appears to be a city scene.

"Since 2013, the Pulau Ubin micro has provided more than 30 of the island's residents and businesses with a more reliable, cleaner and affordable electricity supply, while also being a living lab for innovative, clean energy solutions.

Through a research and development grant, the Energy Market Authority (EMA) of Singapore has supported the enhancement of the Pulau Ubin micro enhancement of the Pulau Ubin micro-Storage System. These enhancements could potentially help the micro -grid meet 90% of the daily electricity demand in the main village using solar grid with a Solar Green Roof and Energy power, while regulating ambient temperatures and increasing the

-bedding of these innovations in a micro -grid will provide useful learnings for mainland applications and support Singapore's journey towards a more sustainable energy future."

**Violet Chen, Director (Industry Ecosystem Development), Energy Market Authority of Singapore**

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# 3.8. Sustainable Development Goals

Image /page/98/Picture/1 description: The image is a circular graphic with a gradient background that transitions from a dark blue at the bottom to a vibrant green in the middle and then to a lighter green at the top. In the center of the circle is a stylized, minimalist line drawing of a tree. The tree has a simple trunk and a rounded crown, with two branches extending from the trunk towards the crown.

EDPR is a global leader in the sector of renewable energy and one of the world's largest wind energy producer, ending the year with 16.6 GW of total installed capacity. In 2023, the company generated 34.6 TWh of clean energy, a cost-effective way to fight climate change.

Image /page/98/Picture/7 description: The image shows the Sustainable Development Goal (SDG) number 13, which is Climate Action. The number 13 is displayed in the upper left corner, followed by the words "AÇÃO CLIMÁTICA" (Climate Action in Portuguese). Below the text, there is an image of an eye with the Earth inside the pupil.

Wind and solar power are two of the most environmentally friendly ways of producing energy. EDPR's business inherently implies the reduction of GHG emissions and therefore has a pos-itive impact on the environment. In 2023, EDPR's activities avoided the emission of 20 million tons of CO2.

Image /page/98/Picture/9 description: The image is a close-up of a Sustainable Development Goal (SDG) icon, specifically SDG 11, which focuses on sustainable cities and communities. The icon features the number "11" in the upper left corner, followed by the words "CIDADES E COMUNIDADES SUSTENTAVEIS" stacked on top of each other. Below the text, there is a simple graphic representation of a city skyline, consisting of several buildings of varying heights and designs. The buildings are depicted in white against an orange background. The left side of the image has a dark blue vertical bar.

EDPR works to promote the well-being and development of the society. In 2023, EDPR invested €2.4 million in supporting communities as a result of activities such as internally developed and collaborative initiatives, donations to charitable organisations and volunteering activities.

Image /page/98/Figure/11 description: The image is a square with a dark blue border and an orange background. In the upper left corner is the number 9 in white. To the right of the number is the text "INDÚSTRIA INOVAÇÃO E INFRAESTRUTURAS" in white. Below the text is a white graphic of three cubes stacked together.

Innovation is part of EDPR's day-to-day reality. The company is focused on the more disruptive technologies of the industry and is commied to foster innovative solutions throughout its entire value chain. In 2023, EDPR centred on promoting digital skills and ~60 digital and technology projects were managed with cross-business and geographies impact.

Image /page/98/Picture/13 description: The image shows a square with a gold background and a dark blue border. The number 12 is in the upper left corner, and the words "PRODUÇÃO E CONSUMO SUSTENTÁVEIS" are in the upper right corner. Below the text is a white infinity symbol.

Even though EDPR is in the renewable energy business, it goes beyond its commitment with sustainability by fostering a culture of responsible operations and circular economy. In 2023, EDPR recovered 72% of total waste generated and 92% of hazardous waste generated.

Image /page/98/Picture/15 description: The image shows a bar graph icon. The icon is a light blue outline of a bar graph with four bars of varying heights. The background is a gradient circle, transitioning from dark blue at the bottom to green at the top.

EDPR continuously works to provide excellent conditions for its employees, grow and develop talent at all levels and optimise its employment policies and labour practises. As a result, EDPR has been recognised as a Top Employer in Europe for the fih consecutive year and in Greece and Colombia for the first time, and as a Top Workplace in the US.

Image /page/98/Picture/19 description: The image is a red square with the number 5 in the upper left corner. To the right of the number 5 are the words "IGUALDADE DE GENERO" stacked on top of each other. Below the text is a gender equality symbol.

In 2023, EDPR was featured for the fourth consecutive year in the Bloomberg Gender- Equality Index. The Company's inclusion in this index highlights EDPR's work to promote equal opportunities for women through development, representation and transparency policies.

Image /page/98/Picture/21 description: The image is a green square with the number 15 in the upper left corner. To the right of the number 15, the text "PROTEGE A VIDA TERRESTRE" is written in white. Below the text is a white tree with three white birds flying to the right of the tree. Below the tree are two white horizontal lines.

EDPR's business is its best contribution to reduce biodiversity loss. Nevertheless, the Company's commitment to contribute to the protection of biodiversity leads to an active role in the conservation of wildlife surrounding its facilities. In this context, in 2023 EDPR allocated €7.4 million to environmental studies for its projects.

**EDPR supplies affordable & clean energy while mitigating the climate change...**

Image /page/98/Picture/3 description: The image is a circular icon with a gradient background that transitions from dark blue at the bottom to green at the top. In the center of the circle is a smaller, solid green circle. Surrounding the inner circle is a dashed circle made up of small, evenly spaced dashes. The dashed circle and the inner circle are both a light blue color.

**...impacting positively on communities & fostering innovative infrastructures & circular economy...**

Image /page/98/Picture/5 description: The image shows the Sustainable Development Goal number 7, which is Affordable and Clean Energy. The number 7 is in white on a yellow background. Below the number is the text "AFFORDABLE AND CLEAN ENERGY" in white. Below the text is a white icon of a sun with a power button in the center.

#### **...ensuring decent work, gender equality & preservation of the environment.**

Image /page/98/Picture/17 description: The image shows the Sustainable Development Goal 8 (SDG 8) icon, which represents "Decent Work and Economic Growth." The icon features the number 8 in white against a red background, followed by the text "TRABALHO DIGNO E CRESCIMENTO ECONOMICO" in white. Below the text, there is a white graphic depicting an upward-trending line graph, symbolizing economic growth.

Part I

Image /page/98/Picture/24 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in white, with the "d" being taller than the "e" and "p". Below the letters, the word "Renewables" is written in white.

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Image /page/99/Picture/0 description: The image shows a landscape with wind turbines and the text "Why we choose wind onshore" in green. The landscape includes a body of water, mountains, and green hills with trees. The wind turbines are located on the hills.

# Livadi Wind Farm, Greece

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Annual Report 2023 Part I – GRI Report efficiency of rooftop solar deployments. The test-

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# 04 GRI Report

| Materiality assessment                                                | 102 |
|-----------------------------------------------------------------------|-----|
| Climate change                                                        | 104 |
| Economic business sustanability                                       | 111 |
| Health and safety                                                     | 116 |
| People management                                                     | 123 |
| Suppliers management                                                  | 145 |
| Innovation                                                            | 150 |
| Corporate Governance                                                  | 151 |
| Environmental management                                              | 152 |
| Community engagement                                                  | 158 |
| Human rights                                                          | 161 |
| Digital transformation                                                | 162 |
| Communication and transparency                                        | 163 |
| Ethics and compliance                                                 | 170 |
| Reporting principles                                                  | 172 |
| Annex I: Alignment with TCFD recommendations                          | 174 |
| Annex II: Taxonomy Alignment. KPIs under Article 8º of EU<br>Taxonomy | 180 |
| Annex III: Non-financial information statement                        | 199 |
| Annex IV: GRI content index                                           | 205 |
| Annex V: Independent verification report                              | 213 |

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Image /page/101/Picture/17 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font, stacked above the word "Renewables" in a smaller, lighter blue, sans-serif font. The "d" in "edp" has a long descender that extends down to the baseline of the word "Renewables."

# 4.1. Materiality assessment

# **Background and objectives**

The macro-economic context, where the challenges of sustainability are increasing, summing up with the diversity of EDPR's stakeholders, results in a large and complex list of important issues, which must be prioritised according to its relevance and significance.

In this context, EDPR's material issues were identified, and the results achieved supported the preparation of this Annual Report, as reflected in the Company's management strategy and, in particular, in its agenda for sustainability.

An issue is considered material when it influences the decision, the action and the performance of an organisation and its stakeholders.

## **Methodology**

The methodology adopted is based on the Accountability Standards and the information is collected corporately and within each business units as well.

Materiality is acquired by the interception of the issues identified by stakeholders with the importance given internally by the business. The topics identified by the Company are prioritised according to the frequency with which they appear in the different categories analysed.

#### Relevance for society

The relevance for society is determined by the importance/impact of a specific theme from an external perspective to the Company, designated as society perspective. Therefore, the society vision reflects the vision idea/concept of the several stakeholder groups that have influence on or are influenced by EDPR's activities. This vision must be achieved through sources that ensure independence from the Company to collect, on most cases, external data.

In parallel, the establishment of a society perspective is also supported by documents, analysis and international/national specific studies that allow a broad outlook on the emerging trends in the sustainability area. Consequently, the Company considers that the vision of the several stakeholders reflects the vision of society, thus allowing the assessment of the expectations outside EDPR.

# Relevance for business

The vision of the business is obtained through the evaluation of the importance/impact of a specific theme from an internal perspective to the Company. This vision is originated from the analysis of the defined business strategic goals as these depict the current positioning and concerns of EDPR and reflect the future vision of the business. In 2019, EDPR defined a new strategic plan until 2022 and, thus, the material issues for the Company in which this assessment was based were updated accordingly.

#### Results

The materiality matrix describes visually and promptly the most sensitive and impacting themes by comparing the relevance to society with the relevance to the business. The critical and sensitive themes for EDPR, obtained from the analysis of the materiality matrix, allows the Company to drive the strategy and support the decision-making process as well as to focus the report of information based on shared interests between EDPR and stakeholders, facilitating the relationship between them.

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Annual Report 2023GRI Report | Materic GRI Report | Materic Index Report | Materiality assessment

Image /page/102/Picture/9 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font, stacked above the word "Renewables" in a smaller, lighter gray, sans-serif font.

==

#### Materiality matrix

Image /page/102/Figure/1 description: The image is a matrix with the y-axis labeled "Relevance to society" and the x-axis labeled "Relevance to business". The matrix is divided into nine sections. The top right section contains the numbers 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13. The numbers are associated with the following labels: 1 Climate change, 2 Economic business sustainability, 3 Health and safety, 4 People management, 5 Suppliers management, 6 Innovation, 7 Corporate governance, 8 Environmental management, 9 Community engagement, 10 Human rights, 11 Digital transformation, 12 Communication and transparency, and 13 Ethics and compliance.

Note 1: Environmental management includes biodiversity, waste management and spills.
Note 2: EDPR reports environmental indicators from EBITDA sites the year after their inclusion in operational data. Thus, the environmental indicators of sites that have started operation in 2023 will be included in the 2024 report.

EDPR did not identify the following topics as material:

- Water: Generation from wind energy does not consume water in its operational processes. The water is consumed mainly for human use.
- Light pollution: EDPR activities do not have a material impact in light pollution.
- Raw materials: EDPR core business does not consume raw materials.
- Food waste: EDPR activities do not have a material impact in food waste.

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Image /page/103/Picture/11 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark color, possibly black or dark blue, against a white background.

# 4.2. Climate change

For information regarding GRI 3-3 –Management of material topics, please refer to section Growth of the chapter Strategy and to section Operational Performance of the chapter Performance.

#### GRI EU1 – Installed capacity, broken down by primary energy source and by regulatory regime

| INSTALLED CAPACITY | UN | 2023   | 2022   | ∆ YoY  |
|--------------------|----|--------|--------|--------|
| Europe             | MW | 5,997  | 5,656  | +342   |
| Spain              | MW | 2,162  | 2,322  | (160)  |
| Portugal           | MW | 1,444  | 1,199  | +245   |
| Rest of Europe     | MW | 2,392  | 2,135  | +257   |
| North America      | MW | 8,405  | 7,242  | +1,163 |
| US                 | MW | 7,482  | 6,617  | +866   |
| Canada             | MW | 427    | 130    | +297   |
| Mexico             | MW | 496    | 496    | -      |
| South America      | MW | 1,248  | 1,114  | +134   |
| Brazil             | MW | 1,165  | 1,114  | +51    |
| Chile              | MW | 83     | 0      | +83    |
| APAC               | MW | 905    | 726    | +179   |
| Vietnam            | MW | 402    | 405    | (2)    |
| Singapore          | MW | 315    | 230    | +85    |
| Rest of APAC       | MW | 188    | 92     | +96    |
| TOTAL              | MW | 16,555 | 14,738 | +1,817 |

Note: The reported data includes EBITDA and Equity MWs.

With a top-quality portfolio, EDPR has a strong track record and proven capability to execute superior projects and deliver on targets. The installed asset base of 16.5 GW is not only young, on average 10 years, it is also mostly certified in terms of environmental and health and safety standards. As of 2023, EDPR had 5,997 MW installed in Europe, 8,405 MW in North America, 1,248 MW in South America and 905 MW in APAC. In terms of technology, EDPR continued its effort to diversify its portfolio, which translates into 12,985 MW of wind onshore, 322 MW of wind offshore (through Ocean Winds, a 50% joint venture with Engie), and 3,232 MW of solar technology, that includes both solar PV utility-scale and solar DG, and 16 MW in Storage.

During 2023, EDPR added a total of 2,524 MW. More specifically, EDPR added 958 MW of wind onshore, corresponding to 277 MW in Europe, namely 65 MW in Spain, 12 MW in Poland, 117 MW in Italy, 26 MW in France, 35 WM in Greece and 22 MW in Portugal. In North America, 499 MW were installed, namely 297 MW in Canada and 202 MW in the US. Lastly, in South America, EDPR added 182 MW of wind onshore, with 99 MW in Brazil and 83 MW in Chile. In terms of solar capacity, EDPR added 1,551 MW. Of those, 497 MW were added Europe, namely, 66 MW in Spain, 223 MW in Portugal, 195 MW in Poland, 4 MW in France and 9 MW in the Netherlands. In North America 651 MW were installed in the US. In South America EDPR added 212 MW in Brazil. And lastly, EDPR added 191 MW in APAC. Of those, 9 MW in Vietnam, 85 MW in Singapore, and the remaining 97 MW in the rest of APAC.

Pursuing its asset rotation strategy, EDPR successfully concluded several asset rotation deals that amounted to 0.7 GW of capacity. In detail, EDPR sold a 100% stake in a 142 MW wind portfolio in Poland, a 256 MW wind portfolio in Spain and a 260 MW wind portfolio in Brazil. All in all, in 2023, EDPR consolidated portfolio net variation was of +1.8 GW.

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**edp**
Renewables

==

↻

# GRI EU2 – Net energy output broken down by primary energy source and by regulatory regime

| ELECTRICITY GENERATED | UN  | 2023   | 2022   | Δ % YoY |
|-----------------------|-----|--------|--------|---------|
| Europe                | GWh | 11,619 | 11,778 | (1%)    |
| Spain                 | GWh | 4,491  | 4,885  | (8%)    |
| Portugal              | GWh | 2,701  | 2,715  | (1%)    |
| Rest of Europe        | GWh | 4,427  | 4,178  | +6%     |
| North America         | GWh | 17,306 | 18,362 | (6%)    |
| US                    | GWh | 15,428 | 17,029 | (9%)    |
| Canada                | GWh | 394    | 360    | +9%     |
| Mexico                | GWh | 1,484  | 973    | +53%    |
| South America         | GWh | 4,483  | 2,625  | +71%    |
| Brazil                | GWh | 4,483  | 2,625  | +71%    |
| APAC                  | GWh | 1,184  | 636    | +86%    |
| Vietnam               | GWh | 743    | 393    | +89%    |
| Singapore             | GWh | 296    | 184    | +61%    |
| Rest of APAC          | GWh | 145    | 59     | +146%   |
| TOTAL                 | GWh | 34,593 | 33,401 | +4%     |

EDPR produced 34.6 TWh (+4% YoY) of clean energy in 2023. The YoY evolution comes in line with a higher installed capacity in the period and a better renewable resource. In 2023, EDPR achieved a 29% load factor (vs 30% in 2022) reflecting 98% of P50 long term average GCF, following a recovery of the renewable resource, especially in the first half of the year, mainly driven by North America. EDPR achieved a 94% technical availability in 2023, with the company continuing to leverage on its competitive advantages to maximise the projects' output and also on its diversified portfolio across different geographies to minimise the renewable resource volatility risk.

# GRI 201-2 – Financial implications and other risks and opportunities for the organisation's activities due to climate change

Climate change and its consequences – global warming, more frequent and intense drought, storms, heat waves, rising sea levels, melting glaciers and warming ocean – are one of the biggest challenges the world is facing. Over the last century, the burning of fossil fuels like coal, oil and gas has increased the concentration of atmospheric carbon dioxide (CO2) as well as other greenhouse gases (GHG) such as methane (CH4) and nitrous oxide (N2O), leading to the rise of the earth's mean surface temperature.

EDPR is a clear example of how fighting against climate change creates business opportunities. The Company's core business, to deliver clean energy by developing, building and operating top quality wind farms and solar plants, inherently implies the reduction of greenhouse gas emissions, contributing to the world's fight against climate change and its impacts.

Since its inception, EDPR has been performing a strategy focused on selective growth, by investing in quality projects with predictable future cash-flows, and seamless execution, supported by core competences that yield superior profitability, all embedded within a distinctive and self-funding model designed to accelerate value creation. As a result of undertaking such strategy, at the same time flexible enough to accommodate changing business and economic environments, EDPR remains today as a leading company in the renewable energy industry.

As reflected in its 2023-26 Business Plan, EDPR plans to add 17 GW gross capacity in the 2023-2026 period, ~60% of which are already secured. In the coming future, EDPR will continue diversifying its portfolio at geographical and technology levels, developing more wind onshore, solar, wind offshore, green hydrogen and storage technology projects. Considering the 17 GW gross additions and 5 GW from the asset rotation strategy, we reach a global portfolio of 27 GW by end of 2026. Through its activities in renewables, EDPR will contribute decisively to the main strategic objectives of the EDP Group: to be coal free by 2025, all green by 2030 and carbon neutral by 2040.

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edp
Renewables

---

Image /page/105/Figure/0 description: The image shows two donut charts, each representing a different mix of installed capacity in 2026. The chart on the left is labeled "Geographic mix" and the chart on the right is labeled "Technology mix". Both charts have a total capacity of 27 GW. The "Geographic mix" chart shows the following distribution: North America (48%), Europe (34%), South America (8%), APAC (7%), and OW (Offshore) (2%). The "Technology mix" chart shows the following distribution: Wind (58%), Solar (30%), Solar Distributed (7%), Wind Offshore (2%), and Storage + H2 (2%).

During 2023, EDPR added a total of 2,524 MW. The Company has successfully generated
34.6 TWh of renewable energy, avoiding the emissions of 20.4 million tons of CO<sup>2</sup><sup>3</sup>, +3%
YoY with the increase in production (+4% YoY), impacted by higher net installed capacity
(+1.8 GW YoY). Capital expenditures and financial investments with capacity additions,
ongoing construction and development works during the year totalled €4,556 million.
However, EDPR faces climate change not only as a business opportunity, but also as an
opportunity to innovate. EDPR's commitment to innovation and new technologies has made it a leader in the renewable energy sector. Currently, the Company continues to take advantage of all expertise obtained since the start of its inception to ensure more efficient solutions, more attractive returns and a more sustainable future. As a result, EDPR engages in projects that englobe wind energy, solar energy, energy storage plants, floating offshore
wind farms, green hydrogen and hybrid power plants.

On the risk side, increasingly intense and frequent extreme weather events may pose a risk for EDPR's activities and results since they occur in areas of the planet that are being affected by climate change.

Since future estimations of wind and solar production are usually based on analysis of historical measurements for more than 20 years, relevant unexpected meteorological changes could lead to a lower production than the one expected from historical data. Thus, when evaluating a new investment, EDPR considers potential changes in the production forecasted but, even so, the size of the potential deviation in the case of relevant meteorological changes is uncertain.

Moreover, renewable plants in construction and in operation are exposed to weather hazards, natural disasters, etc., which depend on the location of assets. At EDPR, all plants are insured from the physical damage during construction and operation. During operation, any natural disaster, weather hazard or accident, will also be partially insured to revenue losses due to the event. Thus, no material impacts are identified in the EDPR's consolidated financial statements as a consequence of climate change.

As a sector leader, EDPR is aware of the urgency to fight climate change and even though its business inherently implies a positive impact on the environment, the Company continues to work on a daily basis to hold itself to a higher standard and to incorporate innovation in its value chain in order to further contribute to the protection of the climate.

Given the relevance of climate-related risks and opportunities for the resilience of companies, EDPR has taken a step forward since 2022 to manage these aspects and integrate them into its decision-making process.

<sup>1</sup> Including H2 installed net capacity of 124 MW.

<sup>2</sup> Considering EDPR's net installed capacity.

<sup>3</sup> According to the calculation methodology described in GRI 305-5.

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Renewables

Annual

#### EDPR's TCFD Alignment

The measures carried out by the Company to integrate climate-related risks and opportunities management and decision-making processes, aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), are summarised below, as well as in Annex I - TCFD Alignment.

# GRI 302-1 – Energy consumption within the organisation

Wind turbines and solar panels require a small amount of electricity to operate. This energy consumption is generally self-consumed. Given the intermittency of wind generation, sometimes wind turbines need to consume electricity from the grid to start operating. The table below summarises the energy consumption broken down by category and compares with the previous year figures.

in our wind and solar assets, the company is conscious about promoting a culture of rational use of resources and promotes many internal campaigns to encourage sustainable behaviors. In this context, EDPR is promoting the transition of its fleet to electric and hybrid vehicles. As of December 2023, 39% of EDPR's service fleet is hybrid or electric.

|  |  |  | ENERGY CONSUMPTION                                                                                                                                                                | UN | 2023                            | 2022    | % YOY |
|--|--|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----|---------------------------------|---------|--------|
|  |  |  | Wind farms and solar plants                                                                                                                                                       | GJ | 340,820                         | 329,839 |        |
|  |  |  | Electricity consumption                                                                                                                                                           | GJ | 340,820                         | 329,839 |        |
|  |  |  | Offices                                                                                                                                                                           | GJ | 23,932                          | 19,543  |        |
|  |  |  | Electricity consumption                                                                                                                                                           | GJ | 20,799                          | 16,467  |        |
|  |  |  | Gas                                                                                                                                                                               | GJ | 3,133                           | 3,076   |        |
|  |  |  | Fleet                                                                                                                                                                             | GJ | 35,723                          | 30,834  |        |
|  |  |  | Petrol consumption                                                                                                                                                                | GJ | 30,280                          | 26,921  |        |
|  |  |  | Diesel consumption                                                                                                                                                                | GJ | 5,444                           | 3,804   |        |
|  |  |  | Bioethanol consumption                                                                                                                                                            | GJ | 0                               | 108     |        |
|  |  |  | TOTAL                                                                                                                                                                             | GJ | 400,476                         | 380,216 |        |
|  |  |  | Note 1: Gas conversion factor according to Agência Portuguesa de Ambiente.<br>Note 2: Fleet energy consumption refers to O&M fleet.                                               |    |                                 |         |        |
|  |  |  | GRI 302-4 –                                                                                                                                                                       |    | Reduction of energy consumption |         |        |
|  |  |  | EDPR's activity is based on clean energy generation, and it produces about 350 times the<br>energy it consumes. Although the business expansion implies higher energy consumption |    |                                 |         |        |

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edp
Renewables

==

↻

## Total 2023 CO<sup>2</sup> emissions

EDPR follows the GHG Protocol Corporate Standards to assess its carbon footprint. In 2023, EDPR's emissions were 2,387,692 tons of CO2eq., breakdown by scopes as shown below. Given its activity focused on renewable generation, scopes 1 and 2 emissions represent a low percentage when compared to the indirect emissions generated in the Company's value chain. Within scope 3 emissions, the supply chain and emissions generated in the upstream component manufacturing and construction processes are the most relevant, accounting for around 99% of the Company's total emissions. Detail of emissions in the different scopes are presented below.

#### **Thousand tons of CO<sup>2</sup>**

## GRI 305-1 – Direct (scope 1) GHG emissions

EDPR's Scope 1 emissions represent 3,159 tons of CO<sup>2</sup> equivalent, +32% vs 2022. 2,639 tons are emitted by EDPR's own fleet, 154 tons by gas consumption in the Company's offices and the rest of it is related to fugitive emissions (SF6).

Part of the equipment used for electricity generation purposes contains SF<sup>6</sup> gasses and during 2023, EDPR registered emissions of 15.6 kg of this gas, which is equivalent to 366 tons of CO<sup>2</sup> eq (Global Warming Potential of SF<sup>6</sup> = 23,500).

Note 1: Emissions were estimated according to GHG protocol (including official sources such as IPCC or the US department of energy).

# GRI 305-2 – Indirect (scope 2) greenhouse gas (GHG) emissions

EDPR's CO<sup>2</sup> indirect emissions (scope 2) represent 28,548tons, -5% vs 2022. Of the 2023 scope 2 emissions, 26,848 tons are driven by electricity consumption at wind farms and solar plants and 1,700 tons by electricity consumption in offices.

Note 1: The emission factors used are based on the following sources: Portugal - EDP, Redes Energéticas Nacionai (REN), and Entidade Reguladora dos Serviços Energéticos (ERSE); Spain - Red Eléctrica de España (REE); Brazil - Ministry of Science and Technology – SIN (national interconnected system); Other countries - IHS Markit. Note 2: Electricity consumption emissions were calculated with the global emission factors of each country and state within the US.

# GRI 305-3 – Other indirect (scope 3) greenhouse gas (GHG)

# emissions

EDPR's CO<sup>2</sup> indirect emissions (scope 3) in 2023 were 2,355,985 tons, which represent c.99% of the Company's global emissions. EDPR's scope 3 is divided into those related to the activity of its employees and those related to the supply chain and its activity linked to the Company.

Scope 3 emission

#### Scope 3 emissions from employees' activity

EDPR's work requires employees to travel and commute. Based on the estimates, employees' business travels (GHG Protocol Category 6) accounted for a total of 5,209tons of CO<sup>2</sup> emissions, +55% vs 2022. In relation to employees' commuting (GHG Protocol Category 7), the emissions generated in 2023 were 2,444 tons of CO2, +13%.

Note 1: Emissions were estimated according to GHG protocol, by following the Defra standard. Note 2: Employee commuting emissions were calculated from data collected in a survey to all employees, taking into account the remote work model implemented since 2020).

## Scope 3 emissions from EDPR's supply chain

EDPR's biggest contribution to decarbonisation is its core business, since it inherently implies the reduction of GHG emissions, contributing to the world's fight against climate change and its impacts. Even though, the Company is conscious about its practices regarding emissions and the importance of aligning its supply chain with the Company's climate ambition. As a 100% renewable company, EDPR has identified the supply chain (scope 3) and its climate performance as the main area of action to reduce its global emissions.

Image /page/107/Figure/3 description: The image is a donut chart showing the breakdown of emissions by scope. Scope 1 accounts for 2.356, Scope 2 accounts for 3.16, and Scope 3 accounts for 28.55.

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Image /page/108/Picture/20 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark blue color.

---

Following the GHG Protocol and SBTi recommendations, EDPR not only accounts for the emissions of new parks that are consolidated as EBITDA, but also for parks that were built in the reporting year as Equity or for build-and-transfer projects. This follows SBTi's recommendation to also include in the Scope 3 inventory all emissions from projects that are developed on behalf of third parties, and that EDPR built but does not own or operate.

EDPR has been working since 2022 on a methodology to account and disclose its upstream emissions. Following the GHG Protocol, the Company has assessed its suppliers' emissions when providing the Company with services and capital goods, such as PV modules, wind turbines and other components and materials for the construction of its wind farms and solar plants. EDPR includes information on the major sources of emissions generated in the development of the main materials for its facilities, including information from manufacturing to the construction of its wind farms, as well as emissions generated by the transportation of components and materials.

Emissions from the supply chain correspond to the following GHG Protocol categories:

- **Category 1. Purchased Goods and Services:** This category includes all emissions linked to purchases classified as operational expenditure (Opex) and all emissions generated by suppliers during the operation and maintenance phase of wind farms and solar plants.
- **Category 2. Capital Goods:** This category includes all emissions linked to purchases classified as capital expenditure (Capex) and those from the main components of the Company's wind farms and solar plants (turbines, modules, inverters and trackers/racking). For this exercise, EDPR has carried out an engagement with suppliers in order to have information on the emissions generated upstream for each of the models (LCAs, EPDs and other environmental declarations).
- **Category 3. Fuel and Energy related activities:** This category, although immaterial, includes upstream emissions from both electricity and natural gas used in EDPR's facilities.
- **Category 4. Upstream Transportation and Distribution:** With the expansion of the work done with suppliers resulting in more detailed and product specific emissions data, it's possible to disaggregate the specific emissions from the equipment transportation from the suppliers' facilities to the project sites. In 2023, this scope of work was extended to the main components of the Company's wind farms and solar plants (turbines, modules, inverters and trackers/racking).
- **Category 5. Waste Generated in operations:** This category includes emissions generated by non-recovered waste from the Company's operating phase.

• **Other emissions,** such as business travel and employee commuting, are also included

calculated based on the specific emission factors of the turbine and module models. For the rest of the
licly available sources of information have been used: DEFRA, EPA or NREL.

ted to the supply chain include all emissions generated from cradle to gate.

in this scope 3 disclosure.

Total emissions generated by EDPR's supply chain are 2,348,332 tons of CO2, 14% less than in 2022. EDPR is aware of the importance of its supply chain to achieve its climate objectives and therefore engages with the suppliers of critical equipment in order to communicate its priorities in this regard. The graph bellow shows how EDPR's work on data quality improvement reflects on overall Scope 3 emissions and the methodologies used in emissions calculations.

#### **Non-commodity supply chain Scope 3 data quality evolution**

Image /page/108/Figure/11 description: The image contains two donut charts, one for 2022 and one for 2023. The 2022 chart shows the following percentages: Supplier-specific 87%, Average data 4%, and Spend-based 9%. The 2023 chart shows the following percentages: Supplier-specific 92%, Average data 2%, and Spend-based 6%.

Note 1: Emissions have been calculated based on the specific emission factors of the turbine and module models. For the rest of the materials and purchases, publicly available sources of information have been used: DEFRA, EPA or NREL. Note 2: Scope 3 emissions related to the supply chain include all emissions generated from cradle to gate. Note 3: The calculation of emissions related to transport does not include emissions related to solar DG projects nor for the Monte Verde project, for lack of project specific information. Because there was no specific and necessary information available from logistics, it also doesn't include emissions related to racking/structures of 8 parks (Berkelland I, Budzyn Solar, Cruz del hierro, Villacastín, Garcimuñoz, Rocío, Cattlemen, Crooked Lake, Misenheimer) nor the emissions related to PCS/Inverter of 5 parks (Cattlemen, Crooked Lake, Misenheimer, Timber Road and Blue Harvest).

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edp
Renewables

# GRI 305-5 – Reduction of greenhouse gas (GHG) emissions

EDPR's core business activity inherently implies the reduction GHG emissions. Wind and solar energy have zero carbon emissions during operation, contributing to the world's fight against climate change and do not produce harmful SOx, NOx, or mercury emissions, protecting valuable air and water resources. It is estimated that the Company's activities during 2023 avoided the emission of 20.4 million tons of CO2.

The Company's emissions - including all the scopes - represent 12% of the total amount of emissions avoided, and c.99% of the total emissions are from our supply chain. Even though EDPR's activity is based on clean energy generation, it is conscious about promoting a culture of rational use of resources and, in this context, the transition of its fleet to electric and hybrid vehicles is a measure that not only saves energy, but also reduces emissions.

Note 1: To calculate the emissions avoidance, the energy generation has been multiplied by the CO<sup>2</sup> eq. emission factors of each country and state within the US. EDPR only considers the emission factor of fossil fuel energy, as it is considered that by increasing the generation of renewable energy, there is a displacing of these technologies, while other renewable technologies and nuclear plants will continue with its quota of generation.The most relevant emissions factors used were –USA: 681.1 tCO2/GWh; Portugal: 503.1 tCO2/GWh; Spain: 403.3 tCO2/GWh.

Note 2: The emission factors used are based on the following sources: Portugal - EDP, Redes Energéticas Nacionais (REN), and Entidade Reguladora dos Serviços Energéticos (ERSE); Spain - Red Eléctrica de España (REE); Brazil - Ministry of Science and Technology – SIN (national interconnected system); USA - emissions & generation resource integrated database (EGRID) for each state emission factor; other countries - IHS Markit.

Note 3: EDPR is not offsetting any of its emissions through carbon offsets from the Voluntary Carbon Market, and neither are any emissions reductions being achieved through these mechanisms. Furthermore, none of EDPR's renewable energy projects are generating carbon offsets for the Voluntary Carbon Markets.

# Internal carbon pricing

At Group level, a carbon price is used company-wide to assess the impact of current and future carbon regulation and carbon taxes on energy prices, energy volumes, and existing assets' value, as well as to evaluate capital investments in building or acquiring new electricity generation assets across the globe. Meaningful carbon prices strongly benefit EDP's business strategy, fully align with the Paris Agreement, and contribute decisively to its commitment to be carbon neutral by 2040.

GHG-related regulation considered the European Union Emissions Trading System (EU-ETS), which applies to our thermal power generation assets in Europe (Portugal and Spain), as well as in possible future markets in the only other geography where we currently own thermal power plants (Brazil).

## Science-based target commitments

In April 2023, EDPR set its commitment with the Science Based Target initiative, submitting in June 2023 a set of targets aligned with the new Net-Zero standard. The validation process began in October 2023 and the targets are currently under validation.

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Image /page/110/Picture/12 description: The image contains the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark blue color.

==

# 4.3. Economic business sustainability

For information regarding GRI 3-3 –Management of material topics, please refer to section Financial Performance of the chapter Performance.

# GRI 201-1 – Direct economic value generated and distributed

| ECONOMIC VALUE GENERATED AND DISTRIBUTED | UN | 2023  | 2022  |
|------------------------------------------|----|-------|-------|
| Economic value generated                 | €m | 3,514 | 3,757 |
| Revenues                                 | €m | 2,008 | 2,138 |
| Other Income                             | €m | 814   | 760   |
| Share of profit in associates            | €m | 14    | 179   |
| Financial Income                         | €m | 678   | 681   |
| Economic value distributed               | €m | 2,103 | 2,438 |
| Supplies and services                    | €m | 475   | 439   |
| Other costs                              | €m | 283   | 240   |
| Personnel costs                          | €m | 244   | 241   |
| Financial expenses                       | €m | 992   | 1,130 |
| Current tax                              | €m | 44    | 234   |
| Dividends                                | €m | 66    | 155   |
| ECONOMIC VALUE ACCUMULATED               | €m | 1,411 | 1,320 |

| Spain            |
|------------------|
| Portugal         |
| France & Belgium |
| Poland           |
| Romania          |
| Italy            |
| Greece           |
| UK               |
| Brazil           |
| Colombia         |
| Chile            |
| US               |
| Canada           |
| Mexico           |
| Singapore        |
| Vietnam          |
| Others           |
| TOTAL            |

Note: This table was prepared

| PROFIT BEFORE INCOME TAX | UN | 2023 | 2022 |
|--------------------------|----|------|------|
| Spain                    | €m | 377  | 362  |
| Portugal                 | €m | 135  | 139  |
| France & Belgium         | €m | -3   | -5   |
| Poland                   | €m | 271  | 122  |
| Romania                  | €m | 66   | -18  |
| Italy                    | €m | 51   | 322  |
| Greece                   | €m | -7   | -5   |
| UK                       | €m | -7   | -7   |
| Brazil                   | €m | 89   | 127  |
| Colombia                 | €m | -252 | -107 |
| Chile                    | €m | -11  | -4   |
| US                       | €m | -6   | 81   |
| Canada                   | €m | -3   | 5    |
| Mexico                   | €m | 25   | 21   |
| Singapore                | €m | -19  | -9   |
| Vietnam                  | €m | -5   | -7   |
| Others                   | €m | -140 | -56  |
| TOTAL                    | €m | 561  | 962  |

Note: This table was prepared considering the business segments described in note 44. Operating segments report included in the Consolidated Annual Accounts.

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Image /page/111/Picture/20 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, thinner, sans-serif font. The color of the text is a dark blue or gray.

# =

↩

#### Value creation

In a context in which climate change is one of the great challenges that society faces, and under the implementation of an integrated risk model, EDPR promotes clean energy through the development, construction and operation of wind farms and solar plants. Throughout its business model, EDPR transforms its industrial, financial, human, social, natural and intellectual capital, generating a competitive return for its shareholders, generating quality employment, promoting the development of the communities where it operates, having a positive impact on the environment and generating business and innovation together with the supply chain.

All the components of value creation are included in different chapters throughout the Annual Report:

- **Context** Challenges and Opportunities: Chapter 2. Strategic approach (General context)
- **Risks:** Chapter 2. Strategic approach (Risk management)
- **Business Model:** Chapter 1. The company (Business description)
- **Capitals:** Chapter 3. Performance (Financial Capital, including Industrial Capital in the section Operational Performance; Human Capital; Social Capital, in the subchapters Social Capital and Supply Chain Capital; Natural Capital; and Intellectual Capital in the Innovation Capital and Digital Capital subchapters).
- **Key stakeholders return:** Chapter 3. Performance (Financial Capital, Human Capital, Social Capital, Natural Capital and Supply Chain Capital).

# EU Taxonomy Regulation

The European Commission's Sustainable Finance Taxonomy Regulation has been considered as one of the main elements to move capital flows towards a more sustainable economy. It is a key classification system to promote climate neutrality by identifying those activities considered as environmentally sustainable.

In accordance with the EU Taxonomy and what it establishes, EDPR has disclosed since 2021 on the three KPIs requested: the proportion of its turnover, capital expenditure (Capex), and operational expenditure (Opex). EPDR has been reporting its eligible economic activities associated to one of the environmental objectives, the climate change mitigation and assessed the requirements in accordance with the main requirements for that environmental objective.

Considering that its core business is the planning, construction and operation of electricity generating power stations using renewable energy sources (mainly wind and solar), EDPR assigned the Taxonomy-eligible economic activities to the electricity generation from wind and solar power utility scale (economic activities 4.1 and 4.3) and the economic activity of installation, maintenance and repair of renewable energy technologies (7.6) when it refers to EDPR's distributed generation activity– in accordance with Annex I of the Climate Delegated Act (EU 2021/2139). The economic activities in this category could be associated mainly with NACE codes D35.11 and F42.22, in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.

The different EDPR technologies and the economic activity identified by the taxonomy are the following ones: Solar Utility Scale Energy (Solar PV) as "*Electricity generation using solar photovoltaic technology (4.1)*"; Wind Energy as "*Electricity generation from wind power (4.3)*"; and Solar Distributed Solar Energy (DG) as "*Installation, maintenance and repair of renewable energy technologies (7.6)*". In order to disaggregate, under Article 8º of the EU Taxonomy Regulation (EU) 2021/2178 of 6 July 2021, the Turnover, Capex and Opex volume for each of the economic activity mentioned above (4.1, 4.3 and 7.6), EDPR has used:

- 
- 
- 

• the proportion of each technology on generation to distribute revenues;

• EDP's method for distributing CAPEX was determined by multiplying the proportion of capacity under construction for each technology by the installed cost per MW. This approach enables a more precise allocation of CAPEX based on the distinct installed costs of each technology. The total installed cost for each technology was estimated using the installed cost per MW data from IRENA, a dependable source for cost estimation in the renewable energy sector.

• EDP utilized IRENA's "O&M costs" statistics, measured in installed kW per year, to enhance the accuracy of estimating the "OpEx" linked to the operational MW, categorized by technology type. This data was then applied to the installed capacity EBITDA for determining the proportion of OPeX by technology.

{112}------------------------------------------------

---

#### Scope of the disclosure for the three financial environmental indicators

This Scope refers to the compliance with the EU Taxonomy requirements for the "control entities", the assets where EDPR exercises control as of 31 December 2023. These entities have their revenues consolidated in the EDPR's total revenues (note 7 "Revenues" in the notes to the consolidated financial statements of the 2023 Consolidated Annual Accounts in EDPR Annual Report 2023).

The investments in joint ventures and associates are included in the consolidated financial statements under the equity method from the date the Group acquires joint control/ and has significant influence, to the date it ceases. These entities do not have their revenues consolidated in the EDPR's revenues, only the changes in the company's value (note 20 "Investments in Joint Ventures and Associates" in the notes to the consolidated financial statements of the 2023 Consolidated Annual Accounts in EDPR Annual Report 2023). Consequently, and according to Taxonomy regulation, this type of revenues, as they are not consolidated in the EDPR's revenues, are not accounted for when calculating the turnover KPI.

For changes in the consolidation perimeter, please refer to Annual Report 2023, 2023 Consolidated Annual Accounts, Notes to the consolidated annual accounts: note 6 "Consolidation perimeter".

#### Alignment with sustainability strategy

The Company's core business, to deliver clean energy by developing, building and operating top quality wind farms and solar plants, inherently implies the reduction of greenhouse gas emissions, contributing to the world's fight against climate change and its impacts.

Since its inception, EDPR has been performing a strategy focused on selective growth, by investing in quality projects with predictable future cash-flows, and execution, supported by core competences that yield superior profitability, all embedded within a distinctive and self-funding model designed to accelerate value creation. As a result of undertaking such strategy, at the same time flexible enough to accommodate changing business and economic environments, EDPR remains today as a leading company in the renewable energy industry.

As reflected in its 2023-26 Business Plan, EDPR plans to add 17 GW gross capacity in the 2023-2026 period, ~60% of which are already secured. In the coming future, EDPR will continue diversifying its portfolio at geographical and technology levels, developing more wind onshore, solar, wind offshore, green hydrogen and storage technology projects along with the entrance in new markets, in order to achieve 27 GW net capacity by 2026, considering 5 GW from the asset rotation strategy. Through its activities in renewables, EDPR will contribute decisively to the main strategic objectives of the EDP Group: to be coal free by 2025, all green by 2030 and carbon neutral by 2040.

#### Approach to double counting

- 
- 

• EDPR's eligibles activities contribute substantially for the climate change mitigation. Thus, the taxonomy alignment was assessed in this context. It was not necessary to distinguish for the three indicators the amounts allotted to the different environmental objectives because EDPR does not have eligible activities that are simultaneously contributing to other environmental objectives. It should be emphasised that EDPR has not made a differentiation between CAPeX related to eligible activities that contributes substantially to Climate Change Mitigation to which that are CAPeX associated with climate change adaption initiatives.

• The calculations of those financial environmental indicators follow the accounting policies which are described in the Annual Report 2023, 2023 Consolidated Annual Accounts, Notes to the consolidated annual accounts: note 2 "Accounting policies" and note 3 "Recent accounting standards and interpretations issued". As a result, double counting (mainly related with intragroup transactions eliminations) is avoided.

Disclose information about the three financial environmental indicators

#### **Eligible and Aligned Turnover in 2023**

#### **TAXONOMY-ELIGIBLE ACTIVITIES**

| TAXONOMY-ELIGIBLE<br>ACTIVITIES                                                      | TOTAL ELIGIBLE<br>TURNOVER (€M) | PROPORTION OF<br>TAXONOMY<br>ELIGIBLE<br>TURNOVER (%) | PROPORTION OF<br>TAXONOMY<br>ALIGNED<br>TURNOVER (%) |
|--------------------------------------------------------------------------------------|---------------------------------|-------------------------------------------------------|------------------------------------------------------|
| Electricity generation using solar<br>photovoltaic technology (4.1)                  | € 143                           | 6.2%                                                  | 6.2%                                                 |
| Electricity generation from wind<br>power (4.3)                                      | € 2,107                         | 91.4%                                                 | 91.4%                                                |
| Installation, maintenance<br>and<br>repair of renewable energy<br>technologies (7.6) | € 51                            | 2.2%                                                  | 2.2%                                                 |
| Total                                                                                | € 2,302                         | 99.8%                                                 | 99.8%                                                |

Note: Refer to Annex II for more information related to taxonomy and how EDPR meets alignment requirements.

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# =

#### **Content of KPI related to Turnover**

The proportion of Taxonomy-eligible and aligned turnover was calculated as the portion of the turnover derived from products and services associated with electricity generation from wind and solar in the reporting period and those related to sales such as RECs and renewable energy guarantees of origin (numerator) divided by the total turnover in the reporting period (denominator).

The numerator of the KPI is defined as the net turnover derived from electricity sales, from advisory and management services provided to third parties, from other goods and materials sales such as guarantees of origin and RECs and financial guarantees of subsidiaries for the development of their activity. The third parties include entities to whom EDPR sold assets in the context of its Asset Rotation strategy, and partners in EDPR controlled entities. EDPR deducts from the net turnover the revenues that are not essential for the eligible activities, in particular the item "Electricity Services".

The denominator of the turnover KPI is based on the Company's consolidated revenues in accordance with IAS 1.82(a). Refer to the item Revenues (2,008M€) in the "Consolidated income statement for the year ended 31 December 2023 and 2022" of the EDP R Annual Report 2023, Consolidated Annual Accounts added to the cost of consumed electricity (242M€) and changes in inventories and cost of raw materials and consumables used (52M€).

#### **Eligible and Aligned Capex in 2023**

| TAXONOMY-ELIGIBLE<br>ACTIVITIES                                                      | TOTAL ELIGIBLE<br>CAPEX (€M) | PROPORTION OF<br>TAXONOMY<br>ELIGIBLE CAPEX<br>(%) | PROPORTION OF<br>TAXONOMY<br>ALIGNED CAPEX<br>(%) |
|--------------------------------------------------------------------------------------|------------------------------|----------------------------------------------------|---------------------------------------------------|
| Electricity generation using solar<br>photovoltaic technology (4.1)                  | € 3,313                      | 65.4%                                              | 65.4%                                             |
| Electricity generation from wind<br>power (4.3)                                      | € 1,638                      | 32.3%                                              | 32.3%                                             |
| Installation, maintenance<br>and<br>repair of renewable energy<br>technologies (7.6) | €104                         | 2.1%                                               | 2.1%                                              |
| Total                                                                                | € 5,056                      | 99.8%                                              | 99.8%                                             |

Note: Refer to Annex II for more information related to taxonomy and how EDPR meets alignment requirements.

#### **Content related to CAPeX**

The proportion of Taxonomy-eligible and aligned Capex was calculated as the portion of the total Capex derived from products and services associated with electricity generation from wind and solar power in the reporting period (numerator) divided by the total Capex in the reporting period (denominator).

The numerator consists of the Capex related to assets or processes associated with electricity generation from wind and solar power (considered as components necessary to execute the activity). Consequently, all Capex invested into planning, construction, operation and maintenance of wind farms and solar plants are considered in the numerator of the Capex KPI. EDP Renewables also includes the amount related to intangible projects, such as essential hardware communications and software licenses for the operation of eligible activities. Additionally, EDP Renewables deducts from its total CAPeX the amount that is not essential for the eligible activities, specifically office equipment and tools.

Total Capex consists of additions to tangible and intangible fixed assets during the financial year, before depreciation, amortisation and any re-measurements, including those resulting from revaluations and impairments, as well as excluding changes in fair value. It includes acquisitions of tangible fixed assets (IAS 16), intangible fixed assets (IAS 38), right-of-use assets (IFRS 16) and investment properties (IAS 40). Additions resulting from business combinations are also included. Goodwill is not included in Capex, as it is not defined as an intangible asset in accordance with IAS 38. Refer to notes 16 "Property, plant and equipment", note 17 "Right of use assets" and 18 "Intangible assets" of the EDPR Annual Report 2023, Consolidated Annual Accounts.

Additionally, considering the concept of CAPEX and what is considered by the Taxonomy regulation, EDPR has chosen to exclude from the additions of tangible fixed assets the costs for future decommissioning, since it is not linked to an expenditure (CAPEX) incurred in the period.

#### **DENOMINATOR CAPEX (€m)**

| DENOMINATOR<br>CAPEX (€m)          | TANGIBLE<br>FIXED<br>ASSETS | INTANGIBLE<br>ASSETS | RIGHTS OF<br>USE | TOTAL   |
|------------------------------------|-----------------------------|----------------------|------------------|---------|
| Additions(1)                       | € 4,561                     | € 19                 | € 114            | € 4,694 |
| Decommisioning costs               | € -24                       | -                    | -                | € -24   |
| Consolidation perimeter<br>entries | € 287                       | € 93                 | € 5              | € 385   |
| Total                              | € 4,824                     | € 112                | € 120            | € 5,056 |

(1) Note 16 Property, plant and equipment, Note 17 Right of use assets, Note 18 Intangible assets.

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Image /page/114/Picture/16 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a simple, sans-serif font, stacked above the word "Renewables" in a smaller, similar font. The letters and word are in a dark blue or black color.

#### Eligible and Aligned Opex in 2023

| TAXONOMY-ELIGIBLE<br>ACTIVITIES                                                      | TOTAL ELIGIBLE<br>OPEX (€M) | PROPORTION OF<br>TAXONOMY<br>ELIGIBLE OPEX<br>(%) | PROPORTION OF<br>TAXONOMY<br>ALIGNED OPEX<br>(%) |
|--------------------------------------------------------------------------------------|-----------------------------|---------------------------------------------------|--------------------------------------------------|
| Electricity generation using solar<br>photovoltaic technology (4.1)                  | € 11                        | 4.1%                                              | 4.1%                                             |
| Electricity generation from wind<br>power (4.3)                                      | € 257                       | 92.0%                                             | 92.0%                                            |
| Installation, maintenance<br>and<br>repair of renewable energy<br>technologies (7.6) | € 4                         | 1.4%                                              | 1.4%                                             |
| Total                                                                                | € 272                       | 97.6%                                             | 97.6%                                            |

Note: Refer to Annex II for more information related to taxonomy and how EDPR meets alignment requirements.

#### **Content related to OPeX**

The proportion of Taxonomy-eligible and aligned Opex is defined as the Opex considered sustainable in the reporting period (numerator) divided by the Company's total Opex (denominator).

The numerator consists of the Opex related to maintenance of assets or processes associated with electricity generation from wind and solar power (considered as components necessary to execute the activity). This Opex also include non-capitalised costs related to leases and rents activities. Consequently, all Opex related to the maintenance of wind farms and solar plants are considered in the numerator of the Opex KPI. The mentioned costs correspond to the items "Rents and leases" and "Maintenance and repairs" and part of the items "Consumables and communications" and "specialized works" of the note 10. Supplies and services in the notes to the consolidated financial statements of the 2023 Consolidated Annual Accounts (EDP R Annual Report 2023).The denominator, total Opex, consists of direct non-capitalised costs that relate to leases and rents, and maintenance and repairs, and any other direct expenditures relating to the dayto-day servicing of assets of property, plant and equipment. This value cannot be directly cross-referenced with the Company's consolidated financial statements, as it only includes the maintenance and repair and other direct expenditures relating to day-to-day servicing of assets of property, plant and equipment as allocated to the Company's internal cost centres for maintenance and repairs and non-capitalised costs for leases. In 2023, the denominator did not include costs for training and other human resources adaptation needs and did not yet include direct non-capitalised costs for research and development.

## EU taxonomy eligibility & alignment

During this 2023 exercise, all activity disclosed by EDPR as eligible in all three indicators of the taxonomy (Turnover, Capex and Opex) have met the alignment criteria. Compared to the 2022 eligibility exercise, there have been no significant changes forturnover which has slightly increased in eligibility (+0.3pp YoY), while CAPeX increases in eligibility +2pp YoY and Opex slightly decreases (-0.6pp YoY). The increase was attributed to the developing of solar projects and the rise in maintenance costs of wind projects.

Please refer to Annex II for more information on the EDPR EU taxonomy alignment process and its compliance with the requirements related to Do No Significant Harm and Minimum Safeguards.

Note: Eligible Capex in 2022 re

Note: Eligible Capex in 2022 restated to consider the same denominator criteria than in 2023.

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==

↩

# 4.4. Health and Safety

For information regarding GRI 3-3 –Management of material topics, please refer to section Health & Safety of the chapter Performance.

# GRI 403-1 – Occupational health and safety management system

The management of all issues related to health and safety is collected and described in the integrated Health & Safety and Environment Management System (HSEMS), which covers all employees and operations of the Company. The processes and procedures regulated in the management system are developed to comply with the legal requirements of each country, the ISO 45001 standard, and the requirements that have been considered appropriate by EDPR to carry out a correct management of the related issues with the H&S of all workers.

## GRI 403-2 – Hazard identification, risk assessment and incident investigation

The process to identify hazards and assess the H&S risks arising from the Company's activity and facilities is developed according to the Hazards Identification and Risks Assessment procedure of the HSEMS, in which responsibilities and methodologies are defined to ensure risks are reduced and, if possible, avoided. The Risk Assessment of each job position is reviewed and updated as applicable, pursuant to the Company's commitment to continuous improvement. The preparation of these risk assessments is carried out by senior H&S technicians. The risk assessments, as well as the risk assessment procedure itself, are audited every year with an internal audit and the external audit of ISO 45001 certification. All the findings, conclusions, and recommendations that emerge from the audits, monitoring and other reviews are managed according to the Findings Management procedure of the HSEMS, and an action plan is drawn. The results of this action plan are reviewed in subsequent audits.

In addition, the Communication, Consultation & Participation procedure of the HSEMS includes information on hazards communication management. The process of risks communication is an effective tool to establish an active information channel, fast and effective among employees, managers and the top management, to act in the fastest way possible and avoid risks that may arise. To promote the participation and commitment of the entire Company, any employee may report anomalies or detected risks on H&S and environmental issues. When an unsafe act or condition is detected, the employee may report it in an internal tool, specifying whether an immediate action is required. EDPR's commitment not to retaliate against any worker who expresses a concern about safety issues or who has intervened in any incident is included in the Company's Health & Safety Policy. The Policy also indicates that workers should remove themselves from work situations that they believe could cause injury or ill health, as no situation can justify endangering someone's life.

To know how to report, investigate and follow-up on an incident, the Incidents Management procedure is available in the HSEMS. The purpose of this procedure is to define the process to identify, respond, report, analyse and investigate incidents and respond to emergency situations, as well as to take the necessary actions to prevent and/or mitigate them.

## GRI 403-3 – Occupational health services

EDPR ensures that medical examinations are provided to the employees according to the legal requirements of each country, to determine whether employees are medically fit to carry out their specific duties. EDPR has external medical services for all employees for the medical follow-up, whose management is carried out directly by the medical service of the joint prevention service of the EDP Spain company. The detailed results of the medical examinations are confidential but shared with the employee, as EDPR receives only the conclusion of the examination: apt, not apt or apt with restrictions, indicating the restrictions.

# GRI 403-4 – Worker participation, consultation, and communication on occupational health and safety

A significant part of the Company plays a fundamental role in the implementation of its Health & Safety Policy. In this context, EDPR created health and safety committees that collect information from different operational levels.

In addition, the H&S Policy, Management System and its procedures, as well as other H&S aspects are communicated to employees using a multi-tier approach. The Policy is

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published on EDPR's website and intranet, and is also printed and posted at each facility, as the HSEMS and its documented procedures are automatically available in every employee's computer desktop for easy access. Moreover, the Company shares monthly H&S reports with its employees.

## GRI 403-5 – Worker training on occupational health and safety

The Company's commitment to ensure high safety standards for employees and contractors make EDPR an increasingly safe place to work, prioritising the safety and wellbeing of all stakeholders with the objective of zero accidents overall. In order to achieve this goal, EDPR provides training to both its employees and its contractors regarding both generic occupational health & safety aspects as well as training on specific work-related hazards.

In 2023, EDPR provided more than 31,200 hours of training on H&S topics to its employees (+60% YoY), which corresponds to over 10 hours of training per employee on average.

#### GRI 403-6 – Promotion of worker health

During 2023, both physical and mental health were once again a global priority. In this context, EDPR has several initiatives focusing on employees' health and wellbeing to ensure the continuity of care, providing employees with different tools and services such as access to online medical consultations, TelePharmacy, physiotherapy and psychological therapy sessions.

To raise awareness on mental health in particular, EDPR launched the Mind Your Mind campaign in October, which promoted educational talks with specialists, employees and other key stakeholders on how to approach the topic, especially in the current social context. In addition, the Company has a wellness platform to further develop a culture of wellness and encourage healthy habits. The aim of the programs promoted by the platform is to create a culture where employees choose to voluntarily adopt healthy habits by sharing their experiences, form support networks to facilitate the process and motivate each other.

# GRI 403-7 – Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

To guarantee that the suppliers comply with EDPR's requirements regarding sustainability in the supply chain, EDPR monitors strategic suppliers during their services delivery. EDPR performs internal inspections during the construction and operation phases to monitor the suppliers' performance regarding environmental and H&S aspects and to identify and consequently mitigate potential risks. In 2023, EDPR performed EDPR performed 4,702 audits/inspections (+114% than in 2022) to 261 suppliers (+2% YoY) regarding health and safety procedures. As a result of these inspections, the Company identifies corrective actions needed and establishes an action plan for continuous improvement.

Moreover, to prevent possible H&S risks to workers from other companies, EDPR provides a risk guide for the facility to all contractors before starting their work on the facility. In addition, the Company requires that the contractors participate in drills that are carried out at the facilities, so that everyone knows how to act in the event of an emergency. EDPR also has established, through the HSEMS's Safety Alerts Management technical instruction, the communication to contractors of any safety alert that may be applicable to the facility or the contractors.

.

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| Annual Report 2023 | GRI Report   Health and Safety |
|--------------------|--------------------------------|
|--------------------|--------------------------------|

Image /page/117/Picture/10 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters "edp" are in a dark blue color, while the word "Renewables" is in a lighter gray color.

## GRI 403-9 – Work-related injuries

| RECORDABLE WORK-RELATED INJURIES                                  | UN |           | 2023        |       |           | 2022        |       |
|-------------------------------------------------------------------|----|-----------|-------------|-------|-----------|-------------|-------|
|                                                                   |    | EMPLOYEES | CONTRACTORS | TOTAL | EMPLOYEES | CONTRACTORS | TOTAL |
| Fatal work-related injuries                                       | #  | 0         | 1           | 1     | 0         | 1           | 1     |
| Europe                                                            | #  | 0         | 0           | 0     | 0         | 0           | 0     |
| North America                                                     | #  | 0         | 0           | 0     | 0         | 0           | 0     |
| South America                                                     | #  | 0         | 1           | 1     | 0         | 1           | 1     |
| APAC                                                              | #  | 0         | 0           | 0     | 0         | 0           | 0     |
| High-consequence work-related injuries1                           | #  | 0         | 1           | 1     | 0         | 2           | 2     |
| Europe                                                            | #  | 0         | 1           | 1     | 0         | 2           | 2     |
| North America                                                     | #  | 0         | 0           | 0     | 0         | 0           | 0     |
| South America                                                     | #  | 0         | 0           | 0     | 0         | 0           | 0     |
| APAC                                                              | #  | 0         | 0           | 0     | 0         | 0           | 0     |
| Work-related injuries with lost workdays2                         | #  | 4         | 42          | 46    | 9         | 27          | 36    |
| Europe                                                            | #  | 0         | 22          | 22    | 1         | 17          | 18    |
| North America                                                     | #  | 2         | 0           | 2     | 0         | 0           | 0     |
| South America                                                     | #  | 0         | 17          | 17    | 1         | 10          | 11    |
| APAC                                                              | #  | 2         | 3           | 5     | 7         | 0           | 7     |
| Work-related injuries that result in fatalities and lost workdays | #  | 4         | 43          | 47    | 9         | 30          | 39    |
| Europe                                                            | #  | 0         | 22          | 22    | 1         | 19          | 20    |
| North America                                                     | #  | 2         | 0           | 2     | 0         | 0           | 0     |
| Soth America                                                      | #  | 0         | 18          | 18    | 1         | 11          | 12    |
| APAC                                                              | #  | 2         | 3           | 5     | 7         | 0           | 7     |
| TOTAL RECORDABLE WORK-RELATED INJURIES3                           | #  | 18        | 68          | 86    | 17        | 45          | 62    |
| Europe                                                            | #  | 2         | 28          | 30    | 2         | 25          | 27    |
| North America                                                     | #  | 14        | 18          | 32    | 7         | 9           | 16    |
| South America                                                     | #  | 0         | 19          | 19    | 1         | 11          | 12    |
| APAC                                                              | #  | 2         | 3           | 5     | 7         | 0           | 7     |

<sup>1</sup>Excludes fatalities. Refers to work-related injuries that result in more than 6 months of lost workdays.

<sup>2</sup> Excludes high-consequence injuries.

<sup>3</sup>Commuting incidents are not included. There were 2 commuting accidents with EDPR workers in 2023, none of which resulted in lost days. In 2022, there were 5 commuting accidents of EDPR employees, of which 3 resulted in lost workdays.

Note: The 4 employees impacted by work-related injuries with lost workdays in 2023 were male. Even though EDPR does not register H&S indicators by gender for contractors, normally the majority of contractors working on EDPR sites are men.

|  | C |
|--|---|

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| 119 |  |
|-----|--|
|     |  |

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Image /page/118/Picture/5 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark gray color.

| WORKED HOURS  | UN | EMPLOYEES | CONTRACTORS | TOTAL      | EMPLOYEES | CONTRACTORS | TOTAL      |
|---------------|----|-----------|-------------|------------|-----------|-------------|------------|
| Europe        | #  | 1,486,110 | 3,607,449   | 5,093,558  | 2,154,302 | 2,389,723   | 4,544,025  |
| North America | #  | 2,056,217 | 6,218,093   | 8,274,310  | 1,744,415 | 2,933,039   | 4,677,454  |
| South America | #  | 369,300   | 5,455,811   | 5,825,111  | 311,301   | 3,687,020   | 3,998,321  |
| APAC          | #  | 1,349,589 | 1,566,489   | 2,916,078  | 1,455,986 | 619,556     | 2,075,542  |
| TOTAL         | #  | 5,261,215 | 16,847,842  | 22,109,057 | 5,666,004 | 9,629,338   | 15,295,342 |

| LOST WORKDAYS DUE TO WORK-RELATED INJURIES | UN | 2023      |             |       | 2022      |             |       |
|--------------------------------------------|----|-----------|-------------|-------|-----------|-------------|-------|
|                                            |    | EMPLOYEES | CONTRACTORS | TOTAL | EMPLOYEES | CONTRACTORS | TOTAL |
| Europe                                     | #  | 0         | 772         | 772   | 1         | 1,254       | 1,255 |
| North America                              | #  | 156       | 0           | 156   | 210       | 0           | 210   |
| South America                              | #  | 0         | 209         | 209   | 7         | 1,003       | 1,010 |
| APAC                                       | #  | 12        | 287         | 299   | 69        | 0           | 69    |
| TOTAL                                      | #  | 168       | 1,268       | 1,436 | 287       | 2,257       | 2,544 |

Note: The number of lost days is calculated as the number of calendar days starting the day after the accident.

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| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------<br>------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|
| C                                                                                                                                                                                                                                                                                                                                                                |  |

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Image /page/119/Picture/8 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font. The letters are stacked on top of the word "Renewables", which is in a smaller, lighter blue, sans-serif font.

| FREQUENCY RATE OF WORK-RELATED INJURIES                                   | UN |           | 2023        |       |           |             | 2022  |  |
|---------------------------------------------------------------------------|----|-----------|-------------|-------|-----------|-------------|-------|--|
|                                                                           |    | EMPLOYEES | CONTRACTORS | TOTAL | EMPLOYEES | CONTRACTORS | TOTAL |  |
| Rate of fatal work-related injuries                                       | x  | 0.0       | 0.1         | 0.05  | 0.0       | 0.1         | 0.1   |  |
| Europe                                                                    | x  | 0.0       | 0.0         | 0.0   | 0.0       | 0.0         | 0.0   |  |
| North America                                                             | x  | 0.0       | 0.0         | 0.0   | 0.0       | 0.0         | 0.0   |  |
| South America                                                             | x  | 0.0       | 0.2         | 0.2   | 0.0       | 0.3         | 0.3   |  |
| APAC                                                                      | x  | 0.0       | 0.0         | 0.0   | 0.0       | 0.0         | 0.0   |  |
| Rate of high-consequence work-related injuries 1                          | x  | 0.0       | 0.1         | 0.05  | 0.0       | 0.2         | 0.1   |  |
| Europe                                                                    | x  | 0.0       | 0.3         | 0.2   | 0.0       | 0.8         | 0.4   |  |
| North America                                                             | x  | 0.0       | 0.0         | 0.0   | 0.0       | 0.0         | 0.0   |  |
| South America                                                             | x  | 0.0       | 0.0         | 0.0   | 0.0       | 0.0         | 0.0   |  |
| APAC                                                                      | x  | 0.0       | 0.0         | 0.0   | 0.0       | 0.0         | 0.0   |  |
| Rate of work-related injuries that result in fatalities and lost workdays | x  | 0.8       | 2.6         | 2.1   | 1.6       | 3.1         | 2.5   |  |
| Europe                                                                    | x  | 0.0       | 6.1         | 4.3   | 0.5       | 8.0         | 4.4   |  |
| North America                                                             | x  | 1.0       | 0.0         | 0.2   | 0.0       | 0.0         | 0.0   |  |
| South America                                                             | x  | 0.0       | 3.3         | 3.1   | 3.2       | 3.0         | 3.0   |  |
| APAC                                                                      | x  | 1.5       | 1.9         | 1.7   | 4.8       | 0.0         | 3.4   |  |
| RATE OF TOTAL RECORDABLE WORK-RELATED 2                                   | x  | 3.4       | 4.0         | 3.9   | 3.0       | 4.7         | 4.1   |  |
| Europe                                                                    | x  | 1.3       | 7.8         | 5.9   | 0.9       | 10.5        | 5.9   |  |
| North America                                                             | x  | 6.8       | 2.9         | 3.9   | 4.0       | 3.1         | 3.4   |  |
| South America                                                             | x  | 0.0       | 3.5         | 3.3   | 3.2       | 3.0         | 3.0   |  |
| APAC                                                                      | x  | 1.5       | 1.9         | 1.7   | 4.8       | 0.0         | 3.4   |  |

<sup>1</sup> Excludes fatalities. Refers to work-related injuries that result in more than 6 months of lost workdays.

<sup>2</sup> Commuting incidents are not included. There were 2 commuting accidents with EDPR workers in 2023, none of which resulted in lost days. In 2022, there were 5 commuting accidents of EDPR employees, of which 3 resulted in lost workdays.

Note: Frequency rate calculated as [# of work-related injuries/Hours worked \* 1,000,000].

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Annual Report 202 3 GRI Report | Health andSafety

Image /page/120/Picture/18 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark blue color.

| SEVERITY RATE OF WORK-RELATED INJURIES | UN |           | 2023        |       |           | 2022        |       |  |
|----------------------------------------|----|-----------|-------------|-------|-----------|-------------|-------|--|
|                                        |    | EMPLOYEES | CONTRACTORS | TOTAL | EMPLOYEES | CONTRACTORS | TOTAL |  |
| Europe                                 | x  | 0         | 214         | 152   | 0         | 525         | 276   |  |
| North America                          | x  | 76        | 0           | 19    | 120       | 0           | 45    |  |
| South America                          | x  | 0         | 38          | 36    | 22        | 272         | 253   |  |
| APAC                                   | x  | 9         | 183         | 103   | 47        | 0           | 33    |  |
| TOTAL                                  | x  | 32        | 75          | 65    | 51        | 234         | 166   |  |

Note 1: Severity rate calculated as [# of Lost workdays/Hours worked\*1,000,000].

During 2023, EDPR registered 47 work-related injuries that resulted in lost workdays for employees and contractors (+21% YoY). One of the injuries with a contractor in Brazil was fatal and EDPR has defined an action plan with corrective measures to further mitigate these incidents, which was revised and approved by the Company's Management Team.

In 2023, the injury and the lost day rate were 2.1 work injuries per million hours worked (- 15% YoY) and 65 days lost due to work accident per million hours worked (-61% YoY), respectively. The interannual variations of these ratios are mostly impacted by an increase in worked hours (+45% YoY).

However, EDPR continuously works to improve these ratios and to bring awareness to the best H&S practices. This is reinforced by the integrated Health & Safety and Environmental Management System, developed and certified according to international standards ISO 45001 and ISO 14001 for a more global and efficient approach, simplifying processes and managing the potential risks of its activity. The HSEMS, where synergies play a fundamental role, was implemented and jointly certified by an independent certifying organisation. The implementation of this integrated system allows for better management and prevention of accidents, with the objective of zero accidents overall. The commitment to health & safety is further supported through the ISO 45001 certification, which covers c.85%<sup>1</sup> of EDPR's installed capacity by the end of 2023.

1 Calculation based on 2022YE installed capacity (EBITDA MWs). EDPR certifies the facilities the year after the COD (commercial operating date). Thus, the facilities that have entered into operation in 2023 will be certified in 2024.

# GRI 403-10 – Work-related ill-health

EDPR has no knowledge of any cases of occupational diseases in the company. EDPR is working to systematise the registration of this type of diseases, if detected.

GRI EU17 – Days worked by contractor and subcontractor employees involved in construction, operation and maintenance

# activities

Contractors involved in construction, operation and maintenance activities worked an average of 2,105,980 days during 2023, which represents an increase of 75% when compared to the previous year.

GRI EU25 – Number of injuries and fatalities to the public involving company assets, including legal judgments, settlements and pending legal cases of diseases

EDPR has no knowledge of any legal judgments, settlements and pending legal cases of diseases in 2023, neither in 2022.

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Annual Report 2023 GRI Report | Health and Safety

Image /page/121/Picture/4 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters "edp" are in a dark color, while "Renewables" is in a lighter shade of gray.

==

#### Absenteeism

| ABSENTEEISM BY COUNTRY | 2023      | 2022      |
|------------------------|-----------|-----------|
|                        | HOURS (#) | HOURS (#) |
| Europe                 | 28,780    | 19,357    |
| Spain                  | 20,915    | 13,853    |
| Portugal               | 1,110     | 759       |
| France & Belgium       | 3,556     | 1,062     |
| Italy                  | 559       | 756       |
| Poland                 | 1,664     | 2,528     |
| Romania                | 400       | 376       |
| Greece                 | 64        | 0         |
| Hungary                | 112       | 24        |
| United Kingdom         | 400       | 0         |
| North America          | 28,504    | 28,563    |
| North America          | 28,504    | 28,563    |
| South America          | 776       | 1,094     |
| Brazil                 | 552       | 568       |
| Colombia               | 152       | 288       |
| Chile                  | 72        | 238       |
| APAC                   | 16,868    | 26,308    |
| Singapore              | 16,868    | 26,308    |
| TOTAL                  | 74,928    | 75,322    |

Note 1: EDPR defines absenteeism as total of non-worked hours in workable periods, including absence hours due to accidents, absence hours due to diseases and absence hours due to other not justified motives.

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Image /page/122/Picture/10 description: The image contains the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark blue color.

# 4.5. People management

For information regarding GRI 3-3 –Management of material topics, please refer to section People Management of the chapter Performance. Moreover, please find other people management related topics at the end of this section.

Please note that there are 51 employees who do not disclose their gender, as they are located in the United States where it is not mandatory to provide this information.

GRI 2-7 – Employees

EDPR had 3,043 employees in 2023, -1% when compared to the previous year.

In the table below, the number of full-time/part-time employees in 2023 is disclosed by age group, gender, and professional category.

By the end of 2023, 100% of EDPR's employees worked full-time (vs 99% in 2022).

| FULL-TIME / PART-TIME EMPLOYEES | UN |        | UNDER 30<br>YEARS OLD |                      |        | BETWEEN 30 AND 50<br>YEARS OLD |                      |        |      | OVER 50<br>YEARS OLD |       |  | TOTAL |
|---------------------------------|----|--------|-----------------------|----------------------|--------|--------------------------------|----------------------|--------|------|----------------------|-------|--|-------|
|                                 |    | FEMALE | MALE                  | DECLINE TO<br>ANSWER | FEMALE | MALE                           | DECLINE TO<br>ANSWER | FEMALE | MALE | DECLINE TO<br>ANSWER |       |  |       |
| Full-time                       | #  | 214    | 367                   | 14                   | 702    | 1,313                          | 34                   | 121    | 275  | 3                    | 3,043 |  |       |
| Senior managers                 | #  | 0      | 0                     | 0                    | 30     | 71                             | 0                    | 7      | 40   | 0                    | 148   |  |       |
| Managers                        | #  | 3      | 5                     | 0                    | 91     | 202                            | 3                    | 22     | 71   | 0                    | 397   |  |       |
| Specialists                     | #  | 199    | 237                   | 5                    | 533    | 851                            | 16                   | 66     | 136  | 1                    | 2,044 |  |       |
| Technicians                     | #  | 12     | 125                   | 9                    | 48     | 189                            | 15                   | 26     | 28   | 2                    | 454   |  |       |
| Part-time                       | #  | 0      | 0                     | 0                    | 0      | 0                              | 0                    | 0      | 0    | 0                    | 0     |  |       |
| Senior managers                 | #  | 0      | 0                     | 0                    | 0      | 0                              | 0                    | 0      | 0    | 0                    | 0     |  |       |
| Managers                        | #  | 0      | 0                     | 0                    | 0      | 0                              | 0                    | 0      | 0    | 0                    | 0     |  |       |
| Specialists                     | #  | 0      | 0                     | 0                    | 0      | 0                              | 0                    | 0      | 0    | 0                    | 0     |  |       |
| Technicians                     | #  | 0      | 0                     | 0                    | 0      | 0                              | 0                    | 0      | 0    | 0                    | 0     |  |       |
| TOTAL                           | #  | 214    | 367                   | 14                   | 702    | 1,313                          | 34                   | 121    | 275  | 3                    | 3,043 |  |       |

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Annual Report 2023 GRI Report | People management

Image /page/123/Picture/3 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font. The word "Renewables" is written in a smaller, lighter blue font below the letters "edp".

In the table below, the number of full-time / part-time employees in 2022 is disclosed by age group, gender and professional category.

| FULL-TIME / PART-TIME EMPLOYEES | UN | UNDER 30<br>YEARS OLD |      | BETWEEN 30 AND 50<br>YEARS OLD | MALE  | OVER 50<br>YEARS OLD |      | TOTAL |
|---------------------------------|----|-----------------------|------|--------------------------------|-------|----------------------|------|-------|
|                                 |    | FEMALE                | MALE | FEMALE                         | MALE  | FEMALE               | MALE |       |
| Full-time                       | #  | 259                   | 494  | 622                            | 1,343 | 90                   | 238  | 3,046 |
| Senior managers                 | #  | 1                     | 3    | 75                             | 210   | 15                   | 73   | 377   |
| Managers                        | #  | 10                    | 21   | 83                             | 158   | 10                   | 30   | 312   |
| Specialists                     | #  | 220                   | 274  | 415                            | 758   | 47                   | 121  | 1,835 |
| Technicians                     | #  | 28                    | 196  | 49                             | 217   | 18                   | 14   | 522   |
| Part-time                       | #  | 1                     | 0    | 29                             | 2     | 6                    | 2    | 40    |
| Senior managers                 | #  | 0                     | 0    | 2                              | 0     | 1                    | 1    | 4     |
| Managers                        | #  | 0                     | 0    | 2                              | 0     | 0                    | 0    | 2     |
| Specialists                     | #  | 1                     | 0    | 21                             | 2     | 5                    | 0    | 29    |
| Technicians                     | #  | 0                     | 0    | 4                              | 0     | 0                    | 1    | 5     |
| TOTAL                           | #  | 260                   | 494  | 651                            | 1,345 | 96                   | 240  | 3,086 |

{124}------------------------------------------------

EDPR fosters quality employment with 98% (vs 98% in 2022) of permanent contracts throughout the year (based on the proportion of permanent and temporary contracts at the end of each month). Temporary employees represent 2% of EDPR's team throughout the year, and therefore, the company does not report the average contracts.

In the table below, the number of permanent / temporary employees in 2023 is disclosed by age group, gender and professional category.

| PERMANENT / TEMPORARY EMPLOYEES | UN | FEMALE | MALE | DECLINE TO<br>ANSWER | FEMALE | MALE  | DECLINE TO<br>ANSWER | FEMALE | MALE | DECLINE TO<br>ANSWER | TOTAL |
|---------------------------------|----|--------|------|----------------------|--------|-------|----------------------|--------|------|----------------------|-------|
| Permanent                       | #  | 212    | 361  | 14                   | 693    | 1,295 | 34                   | 110    | 254  | 3                    | 2,976 |
| Senior managers                 | #  | 0      | 0    | 0                    | 30     | 71    | 0                    | 7      | 40   | 0                    | 148   |
| Managers                        | #  | 3      | 5    | 0                    | 91     | 202   | 3                    | 22     | 71   | 0                    | 397   |
| Specialists                     | #  | 197    | 231  | 5                    | 528    | 833   | 16                   | 64     | 116  | 1                    | 1,991 |
| Technicians                     | #  | 12     | 125  | 9                    | 44     | 189   | 15                   | 17     | 27   | 2                    | 440   |
| Temporary                       | #  | 2      | 6    | 0                    | 9      | 18    | 0                    | 11     | 21   | 0                    | 67    |
| Senior managers                 | #  | 0      | 0    | 0                    | 0      | 0     | 0                    | 0      | 0    | 0                    | 0     |
| Managers                        | #  | 0      | 0    | 0                    | 0      | 0     | 0                    | 0      | 0    | 0                    | 0     |
| Specialists                     | #  | 2      | 6    | 0                    | 5      | 18    | 0                    | 2      | 20   | 0                    | 53    |
| Technicians                     | #  | 0      | 0    | 0                    | 4      | 0     | 0                    | 9      | 1    | 0                    | 14    |
| TOTAL                           | #  | 214    | 367  | 14                   | 702    | 1,313 | 34                   | 121    | 275  | 3                    | 3,043 |

Note 1: EDPR keeps a constant number of employees throughout the year, which makes the difference between the final number of employees and the average not significant. In 2022, this difference (13%) is slightly higher than previous years due to the incorporation of Sunseap. Note 2: 92% of the temporary employees are located in North America, 7% in Europe and 1% in Asia-Pacific.

The average number of contractors during 2023 was 1,833 in Europe, 3,147 in North America, 2,761 in South America and 798 in APAC.

{125}------------------------------------------------

Annual Report 2023 GRI Report | People management

Image /page/125/Picture/3 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font. Below the letters, in a smaller font, is the word "Renewables".

In the table below, the number of permanent/temporary employees in 2022 is disclosed by age group, gender, and professional category.

| PERMANENT / TEMPORARY EMPLOYEES | UN | UNDER 30<br>YEARS OLD |      | BETWEEN 30 AND 50<br>YEARS OLD |       | OVER 50<br>YEARS OLD |      | TOTAL |
|---------------------------------|----|-----------------------|------|--------------------------------|-------|----------------------|------|-------|
|                                 |    | FEMALE                | MALE | FEMALE                         | MALE  | FEMALE               | MALE |       |
| Permanent                       | #  | 252                   | 486  | 639                            | 1,329 | 89                   | 216  | 3,011 |
| Senior managers                 | #  | 1                     | 3    | 77                             | 210   | 16                   | 74   | 381   |
| Managers                        | #  | 10                    | 21   | 85                             | 158   | 10                   | 29   | 313   |
| Specialists                     | #  | 219                   | 267  | 431                            | 744   | 52                   | 99   | 1,812 |
| Technicians                     | #  | 22                    | 195  | 46                             | 217   | 11                   | 14   | 505   |
| Temporary                       | #  | 8                     | 8    | 12                             | 16    | 7                    | 24   | 75    |
| Senior managers                 | #  | 0                     | 0    | 0                              | 0     | 0                    | 0    | 0     |
| Managers                        | #  | 0                     | 0    | 0                              | 0     | 0                    | 1    | 1     |
| Specialists                     | #  | 2                     | 7    | 5                              | 16    | 0                    | 22   | 52    |
| Technicians                     | #  | 6                     | 1    | 7                              | 0     | 7                    | 1    | 22    |
| TOTAL                           | #  | 260                   | 494  | 651                            | 1,345 | 96                   | 240  | 3,086 |

{126}------------------------------------------------

Annual Report 2023 GRI Report | People management

In the table below, the number of employees in 2023 is disclosed by age group, gender, region, and professional category.

| EMPLOYEES BY REGION   | UN |        | UNDER 30 YEARS OLD    |                      |                   | BETWEEN 30 AND 50 YEARS OLD    |                      |                   | OVER 50 YEARS OLD    |                      |                   | TOTAL |
|-----------------------|----|--------|-----------------------|----------------------|-------------------|--------------------------------|----------------------|-------------------|----------------------|----------------------|-------------------|-------|
|                       |    |        | FEMALE                | MALE                 | DECLINE TO ANSWER | FEMALE                         | MALE                 | DECLINE TO ANSWER | FEMALE               | MALE                 | DECLINE TO ANSWER |       |
| Spain                 | #  |        | 59                    | 75                   | 0                 | 231                            | 326                  | 0                 | 33                   | 86                   | 0                 | 810   |
| Senior managers       | #  |        | 0                     | 0                    | 0                 | 11                             | 18                   | 0                 | 3                    | 22                   | 0                 | 54    |
| Managers              | #  |        | 0                     | 0                    | 0                 | 34                             | 48                   | 0                 | 6                    | 19                   | 0                 | 107   |
| Specialists           | #  |        | 59                    | 74                   | 0                 | 182                            | 249                  | 0                 | 21                   | 39                   | 0                 | 624   |
| Technicians           | #  |        | 0                     | 1                    | 0                 | 4                              | 11                   | 0                 | 3                    | 6                    | 0                 | 25    |
| Portugal              | #  |        | 6                     | 13                   | 0                 | 26                             | 85                   | 0                 | 8                    | 20                   | 0                 | 158   |
| Senior managers       | #  |        | 0                     | 0                    | 0                 | 2                              | 2                    | 0                 | 0                    | 2                    | 0                 | 6     |
| Managers              | #  |        | 0                     | 0                    | 0                 | 1                              | 14                   | 0                 | 0                    | 7                    | 0                 | 22    |
| Specialists           | #  |        | 6                     | 12                   | 0                 | 22                             | 50                   | 0                 | 7                    | 9                    | 0                 | 106   |
| Technicians           | #  |        | 0                     | 1                    | 0                 | 1                              | 19                   | 0                 | 1                    | 2                    | 0                 | 24    |
| Rest of Europe        | #  |        | 32                    | 51                   | 0                 | 103                            | 189                  | 0                 | 10                   | 37                   | 0                 | 422   |
| Senior managers       | #  |        | 0                     | 0                    | 0                 | 0                              | 5                    | 0                 | 0                    | 1                    | 0                 | 6     |
| Managers              | #  |        | 1                     | 1                    | 0                 | 14                             | 33                   | 0                 | 4                    | 11                   | 0                 | 64    |
| Specialists           | #  |        | 29                    | 47                   | 0                 | 87                             | 136                  | 0                 | 4                    | 25                   | 0                 | 328   |
| Technicians           | #  |        | 2                     | 3                    | 0                 | 2                              | 15                   | 0                 | 2                    | 0                    | 0                 | 24    |
| USA                   | #  |        | 73                    | 164                  | 13                | 180                            | 430                  | 34                | 57                   | 104                  | 3                 | 1,058 |
| Senior managers       | #  |        | 0                     | 0                    | 0                 | 10                             | 26                   | 0                 | 4                    | 9                    | 0                 | 49    |
| Managers              | #  |        | 2                     | 4                    | 0                 | 25                             | 65                   | 3                 | 8                    | 26                   | 0                 | 133   |
| Specialists           | #  |        | 65                    | 68                   | 5                 | 111                            | 259                  | 16                | 25                   | 54                   | 1                 | 604   |
| Technicians           | #  |        | 6                     | 92                   | 8                 | 34                             | 80                   | 15                | 20                   | 15                   | 2                 | 272   |
| Rest of North America | #  |        | 0                     | 1                    | 1                 | 3                              | 8                    | 0                 | 0                    | 2                    | 0                 | 15    |
| Senior managers       | #  |        | 0                     | 0                    | 0                 | 0                              | 0                    | 0                 | 0                    | 0                    | 0                 | 0     |
| Managers              | #  |        | 0                     | 0                    | 0                 | 1                              | 2                    | 0                 | 0                    | 1                    | 0                 | 4     |
| Specialists           | #  |        | 0                     | 1                    | 0                 | 1                              | 6                    | 0                 | 0                    | 1                    | 0                 | 9     |
| Technicians           | #  |        | 0                     | 0                    | 1                 | 1                              | 0                    | 0                 | 0                    | 0                    | 0                 | 2     |
| EMPLOYEES BY REGION   | UN |        | UNDER 30<br>YEARS OLD |                      |                   | BETWEEN 30 AND 50<br>YEARS OLD |                      |                   | OVER 50<br>YEARS OLD |                      | TOTAL             |       |
|                       |    | FEMALE | MALE                  | DECLINE TO<br>ANSWER | FEMALE            | MALE                           | DECLINE TO<br>ANSWER | FEMALE            | MALE                 | DECLINE TO<br>ANSWER |                   |       |
| South America         | #  | 17     | 10                    | 0                    | 51                | 89                             | 0                    | 7                 | 6                    | 0                    | 180               |       |
| Senior managers       | #  | 0      | 0                     | 0                    | 1                 | 3                              | 0                    | 0                 | 1                    | 0                    | 5                 |       |
| Managers              | #  | 0      | 0                     | 0                    | 3                 | 14                             | 0                    | 1                 | 2                    | 0                    | 20                |       |
| Specialists           | #  | 17     | 10                    | 0                    | 47                | 66                             | 0                    | 6                 | 2                    | 0                    | 148               |       |
| Technicians           | #  | 0      | 0                     | 0                    | 0                 | 6                              | 0                    | 0                 | 1                    | 0                    | 7                 |       |
| Singapore             | #  | 20     | 47                    | 0                    | 67                | 138                            | 0                    | 5                 | 14                   | 0                    | 291               |       |
| Senior managers       | #  | 0      | 0                     | 0                    | 5                 | 12                             | 0                    | 0                 | 4                    | 0                    | 21                |       |
| Managers              | #  | 0      | 0                     | 0                    | 9                 | 22                             | 0                    | 2                 | 3                    | 0                    | 36                |       |
| Specialists           | #  | 18     | 19                    | 0                    | 52                | 48                             | 0                    | 3                 | 3                    | 0                    | 143               |       |
| Technicians           | #  | 2      | 28                    | 0                    | 1                 | 56                             | 0                    | 0                 | 4                    | 0                    | 91                |       |
| Rest of APAC          | #  | 7      | 6                     | 0                    | 41                | 48                             | 0                    | 1                 | 6                    | 0                    | 109               |       |
| Senior managers       | #  | 0      | 0                     | 0                    | 1                 | 5                              | 0                    | 0                 | 1                    | 0                    | 7                 |       |
| Managers              | #  | 0      | 0                     | 0                    | 4                 | 4                              | 0                    | 1                 | 2                    | 0                    | 11                |       |
| Specialists           | #  | 5      | 6                     | 0                    | 31                | 37                             | 0                    | 0                 | 3                    | 0                    | 82                |       |
| Technicians           | #  | 2      | 0                     | 0                    | 5                 | 2                              | 0                    | 0                 | 0                    | 0                    | 9                 |       |
| TOTAL                 | #  | 214    | 367                   | 14                   | 702               | 1,313                          | 34                   | 121               | 275                  | 3                    | 3,043             |       |

{127}------------------------------------------------

Annual Report 2023 GRI Report | People management

Image /page/127/Picture/5 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a simple, sans-serif font, stacked above the word "Renewables" in a smaller, similar font. The letters and word are in a dark gray or black color.

{128}------------------------------------------------

Annual Report 2023 GRI Report | People management

In the table below, the number of permanent/temporary employees in 2022 is disclosed by age group, gender, and professional category.

| EMPLOYEES BY REGION   | UN | UNDER 30<br>YEARS OLD |      | BETWEEN 30 AND 50 YEARS OLD |      | OVER 50<br>YEARS OLD |      | TOTAL |
|-----------------------|----|-----------------------|------|-----------------------------|------|----------------------|------|-------|
|                       |    | FEMALE                | MALE | FEMALE                      | MALE | FEMALE               | MALE |       |
| Spain                 | #  | 74                    | 89   | 204                         | 304  | 23                   | 65   | 759   |
| Senior managers       | #  | 1                     | 1    | 34                          | 55   | 6                    | 31   | 128   |
| Managers              | #  | 1                     | 4    | 23                          | 35   | 2                    | 4    | 69    |
| Specialists           | #  | 71                    | 83   | 143                         | 212  | 14                   | 30   | 553   |
| Technicians           | #  | 1                     | 1    | 4                           | 2    | 1                    | 0    | 9     |
| Portugal              | #  | 9                     | 13   | 20                          | 84   | 4                    | 21   | 151   |
| Senior managers       | #  | 0                     | 0    | 2                           | 11   | 0                    | 8    | 21    |
| Managers              | #  | 0                     | 0    | 0                           | 7    | 0                    | 2    | 9     |
| Specialists           | #  | 9                     | 13   | 17                          | 66   | 3                    | 11   | 119   |
| Technicians           | #  | 0                     | 0    | 1                           | 0    | 1                    | 0    | 2     |
| Rest of Europe        | #  | 33                    | 51   | 91                          | 181  | 7                    | 18   | 381   |
| Senior managers       | #  | 0                     | 0    | 7                           | 20   | 1                    | 5    | 33    |
| Managers              | #  | 1                     | 5    | 8                           | 22   | 3                    | 3    | 42    |
| Specialists           | #  | 28                    | 38   | 72                          | 136  | 2                    | 10   | 286   |
| Technicians           | #  | 4                     | 8    | 4                           | 3    | 1                    | 0    | 20    |
| USA                   | #  | 92                    | 209  | 187                         | 426  | 53                   | 99   | 1,066 |
| Senior managers       | #  | 0                     | 2    | 28                          | 90   | 7                    | 26   | 153   |
| Managers              | #  | 6                     | 9    | 21                          | 45   | 3                    | 13   | 97    |
| Specialists           | #  | 71                    | 96   | 100                         | 206  | 28                   | 47   | 548   |
| Technicians           | #  | 15                    | 102  | 38                          | 85   | 15                   | 13   | 268   |
| Rest of North America | #  | 3                     | 2    | 2                           | 16   | 0                    | 5    | 28    |
| Senior managers       | #  | 0                     | 0    | 0                           | 4    | 0                    | 0    | 4     |
| Managers              | #  | 0                     | 0    | 0                           | 1    | 0                    | 2    | 3     |
| Specialists           | #  | 2                     | 2    | 0                           | 10   | 0                    | 3    | 17    |
| Technicians           | #  | 1                     | 0    | 2                           | 1    | 0                    | 0    | 4     |

==

↺

{129}------------------------------------------------

| ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------<br>------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|
|                                                                                                                                                                                                                                                                                                                                                                  |  |
| C                                                                                                                                                                                                                                                                                                                                                                |  |

Annual Report 2023 GRI Report | People management

| Renewables |  |
|------------|--|

| EMPLOYEES BY REGION | UN | UNDER 30<br>YEARS OLD |      | BETWEEN 30 AND 50 YEARS OLD |       | OVER 50<br>YEARS OLD |      | TOTAL |
|---------------------|----|-----------------------|------|-----------------------------|-------|----------------------|------|-------|
|                     |    | FEMALE                | MALE | FEMALE                      | MALE  | FEMALE               | MALE |       |
| South America       | #  | 15                    | 8    | 45                          | 85    | 5                    | 5    | 163   |
| Senior managers     | #  | 0                     | 0    | 1                           | 10    | 1                    | 2    | 14    |
| Managers            | #  | 0                     | 0    | 8                           | 10    | 1                    | 0    | 19    |
| Specialists         | #  | 15                    | 8    | 36                          | 65    | 3                    | 3    | 130   |
| Technicians         | #  | 0                     | 0    | 0                           | 0     | 0                    | 0    | 0     |
| Singapore           | #  | 28                    | 114  | 66                          | 213   | 4                    | 22   | 447   |
| Senior managers     | #  | 0                     | 0    | 5                           | 15    | 1                    | 2    | 23    |
| Managers            | #  | 1                     | 2    | 17                          | 30    | 1                    | 3    | 54    |
| Specialists         | #  | 23                    | 27   | 43                          | 45    | 2                    | 15   | 155   |
| Technicians         | #  | 4                     | 85   | 1                           | 123   | 0                    | 2    | 215   |
| Rest of APAC        | #  | 6                     | 8    | 36                          | 36    | 0                    | 5    | 91    |
| Senior managers     | #  | 0                     | 0    | 0                           | 5     | 0                    | 0    | 5     |
| Managers            | #  | 1                     | 1    | 8                           | 8     | 0                    | 3    | 21    |
| Specialists         | #  | 2                     | 7    | 25                          | 20    | 0                    | 2    | 56    |
| Technicians         | #  | 3                     | 0    | 3                           | 3     | 0                    | 0    | 9     |
| TOTAL               | #  | 260                   | 494  | 651                         | 1,345 | 96                   | 240  | 3,086 |

{130}------------------------------------------------

edp
Renewables

## GRI 2-30 – Collective bargaining agreements

According to its Code of Ethics, EDPR undertakes to respect freedom of trade union association and recognise the right to collective bargaining.

At EDPR, from 3,043 employees, 14% were covered by collective bargaining agreements in 2023 (+2.6pp YoY). Collective bargaining agreements include different topics such as career development, mobility, salaries, health & safety etc. and apply to all employees working under an employment relationship with some companies of EDPR group, regardless of the type of contract, the professional group into which they are classified, their occupation or job. However, matters relating to the corporate organisation itself, the laws of each country or even usage and custom in each country result in certain groups being expressly excluded from the scope of collective bargaining agreements.

The collective bargaining agreements that are applied at EDPR are usually negotiated at the state level or regional level, and EDPR may be just one of the players among other leading sectorial companies in the negotiation with employees' representatives and, in some cases, governmental representatives. In Portugal and Brazil, EDP negotiates its own agreements with employees, and those apply to any employee working for companies of the Group, including EDPR.

During the last years, EDPR has performed different benchmark analyses of the benefits stated in the different collective bargaining agreements that apply to its employees, comparing them against the benefits offered by the company and, in general terms, the company offers a more competitive benefits package compared to what is stated in the collective bargaining agreement.

| EMPLOYEES COVERED BY COLLECTIVE BARGAINING AGREEMENTS | UN | 2023 | 2022 | UN | 2023  | 2022  |
|-------------------------------------------------------|----|------|------|----|-------|-------|
| Europe                                                | #  | 321  | 295  | %  | 23%   | 23%   |
| Spain                                                 | #  | 0    | 41   | %  | 0%    | 5%    |
| Portugal                                              | #  | 158  | 135  | %  | 100%  | 89%   |
| Rest of Europe                                        | #  | 163  | 119  | %  | 39%   | 31%   |
| North America                                         | #  | 0    | 0    | %  | 0%    | 0%    |
| US                                                    | #  | 0    | 0    | %  | 0%    | 0%    |
| Rest of North America                                 | #  | 0    | 0    | %  | 0%    | 0%    |
| South America                                         | #  | 115  | 67   | %  | 64%   | 41%   |
| Brazil                                                | #  | 115  | 66   | %  | 97%   | 62%   |
| Rest of South America                                 | #  | 0    | 1    | %  | 0%    | 2%    |
| APAC                                                  | #  | 0    | 0    | %  | 0%    | 0%    |
| TOTAL                                                 | #  | 436  | 362  | %  | 14.3% | 11.7% |

{131}------------------------------------------------

Annual Report 2023 GRI Report | People management

**edp**

Renewables

---

## GRI 401-1 – New employee hires and employee turnover

Throughout the year EDPR hired 639 employees.

| NEW HIRES     | UN | UNDER 30<br>YEARS OLD |      |                      |        | BETWEEN 30 AND 50<br>YEARS OLD |                      | OVER 50<br>YEARS OLD |      |                      | TOTAL |
|---------------|----|-----------------------|------|----------------------|--------|--------------------------------|----------------------|----------------------|------|----------------------|-------|
|               |    | FEMALE                | MALE | DECLINE TO<br>ANSWER | FEMALE | MALE                           | DECLINE TO<br>ANSWER | FEMALE               | MALE | DECLINE TO<br>ANSWER |       |
| Europe        | #  | 47                    | 67   | 0                    | 58     | 93                             | 0                    | 6                    | 11   | 0                    | 282   |
| North America | #  | 9                     | 31   | 62                   | 6      | 38                             | 86                   | 0                    | 7    | 8                    | 247   |
| South America | #  | 7                     | 4    | 0                    | 6      | 11                             | 0                    | 0                    | 0    | 0                    | 28    |
| APAC          | #  | 10                    | 11   | 0                    | 25     | 33                             | 0                    | 1                    | 2    | 0                    | 82    |
| TOTAL         | #  | 73                    | 113  | 62                   | 95     | 175                            | 86                   | 7                    | 20   | 8                    | 639   |

#### In 2022, EDPR hired 1,217 employees.

| NEW HIRES     | UN | UNDER 30<br>YEARS OLD |      | BETWEEN 30 AND 50<br>YEARS OLD |      | OVER 50<br>YEARS OLD |      | TOTAL |
|---------------|----|-----------------------|------|--------------------------------|------|----------------------|------|-------|
|               |    | FEMALE                | MALE | FEMALE                         | MALE | FEMALE               | MALE |       |
| Europe        | #  | 52                    | 75   | 49                             | 108  | 5                    | 8    | 297   |
| North America | #  | 36                    | 99   | 48                             | 95   | 9                    | 14   | 301   |
| South America | #  | 7                     | 2    | 18                             | 25   | 2                    | 2    | 56    |
| APAC          | #  | 37                    | 137  | 104                            | 254  | 6                    | 25   | 563   |
| TOTAL         | #  | 132                   | 313  | 219                            | 482  | 22                   | 49   | 1,217 |

{132}------------------------------------------------

Annual Report 2023 GRI Report | People management

Renewables

During 2023, 628 employees left the Company, resulting in a turnover ratio of 20.6%.

| TURNOVER      | UN |        | UNDER 30<br>YEARS OLD |                      |        | BETWEEN 30 AND 50<br>YEARS OLD |                      |        | OVER 50<br>YEARS OLD |                      | TOTAL |
|---------------|----|--------|-----------------------|----------------------|--------|--------------------------------|----------------------|--------|----------------------|----------------------|-------|
|               |    | FEMALE | MALE                  | DECLINE TO<br>ANSWER | FEMALE | MALE                           | DECLINE TO<br>ANSWER | FEMALE | MALE                 | DECLINE TO<br>ANSWER |       |
| Europe        | %  | 19%    | 24%                   | -                    | 12%    | 12%                            | -                    | 6%     | 9%                   | -                    | 13%   |
| North America | %  | 18%    | 32%                   | 29%                  | 19%    | 22%                            | 9%                   | 9%     | 14%                  | -                    | 21%   |
| South America | %  | 6%     | -                     | -                    | 4%     | 7%                             | -                    | -      | -                    | -                    | 5%    |
| APAC          | %  | 30%    | 77%                   | -                    | 22%    | 68%                            | -                    | 33%    | 65%                  | -                    | 54%   |
| TOTAL         | %  | 19%    | 35%                   | 29%                  | 15%    | 23%                            | 9%                   | 8%     | 15%                  | -                    | 21%   |

During 2022, 399 employees left the Company, resulting in a turnover ratio of 13%.

| TURNOVER      | UN | UNDER 30<br>YEARS OLD |      | BETWEEN 30 AND 50<br>YEARS OLD |      | OVER 50<br>YEARS OLD |      | TOTAL |
|---------------|----|-----------------------|------|--------------------------------|------|----------------------|------|-------|
|               |    | FEMALE                | MALE | FEMALE                         | MALE | FEMALE               | MALE |       |
| Europe        | %  | 9%                    | 14%  | 8%                             | 11%  | 0%                   | 3%   | 9%    |
| North America | %  | 13%                   | 22%  | 15%                            | 23%  | 19%                  | 13%  | 19%   |
| South America | %  | 20%                   | 38%  | 7%                             | 8%   | 0%                   | 40%  | 11%   |
| APAC          | %  | 15%                   | 11%  | 6%                             | 7%   | 50%                  | 4%   | 9%    |
| TOTAL         | %  | 12%                   | 17%  | 10%                            | 14%  | 13%                  | 8%   | 13%   |

Note: Turnover calculated as departures / YE headcount.

{133}------------------------------------------------

Annual Report 2023 GRI Report | People management

Image /page/133/Picture/6 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, with the "e" and "d" connected. The "p" is taller than the other letters. Below the letters, in a smaller font, is the word "Renewables".

Of the 628 departures registered in 2023, 19.6% were dismissals.

| DISMISSALS      | UN |        | UNDER 30 YEARS OLD |                   |        | BETWEEN 30 AND 50 YEARS OLD |                   |        | OVER 50 YEARS OLD |                   |   | TOTAL |
|-----------------|----|--------|--------------------|-------------------|--------|-----------------------------|-------------------|--------|-------------------|-------------------|---|-------|
|                 |    | FEMALE | MALE               | DECLINE TO ANSWER | FEMALE | MALE                        | DECLINE TO ANSWER | FEMALE | MALE              | DECLINE TO ANSWER |   |       |
| Senior managers | #  | 0      | 0                  | 0                 | 0      | 1                           | 0                 | 0      | 0                 | 0                 | 1 |       |
| Managers        | #  | 0      | 0                  | 0                 | 2      | 0                           | 1                 | 0      | 3                 | 0                 | 6 |       |
| Specialists     | #  | 4      | 8                  | 0                 | 7      | 11                          | 0                 | 1      | 0                 | 0                 | 0 | 31    |
| Technicians     | #  | 2      | 26                 | 2                 | 2      | 51                          | 0                 | 1      | 1                 | 0                 | 0 | 85    |
| TOTAL           | #  | 6      | 34                 | 2                 | 11     | 63                          | 1                 | 2      | 4                 | 0                 | 0 | 123   |

Of the 399 departures registered in 2022, 8% were dismissals.

| DISMISSALS      | UN | UNDER 30<br>YEARS OLD |      | BETWEEN 30 AND 50<br>YEARS OLD |      | OVER 50<br>YEARS OLD |      | TOTAL |
|-----------------|----|-----------------------|------|--------------------------------|------|----------------------|------|-------|
|                 |    | FEMALE                | MALE | FEMALE                         | MALE | FEMALE               | MALE |       |
| Senior managers | #  | 0                     | 0    | 0                              | 0    | 0                    | 0    | 0     |
| Managers        | #  | 0                     | 0    | 0                              | 0    | 0                    | 0    | 0     |
| Specialists     | #  | 1                     | 4    | 1                              | 7    | 1                    | 2    | 16    |
| Technicians     | #  | 1                     | 4    | 0                              | 8    | 1                    | 0    | 14    |
| TOTAL           | #  | 2                     | 8    | 1                              | 15   | 2                    | 2    | 30    |

The interannual variation is mainly impacted by the Technicians category.

{134}------------------------------------------------

edp
Renewables

# – Benefits provided to full-time employees that are not provided to temporary or part provided to temporary or part-time employees
As a responsible employer, a quality employment that can be balanced with personal life is

# 4-1– Minimum notice periods regarding operational changes

## 4-1 – Average hours of training per year per employee

| AVERAGE TRAINING<br>HOURS | UN | 2023   |      |       | 2022   |      |       |
|---------------------------|----|--------|------|-------|--------|------|-------|
|                           |    | FEMALE | MALE | TOTAL | FEMALE | MALE | TOTAL |
| Senior managers           | #  | 25     | 17   | 18    | 29     | 27   | 27    |
| Managers                  | #  | 23     | 25   | 23    | 26     | 46   | 40    |
| Specialists               | #  | 25     | 28   | 25    | 24     | 30   | 28    |
| Technicians               | #  | 22     | 66   | 56    | 17     | 52   | 45    |
| TOTAL                     | #  | 24     | 34   | 29    | 24     | 36   | 32    |

| GRI 401<br>-2<br>–                                                                                                                                                                                                                                                                              |               | Benefits provided to full                       |                      |        | -time employees that are not |               |                         | TOTAL TRAINING HOURS | UN     |        | 2023   |        |        | 2022   |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|-------------------------------------------------|----------------------|--------|------------------------------|---------------|-------------------------|----------------------|--------|--------|--------|--------|--------|--------|--------|
| provided to temporary or part                                                                                                                                                                                                                                                                   |               |                                                 | -time employees      |        |                              |               |                         |                      |        | FEMALE | MALE   | TOTAL  | FEMALE | MALE   | TOTAL  |
|                                                                                                                                                                                                                                                                                                 |               |                                                 |                      |        |                              |               |                         | Europe               | #      | 12,964 | 27,345 | 40,309 | 13,726 | 31,904 | 45,630 |
| As a responsible employer, a quality employment that can be balanced with personal life is<br>a priority for EDPR. In this sense, the package of benefits provided to full<br>-time employees<br>does not differ from that offered to part<br>-time employees. This benefits package, depending |               |                                                 |                      |        |                              |               |                         | Senior managers      | #      | 695    | 1,080  | 1,775  | 1,895  | 4,645  | 6,540  |
|                                                                                                                                                                                                                                                                                                 |               |                                                 |                      |        |                              |               |                         | Managers             | #      | 1,396  | 3,834  | 5,230  | 1,338  | 6,012  | 7,350  |
| on the country, includes medical insurance, life insurance, pension plan and conciliation<br>measures.                                                                                                                                                                                          |               |                                                 |                      |        |                              |               | Specialists             | #                    | 10,520 | 18,533 | 29,053 | 10,215 | 21,087 | 31,303 |        |
|                                                                                                                                                                                                                                                                                                 |               |                                                 |                      |        |                              |               |                         | Technicians          | #      | 352    | 3,898  | 4,251  | 277    | 160    | 437    |
| GRI 402<br>-<br>1<br>–<br>Minimum notice periods regarding operational                                                                                                                                                                                                                          | North America | #                                               | 6,572                | 30,118 | 36,690                       | 3,750         | 18,701                  | 22,451               |        |        |        |        |        |        |        |
| changes                                                                                                                                                                                                                                                                                         |               |                                                 |                      |        |                              |               |                         | Senior managers      | #      | 117    | 477    | 594    | 423    | 1,580  | 2,003  |
|                                                                                                                                                                                                                                                                                                 |               |                                                 |                      |        |                              |               |                         | Managers             | #      | 802    | 1,757  | 2,558  | 444    | 1,128  | 1,572  |
| In EDPR, it is customary to communicate significant events and organisational changes to<br>the affected groups in advance.                                                                                                                                                                     |               |                                                 |                      |        |                              | Specialists   | #                       | 4,232                | 9,521  | 13,753 | 1,971  | 4,276  | 6,247  |        |        |
|                                                                                                                                                                                                                                                                                                 |               |                                                 |                      |        |                              |               | Technicians             | #                    | 1,421  | 18,363 | 19,784 | 912    | 11,717 | 12,629 |        |
| As an employer in the United States, EDPR complies with the Worker Adjustment and<br>Retraining Notification (WARN) Act Guide to Advance Notice of Closings and Layoffs.                                                                                                                        |               |                                                 |                      |        |                              | South America | #                       | 1,441                | 2,561  | 4,002  | 1,185  | 4,952  | 6,136  |        |        |
|                                                                                                                                                                                                                                                                                                 |               |                                                 |                      |        |                              |               |                         | Senior managers      | #      | 7      | 21     | 29     | 2      | 253    | 255    |
| GRI 404<br>-1<br>–                                                                                                                                                                                                                                                                              |               | Average hours of training per year per employee |                      |        |                              |               |                         | Managers             | #      | 37     | 258    | 295    | 144    | 485    | 628    |
|                                                                                                                                                                                                                                                                                                 |               |                                                 |                      |        |                              |               |                         | Specialists          | #      | 1,397  | 2,203  | 3,600  | 1,040  | 4,214  | 5,254  |
| In 2023, EDPR invested more than                                                                                                                                                                                                                                                                |               | €2.6                                            | million in training. |        |                              |               |                         | Technicians          | #      | 0      | 78     | 78     | -      | -      | -      |
| The total number of training hours increased +                                                                                                                                                                                                                                                  |               |                                                 | 1% vs 2022, +        | 11%    |                              |               | YoY for women employees | APAC                 | #      | 2,439  | 4,997  | 7,436  | 2,359  | 10,611 | 12,970 |
| and<br>-<br>2<br>%<br>YoY<br>for male employees.                                                                                                                                                                                                                                                |               |                                                 |                      |        |                              |               |                         | Senior managers      | #      | 92     | 199    | 291    | 217    | 489    | 706    |
| AVERAGE TRAINING                                                                                                                                                                                                                                                                                | UN            |                                                 | 2023                 |        |                              | 2022          |                         | Managers             | #      | 337    | 821    | 1,158  | 364    | 822    | 1,186  |
| HOURS                                                                                                                                                                                                                                                                                           |               |                                                 |                      |        |                              |               |                         | Specialists          | #      | 1,868  | 2,620  | 4,488  | 1,596  | 2,016  | 3,613  |
|                                                                                                                                                                                                                                                                                                 |               | FEMALE                                          | MALE                 | TOTAL  | FEMALE                       | MALE          | TOTAL                   | Technicians          | #      | 142    | 1,358  | 1,500  | 182    | 7,284  | 7,466  |
| Senior managers                                                                                                                                                                                                                                                                                 | #             | 25                                              | 17                   | 18     | 29                           | 27            | 27                      | TOTAL                | #      | 23,416 | 65,020 | 88,436 | 21,020 | 66,167 | 87,187 |
| Managers                                                                                                                                                                                                                                                                                        | #             | 23                                              | 25                   | 23     | 26                           | 46            | 40                      |                      |        |        |        |        |        |        |        |
| Specialists                                                                                                                                                                                                                                                                                     | #             | 25                                              | 28                   | 25     | 24                           | 30            | 28                      |                      |        |        |        |        |        |        |        |
| Technicians                                                                                                                                                                                                                                                                                     | #             | 22                                              | 66                   | 56     | 17                           | 52            | 45                      |                      |        |        |        |        |        |        |        |
| TOTAL                                                                                                                                                                                                                                                                                           | #             | 24                                              | 34                   | 29     | 24                           | 36            | 32                      |                      |        |        |        |        |        |        |        |

| Europe          |
|-----------------|
| Senior managers |
| Managers        |
| Specialists     |
| Technicians     |
| North America   |
| Senior managers |
| Managers        |
| Specialists     |
| Technicians     |
| South America   |
| Senior managers |
| Managers        |
| Specialists     |
| Technicians     |
| APAC            |
| Senior managers |
| Managers        |
| Specialists     |
| Technicians     |
| TOTAL           |

{135}------------------------------------------------

Image /page/135/Picture/11 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark color, possibly dark blue or black, against a white background.

# GRI 404-2 – Programs for upgrading employee skills and transition assistance programs

To address the need to reinforce a one-company mindset, EDPR must continue fostering an impactful development environment that translates into a holistic assessment that integrates an individual's past performance, present skills, and future agility, addressing business and people needs. This ongoing cycle is supported by development conversations and a new learning experience and culture that is flexible and led by everyone, according to their needs.

In this sense, EDPR is committed to developing its employees, offering them an attractive professional career, and aligning their capabilities and skills with the current and future needs of the company. The growth and development of the company's business lead EDPR to invest in the employees by discovering, improving, and emphasizing the potential of each, mainly through internal mobility, training, and development actions.

EDPR offers job-specific ongoing learning opportunities to contribute to the selfdevelopment of employees according to the new learning model as part of the Global Development Mindset. Regular and continuous development conversations with the manager contribute to identify learning needs along the year in close relationship with strategic goals and the main business challenges, so they are anticipated and prioritised. This approach implies a fluid learning process that happens in the pace of work, anytime, anywhere, anyhow.

A mature learning culture requires a proper environment that stimulates curiosity, autonomy and share of learning among employees, not only through formal but also through informal ways. The offer has evolved to a more on-demand approach where employees have online learning contents and resources to personalise the learning experience. The Udemy's portfolio with over 11,000 online courses, Campus Online open contents, workshops and global talks or shared contents in EDPR's Global Communities online are part of this diversified learning experience.

The annual Training Plan also includes business specific programs (technical, management, behavioural), digital training focused on the digital upskill roadmap, mandatory topics addressed (safety, ethics, compliance, cybersecurity) aligned with the Company's challenges and new markets or technologies to ensure the sustainability of EDPR's business.

During 2023, EDPR delivered a total of 88,436 training hours throughout 2,998 training actions that included 57,928 participants. This translates into an average of 28 hours of training per employee and results in 84% of EDPR's team receiving training.

EDPR also considers functional and geographical mobility as a tool that contributes to organisational development by stimulating employees' motivation, skills, productivity, and personal fulfilment and fostering the share of best practices. The mobility processes within EDPR aim to respond to the different challenges and needs of the company, considering the characteristics of the different geographies. In 2023 there were 196 mobility processes, 130 of them functional (intra and inter-company), 29 geographical and 37 temporary.

## GRI 404-3 – Percentage of employees receiving regular performance and career development reviews

Through the Holistic Assessment annual process, which includes the performance assessment, which covers all employees entitled to variable remuneration, all EDPR employees, regardless of their professional category, are evaluated to determine their development potential by providing the most suitable training. EDPR creates tailored development plan to address specific needs.

{136}------------------------------------------------

## GRI 405-1 – Diversity of governance bodies and employees

In the table below, the proportion of members of the Board of Directors by the end of 2023 is disclosed by age group and gender.

| BOARD OF DIRECTORS | UN | UNDER 30<br>YEARS<br>OLD | BETWEEN<br>30 AND 50<br>YEARS<br>OLD | OVER 50<br>YEARS<br>OLD | TOTAL |
|--------------------|----|--------------------------|--------------------------------------|-------------------------|-------|
| Female             | %  | 0%                       | 18%                                  | 18%                     | 36%   |
| Male               | %  | 0%                       | 9%                                   | 55%                     | 64%   |
| TOTAL              | %  | 0%                       | 27%                                  | 73%                     | 100%  |

In the table below, the proportion of members of the Board of Directors by the end of 2022 is disclosed by age group and gender.

| BOARD OF DIRECTORS | UN | UNDER 30<br>YEARS<br>OLD | BETWEEN<br>30 AND 50<br>YEARS<br>OLD | OVER 50<br>YEARS<br>OLD | TOTAL |
|--------------------|----|--------------------------|--------------------------------------|-------------------------|-------|
| Female             | %  | 0%                       | 17%                                  | 17%                     | 33%   |
| Male               | %  | 0%                       | 17%                                  | 50%                     | 67%   |
| TOTAL              | %  | 0%                       | 33%                                  | 67%                     | 100%  |

Following the best Corporate Governance practices, at the meeting of 24 October 2023, there were analysed and reviewed the possible criteria applicable in the selection of the new members of its Governing Bodies.

For these purposes, the criteria and requirements to be met by future Board Members, depending on their role, have been defined beforehand. The market trends, the Recommendation II.2.1. and the specific needs of EDPR were taken into account by profiling a blueprint of the professional competences of the current Members, in order to ensure the suitability of the roles, the contribution of the new profiles to a better performance, and the aim of ensuring a balanced composition in the bodies of the Company.

As a conclusion of this reflection, the Appointments and Remunerations Committee agreed to consider as a reference certain standards and requirements in accordance with the following:

• **Individual attributes**: education, competence, integrity, availability, and experience

• Core industry, Strategy & Business Development, Financial Acumen, Accounting, Auditing and Control, International Experience, M&A and Capital Markets, Legal, Governance, Environmental and Sustainability, Health and Safety, People Management, IT/Cybersecurity, Digital Transformation, Technology, Procurement, Operations, Communications and Public Affairs, Regulation, amongst others.

- that were particularized into:
- 
- and culture or geographical origin.

• **Diversity:** to be considered as a wide criteria, analysed in accordance with the nature and complexity of the businesses developed, as well as according to the social and environmental context from time to time, and that will include, among others, gender, age

It was expressly stated that this list should not be considered as an exhaustive nor limiting reference, and that in any case, depending on the needs and competences required, other criteria may be taken into account.

Based on the above criteria, after the previous advice of the Appointments and Remunerations Committee, the Board of Directors submits the related proposals to the General Shareholders' Meeting (including for sake of clarity, the curriculum vitae of the candidates, and the justifying report, which shall be publicly disclosed with the other supporting documents of the meeting).

{137}------------------------------------------------

Annual Report 2023 GRI Report | People management

Image /page/137/Picture/7 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a lowercase, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark blue color.

In the table below, the proportion of employees in 2023 is disclosed by age group, gender, and professional category.

| EMPLOYEES       | UN |        | UNDER 30<br>YEARS OLD |                      |        | BETWEEN 30 AND 50<br>YEARS OLD |                      | OVER 50<br>YEARS OLD |      |                      | TOTAL |
|-----------------|----|--------|-----------------------|----------------------|--------|--------------------------------|----------------------|----------------------|------|----------------------|-------|
|                 |    | FEMALE | MALE                  | DECLINE TO<br>ANSWER | FEMALE | MALE                           | DECLINE TO<br>ANSWER | FEMALE               | MALE | DECLINE TO<br>ANSWER |       |
| Senior managers | %  | 0%     | 0%                    | 0%                   | 1%     | 2%                             | 0%                   | 0%                   | 1%   | 0%                   | 5%    |
| Managers        | %  | 0%     | 0%                    | 0%                   | 3%     | 7%                             | 0%                   | 1%                   | 2%   | 0%                   | 13%   |
| Specialists     | %  | 7%     | 8%                    | 0%                   | 18%    | 28%                            | 1%                   | 2%                   | 4%   | 0%                   | 67%   |
| Technicians     | %  | 0%     | 4%                    | 0%                   | 2%     | 6%                             | 0%                   | 1%                   | 1%   | 0%                   | 15%   |
| TOTAL           | %  | 7%     | 12%                   | 0%                   | 23%    | 43%                            | 1%                   | 4%                   | 9%   | 0%                   | 100%  |

In the table below, the proportion of employees in 2022 is disclosed by age group, gender, and professional category.

| EMPLOYEES       | UN | UNDER 30<br>YEARS OLD |      | BETWEEN 30 AND 50<br>YEARS OLD |      | OVER 50<br>YEARS OLD |      | TOTAL |
|-----------------|----|-----------------------|------|--------------------------------|------|----------------------|------|-------|
|                 |    | FEMALE                | MALE | FEMALE                         | MALE | FEMALE               | MALE |       |
| Senior managers | %  | 0%                    | 0%   | 2%                             | 7%   | 1%                   | 2%   | 12%   |
| Managers        | %  | 0%                    | 1%   | 3%                             | 5%   | 0%                   | 1%   | 10%   |
| Specialists     | %  | 7%                    | 9%   | 14%                            | 25%  | 2%                   | 4%   | 60%   |
| Technicians     | %  | 1%                    | 6%   | 2%                             | 7%   | 1%                   | 0%   | 17%   |
| TOTAL           | %  | 8%                    | 16%  | 21%                            | 44%  | 3%                   | 8%   | 100%  |

{138}------------------------------------------------

Image /page/138/Picture/7 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and the word are in a dark color, possibly dark blue or black, against a white background.

# GRI 405-2 – Ratio of basic salary and remuneration of women to men

Note 1: The wage gap is calculated based on GRI methodology (female/male remuneration). The calculation considers the employees' working hours. Note 2: The tables below refer to average remuneration. 2023 values do not include 3% of total employees, and 2022 values do not include 4% of the employees.

In the table below, the average remuneration of employees in 2023 and 2022 is disclosed by age group, gender and professional category.

| REMUNERATION                | UN | 2023    |         |                   |         | 2022    |                   | Δ% YoY |      |                   |
|-----------------------------|----|---------|---------|-------------------|---------|---------|-------------------|--------|------|-------------------|
|                             |    | FEMALE  | MALE    | DECLINE TO ANSWER | FEMALE  | MALE    | DECLINE TO ANSWER | FEMALE | MALE | DECLINE TO ANSWER |
| Under 30 years old          |    |         |         |                   |         |         |                   |        |      |                   |
| Senior managers             | €  | -       | -       | -                 | 80,683  | 165,281 | -                 | -      | -    | -                 |
| Managers                    | €  | 148,961 | 138,015 | -                 | 105,944 | 104,338 | -                 | +41%   | +32% | -                 |
| Specialists                 | €  | 55,129  | 53,780  | 64,512            | 51,908  | 54,122  | -                 | +6%    | (1%) | -                 |
| Technicians                 | €  | 36,142  | 44,777  | 33,357            | 41,824  | 39,708  | -                 | (14%)  | +13% | -                 |
| Between 30 and 50 years old |    |         |         |                   |         |         |                   |        |      |                   |
| Senior managers             | €  | 258,551 | 227,982 | -                 | 147,688 | 161,043 | -                 | +75%   | +42% | -                 |
| Managers                    | €  | 109,197 | 121,631 | 83,423            | 84,142  | 88,739  | -                 | +30%   | +37% | -                 |
| Specialists                 | €  | 63,743  | 74,197  | 89,634            | 61,163  | 65,603  | -                 | +4%    | +13% | -                 |
| Technicians                 | €  | 47,701  | 42,410  | 39,219            | 52,137  | 38,091  | -                 | (9%)   | +11% | -                 |
| Over 50 years old           |    |         |         |                   |         |         |                   |        |      |                   |
| Senior managers             | €  | 322,177 | 255,824 | -                 | 165,004 | 161,903 | -                 | +95%   | +58% | -                 |
| Managers                    | €  | 133,590 | 131,058 | -                 | 82,381  | 103,801 | -                 | +62%   | +26% | -                 |
| Specialists                 | €  | 81,532  | 93,871  | 103,751           | 84,537  | 84,780  | -                 | (4%)   | +11% | -                 |
| Technicians                 | €  | 54,913  | 50,512  | 31,471            | 59,240  | 54,073  | -                 | (7%)   | (7%) | -                 |

# =

{139}------------------------------------------------

Image /page/139/Picture/6 description: The image contains the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font, stacked above the word "Renewables" in a smaller, lighter font. The "d" in "edp" has an extended vertical stroke that reaches down to align with the left edge of the word "Renewables".

In the table below, the average total remuneration of employees in 2023 and 2022 is disclosed by region, gender and professional category. The total remuneration also includes remuneration supplements not consolidated during the year, variable remuneration and other monetary benefits.

| WAGE GAP -<br>TOTAL REMUNERATION | UN | 2023    |         |                   |      | 2022    |                   |         |      |
|----------------------------------|----|---------|---------|-------------------|------|---------|-------------------|---------|------|
|                                  |    | FEMALE  | MALE    | DECLINE TO ANSWER | F/M  | FEMALE  | DECLINE TO ANSWER | MALE    | F/M  |
| Europe                           |    |         |         |                   |      |         |                   |         |      |
| Senior managers                  | €  | 211,759 | 205,296 | -                 | 103% | 122,902 | -                 | 128,456 | 96%  |
| Managers                         | €  | 88,818  | 93,480  | -                 | 95%  | 68,727  | -                 | 73,961  | 93%  |
| Specialists                      | €  | 52,924  | 57,176  | -                 | 93%  | 47,853  | -                 | 49,953  | 96%  |
| Technicians                      | €  | 31,517  | 38,845  | -                 | 81%  | 32,566  | -                 | 24,822  | 131% |
| North America                    |    |         |         |                   |      |         |                   |         |      |
| Senior managers                  | €  | 371,086 | 320,029 | -                 | 116% | 200,563 | -                 | 203,251 | 99%  |
| Managers                         | €  | 168,444 | 176,297 | 83,423            | 96%  | 119,813 | -                 | 120,573 | 99%  |
| Specialists                      | €  | 98,615  | 105,175 | 84,566            | 94%  | 97,509  | -                 | 100,496 | 97%  |
| Technicians                      | €  | 58,298  | 58,535  | 36,594            | 100% | 57,452  | -                 | 58,325  | 99%  |
| South America                    |    |         |         |                   |      |         |                   |         |      |
| Senior managers                  | €  | 156,981 | 223,370 | -                 | 70%  | 109,353 | -                 | 105,139 | 104% |
| Managers                         | €  | 111,822 | 114,871 | -                 | 97%  | 51,942  | -                 | 51,563  | 101% |
| Specialists                      | €  | 48,303  | 63,224  | -                 | 76%  | 31,101  | -                 | 41,157  | 76%  |
| Technicians                      | €  |         | 39,003  | -                 | -    | -       | -                 | -       | -    |
| APAC                             |    |         |         |                   |      |         |                   |         |      |
| Senior managers                  | €  | 211,909 | 182,496 | -                 | 116% | 151,161 | -                 | 186,016 | 81%  |
| Managers                         | €  | 84,822  | 84,978  | -                 | 100% | 82,789  | -                 | 82,490  | 100% |
| Specialists                      | €  | 43,304  | 48,340  | -                 | 90%  | 39,970  | -                 | 40,102  | 100% |
| Technicians                      | €  | 12,217  | 17,277  | -                 | 71%  | 21,593  | -                 | 21,607  | 100% |

==

↻

{140}------------------------------------------------

In the table below, the average base salary of employees in 2023 is disclosed by region, gender and professional category.

| WAGE GAP<br>-<br>BASE SALARY | UN | 2023    |         |                   |      |
|------------------------------|----|---------|---------|-------------------|------|
|                              |    | FEMALE  | MALE    | DECLINE TO ANSWER | F/M  |
| Europe                       |    |         |         |                   |      |
| Senior managers              | €  | 147,921 | 151,446 | -                 | 98%  |
| Managers                     | €  | 71,429  | 77,125  | -                 | 93%  |
| Specialists                  | €  | 45,814  | 49,647  | -                 | 92%  |
| Technicians                  | €  | 28,516  | 33,294  | -                 | 86%  |
| North America                |    |         |         |                   |      |
| Senior managers              | €  | 283,343 | 243,114 | -                 | 117% |
| Managers                     | €  | 135,928 | 144,143 | 83,423            | 94%  |
| Specialists                  | €  | 88,425  | 94,628  | 84,566            | 93%  |
| Technicians                  | €  | 55,281  | 55,488  | 36,594            | 100% |
| South America                |    |         |         |                   |      |
| Senior managers              | €  | 156,981 | 206,115 | -                 | 76%  |
| Managers                     | €  | 98,572  | 103,166 | -                 | 96%  |
| Specialists                  | €  | 43,612  | 56,671  | -                 | 77%  |
| Technicians                  | €  | -       | 35,446  | -                 | 0%   |
| APAC                         |    |         |         |                   |      |
| Senior managers              | €  | 211,909 | 182,496 | -                 | 116% |
| Managers                     | €  | 84,822  | 84,565  | -                 | 100% |
| Specialists                  | €  | 43,304  | 48,340  | -                 | 90%  |
| Technicians                  | €  | 12,217  | 17,277  | -                 | 71%  |

{141}------------------------------------------------

Annual Report 2023 GRI Report | People management

Image /page/141/Picture/8 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark blue color.

## GRI 2-21 – Annual total compensation ratio

The ratio presented below represents of the annual total compensation for the organisation's highest-paid individual in each country of significant operations to the median annual total compensation for all employees.

| ANNUAL TOTAL COMPENSATION RATIO | UN | 2023 | 2022 | Δ% YoY |
|---------------------------------|----|------|------|--------|
| Spain                           | x  | 8.4  | 8.4  | -      |
| Portugal                        | x  | 4.8  | 6.6  | (27%)  |
| US                              | x  | 7.3  | 8.7  | (16%)  |

# GRI EU15 – Percentage of employees eligible to retire in the next 5 and 10 years broken down by job category and by region

| EMPLOYEES ELIGIBLE TO RETIRE | UN | 2023        |            | 2022        |            |
|------------------------------|----|-------------|------------|-------------|------------|
|                              |    | IN 10 YEARS | IN 5 YEARS | IN 10 YEARS | IN 5 YEARS |
| By employment category       |    |             |            |             |            |
| Senior managers              | %  | 11%         | 3%         | 9%          | 6%         |
| Managers                     | %  | 13%         | 9%         | 4%          | 2%         |
| Specialists                  | %  | 8%          | 5%         | 4%          | 2%         |
| Technicians                  | %  | 6%          | 4%         | 3%          | 3%         |
| By region                    |    |             |            |             |            |
| Europe                       | %  | 10%         | 7%         | 5%          | 3%         |
| Spain                        | %  | 5%          | 2%         | 4%          | 2%         |
| Portugal                     | %  | 11%         | 7%         | 14%         | 10%        |
| Rest of Europe               | %  | 20%         | 18%        | 2%          | 1%         |
| North America                | %  | 6%          | 3%         | 6%          | 4%         |
| US                           | %  | 6%          | 3%         | 6%          | 4%         |
| Rest of North America        | %  | 7%          | 0%         | 7%          | 4%         |
| South America                | %  | 6%          | 2%         | 1%          | 1%         |
| Brazil                       | %  | 3%          | 0%         | 0%          | 0%         |
| Rest of South America        | %  | 13%         | 5%         | 4%          | 2%         |
| APAC                         | %  | 7%          | 5%         | 3%          | 1%         |
| TOTAL                        | %  | 8%          | 5%         | 5%          | 3%         |

{142}------------------------------------------------

![edp Renewables](https://i.imgur.com/946969l.png)

## --

#### Other people management related topics:

#### Communication with employees

EDPR's global presence with employees from different regions, nationalities and generations requires the company to listen and provide feedback on various ambitions, motivations, and prospects. In this regard, EDPR launches a Climate Survey annually to support its active listening strategy and draws up an integrated action plan based on real current data.

Just as important as getting to know our people is ensuring that they have all the relevant information at their disposal, from onboarding through to the company's business and strategy. To this end, there is a range of internal communication and engagement channels that complement each other and are reinventing themselves to meet the EDPR's needs following its exponential, multicultural growth over recent years: Intranet, Viva Engage, edpON Renew magazine, edpON TV, edpON app, Global newsletter, HR App, and virtual Global Communities.

EDPR also holds regular global meetings for each platform, so employees can streamline their long-distance communication; furthermore, these meetings promote networking and proximity to leaders to share, first-hand, the business goals set by the management team for the near future, all to meet the overall objective of leading the energy transition.

Other global events also take place throughout the year, but in an online format, many of them hosted by our CEO to discuss and/or present relevant topics, make first-hand.

#### Employees with disabilities

In the companies in Spain where there is a legal obligation to have people with disabilities in the workforce to comply with the LISMI due to the number of employees, EDPR has opted for the exceptionality measures provided by the Law. The Company is able to comply with the quota that legally applies to it through contracts of goods or services with companies that promote the hiring of disabled people and also through donations. EDPR's companies under this obligation are covered with the exceptionality measures since February 2018 and for a period of three years. For the rest of EDPR countries, the approach is the same. Recently, as part of EDPR's global strategy, a Diversity, Equity, Inclusion and Belonging (DEIB) Global Council has been set up at EDP group level with the participation of the Management Team, whose objective is to integrate the commitment to this issue within the company. One of the objectives of this Council is focused on the group of people with

disabilities as one of the most important topics to be developed. Please note that by the end of 2023, 1.4% of the company's employees had disabilities.

#### Work organisation and implementation of "right to disconnect" policies

For EDPR, it is a priority to foster time efficiency of employees' daily tasks to balance their professional and personal life, while still delivering excellent results. In this context, the company has been implementing several initiatives that contribute to achieve this, and even though currently EDPR does not have policies regarding the right of people to disconnect from work during non-work hours, messages of work organisation and disconnection will continue to be conveyed.

#### Flexibility and well-being

In 2023, EDP Group's global flexibility measures already implemented were consolidated, such as the hybrid working model and the Flex Fridays measure.

Throughout this year, continuity was also given to the Group's global well-being strategy, based on five pillars (physical, social, professional, financial, and emotional). To this end, global awareness campaigns have been developed (e.g., Diversity & Well-being Moments; Mind Your Mind) to encourage the adoption of healthy behaviours, promote the accountability of the organisation's leaders, and remind all the channels and support helplines available.

EDPR believes work-life balance is fundamental to achieving more competitive companies and a fairer society based on flexibility, respect, and equal opportunities. To this end, EDPR has once again been certified by the Fundación Másfamilia as a family-responsible company, a recognition awarded for the first time this year to the entire EDP Group, reinforcing the excellence of the various work-life balance measures that the EDP Group promotes among its employees in all the markets in which it operates.

Furthermore, EDPR has a volunteer program addressed to its employees in order to promote social responsibility, giving them the opportunity to grow not only at work but also personally while also contributing to the society.

{143}------------------------------------------------

#### Adopted measures to promote employment related to equality

EDPR continues to evolve its organisation and is dedicated to fostering a culture of human equality and valuing the strengths of our differences, as it builds a more inclusive, sustainable environment for future generations. The company wants to lead by example to create an equal, sustainable future. EDPR's goal is to contribute to improving the quality of life of its employees, removing professional barriers, and promoting gender equality, to ensure a transparent workplace environment where mutual respect and equal opportunities prevail. In accordance, there is a DEIB Global Council at EDP Group level to promote its commitment to these fundamental principles. The main objectives of the Council are to reflect the Group's strategy on diversity, equity, and inclusion, including the definition and development of initiatives that contribute to a global action plan and local action plans, and to foster the exchange of knowledge and best practices.

As a result of its commitment and practices, EDPR was recognised again in the Bloomberg Gender-Equality Index (GEI) in 2023, a benchmark index that selects the listed companies most involved in the development of gender equality in the world. EDPR's inclusion in this index highlights the company's work to promote equal opportunities for women through development, representation, and transparency policies.

#### Sexual harassment protocol

Currently, EDPR does not have a specific sexual harassment protocol. Nevertheless, as stated in its Code of Ethics, EDPR promotes a culture free from any sort of harassment, understanding this to be systematically undesired behaviour of a moral or sexual nature, in a verbal, non-verbal or physical form, which has the goal or effect of disturbing or embarrassing another person, or affecting their dignity or creating an intimidating, hostile, degrading, humiliating or destabilising environment.

Harassing forms of behaviour in a business context violate the victims' labour rights, and may affect their value as people and workers, causing harm that can have an impact on their self-esteem, physical and mental health, life project and family relationships. Therefore, in addition to the legal obligations to which EDPR is subject to, the Code of Ethics also states that it is the duty of all employees to prevent, confront and report any and all behaviour that may preclude a situation of harassment. In this regard, the Code of Ethics has its own regulation that defines a process and channel, open to all stakeholders, to report any potential claim or doubt on the application of the Code.

Universal accessibility

Most of the offices in which EDPR has its operations are not owned by the company. Therefore, EDPR is limited in implementing accessibility measures in its offices. However, in other topics in which EDPR has decision-making power, such as the creation of its website, the company took measures to comply with the accessibility specifications that help blind people to use it.

Long-term incentive plans

EDPR globally assigns long-term incentive plans to the Top Management segment and critical positions in the Senior Management segment. The company's Management Team considers the attribution of these incentives as a tool for attracting and retaining talent, focusing on achieving results and complying with the business plan.

{144}------------------------------------------------

# 4.6. Suppliers management

## **EDPR's risk mitigation and supply chain management**

EDPR's supply chain risk and impact management processes are summarized below. Please also refer to 3.5 Supply Chain Capital section for more information about the due diligence process.

EDPR makes it a priority to implement procedures and measures to ensure the absence of governance, environmental, social and human rights and labour rights risks in its supply chain. To this end, the Company is committed to taking action and improving its supply chain management on a daily basis.

During 2023, EDPR has performed ESG evaluations to more than 75% of its critical suppliers. Both in this section of Suppliers Management and in section 3.5 of Supply Chain Capital, the different ESG analyses implemented are specified.

#### EPDR supply chain management policies and procedures

EDPR's due diligence process begins with its public commitments and policies that apply to the Company's activity, its suppliers, and its contractors. In this regard, the Company has a Supplier Code of Conduct and a Human and Labour Rights Policy, implementing the principles of set in the Code of Ethics. EDPR also makes available to anyone a Speak Up channel, to give voice to any complaint from any person or organisation.

The Company's due diligence process is triggered for all shortlist purchases >25,000 euros.

#### A supplier screening due diligence process to identify potential risks

EDPR performs a public information analysis prior to any tender process, screening scouting counterparts' compliance and integrity. By this first due diligence layer, the Company can identify any negative information and decide if the counterpart achieves EDPR's ethical standards.

The Suppliers integrity due diligence process is based on a combined analysis between:

a. Specific criteria that derive from information on the Third Party and the transaction under analysis and the weighting of each criterion, are quantitatively established in an overall risk rating for the Third Party. These criteria include:

• Country(ies) of head offices, operational and payment location. Taking into special consideration the tax havens.

• Identification of the Third Party and the economic group to which it belongs

• Activity sector (including state-owned enterprises "SOEs")

• Legal form and legal status of the entity

• Reputational Risk – ESG including human rights

• Representational and influential ability of the Third Party

b. Verification and analysis of potential risk factors / red flags identified by the IDD support platform, taking into account the following aspects:

sanctions lists

- 
- 
- 
- 
- 
- 
- 
- 
- References in sanctions lists
- 
- 

• Identification of Third Parties as PEPs (Politically Exposed Persons) / former PEPs, close family members or persons recognized as closely associated

• Reference to adverse news or lawsuits

(\*) The carrying out of complementary analyses can also be considered, customized on a case-by-case basis to the Third Party/Transaction under analysis.

According to the Compliance analysis, a rating is assigned to the third party and this is documented in the Integrity Due Diligence report, with the report, the Procurement team is able to verify if the counterpart profile stands for the purchase risk and goals.

{145}------------------------------------------------

Image /page/145/Picture/17 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters "edp" are in a dark blue color, while the word "Renewables" is in a lighter gray color.

==

↻

# EDPR's Criticality Matrix to identify and assess risks in the supply chain

The next step to identify risks in the supply chain is the Company's criticality matrix. This matrix, that is independent of the supplier, includes the mapping of different supply categories, analysing the relevance of each purchase in relation to its activity for EDPR's business, the duration of its relationship with the Company and the potential environmental and social risks arising from its activity. The Company then carries out a qualification process of critical suppliers, in order to know the measures it has in place to manage any potential risk within the supply chain.

The EDPR criticality matrix standardises the procurement risks according to each purchase category. The matrix drives the suppliers' scouting process, setting the minimum ESG thresholds and the development of the tender terms and negotiation, to ensure risks mitigation and monitoring obligations. During the contractual relationship, the matrix is the map that guides the supplier assessment and helps defining priorities. Annually, all critical suppliers are evaluated against the matrix criteria and the company can analyse suppliers' performance and drive improvements.

|                                                                      | LOW | MED | HIGH |
|----------------------------------------------------------------------|-----|-----|------|
| 1. Supply category (value chain country/sector/activity level risks) |     |     |      |
| 2. Purchase amount (EUR)                                             |     |     |      |
| 3. Duration of the contract and frequency of supplies                |     |     |      |
| 4. Importance for operation, innovation and investment               |     |     |      |
| 5. Consequence of sudden supply interruption                         |     |     |      |
| 6. Irreplaceabilty of suppliers                                      |     |     |      |
| 7. Supplier access to equipment/facilities                           |     |     |      |
| 8. Supplier access to customers                                      |     |     |      |
| 9. Supplier access to protected personal data                        |     |     |      |
| 10. Supplier access to reserved data and Cybersecurity               |     |     |      |
| 11. Risks of occupational accidents from the contracted activity     |     |     |      |
| 12. Environmental risks from the contracted activity                 |     |     |      |
| 13. Ethical, human and labour rights of the contracted activity      |     |     |      |

# Engagement process to prevent and mitigate potential impacts

Next, through the Request for Proposal (RFP) process, EDPR conducts a screening process of module and turbine suppliers, in order to assess their commitments, measures and targets, and also to identify potential ESG risks. EDPR has implemented an additional measure of traceability meetings and share of information, in order to avoid any potential risk areas in its upstream processes. Through continuous dialogue with suppliers, EDPR is able to anticipate and take action on potential risks in the supply chain. During this phase, the Company also establishes contractual clauses to ensure the necessary measures in case a potential risk arises.

#### Sector level specific risk map

EDPR develops renewable energy facilities and, therefore, the core of its activity is the licensing, construction, and operation of facilities. Procurement is aimed at local companies that provide services to facilities and, upstream, at technological equipment for the power sector. EDPR acquires market available power technology and doesn't design technical equipment for manufacturing, therefore the Procurement is directed towards wholesale and brands.

Electrical/Industrial technology

| SALIENT RISKS                          | DIRECT TIER 1<br>(SCOPE 1+2)                   | INDIRECT/TIER 2 +<br>N (SCOPE 3) | PROCUREMENT<br>SPEND 2023 |
|----------------------------------------|------------------------------------------------|----------------------------------|---------------------------|
| Electrical/Industrial<br>technology    | -                                              | ESG upstream footprint           | 656,878,046 €             |
| Corporate Services and IT              | Data Privacy, Cybersecurity,<br>Integrity      | -                                | 845,127,752 €             |
| Technical Services and<br>Construction | Waste, Safety, Subcontracting,<br>local impact | ESG upstream footprint           | 3,472,579,631 €           |
| TOTAL                                  |                                                |                                  | 4,974,585,429 €           |

TOTAL

{146}------------------------------------------------

# GRI 204-1 – Proportion of spending on local suppliers

At EDPR, there is no specific policy or in-house procedure for preferring locally based suppliers. Nevertheless, under equal commercial terms, EDPR chooses local suppliers in order to enhance the socio-economic sustainability of the markets where it is present. In this regard, the Company refers to a local supplier as one that originates in one of the markets in which the Company operates and supplies directly to the different platforms of EDPR (Europe and South America, North America or APAC).

In this way, 91% of vendor spending in 2023 was sourced from local suppliers.

Moreover, during the construction of the Company's projects, the local community can see an influx of temporary local construction workers and suppliers that provide a positive impact on the local economy.

Note: EDPR defines local purchases as purchases from suppliers in countries where EDPR is present divided by the total volume invoiced on the Region of the Company to which the supplier / contractor supplies in 2023. In Portugal and Spain, only purchases from those specific countries (instead of region) were considered.

## GRI 308-2 – Negative environmental impacts in the supply chain and actions taken

EDPR's procurement process extends to direct and indirect suppliers and allows EDPR to establish practices and procedures that ensure a high-quality relationship with its suppliers and sustainability practices through the entire supply chain. In addition, EDPR's Procurement Policy establishes the framework under which the Company's procurement process is developed. The Company also has a series of policies and procedures that define EDPR's sustainable procurement process. These policies and procedures are:

- The Sustainable Supply Chain Policy that establishes the principles and commitments to sustainability that are transferred to the purchasing process.
- Sustainable Procurement Protocol that defines the Company's action protocol and due diligence process in processes related to the supply chain. Including the identification of the criticality of suppliers based on their activity with EDPR.
- EDP Supplier Code of Conduct that applies also to EDPR supply chain and acting as a Code that feeds into the purchasing and contract negotiation processes with suppliers to share with them and ensure the alignment of critical suppliers with the Company's ethics and sustainability commitments.

EDPR Procurement teams implement measures to mitigate technical, operational or ESG risks at different stages. The entire procurement and due diligence process aims to avoid and mitigate supply chain risks and impacts related to:

a. Equipment efficiency risks due to poor manufacturing or maintenance.

- 
- b. Lack of supply due to supply chain disruption.
- c. Possible risks related to ethics and compliance of the partners EDPR works with.
- 
- e. Environmental risks due to supply chain practices or lack of preparedness.
- f. Other ESG and operational risks.

d. Abolition of human rights risks such as forced labour or child labour, as well as other bad labour practices or lack of safety.

In addition, the risk management process is based on the EDP Group's Sustainable Procurement Protocol, being critical suppliers those with high impacts and risks and therefore those for which engagement and additional measures should be prioritized. Therefore, supplier risk is analysed is composed of 12 categories, among which the following stand out:

- Supplier access to protected personal data
- Supplier access to reserved data
- Risks of occupational accidents from the contracted activity
- Environmental risks from the contracted activity
- Ethical, human and labour rights of the contracted activity

Please refer to the ESG Criticality Matrix subsection below for more information on the criteria that is analysed in the EDP Group's Sustainable Procurement Protocol.

The implementation of the Procurement Policy leads to a better control in the suppliers' management process, assuring EDPR values are respected, high quality standards and minimization of the potential risks. In addition, EDPR has in place requirements related to ESG, Quality and Risk management that have to be met by its suppliers throughout the main procurement phases and the due diligence process of EDPR: Registration and Qualification, Requests for Proposals and Contracting and, lastly, the Monitoring and Evaluation of the suppliers.

{147}------------------------------------------------

Please refer to the EDPR's Due Diligence Process subsection below for more information on the procurement process and the different phases. Also refer to EDPR's 3.3 Supply Chain Capital section.

Regarding to the management of environmental aspects and the analysis of potential risks and impacts in the supply chain (suppliers and contractors), EDPR analyses and evaluates suppliers throughout the different phases of EDPR's Due Diligence Process mentioned in the 3.3 Supply Chain Capital chapter. The management and analysis of EDPR's social risks during the different phases of the due diligence process is detailed below:

- Registration and Qualification phase: analysing the environmental aspects and the existence of environmental management systems by suppliers and contractors to ensure that they are able to provide a service to EDPR and manage environmental risks. In this regard, more than 60% of critical suppliers have in place environmental management systems, at corporate level or to provide specific services.
- Request for Proposals (RFP) from suppliers: including environmental criteria in the RFPs of equipment suppliers to determine their level of performance and maturity in terms of decarbonization, circular economy and waste management, as well as others measures, policies and targets.
- Contracting and awarding phase: the Company also establishes a fluent dialogue and shared of information with strategic suppliers requests and meetings, engaging with suppliers and including environmental and climate clauses within the main contracts.
- Monitoring and evaluation phase: Assessing the performance of suppliers through environmental inspections for those suppliers that work in the facilities whenever their activity represents a risk. During 2023, EDPR has performed 1,512 inspections (+6% YoY to 205 contractors (-4% YoY) that work in EDPR's facilities. These suppliers correspond to those who work at EDPR's facilities and who perform construction and maintenance work. The Company has in place an integrated Health and Safety and Environmental Management System, developed and externally certified according to international standards ISO 14001:2015.

Please also refer to EDPR's 3.5 Supply Chain Capital section to learn more about the Company's due diligence process and how it manages environmental impacts and risks in the supply chain.

## GRI 414-2 – Negative social impacts in the supply chain and

# actions taken

EDPR's procurement process extends to direct and indirect suppliers and allows EDPR to establish practices and procedures that ensure a high-quality relationship with its suppliers and sustainability practices through the entire supply chain. In addition, EDPR's Procurement Policy establishes the framework under which the Company's procurement process is developed. The Company also has a series of policies and procedures that define EDPR's sustainable procurement process. These policies and procedures are:

- 
- 
- 

• The Sustainable Supply Chain Policy that establishes the principles and commitments to sustainability that are transferred to the purchasing process.

• Sustainable Procurement Protocol that defines the Company's action protocol and due diligence process in processes related to the supply chain. Including the identification of the criticality of suppliers based on their activity with EDPR.

• EDP Supplier Code of Conduct that applies also to EDPR supply chain and acting as a Code that feeds into the purchasing and contract negotiation processes with suppliers to share with them and ensure the alignment of critical suppliers with the Company's ethics and sustainability commitments.

==

↻

EDPR Procurement teams implement measures to mitigate technical, operational or ESG risks at different stages. The entire procurement and due diligence process aims to avoid and mitigate supply chain risks and impacts related to:

- Equipment efficiency risks due to poor manufacturing or maintenance
- Lack of supply due to supply chain disruption.
- Possible risks related to ethics and compliance of the partners EDPR works with.
- Abolition of human rights risks such as forced labour or child labour, as well as other bad labour practices or lack of safety.
- Environmental risks due to supply chain practices or lack of preparedness.
- Other ESG and operational risks.

{148}------------------------------------------------

In addition, the risk management process is based on the EDP Group's Sustainable Procurement Protocol, being critical suppliers those with high impacts and risks and therefore those for which engagement and additional measures should be prioritized. Therefore, supplier risk is analysed is composed of 12 categories, among which the following stand out:

- Supplier access to protected personal data
- Supplier access to reserved data
- Risks of occupational accidents from the contracted activity
- Environmental risks from the contracted activity
- Ethical, human and labour rights of the contracted activity

Please refer to the ESG Criticality Matrix subsection below for more information on the criteria that is analysed in the EDP Group's Sustainable Procurement Protocol.

The implementation of the Procurement Policy leads to a better control in the suppliers' management process, assuring EDPR values are respected, high quality standards and minimization of the potential risks. In addition, EDPR has in place requirements related to ESG, Quality and Risk management that have to be met by its suppliers throughout the main procurement phases and the due diligence process of EDPR: Registration and Qualification, Requests for Proposals and Contracting and, lastly, the Monitoring and Evaluation of the suppliers.

Please refer to the EDPR's Due Diligence Process Briefing subsection below for more information on the procurement process and the different phases. Also refer to EDPR's 3.3 Supply Chain Capital section.

Regarding to the management of social aspects and the analysis of potential risks and impacts in the supply chain (suppliers and contractors), EDPR analyses and evaluates suppliers throughout the different phases of EDPR's Due Diligence Process mentioned in the 3.5 Supply Chain Capital section. The management and analysis of EDPR's social risks during the different phases of the due diligence process is detailed below:

• Registration and Qualification phase: analysing the environmental aspects and the existence of health and safety management systems by suppliers and contractors to ensure that they are able to provide a service to EDPR and manage social risks. In this regard, around 60% of critical suppliers have in place health and safety management systems, at corporate level or to provide specific services.

• Request for Proposals (RFP) from suppliers: including social criteria in the RFPs of equipment suppliers to determine their level of performance and maturity in terms of human and labour rights, supply chain management, supply chain traceability and health and safety measures, policies and targets. In addition, the Company has a Third-Party Integrity Due Diligence Procedure which was approved with the goal to reinforce the mechanisms for identifying and preventing possible integrity or corruption risks for EDPR in the relationship with third parties. During 2023, 522 Compliance analysis of suppliers were performed (+36% vs 2022) (closed Integrity Due Diligence Analysis). In addition, an internal tool has been developed to facilitate the management of the Integrity Due Diligence analyses. In cases with high risk, it is necessary the approval of the Management Team, its submission to the Executive Board of Directors, and the execution of additional recommendations to the inclusion of the compliance clauses in the agreements, related to corruption, conflict of interest and the inclusion on sanctions lists. These IDD allows the Company to verify public sanction lists, Political Exposed Persons lists (PEPs) and adverse media, in order to avoid any integrity risk.

• Contracting and awarding phase: the Company also establishes a fluent dialogue and shared of information with strategic suppliers requests and meetings, engaging with suppliers and including social and human and labour rights within the main contracts. The Company has established the traceability as a key part of the equipment contracts

- 
- and negotiation process
- 

• Monitoring and evaluation phase: Assessing the performance of suppliers through environmental inspections for those suppliers that work in the facilities whenever their activity represents a risk. During 2023, EDPR has performed 4,702 H&S inspections (+114% YoY) to more than 261 contractors (+2% YoY) that work in EDPR's facilities. These suppliers correspond to those who work at EDPR's facilities and who perform construction and maintenance work. In addition, the Company has in place an integrated Health and Safety and Environmental Management System, developed and externally certified according to international standards ISO 45001:2018.

Please also refer to EDPR's 3.5 Supply Chain Capital section to learn more about the Company's due diligence process and how EDPR manages social and human and labour rights impacts and risks in the supply chain.

{149}------------------------------------------------

Annual Report 2023 GRI Report | Innovation

# 4.7. Innovation

For information regarding GRI 3-3 – Management of material topics, please refer to section Innovation Capital of the chapter Execution.

{150}------------------------------------------------

Image /page/150/Picture/20 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, lighter font. The letters and word are in a dark gray color.

# 4.8. Corporate governance

For information regarding GRI 3-3 – Management of material topics, please refer to the chapter Corporate Governance.

#### Remuneration of EDPR's Board of Directors

The table below includes the list of Directors that composed EDPR's Board during 2022, and the amounts paid by EDPR either (i) as remuneration to them for their functions at the Board level or (ii) as fee to EDP under the Management Services Agreement for their services (not remuneration). The following figures reflect the period of 2022 in which each relevant Director was member of the Board:

| DIRECTOR                      | REMUNERATION | FEES MANAGEMENT SERVICES<br>AGREEMENT EDP-EDPR |                       |
|-------------------------------|--------------|------------------------------------------------|-----------------------|
|                               |              | FIXED<br>COMPONENT                             | VARIABLE<br>COMPONENT |
| EXECUTIVE DIRECTORS           |              |                                                |                       |
| Miguel Stilwell d'<br>Andrade | 0€-          | 550,000€*                                      | 455,835€              |
| Rui Teixeira                  | 0€-          | 360,000€*                                      | 344,250€              |
| NON-EXECUTIVE DIRECTORS       |              |                                                |                       |
| António Mota                  | 230,000€     |                                                | -                     |
| Vera Pinto                    | 0€-          | 65,000€*                                       | -                     |
| Ana Paula Marques             | 0€-          | 65,000€*                                       | -                     |
| Miguel Setas(***)             | 0€-          | 21,667€*                                       | -                     |
| Manuel Menéndez               | 65,000€      |                                                | -                     |
| Acácio Piloto(**)             | 120,000€     |                                                | -                     |
| Allan J.Katz(**)              | 75,000€      |                                                | -                     |
| Rosa García(**)               | 110,000€     |                                                | -                     |

| José Morgado(**) |
|------------------|
| Kay Mc Call (**) |
| Sub-Total        |
| Total            |

| DIRECTOR         | REMUNERATION |            | FEES MANAGEMENT SERVICES<br>AGREEMENT EDP-EDPR |
|------------------|--------------|------------|------------------------------------------------|
| José Morgado(**) | 110,000€     |            | –                                              |
| Kay Mc Call (**) | 75,000€      |            | –                                              |
| Sub-Total        | 785,000€     | 1,061,667€ | 800,085€                                       |
| Total            |              |            | 2,646,752€                                     |

\*These amounts correspond to the service fee paid by EDPR to EDP under the Management Services Agreement for the services rendered in 2023 by such director. In addition, EDPR pays to EDP a 5% of such service fee which is applied to the retirement savings plan for Executive Directors described in topic 76 of this Chapter 5 of the Annual Report.

\*\*These Directors also received remuneration for their participation in the Delegated Committees that is detailed at Chapter 6 of this

Annual Report.

\*\*\* Miguel Setas presented the resignation to his positions as Board Members with effects April 12th, 2023, and therefore the amounts indicated in the table above reflect the remuneration accrued in 2023 until his resignation.

Please note that the 2023-2025 Remuneration Policy was approved as the ninth item on the agenda of the General Shareholders Meeting held on April 4, 2023, which updates the fixed remuneration amounts of all directors with effect from January 1, 2023.

In 2023, EDPR paid an average of €103,611 (+12% vs 2022) to male Non-executive Directors and €78,750 to female Non-executive Directors (+67% vs 2022). Despite the equal pay for both male and female Non-executive Directors, regardless of their role, the year-on-year disparities in the percentages between the two groups can be attributed to their longer tenure. In 2022, resignations led to a two-month vacancy for female Nonexecutive Directors, while there was no such vacancy for their male counterparts. On the other hand, in 2023, there were no vacancies for female directors, while there were more than nine months of vacancies for male directors.

In 2023, due to the invoicing process, EDPR remitted a total of €1,710,085 under the Executive Management Services Agreement between EDP-EDPR. However, the accrued amount in 2023 totalled €1,252,858 (-17% vs 2022). This sum comprises an average of €910,000, calculated as a fixed cost of the service (+22% vs 2022), and an average of €342,858 calculated as the variable cost of the service (-45% vs 2022).

For further information on the topic please see chapter 5. Corporate Governance.

{151}------------------------------------------------

# 4.9. Environmental management

For information regarding GRI 3-3 –Management of material topics, please refer to section Natural Capital of the chapter Performance.

## GRI 304-2 – Significant impacts of activities, products, and services on biodiversity

EDPR is aware of the sensitivity of natural ecosystems and the pressures affecting biodiversity. EDPR's Environmental Policy establishes the Company's specific commitments to contribute to the mitigation of climate change, the promotion of the circular economy and the protection of biodiversity. This Policy is supplemented by internal guidance to establish a shared understanding of how to act, emphasizing the use of the mitigation hierarchy approach throughout the project life cycle as the initial step in fulfilling the overall biodiversity commitments.

EDPR's new Business Plan for 2023-2026 includes targets related to Nature, with the overarching ambition of achieving net zero emissions by 2040. Furthermore, EDPR has set a corporate objective to attain a Biodiversity "Net Gain" in all new projects with significant residual impacts by 2030. By 2026, EDPRaims to have implemented Net Gain Biodiversity tracking systems in 100% of new projects, signifying the need for all internal knowledge and resources to be in place to enable the company to meet Nature's 2030 targets. Additionally, under these corporate commitments, EDPR will not build new generation facilities in Natural Heritage Sites from the UNESCO World Heritage List.

Moreover, it is EDPR's duty to contribute to the development of research and conservation programs, as well as to broaden scientific knowledge on biodiversity matters by supporting institutions and strengthening dialogue and partnerships.

At an operational level, EDPR has Environmental Management Systems (EMS) in place to prevent, correct, and, when necessary, compensate impacts in the environment. These EMS are certified in accordance with ISO 14001:2015 and, by the end of 2023, most of EDPR assets were certified by recognized third party independent auditors. The annual internal goal is to obtain an environmental certification during the first year of operation (COD – commercial operational date) of a new wind farm or solar park.

EDPR's management practices towards biodiversity protection are mainly focused on the following impacts of its activities: migrating birds, bats and habitat fragmentation, which are the most significant ones. Nevertheless, the Company has in place several procedures to identify the impacts of its operations on biodiversity, and act accordingly with its results. In short:

• **Environmental impact assessments and/or risk mapping**: During the development phase of any project of the Company, the potential environmental impacts are analysed in detail in the environmental impact studies and other specific environmental studies, always performed by professional external experts. These studies evaluate the possible impacts of the projects in factors such as fauna, flora, soil, air and water bodies, among

- others.
- 
- 

• **Monitoring of biodiversity indicators:** EDPR has in place environmental monitoring processes specific for biodiversity – commonly for bats and birds, implemented by external experts. Even so, efforts are intensified with specific monitoring procedures in the small number of sites located inside or close to protected areas. During the construction and operational phases, EDPR conducts on-site environmental monitoring to identify and prevent possible impacts on the biodiversity.

• **Partnerships** to increase scientific knowledge and develop solutions to balance renewables development with wildlife protection. REWI is the longer partnership EDPR has in place in the US, with this core mission, including providing funding to the Renewable Energy Wildlife Research Fund. Other partnerships exist to further protect wildlife surrounding its facilities. In Europe GREFA (Group for the Rehabilitation of Native Fauna and their Habitat in Spanish) is an example of a collaboration to improve Egyptian Vultures (Neophron percnopterus) population in the province of Cádiz, Spain.

The application of the mitigation hierarchy approach is a core element of the biodiversity strategy under development and, in 2023, EDPR started using IBAT to characterize its renewable assets and as an early risk screening tool for new projects. The use of this tool reinforces the mitigation hierarchy approach, integrating biodiversity into the investment decision-making process. Following IBAT datasets, by the of 2023, EDPR has analysed all its assets, identifying its location and exposure to biodiversity sensitive areas, with around 16% of assets located in or adjacent to World Database Protected Areas. During 2024, EDPR will drilldown this info to improve data quality, supported by internal Geographic Information Systems, already in place and being used thoroughly in Europe.

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# GRI 304-3 –Habitats protected or restored

The Company's approach to contribute to the global challenge of reducingbiodiversity loss is clear: producing clean energy to fight against climate change, one of the greatest threats for biodiversity. Nevertheless, the Company's commitment to contribute to the protection of biodiversity leads to an active role in the conservation of wildlife surrounding its facilities.

Even though EDPR works to minimise any impact on the land surrounding its facilities, the construction and dismantlement processes of wind farms and solar plants are closely followed by EDPR teams, who work to reduce potential impacts or disturbances and to ensure proper restoration of the land once the works finish, cleaning up and rehabilitating the sites to return the area to its initial state.

Following internal procedures, EDPR restores all the land affected by temporary infrastructure during construction.

Additionally, during 2023, in North America, biodiversity protection was centred around applying the mitigation hierarchy. For projects where biodiversity impacts could not be avoided or minimized, North America conducted a wide range of compensation initiatives from conserving bat habitats to restoring wetlands and sensitive habitats, tailored to meet local needs and regulations. For instance, in Mexico, EDPR is working to preserve rare desert plants through flora relocation and restoration across approximately 330 hectares at two wind farms, and a partnership with a local university supports these activities.

Meanwhile, in New York, an ongoing offsite wetland and stream restoration project aims to enhance the habitat of three federally endangered mussel species using nature-based remediation techniques to address streambank erosion and sedimentation. The restoration activities, covering 13 hectares, also seek to safeguard adjacent floodplain wetlands from potential washouts during high rainfall events.

Moreover, in the USA, companies have the option to purchase credits from recognized biodiversity banks. EDPR has utilized this opportunity to cover 545 hectares of land conservation in the Midwest, thereby increasing the availability of suitable maternity roost habitats for bat and its conservation purposes.

In Iberia, it can be highlighted the different projects ongoing to protect several species of birds, mostly associated with mitigation and compensation activities associated windfarms operations. One of the oldest partnerships is with GREFA, a Spanish environmental NGO, with whom EDPR collaborates to reintroduce the Bonelli Eagle in Madrid and in the central peninsular area, as well as in projects to improve lesser kestrel and Egyptian vulture populations in other regions of Spain.

Additionally, projects to improve pollination within the area of management are being tested. An example is in Poland and in Hungary, where flower meadows are being planted to reinforce biodiversity, create asylum for rare and protected species especially insects and protect the land from drought.

GRI 304-1 – Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

| COUNTRY | FACILITY<br>NAME | TYPE OF<br>OPERATION | POSITION IN RELATION<br>WITH PROTECTED<br>AREA | FACILITY AREA IN<br>PROTECTED NATURAL<br>AREA (HA) | FACILITY AREA IN<br>PROTECTED NATURAL<br>AREA (%) | ATTRIBUTE OF<br>THE<br>PROTECTED<br>AREA | STATUS OF THE<br>PROTECTED AREA |
|---------|------------------|----------------------|------------------------------------------------|----------------------------------------------------|---------------------------------------------------|------------------------------------------|---------------------------------|
| BELGIUM | Sivry            | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial                              | Natura 2000                     |
| FRANCE  | Louvières        | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial                              | Natura 2000                     |
|         | Les 7 Domaines   | Wind farm            | Partially within                               | 0.6                                                | 60%                                               | Terrestrial                              | Regional park                   |
|         | Ty Nevez Mouric  | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial-Freshwater                   | Terrestrial-Freshwater          |
|         | Oigny            | Wind farm            | Inside                                         | 6.4                                                | 100%                                              | Terrestrial                              | Natura 2000                     |
|         | Vaudrimesnil     | Wind farm            | Inside                                         | 1.7                                                | 100%                                              | Terrestrial                              | Regional park                   |

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Annual Report 2023 GRI Report | Environmental management

Image /page/153/Picture/7 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, thinner, sans-serif font. The letters and word are in a dark gray or black color.

| COUNTRY  | FACILITY<br>NAME             | TYPE OF<br>OPERATION | POSITION IN RELATION<br>WITH PROTECTED<br>AREA | FACILITY AREA IN<br>PROTECTED NATURAL<br>AREA (HA) | FACILITY AREA IN<br>PROTECTED NATURAL<br>AREA (%) | ATTRIBUTE OF<br>THE<br>PROTECTED<br>AREA | STATUS OF THE<br>PROTECTED AREA        |
|----------|------------------------------|----------------------|------------------------------------------------|----------------------------------------------------|---------------------------------------------------|------------------------------------------|----------------------------------------|
| ITALY    | Monte Mattina -<br>Aquilonia |                      | Inside                                         | 10.8                                               | 100%                                              | Terrestrial                              | Natura 2000                            |
| POLAND   | Korsze III                   | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial-freshwater                   | Area of protected landscape            |
|          | Ilza                         | Wind farm            | Partially within                               | 6.6                                                | 81%                                               | Terrestrial                              | Regional park                          |
|          | Tomaszow                     | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial-freshwater                   | Natura 2000                            |
|          | Pena Suar                    | Wind farm            | Inside                                         | 6.3                                                | 100%                                              | Terrestrial                              | Natura 2000                            |
|          | Açor                         | Wind farm            | Partially within                               | 0.1                                                | 1%                                                | Terrestrial                              | Natura 2000                            |
|          | Açor II                      | Wind farm            | Partially within                               | 6.0                                                | 88%                                               | Terrestrial                              | Natura 2000                            |
|          | Cinfães                      | Wind farm            | Inside                                         | 4.9                                                | 100%                                              | Terrestrial                              | Natura 2000                            |
|          | Bustelo                      | Wind farm            | Inside                                         | 8.9                                                | 100%                                              | Terrestrial                              | Natura 2000                            |
|          | Falperra-<br>Rechãzinha      | Wind farm            | Partially within                               | 29.2                                               | 88%                                               | Terrestrial                              | Natura 2000                            |
|          | Fonte da Quelha              | Wind farm            | Inside                                         | 8.1                                                | 100%                                              | Terrestrial                              | Natura 2000                            |
|          | Alto do Talefe               | Wind farm            | Inside                                         | 9.2                                                | 100%                                              | Terrestrial                              | Natura 2000                            |
|          | Fonte da Mesa                | Wind farm            | Partially within                               | 8.4                                                | 79%                                               | Terrestrial                              | Natura 2000                            |
|          | Madrinha                     | Wind farm            | Inside                                         | 4.1                                                | 100%                                              | Terrestrial                              | Natura 2000                            |
|          | Safra-Coentral               | Wind farm            | Inside                                         | 19.7                                               | 100%                                              | Terrestrial                              | Natura 2000                            |
|          | Negrelo e<br>Guilhado        | Wind farm            | Partially within                               | 9.6                                                | 98%                                               | Terrestrial                              | Natura 2000                            |
|          | Testos                       | Wind farm            | Partially within                               | 3.6                                                | 25%                                               | Terrestrial                              | Natura 2000                            |
| PORTUGAL | Serra Alvoaça                | Wind farm            | Partially within                               | 7.8                                                | 61%                                               | Terrestrial                              | Natura 2000<br>National protected area |
|          | Tocha                        | Wind farm            | Inside                                         | 6.8                                                | 100%                                              | Terrestrial                              | Natura 2000                            |
|          | Padrela/Soutelo              | Wind farm            | Partially within                               | 1.0                                                | 41%                                               | Terrestrial                              | Natura 2000                            |
|          | Guerreiros                   | Wind farm            | Partially within                               | 0.1                                                | 0%                                                | Terrestrial                              | Natura 2000                            |
|          | Vila Nova                    | Wind farm            | Partially within                               | 7.1                                                | 42%                                               | Terrestrial                              | Natura 2000                            |
|          | Vila Nova II                 | Wind farm            | Partially within                               | 9.1                                                | 34%                                               | Terrestrial                              | Natura 2000                            |
|          | Balocas                      | Wind farm            | Partially within                               | 0.4                                                | 1%                                                | Terrestrial                              | Natura 2000                            |
|          | Ortiga                       | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial                              | Natura 2000                            |
|          | S. João                      | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial                              | Natura 2000                            |
|          | Alto Arganil                 | Wind farm            | Partially within                               | 0.8                                                | 5%                                                | Terrestrial                              | Natura 2000                            |
|          | Salgueiros<br>Guilhado       | Wind farm            | Partially within                               | 0.3                                                | 3%                                                | Terrestrial                              | Natura 2000                            |
|          | Serra do Mú                  | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial                              | Natura 2000                            |
|          | Barão de São João            | Wind farm            | Inside                                         | 22                                                 | 100%                                              | Terrestrial-marine                       | Natura 2000                            |
|          | Albesti                      | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial                              | Natura 2000                            |
| ROMANIA  | Pestera                      | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial                              | Natura 2000                            |
|          | Sarichioi                    | Wind farm            | Partially within                               | 0.1                                                | 0.1%                                              | Terrestrial                              | Natura 2000                            |
|          | Burila Mica                  | Solar plant          | Inside                                         | 23                                                 | 100%                                              | Terrestrial-freshwater                   | Natura 2000                            |
|          | Sierra de Boquerón           | Wind farm            | Inside                                         | 9.6                                                | 100%                                              | Terrestrial                              | Natura 2000                            |
| COUNTRY  | FACILITY<br>NAME             | TYPE OF<br>OPERATION | POSITION IN RELATION<br>WITH PROTECTED<br>AREA | FACILITY AREA IN<br>PROTECTED NATURAL<br>AREA (HA) | FACILITY AREA IN<br>PROTECTED NATURAL<br>AREA (%) | ATTRIBUTE OF<br>THE<br>PROTECTED<br>AREA | STATUS OF THE<br>PROTECTED AREA        |
| SPAIN    | La Cabaña                    | Wind farm            | Partially within                               | 8.2                                                | 53%                                               | Terrestrial                              | Natura 2000                            |
| SPAIN    | Corme                        | Wind farm            | Partially within                               | 4.7                                                | 31%                                               | Terrestrial                              | Natura 2000                            |
| SPAIN    | Hoya Gonzalo                 | Wind farm            | Partially Within                               | 0.7                                                | 4%                                                | Terrestrial                              | Natura 2000                            |
| SPAIN    | Tahivilla                    | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial                              | National protected area                |
| SPAIN    | Coll de la Garganta          | Wind farm            | Partially within                               | 0.1                                                | 1%                                                | Terrestrial-freshwater                   | Natura 2000                            |
| SPAIN    | Puntaza de<br>Remolinos      | Wind farm            | Partially within                               | 1.8                                                | 57%                                               | Terrestrial                              | Natura 2000                            |
| SPAIN    | Planas de Pola               | Wind farm            | Partially within                               | 6.1                                                | 55%                                               | Terrestrial                              | Natura 2000                            |
| SPAIN    | Ávila                        | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial-freshwater                   | Natura 2000                            |
|          | Buenavista                   | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial-Marine                       | Natura 2000                            |
|          | Serra Voltorera              | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial                              | Natura 2000                            |
| SPAIN    | Villoruebo                   | Wind farm            | Partially within                               | 2.1                                                | 43%                                               | Terrestrial-freshwater                   | Natura 2000                            |
| SPAIN    | Villamiel                    | Wind farm            | Partially within                               | 1.9                                                | 29%                                               | Terrestrial-freshwater                   | Natura 2000                            |
| SPAIN    | La Mallada                   | Wind farm            | Partially within                               | 1.4                                                | 7.9%                                              | Terrestrial-freshwater                   | Natura 2000                            |
| SPAIN    | Las Monjas                   | Wind farm            | Partially within                               | 0.0                                                | 0%                                                | Terrestrial-freshwater                   | Natura 2000                            |
| SPAIN    | Coll de la Garganta          | Wind farm            | Partially within                               | 0.1                                                | 1%                                                | Terrestrial-freshwater                   | Natura 2000                            |
| SPAIN    | Tejonero                     | Wind farm            | Partially within                               | 0.2                                                | 1%                                                | Terrestrial                              | Natura 2000                            |
| SPAIN    | Ávila                        | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial-freshwater                   | Natura 2000                            |
| SPAIN    | Sierra de los Lagos          | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial                              | Natura 2000                            |
| SPAIN    | Mostaza                      | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial                              | Natura 2000                            |
| SPAIN    | Los Almeriques               | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial-freshwater                   | Natura 2000                            |
| SPAIN    | Suyal                        | Wind farm            | Partially within                               | 0.0                                                | 0%                                                | Terrestrial                              | Natura 2000                            |
| SPAIN    | Serra Voltorera              | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial                              | Natura 2000                            |
| SPAIN    | Monseivane                   | Wind farm            | Partially within                               | 17                                                 | 97%                                               | Terrestrial-freshwater                   | Natura 2000                            |
| SPAIN    | La Celaya                    | Wind farm            | Partially within                               | 9                                                  | 70%                                               | Terrestrial-freshwater                   | Natura 2000                            |
| SPAIN    | Cerro del Conilete           | Wind farm            | Partially within                               | 0.01                                               | 0.4%                                              | Terrestrial                              | Natura 2000                            |
|          | Cerro del Conilete           | Wind farm            | Adjacent                                       | 0.0                                                | 0%                                                | Terrestrial                              | Natura 2000                            |
| SPAIN    | La Victoria                  | Wind farm            | Partially within                               | 0.1                                                | 0.1%                                              | Terrestrial                              | Natura 2000                            |
| SPAIN    | La Victoria                  | Wind farm            | Partially within                               | 0.1                                                | 0.1%                                              | Terrestrial                              | Natura 2000                            |
| SPAIN    | Marquesado                   | Wind farm            | Partially within                               | 1.5                                                | 2%                                                | Terrestrial                              | Natura 2000                            |

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Annual Report 2023 GRI Report | Environmental management

Note 1: This table contains information regarding every EDPR operational sites in or adjacent to protected areas. EDPR does not own sites in or adjacent to protected areas in its remaining markets. Note 2: Coll de la Garganta, Serra Voltorera, Ávila and La Victoria appear twice in the table as the first entry refers to a bird protected area and the second entry to a protected area due to the community importance of the site.

In addition, through IBAT tool, EDPR assessed 491 of its assets (excluding distributed solar generation). From this analysis, additionally to the above list, the wind farm – Coahuila, in Mexico, is located inside/in the vicinity of a KBA – Key Biodiversity Ares and the new wind farm in Chile, Punta de Talca, is located inside/in the vicinity of a WDPA -World Database Protected Areas. A deep dive on this information will continue throughout 2024.

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Image /page/155/Picture/13 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark gray color.

## – Waste generation and significant waste-related impacts

#### – Management of significant waste-related impacts

| GRI 306-1 – Waste generation and significant waste-related impacts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                 |      |      | GRI 306-3 – Waste generated |                                                 |    |                 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|------|------|-----------------------------|-------------------------------------------------|----|-----------------|
| Most of the waste generated by EDPR is related to the turbine operation and maintenance       processes. Despite this, the Company promotes proper waste management and the       integration of circularity in all phases of its projects.                                                                                                                                                                                                                                                                                                                                                                                                                |                                                 |      |      |                             | WASTE BY COMPOSITION                            | UN | WASTE GENERATED |
| Accordingly, most of the hazardous waste produced by the sites is related to oil and oil-       related waste such as oil filters or oil containers, used mainly for lubrication of the turbines.       The consumption of this oil is based on certain pre-defined replacement time frequencies       (between 2 and 5 years, based on the component, oil type and manufacturer). Annual       fluctuations in hazardous waste generated are heavily dependent on the multiannual oil       replacement programs mentioned. Non-hazardous waste generated by the Company       includes mixed municipal waste, paper, metals, and plastics, among others. |                                                 |      |      |                             | Hazardous waste                                 | t  | 55              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                 |      |      |                             | Oil related waste                               | t  | 38              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                 |      |      |                             | Soils and stones                                | t  | 9               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                 |      |      |                             | Contaminated packaging                          | t  | 3               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                 |      |      |                             | Batteries                                       | t  | 7               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                 |      |      |                             | Antifreeze fluids                               | t  | 6               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                 |      |      |                             | Electronic equipment containing hazardous waste | t  | 3               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                 |      |      |                             | Other hazardous waste                           | t  | 3               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                 |      |      |                             | Non-hazardous waste                             | t  | 97              |
| GRI 306-2 –                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Management of significant waste-related impacts |      |      |                             | Mixed waste                                     | t  | 30              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                 |      |      |                             | Paper and cardboard                             | t  | 16              |
| EDPR promotes a rational use of resources and the reuse of components whenever       possible. In addition, the Company integrates criteria for proper waste management in all                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                 |      |      |                             | Metals                                          | t  | 10              |
| phases of its projects. The Company promotes the recovery of waste rather than disposal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                 |      |      |                             | Septic tank sludge                              | t  | 1               |
| through recycling and other means. In this context, during 2023, EDPR recovered 72% of       the waste generated and 92% of the hazardous waste generated. Please see below the                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                 |      |      |                             | Iron and steel                                  | t  | 9               |
| summary of waste generation and recovery ratios:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                 |      |      |                             | Wood                                            | t  | 7               |
| WASTE - RATIOS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | UN                                              | 2023 | 2022 | Δ% YOY                      | Soils and stones                                | t  | 2               |
| Total waste                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | kg/GWh                                          | 44   | 45   | -1%                         | Fiberglass                                      | t  | 4               |
| Total hazardous waste                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | kg/GWh                                          | 16   | 15   | +8%                         | Concrete                                        | t  | 3               |
| Total non-hazardous waste                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | kg/GWh                                          | 28   | 30   | (6%)                        | Plastics                                        | t  | 2               |
| Total waste recovered                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | %                                               | 72%  | 74%  | -2 pp                       | Electronic equipment                            | t  | 1               |
| Hazardous waste recovered                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | %                                               | 92%  | 90%  | +2 pp                       | Wiping cloths and protective clothing           | t  | 1               |
| Non-hazardous waste recovered                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | %                                               | 61%  | 65%  | (4 pp)                      | Batteries                                       | t  | 1               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                 |      |      |                             | Glass                                           | t  | 0.4             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                 |      |      |                             | Biodegradable waste                             | t  | 0.2             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                 |      |      |                             | Other non-hazardous waste                       | t  | 6               |

==

↩

| GRI 306<br>-1<br>–<br>impacts                                                                                                                                                                      | Waste generation and significant waste |                                           | -related         |                                | GRI 306        |  |  |  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|-------------------------------------------|------------------|--------------------------------|----------------|--|--|--|
|                                                                                                                                                                                                    |                                        |                                           |                  |                                |                |  |  |  |
| Most of the waste generated by EDPR is related to the turbine operation and maintenance<br>processes. Despite this, the Company promotes proper waste management and the                           |                                        |                                           |                  |                                |                |  |  |  |
| integration of circularity in all phases of its projects.                                                                                                                                          |                                        |                                           |                  |                                |                |  |  |  |
|                                                                                                                                                                                                    |                                        |                                           |                  |                                |                |  |  |  |
| Accordingly, most of the hazardous waste produced by the sites is related to oil and oil<br>-<br>related waste such as oil filters or oil containers, used mainly for lubrication of the turbines. |                                        |                                           |                  |                                |                |  |  |  |
| The consumption of this oil is based on certain pre                                                                                                                                                | Batteries                              |                                           |                  |                                |                |  |  |  |
| (between 2 and 5 years, based on the component, oil                                                                                                                                                |                                        |                                           |                  | type and manufacturer). Annual |                |  |  |  |
| fluctuations in hazardous waste generated are heavily dependent on the multiannual oil<br>replacement programs mentioned. Non                                                                      |                                        | -hazardous waste generated by the Company |                  |                                |                |  |  |  |
| includes mixed municipal waste, paper, metals, and plastics,                                                                                                                                       |                                        |                                           | among others.    |                                |                |  |  |  |
|                                                                                                                                                                                                    |                                        |                                           |                  |                                | Non            |  |  |  |
| GRI 306<br>-2<br>–                                                                                                                                                                                 | Management of significant waste        |                                           | -related impacts |                                | Mixed waste    |  |  |  |
|                                                                                                                                                                                                    |                                        |                                           |                  |                                |                |  |  |  |
| EDPR promotes a rational use of resources and the reuse of components whenever                                                                                                                     |                                        |                                           |                  |                                | Metals         |  |  |  |
| possible. In addition, the Company integrates criteria for proper waste management in all<br>phases of its projects. The Company promotes the recovery of waste rather than disposal               |                                        |                                           |                  |                                |                |  |  |  |
| through recycling and other means. In this context, during 2023, EDPR recovered 7                                                                                                                  |                                        |                                           |                  | 2% of                          | Iron and steel |  |  |  |
| the waste generated and 92% of the hazardous waste generated. Please see below the                                                                                                                 |                                        |                                           |                  |                                | Wood           |  |  |  |
| summary of<br>waste generation and recovery ratios:                                                                                                                                                |                                        |                                           |                  |                                |                |  |  |  |
| WASTE<br>-<br>RATIOS                                                                                                                                                                               | UN                                     | 2023                                      | 2022             | % YOY                         | Fiberglass     |  |  |  |
| Total waste                                                                                                                                                                                        | kg/GWh                                 | 4<br>4                                    | 4<br>5           | -1%                            | Concrete       |  |  |  |
| Total hazardous waste                                                                                                                                                                              | kg/GWh                                 | 1<br>6                                    | 15               | +<br>8%                        | Plastics       |  |  |  |
| Total non<br>-hazardous waste                                                                                                                                                                      | kg/GWh                                 | 2<br>8                                    | 30               | (<br>6%)                       |                |  |  |  |
|                                                                                                                                                                                                    |                                        |                                           |                  |                                |                |  |  |  |
| Total waste recovered                                                                                                                                                                              | %                                      | 7<br>2<br>%                               | 74%              | -2 pp                          | Batteries      |  |  |  |
| Hazardous waste recovered                                                                                                                                                                          | %                                      | 92%                                       | 90%              | +2 pp                          | Glass          |  |  |  |
| Non<br>-hazardous waste recovered                                                                                                                                                                  | %                                      | 61%                                       | 65%              | (4 pp)                         |                |  |  |  |

# –3 – Waste generated

| WASTE BY COMPOSITION                  |  |
|---------------------------------------|--|
| Hazardous waste                       |  |
| Oil related waste                     |  |
| Soils and stones                      |  |
| Contaminated packaging                |  |
| Batteries                             |  |
| Antifreeze fluids                     |  |
| Electronic equipment containing haz   |  |
| Other hazardous waste                 |  |
| Non-hazardous waste                   |  |
| Mixed waste                           |  |
| Paper and cardboard                   |  |
| Metals                                |  |
| Septic tank sludge                    |  |
| Iron and steel                        |  |
| Wood                                  |  |
| Soils and stones                      |  |
| Fiberglass                            |  |
| Concrete                              |  |
| Plastics                              |  |
| Electronic equipment                  |  |
| Wiping cloths and protective clothing |  |
| Batteries                             |  |
| Glass                                 |  |
| Biodegradable waste                   |  |
| Other non-hazardous waste             |  |

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# GRI 306-4 – Waste diverted from disposal

| WASTE RECOVERED                                                | UN | 2023  | 2022  |
|----------------------------------------------------------------|----|-------|-------|
| Hazardous waste                                                | t  | 512   | 435   |
| Total hazardous waste recycled                                 | t  | 127   | 177   |
| Total hazardous waste with other recovery, except recycled     | t  | 385   | 258   |
| Non-hazardous waste                                            | t  | 597   | 632   |
| Total non-hazardous waste recycled                             | t  | 485   | 406   |
| Total non-hazardous waste with other recovery, except recycled | t  | 112   | 226   |
| TOTAL                                                          | t  | 1,109 | 1,067 |

# GRI 306-5 – Wasted directed to disposal

| WASTE DISPOSED                                                 | UN | 2023 | 2022 |
|----------------------------------------------------------------|----|------|------|
| Hazardous waste                                                | t  | 47   | 46   |
| Total hazardous waste sent to landfill                         | t  | 32   | 30   |
| Total hazardous waste with other<br>disposal, except landfill  | t  | 15   | 15   |
| Non-hazardous waste                                            | t  | 375  | 338  |
| Total non-hazardous waste sent to landfill                     | t  | 368  | 325  |
| Total non-hazardous waste with other disposal, except landfill | t  | 7    | 13   |
| TOTAL                                                          | t  | 422  | 384  |

Notes to the waste indicators reported above:

• For the purposes of this report, all wastes have been classified as hazardous or nonhazardous according to European waste catalogue; however, in each country where EDPR has a geographic presence, each site is required to adhere to national law by following company procedures for handling, labelling, and storage of wastes to ensure compliance. In cases like in the United States, when the Company's operations generate small quantities of substances which fall into additionally regulated categories such as used oils and universal wastes, EDPR follows strict standards for handling and disposal of these waste types to ensure and remain compliant with all applicable laws.

• Includes waste both from operational facilities and offices.

- 
- All waste is treated offsite.

## Significant spills

Given EDPR's activity and its locations, oil spills and fires are the major environmental risks the Company faces. The Environmental Management System is designed and implemented to prevent emergency situations from happening. But, just to be cautionary, the system covers the identification and management of these, including the near miss situations.

EDPR defines significant spills and fires as any spill affecting water bodies/courses, protected soils or soils of interest because of its natural value, or fire affecting protected areas and/or species (according to local protection laws), derived from the O&M activities in the facilities. EDPR continues to register near miss situations, when a registered incident does not reach the category of significant spill. In 2023, there were no significant spills and fires, and there were 61 near miss situations registered during the year (-14% vs 2022).

In this context, EDPR performs regular environmental drills to guarantee that all employees and suppliers are familiar with the risks and have received the appropriate training to prevent and act, if necessary.

# Other environmental management related topics

Despite EDPR's core activities do not pose any threats of serious or irreversible damage to the environment, the Company, in compliance with the Precautionary Principle, applies cost-effective measures to prevent environmental degradation such as provisions for dismantling and decommissioning of property, plant and equipment to dismantle and decommission those assets at the end of their useful lives. Consequently, EDPR has booked provisions for property, plant and equipment related to electricity wind and solar generation for the responsibilities of restoring sites and land to its original condition, in the amount of €294,730 thousand as of 31 December 2023 (-11% vs 2022).

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![edp Renewables](https://i.imgur.com/9999999.png)

# 4.10. Community engagement

For information regarding GRI 3-3 –Management of material topics, please refer to section Support communities of the chapter Performance.

## GRI 202-2 – Proportion of senior management hired from the local community

The Code of Ethics contains specific clauses of non-discrimination and equal opportunities in line with the Company's culture of diversity. This is reflected in the procedures for hiring people via a non-discriminatory selection process. A potential employee's race, gender, sexual orientation, religion, marital status, disability, political orientation or opinions of any other nature, ethnic or social origin, place of birth or trade union membership are not considered.

In this context, there are no specific procedures explicitly requiring local recruitment. Nevertheless, a high percentage of EDPR employees are hired from the same country in which the Company operates.

| LOCAL RECRUITMENT | UN | 2023 | 2022 |
|-------------------|----|------|------|
| Senior managers   |    |      |      |
| Europe            | %  | 85%  | 90%  |
| North America     | %  | 69%  | 85%  |
| South America     | %  | 60%  | 64%  |
| APAC              | %  | 61%  | 64%  |

#### GRI 203-1 – Infrastructure investments and services supported

Wind and solar energy require infrastructure investments which benefit surrounding communities. This includes the reinforcement of existing electricity networks and the rehabilitation of existing roads or the construction of new roads, and further equipment as hospitals or schools.

The investment in roads is necessary in order to transport heavy equipment (wind turbine components, power transformers, etc.) to the site during construction. The improved road system facilitates future maintenance activities after construction works, as well as improves access to remote locations for the surrounding communities, and generates new jobs. During the operation of the wind farms and solar plants, these roads are maintained. The integration of the generation capacity may also require upgrades in the distribution and transmission grids that belong to the system operators. Those upgrades indirectly benefit the quality of service offered in the surrounding areas by minimising electricity supply interruptions.

# GRI 203-2 – Significant indirect economic impacts

Renewable energy technologies are viewed not only as tools for mitigating climate change as they are also increasingly recognised as investments that can provide direct and indirect economic advantages by reducing dependence on imported fuels (and hence, improving trade balances), enhancing local air quality and safety, advancing energy access and security, propelling economic development and creating jobs. In 2023, EDPR implemented several economic development projects, which foster job creation and profit generation. For more information, please refer to section 3.4.2. Support communities, of chapter 3. Performance.

## GRI 411-1 – Incidents of violations involving rights of indigenous

# peoples

EDPR has no knowledge of any incident of violations involving rights of indigenous people in 2023, neither in 2022.

Note: For the information reported in this indicator, EDPR considers claims/doubts reported in the Speak Up Channel and considered as founded, and penalties reported in EDPR's Financial Statements.

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Image /page/158/Picture/23 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, simpler font. The letters "ed" are in a darker color, while the "p" is in a lighter color. The word "Renewables" is in the same darker color as the "ed".

==

↩

# GRI 413-1 – Operations with local community engagement, impact assessments, and development programs

Installed clean energy must triple by 2030, but it will only grow consistently if we assure community support.

In this sense, EDPR approved its new Local Stakeholder Engagement Policy in 2023, including a list of procedures compulsory throughout the markets where the company operates. The premise is to map and deeply engage with the communities before starting a new project, and to deeply diagnose, through independent external studies, the real impacts business will have on the new energy landscape. Itis the safest path to build shared value, supporting communities before construction begins and earning a Social License to Operate, as a preventive identification of risks and knowledge of the local stakeholders will frankly diminish the chances of deep crisis further ahead.

Tackling these new community challenges, EDPR has implemented a proactive approach that emphasizes effective communication, transparency, and community engagement. Listening to the concerns of local communities and addressing them in a timely and meaningful manner is a priority. In 2023, EDPR worked on bringing locally respected society figures to work closely with the Company, which has been most welcome locally and has become a strong facilitator for local relations and developments.

In this context, some improvement areas were identified and are being addressed. In North America, community opposed the construction of the Rolling Uplands Wind Farm, and a deep dive engaged impact study is ongoing before any further decisions are taken. A previous community concern raised with the Misenheimer Solar Park has been surpassed and is now under the construction phase, strongly aligned with the local authorities.

In the Northeast region of Brazil, EDPR won its first project in the state of Paraíba and a preventive social diagnosis was carried out in advance, aiming to plan the social and communication actions to be carried out in these communities. As a result, the departments of Environment, Social and Public Affairs & Community Relations drew up an action plan to be executed throughout 2023, which included initiatives addressing:

- Education and improvement of school environment, catering for almost 500 students in the municipal educational network;
- Cultural events throughout the year, with theatre plays and movies in public spaces;
- Sports events throughout the year designed to promote socio-emotional benefits of sport;

• Development of rural enterprise to inject economic dynamism into socioeconomically deprived regions, through technology involving agroecological production, combating drought, water security and food supply safety;

- 
- Development of a social project to train young people for the job market;
- Creation of a narrative aligned and coordinated with the rest of the industry through the largest industry body, ABEEólica; and
- Preparation of a differentiated communication plan for the region.

In 2023, no major issues regarding local communities have been reported through the Speak Up Channel. Monthly meetings have also been held with the communities since May 2023, smoothly ran.

The established procedures in place ensured that, throughout 2023, as in previous years, EDPR was not subject to accusations or suspicions of violations of fundamental human and labour rights.

Additionally, the EDP IMPULSA programme was created by EDPR in Brazil with the objective of supporting the professional development and employability of people in the communities where the company operates. Following a social diagnosis performed with the collaboration of the local government, a high unemployment rate was identified among young adults who lacked basic training to find employment in the region. Scholarships for vocational training courses were offer to residents and over 120 students received training on High Voltage Building Electrician, Industrial Sewing Machine Operator, Bricklayer, and Motorcycle Maintenance Mechanic.

#### **Keeping engaged with communities**

But it is not just in operation areas that EDPR feels responsible for a healthy society. The work carried out by the Company aims to promote the wellbeing and development of society as a whole, focusing on the people who contribute to the success of the Company's business and how society may benefit from it.

During 2023, it is worth highlighting what was achieved in La Guajira (Colombia). With the goal of improving the lives of the most vulnerable people, the donation of \$100,000 helped 700 families (about 3,150 people) affected by the winter cold wave. This donation mitigated some basic needs through the delivery of non-perishable food kits in Uriba, Maicao, and Albania.

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Image /page/159/Picture/10 description: The image features the logo of EDP Renewables. The logo consists of the lowercase letters "edp" in a dark blue, sans-serif font, stacked above the word "Renewables" which is also in a dark blue, sans-serif font but smaller in size. The letters "edp" are connected, with the "e" and "d" sharing a common vertical stroke. The background is plain white.

=

In Greece, one of the Company's various initiatives is the collaboration with the cleaning of Lokron beach, located in the Malesina region near Livadi and Erinia windfams. By organizing and participating in beach clean-up activities, EDPR has helped preserve the beauty of Lokron beach and protect its ecosystem.

Another action that was continued in 2023 was the granting of higher and technical level scholarships, within the scope of the Program for the Strengthening of Indigenous Organizations, through which 39 scholarships were granted. To date, eight students have graduated in the area of health, nine professionals completed courses in the area of education and are already working in the classroom as teachers, three graduated in the area of Law, another three graduated in Business Management and one in the area of forest engineering.

In the APAC region, EDPR has been implementing the new policy's local stakeholder approach, reinforcing the Community engagement strategies.

In North Singapore, deploying solar DG on the Pulau Ubin island was a visible incentive into the *walking the talk* approach since there was no business interest in the region, but rather on implementing the energy transition as a flagship locally, since Ubin is a deeply respected natural sanctuary but was operating on a diesel fuel PowerGrid, now partially transformed into solar DG. The enhanced microgrid system is powered by 328 kWh of solar energy, equipped with a 1 MWh Vanadium flow redox battery energy storage system, creating an electrical ecosystem that powers the island with non-intermittent renewable energy, capable of meeting at least 95% of the key business and residential needs. Today, more than 30 households and businesses enjoy 24/7 non-intermittent renewable energy, thereby reducing the island's reliance on diesel by more than 100,000 litres per annum, avoiding 268,000 kg of CO<sup>2</sup> emissions. With the use of solar power, it also stabilizes the electricity pricing for residents, as they are no longer subjected to the price fluctuations of diesel.

In Vietnam, the strategy is rooted on seeding a solid educational bases to the whole population on operation areas – and this was why EDPR invested on a powerful transformation on the education facilities and tools for populations around operation areas. Specifically, Xuan Thien Thuan Bac and Xuan Thien Ninh Thuan Solar farms play a crucial role on the transition: aligned with the approved Master Plan (PDP-7), these projects boast a total capacity of 255MWp. The *back-to-school operation* covered over one thousand households, also endorsing economically fragile families, and further developing local institutional relations with the authorities. This long-term investment on education, deeply knowing the population and transparently engaging, was part of EDPR's recognition as the first project worth of a Fast Infra Label Assessment.

Globally, during 2023, EDPR invested a total of €2.4 million in supporting communities, as a result of several activities such as internally developed and collaborative initiatives, donations to charitable organisations and volunteering activities. 27% of EDPR employees participated in volunteering initiatives, contributing with more than 5,000 hours of their time to the development and wellbeing of the society.

# GRI 413-2 – Operations with significant actual and potential negative impacts on local communities

Noise, visual impact, TV interferences and ice thrown from wind turbines are identified as EDPR's business environmental impacts within the category of disturbance to the local communities. EDPR implements the necessary measures to make these impacts as minor as possible. Moreover, during the operation phase, EDPR has grievance mechanisms in place available to the local communities to ensure that suggestions or complaints are properly recorded and addressed. This allows EDPR not only to solve the complaints but also to introduce improvements in all processes. In 2023, EDPR registered 19 complaints regarding potential impacts on the local communities, -63% when comparing to 2022. There were 6 complaints in the US, of which 4 were related to noise, 1 related to possible interferences with the TV or radio signal and 1 related to shadows. In France there were 10 complaints, of which 5related to possible interferenceswith the TV or radio signal, 4 related to noise and 1 related to shadows. There were also 2 complaints in Brazil and Poland related to noise and 1 in Spain related to biodiversity.

Please note that EDPR does not have individual consumers, according to the concept this term has associated in the Spanish regulation (Law 11/2018). Regarding the complaint systems, given the core business of the Company, EDPR does not deal directly with individual consumers. However, EDPR considers the local communities near its operations as its clients and makes different complaint channels available to them, among which is the Speak Up Channel.

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Image /page/160/Picture/6 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font.

# 4.11. Human Rights

For information regarding GRI 3-3 –Management of material topics, please refer to section Social Capital of the chapter Performance.

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Annual Report 2023 GRI Report | Digital transformation

Image /page/161/Picture/3 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters "edp" are in a dark blue or gray color, while "Renewables" is in a lighter shade of the same color.

# 4.12. Digital transformation

For information regarding GRI 3-3 –Management of material topics, please refer to section Digital Capital of the chapter Performance.

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Image /page/162/Picture/23 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark blue color.

# 4.13. Communication and transparency

# Contributions to foundations and non-profit entities

Contributions to foundations and non-profit entities EDPR contributed with more than 166 thousand euros to Foundations, -69% vs 2022. The interannual variation is mostly due to EDPR's solidarity campaign carried out in 2022 in response to the humanitarian crisis in Ukraine. Regarding non-profit organisations and NGOs, EDPR donated more than 693 thousand euros, +5% YoY.

## GRI 2-28 – Membership of associations

The EDP Group raises awareness to policy makers and legislators about the interests of the business sector and/or its own. Globally, EDP Group's activities include participation in industry associations ("Industry Institutions") comprising multiple industry participants that work to advance shared policy objectives. EDPR's approach and involvement with Industry Institutions is in accordance with EDP Group's internal regulations, policies and procedures, including the principles of integrity and transparency expressed in the Code of Ethics. In Europe, activities are monitored by means of voluntary registration on a platform created for that purpose by the European Commission – "Transparency Register". EDP has been registered since the creation of this platform in 2011. In North America, relevant Industry Institutions are required to disclose and/or register campaign finance and lobbying activities in accordance with applicable local, state, or federal law.

In the following table are presented the contributions concerning the activities of

representation of interests of EDPR:

Tota

| ACTIVITIES OF REPRESENTATION OF INTEREST                                      | UN | 2023  | 2022  |
|-------------------------------------------------------------------------------|----|-------|-------|
| Trade associations or tax-exempt groups                                       | €k | 2,683 | 1,536 |
| Lobbying, interest representation or similar                                  | €k | 599   | 295   |
| Other                                                                         | €k | 86    | 20    |
| Local, regional, or national political campaigns / organisations / candidates | €k | 0     | 0     |
| Total                                                                         | €k | 3,368 | 1,851 |

The table below contains the most relevant contributions for associations in 2023:

| MOST RELEVANT CONTRIBUTIONS                   | UN | 2023 |
|-----------------------------------------------|----|------|
| ACP -<br>American Clean Power Association     | €k | 667  |
| Wind Europe                                   | €k | 176  |
| SEIA -<br>Solar Energy Industries Association | €k | 174  |
| ZEIGO by Schneider Electric                   | €k | 124  |
| SC Partners                                   | €k | 119  |

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Image /page/163/Picture/19 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font. Below the letters, in a smaller font, is the word "Renewables".

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# GRI 201-4 – Financial assistance received from government

EDPR has not received any financial assistance from the government in 2023, neither in 2022.

Note: The American legislation foresees - and has foreseen in the past - several tax incentives for the production of renewable energy in the United States. Some examples are the production tax credits, the research and development tax credits, the former cash grant, the so-called MACRS (a way of accelerated depreciation), etc. These tax credits are in most cases are part of the renewable energy remuneration scheme.

# GRI 206-1 – Legal actions for anti-competitive behaviour, antitrust, and monopoly practices

EDPR has no knowledge of any legal actions for anti-competitive behaviour, anti-trust or monopoly practices in 2023, neither in 2022.

## GRI 2-27 – Compliance with laws and regulations

EDPR has no knowledge of any non-compliance with laws and regulations in 2023, neither in 2022.

#### GRI 415-1 – Political contributions

The Integrity Policy, in line with the principles defined in the Code of Ethics, prohibits any contribution or association of the EDPR brand to political parties, candidates, campaign structures / political candidacy or to related persons or entities, namely through the delivery of goods or the provision of services, directly or indirectly, on behalf or representation of EDPR, since it may jeopardise the integrity of the Group entities, unless otherwise required by law.

In addition, EDPR should make available the necessary arrangements for employees to take part, in their strictly personal capacity, in political processes, under applicable law.

In North America, EDPR retains political consultants for lobbying activities. However, these political consultants are prohibited from making contributions to political candidates, campaigns or parties on behalf of or in the name of EDPR.

Additionally, EDPR has provided financial support for the activities of American Energy Action, a welfare organisation organised under Section 501(c)(4) of the US Internal Revenue Code. Such social welfare organisations may participate legally in some political activity on behalf of or in opposition to candidates for public office. However, any such political activity must be completely independent of any political candidate or political campaign.

Finally, in accordance with US law, and at the request of US employees, EDPR provides properly regulated mechanisms for employees' participation in political processes and has enabled the establishment of a political action committee (PAC) called the EDPR NA PAC. The EDPR PAC is funded entirely by voluntary personal monetary contributions made by members of the PAC, who are eligible employees in accordance with US law, and decisions on which political campaigns to support are made with the approval of the PAC governing board, which is made up of elected members of the PAC, also in accordance with US law.

These activities are then aligned with the above-mentioned principles of the Integrity Policy and the Code of Ethics.

# GRI 207-1 – Approach to tax

Tax mission and strategy

The EDPR Group believes it has both an ethical and civic obligation to contribute to the funding of essential government functions in the countries where the Group operates. As such, the Group manages its tax matters by adhering to the best tax practices, maintaining transparency, efficiency, and responsibility in tax payments, in strict accordance with the applicable legislation, while mitigating significant risks and avoiding needless disputes, and ensuring value creation for shareholders.

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EDPR follows EDP Group's fiscal strategy, which is based on five main pillars:

#### **1. Compliance with Tax Laws and Regulations**

EDPR conducts its fiscal responsibilities with diligence and professionalism, in alignment with the EDP Group Tax Mission, guided by the following principles:

- Implements the options which are most appropriate to the business and to the shareholders, in faithful compliance with the spirit and letter of the Law.
- Pays the taxes that are due in all the countries where it carries out its activity.
- Adopts the arm's length principle, in the context of applicable international rules, guidelines and best practice on transfer pricing in the light of Organization for Economic Cooperation and Development (OECD) guidelines, and to this extent it has implemented an internal transfer pricing policy based on three main principles:
	- The terms and conditions of all EDP intra-group transactions are determined taking into consideration the inherent economic rational, the risks assumed, and the functions performed by each party, in order to settle a price aligned with what is usually agreed between independent parties in comparable transactions;
- EDP fully complies with OECD Documentation Guidelines regarding intra-group transactions and takes into consideration the specific requirements of the internal legislation of each jurisdiction where the Group develops its activity;
- Therefore, EDP transfer pricing Policy does not constitute an instrument for tax planning and / or tax evasion at EDP Group.
- Adopts tax practices based on principles of economic relevance and commonly accepted business practices.
- Discloses true and complete information concerning relevant transactions.
- Seeks to defend its legitimate interests by administrative means and, when appropriate, judicially, when the payment of any taxes, contributions and levies reasonably raises doubts regarding its legality.

#### **2. Ethical Tax Practices**

EDPR conducts all the tax affairs with integrity, responsibility, and a dedication to the highest ethical standards. Its approach involves a through and prudent interpretation of the prevailing tax laws governing its transactions, often with the support of legal experts and external advisors.

When necessary and feasible, the Group seeks the opinion of local tax authorities to ensure that its actions are strictly aligned with the applicable legislation. This commitment to ethical tax practices not only ensures the Group full compliance with tax laws but also upholds its responsibility in contributing positively to the communities and societies in which the Group carries out its activity.

#### **3. Full collaboration with Tax Authorities**

EDPR is committed to maintain a relationship with the Tax Authorities of the countries where it operates based on principles of trust, good faith, transparency, cooperation and reciprocity, aiming to facilitate the application of the Law and to minimize litigation, despite the legitimate disputes that may arise with such authorities concerning the interpretation of applicable legal provisions.

#### **4. Risk Management**

The companies of the EDPR Group shall adopt the control mechanisms necessary to ensure compliance with the tax laws and regulations, as well as the principles and good practices set forth in the EDP Group's Tax Policy, as part of proper business management. The companies shall also use proper and sufficiently qualified human and material resources for such purposes, as well as technology to maximize the quality and accuracy of data to support tax management activities and the filing of related tax returns and forms.

The tax risk process management and control begins with the identification and classification of the risks to which the EDPR Group may be subject. In this sense, the EDPR Group continuously assesses the tax risks and uncertainties, conducting regular exercises in order to identify, quantify and monitor risks that arise from external events with potential material impact. The EDPR Group identifies the risks to which it is exposed based on the following classification:

• Compliance risk, associated with a potential failure to comply with tax obligations in a

• Technical analysis risk, that may lead to potentially less appropriate tax decisionmaking, particularly in contexts where there is uncertainty in tax treatment.

- timely and complete manner.
- 
- 
- tax information disclosed.

• Communication risk, associated with the possibility of an inadequate communication flow between internal tax teams and other corporate areas (e.g., business units) or external entities (e.g., Tax Authorities).

• Reputational risk, related to the misinterpretation, by the stakeholders, of financial and

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In addition, the EDP Group has implemented a risk management policy with the goal of identifying, quantifying, managing, monitoring and mitigating, among others, the tax risks, namely the risk of materialization of the tax contingencies. EDP Group, through a specialized team, continuously monitors the processes associated with tax risks and contingencies (related and not related to ongoing litigation), in close cooperation with the respective Business Units, corporate legal services and external lawyers and advisors, with a bi-annual report of their evolution to the General and Supervisory Board of the EDP Group.

#### *Accountability for the tax Policy and its Supervision*

EDPR's Management Team is involved in the decision-making process of the relevant operations, being its tax impact, if any, analysed and, documented as it may constitute an important element for the final decision, in order to ensure long-term value creation for shareholders.

EDPR also has an Audit, Control and Related-Party Transactions Committee, whose main mission, includes the permanent monitoring and supervision of any matters related to the internal control system over financial information and the risk management process, including its fiscal aspects.

#### **5. Transparency**

EDPR considers transparency a core principle of its fiscal function, particularly through:

- Not using opaque structures or operating in jurisdictions lacking a substantial economic connection to its operations. EDPR does not establish subsidiaries in territories considered to be non-cooperating in accordance with Portuguese legislation and / or with the OECD standards; and,
- Disclosure of tax information in accordance with the best international tax practices and accountability standards. This commitment aims to offer stakeholders a comprehensive view of EDPR's contributions to the economies where it operates, emphasizing transparency and solidifying its position as a responsible and ethical participant in the global business community.

To this end, EDPR presents key tax information in both its Financial Statements and Management Report of its annual integrated report, guaranteeing clarity, usefulness, and accuracy in the information provided.

In addition, it should be noted that the information regarding EDPR reported by EDP Group, as a multinational Group, fully complies with the annual communication and reporting

obligations arising from the implementation of the provisions of Action 13 of the Base Erosion and Profit Shifting project (known as Country-by Country Reporting), which is part of a plan to strengthen transparency for tax administrations and that was adopted by the OECD and G20 countries. This obligation is fulfilled in Portugal by the parent company, in accordance with the established legal deadlines.

Taking into account the preliminary analysis carried out and EDP Group's consolidated revenues, it is expected that the Group will be subject to this tax regulation. Spain did not comply with the transposition deadlines, although it is expected that such transposition occurs during 2024. However, assuming that the transposition will strictly follow the Directive, no top-up tax is expected to be paid by EDP Group.

In the countries where EDPR Group carries out its activities and where the Pillar 2 rules were already enacted, we expect the safe harbours will apply and therefore no additional tax will be due.

## GRI 207-2 – Tax governance, control and risk management

The companies of the EDPR Group shall adopt the control mechanisms necessary to ensure compliance with the tax laws and regulations, as well as the principles and good practices set forth in the EDP Group's Tax Policy, as part of proper business management. The companies shall also use proper and sufficiently qualified human and material resources for such purposes, as well as technology to maximize the quality and accuracy of data to support tax management activities and the filing of related tax returns and forms.

The tax risk process management and control begins with the identification and classification of the risks to which the EDPR Group may be subject.

In this sense, the EDPR Group continuously assesses the tax risks and uncertainties, conducting regular exercises in order to identify, quantify and monitor risks that arise from external events with potential material impact.

EDPR identifies the risks to which it is exposed based on the following classification:

• Compliance risk, associated with a potential failure to comply with tax obligations in a

- timely and complete manner.
- 

• Technical analysis risk, that may lead to potentially less appropriate tax decisionmaking, particularly in contexts where there is uncertainty in tax treatment.

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Annual Report 2023 GRI Report | Communication and transparency

Image /page/166/Picture/17 description: The image contains the logo for EDP Renewables. The logo consists of the letters "edp" in a simple, sans-serif font, stacked above the word "Renewables" in a smaller, lighter font. The letters "edp" are in a dark color, while "Renewables" is in a lighter shade of the same color.

- Communication risk, associated with the possibility of an inadequate communication flow between internal tax teams and other corporate areas (e.g., business units) or external entities (e.g., Tax Authorities).
- Reputational risk, related to the misinterpretation, by the stakeholders, of financial and tax information disclosed.

In addition, the EDP Group has implemented a risk management policy with the goal of identifying, quantifying, managing, monitoring and mitigating, among others, the tax risks, namely the risk of materialization of the tax contingencies. EDP Group, through a specialized team, continuously monitors the processes associated with tax risks and contingencies (related and not related to ongoing litigation), in close cooperation with the respective Business Units, corporate legal services and external lawyers and advisors, with a bi-annual report of their evolution to the General and Supervisory Board of the EDP Group.

#### *Accountability for the tax Policy and its Supervision*

EDPR's Management Team is involved in the decision-making process of the relevant operations, being its tax impact, if any, analysed and, documented as it may constitute an important element for the final decision, in order to ensure long-term value creation for shareholders.

EDPR also has an Audit, Control and Related-Party Transactions Committee, whose main mission, includes the permanent monitoring and supervision of any matters related to the internal control system over financial information and the risk management process, including its fiscal aspects.

#### GRI 207-3 – Stakeholder engagement and management of concerns related to tax

The EDP Group reconciles responsible compliance with tax obligations, with the commitment to create value for its shareholders, advocating efficient management of its tax burden through the use of legally available tax benefits and incentives applicable in each region and which are appropriate to the business carried out. The Group is specifically committed to maintain a relationship with the Tax Authorities of the countries where it operates based on principles of trust, good faith, transparency, cooperation and reciprocity, aiming to facilitate the application of the Law and to minimize litigation, despite the legitimate disputes that may arise with such authorities concerning the interpretation of applicable legal provisions.

# GRI 207-4 – Country-by-country reporting

#### Global contribution of the EDPR Group

In 2023, EDPR Group's global tax contribution to the public revenues of the countries where it is present amounted to approximately 523 million euros, of which 360 million euros correspond to own taxes and contributions borne (paid) by the EDPR Group and 163 million euros of taxes collected (contributions to the States on behalf of other economic agents), as shown in the following charts.

#### **Taxes borne (paid) by the EDPR Group, by geographical area**

#### **Taxes borne (paid) by the EDPR Group, by the type of contribution**

Image /page/166/Picture/12 description: The image is a donut chart showing the distribution of \u20ac360 million in 2023 across different countries. Italy accounts for 23%, followed by the United States at 16%, Portugal at 15%, Poland at 12%, Romania at 10%, Brazil at 9%, Spain at 4%, and other countries at 11%.

**Taxes borne (paid) b**

Image /page/166/Picture/14 description: This image is a pie chart showing the breakdown of €360 million in 2023. Corporate income tax accounts for 46%, energy taxes account for 20%, social security contributions account for 9%, property tax accounts for 19%, and other taxes account for 6%.

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Annual Report 2023 GRI Report | Communication and transparency

Image /page/167/Picture/13 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, thinner font. The letters and word are in a dark blue color.

#### **Taxes borne (paid) by the EDPR Group in 2023**

| TAXES BORNE (PAID) BY THE EDPR GROUP (€k) |                      |              |                               |              |             |         |
|-------------------------------------------|----------------------|--------------|-------------------------------|--------------|-------------|---------|
| Region                                    | Corporate income tax | Energy taxes | Social Security contributions | Property tax | Other taxes | Total   |
| Brazil                                    | 26 076               | 609          | 1 385                         | 0            | 5 181       | 33 251  |
| Colombia                                  | 3 323                | 0            | 787                           | 0            | 11 747      | 15 857  |
| France                                    | 61                   | 838          | 2 654                         | 94           | 416         | 4 063   |
| Italy                                     | 54 883               | 26 438       | 1 091                         | 376          | 0           | 82 788  |
| Mexico                                    | 14 060               | 0            | 132                           | 0            | 296         | 14 488  |
| Poland                                    | 30 212               | 5 998        | 592                           | 5 900        | 81          | 42 783  |
| Portugal                                  | 42 711               | 6 756        | 2 124                         | 792          | 174         | 52 557  |
| Romania                                   | 9 180                | 25 787       | 50                            | 1 439        | 3           | 36 459  |
| Spain                                     | -9664                | 4 055        | 12 954                        | 4 356        | 2 413       | 14 114  |
| United States                             | -4851                | 0            | 6 857                         | 54 615       | 0           | 56 621  |
| Other                                     | 132                  | 0            | 3 980                         | 291          | 2 397       | 6 800   |
| Total                                     | 166 123              | 70 481       | 32 606                        | 67 863       | 22 708      | 359 781 |

#### **Country by country tax contribution**

| CORPORATE INCOME TAX PAID (CASH BASIS) | UN | 2023   | 2022    |
|----------------------------------------|----|--------|---------|
| Brazil                                 | €k | 26,076 | 10,266  |
| China                                  | €k | 8      | 40      |
| Colombia                               | €k | 3,323  | 3,802   |
| Germany                                | €k | 34     | 1       |
| Spain                                  | €k | -9,664 | -43,995 |
| France                                 | €k | 61     | 586     |
| Greece                                 | €k | 11     | 9       |
| Hungary                                | €k | 63     | 0       |
| Italy                                  | €k | 54,883 | 18,412  |
| Japan                                  | €k | 8      | 10      |
| Mexico                                 | €k | 14,060 | 7,230   |

| CORPORATE INCOME TAX PAID (CASH BASIS) | UN | 2023    | 2022   |
|----------------------------------------|----|---------|--------|
| Malaysia                               | €k | 0       | 3      |
| Netherlands                            | €k | 5       | 0      |
| Poland                                 | €k | 30,212  | 24,892 |
| Portugal                               | €k | 42,711  | 32,574 |
| Romania                                | €k | 9,180   | 387    |
| Taiwan                                 | €k | 3       | 16     |
| United Kingdom                         | €k | 0       | 1      |
| United States                          | €k | -4,851  | 1,058  |
| Vietnam                                | €k | 0       | 132    |
| TOTAL                                  | €k | 166,123 | 55,424 |

| Malaysia       |
|----------------|
| Netherlands    |
| Poland         |
| Portugal       |
| Romania        |
| Taiwan         |
| United Kingdom |
| United States  |
| Vietnam        |
| TOTAL          |

– and has foreseen in the past – several tax incentives for the production of renewable energy in the United States. Some examples are the production tax credits, the research and development tax credits, the former cash grant, the so-called MACRS (a way of accelerated depreciation), etc. These tax credits, that in most cases are part of the renewable energy remuneration scheme, have accumulated during the last years, allowing the minimisation of CIT cash-out in this geography. Note 2: The amounts of Corporate Income Tax paid are highly conditioned by the corporate in-come tax advanced payments' calculation methodology foreseen by each applicable local regulation. These trigger differences between advance payments corresponding to current year and the balance of the corporate income tax liability corresponding to previous year derived from the final tax returns filed. Note 3: For information regarding Profit before income tax, please refer to 4.3 Economic Business Sustainability. For the number of employees by country, please refer to 4.5 People Management, GRI 2 -7.

Image /page/167/Figure/11 description: The image contains the title "Taxes collected by the EDPR Group and delivered to the States (burden of Other agents), by geographical area".

# **agents), by geographical area**

Image /page/167/Figure/15 description: This image is a donut chart showing the distribution of \u20ac163 million in 2023 across different countries. Portugal accounts for 38%, the United States accounts for 16%, Spain accounts for 31%, and others account for 15%.

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Image /page/168/Figure/1 description: This image is a pie chart showing the breakdown of \u20ac163 million in 2023. Consumption Tax accounts for 25%, Social Security Contributions Payable by Workers account for 14%, Withholding tax (third-party income) accounts for 50%, Energy taxes account for 6%, and Other accounts for 5%.

Image /page/168/Figure/12 description: This image is a pie chart showing the distribution of €70 million in 2023 across different countries. Italy accounts for 37%, Romania accounts for 37%, Portugal accounts for 10%, Poland accounts for 8%, and Other accounts for 8%.

#### **Taxes collected by the EDPR Group and delivered to the States (burden of Other agents), by type of contribution**

Regarding the taxes borne (paid) by EDPR Group, Italy is the country with the highest tax contribution in 2023, accounting for 23% of total taxes borne by EDPR Group. This is due to the effect of corporate income tax advanced payments methodology, that is based on previous year's result.

On the other hand, considering the taxes borne (paid) by EDPR Group by type of contribution, the most relevant amount (46%) corresponds to corporate income tax, followed by specific taxation on the sector (including the windfall tax paid in Italy, Romania, Portugal and Poland) (20%), and finally, Property taxes (19%).

Regarding Corporate income tax rates in the main countries in which EDP Group operates range between 16% in Romania and 35% in Colombia.

Taxes collected by EDPR Group and delivered to the States where it carries out its activity (burden of other agents) amounted to circa 163 million euros in 2023, mostly related to the collection of withholding taxes (third-party income) and consumption taxes (e.g., VAT).

#### **Specific taxation for the energy sector in 2023**

The specific taxation on the energy sector carries significant weight within the EDPR Group. In 2023, the EDPR Group borne (paid) taxes of this nature amounting to 70 million euros, as shown in the following graph.

Indeed, in the year 2023, several European countries maintained or enforced the so-called "windfall taxes", which originated from Council Regulation (EU) 2022/1854 of October 6, 2022, establishing emergency intervention measures at the European Union level to address high energy prices. These measures included, among others, the introduction of price cap mechanisms for market revenues obtained by electricity producers from, essentially, renewable energy, and a temporary solidarity contribution applicable exclusively to companies active in the crude oil, natural gas, coal, and refining sectors.

Although the rules contained in this Regulation are aimed to create standardized measures in the European Union in response to the energy prices rise, certain countries where the EDPR Group is present have introduced unilateral measures, giving rise to the payment of windfall taxes in Italy, Romania, Portugal, and Poland.

While EDPR fully acknowledges that the existing emergency situation required for extraordinary measures, the Company also considers that (i) the principle of not taxing unrealized extra-profits should always prevail and (ii) the compatibility of those measures with the existing, legitimately implemented, risk management strategies, needs to be ensured. These requirements are necessary to avoid harming producers that do not actually benefit from the current high electricity prices, due to having hedged, individually or at Group level, their revenues, against fluctuations in the wholesale electricity market. These financial hedges follow the Company's established low risk strategy to secure long term revenues and to remove electricity prices volatility on the company's earnings. For these reasons, EDPR is pursuing the necessary legal actions at its disposal in order to challenge the legality of these measures.

The highest windfall tax impact at EDPR Group level took place in Italy and Romania, where the Group paid a total amount of 52 million euros in 2023.

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edp
Renewables

# 4.14. Ethics and compliance

For information regarding GRI 3-3 –Management of material topics, please refer to section Integrity and ethics of the chapter The Company.

# GRI 205-1 – Operations assessed for risks related to corruption

EDPR analyses all the new markets where it operates through a market overview including ESG topics such as human rights, labour, and environment. This study also evaluates the corruption risk.

EDPR has a Third-Party Integrity Due Diligence Procedure which was approved with the goal to reinforce the mechanisms for identifying and preventing possible integrity or corruption risks for EDPR in the relationship with third parties. The analysis carried out results in the assignment of a rating and the issuance of an opinion that includes specific recommendations regarding the approval of the transaction, the adequacy of its contractual conditions, and the monitoring of the contract's execution.

In this sense, during 2023, 824 Compliance analyses of third parties were performed (considering closed Integrity Due Diligence Analysis).

#### GRI 205-2 – Communication and training on anti-corruption policies and procedures

EDPR's Integrity Policy aims to define the general principles of action and the duties for the Company, its employees, and business partners, in order to avoid the commission of criminal and administrative offences, in particular, conducts associated with crimes of corruption and bribery, money laundering and terrorism financing, antitrust/anticompetitive practices and non-compliance with data protection requirements.

The Integrity Policy is complemented by other procedures that facilitate the application of its principles and guidelines, namely: (i) the Donations and Sponsorships Procedure, (ii) the Offers and Events Procedure and (iii) the Conflict-of-Interest Procedure.

Training and communication are fundamental tools to strengthen and disseminate the ethic and integrity culture. In that sense, the following activities have been developed in 2023:

• Global training on the Speak Up whistleblowing channels and on the Complaints

- Management Procedure.
- Integrity procedures.
- 
- 

• Monthly global publication of the Compliance Golden Rules, raising awareness of the main principles of different compliance areas, including specific topics related with the

• Communication campaigns to disseminate integrity topics as the celebration of the Compliance Officer day, the Compliance day and Anticorruption day.

• Trainings online to reinforce specific procedures as Integrity Due Diligence Procedure and Intermediary Agreements Procedure.

# GRI 205-3 – Confirmed incidents of corruption and actions taken

EDPR has no knowledge of any confirmed incident of corruption in 2023, neither in 2022.

Note: For the information reported in this indicator, EDPR claims/doubts reported in the Speak Up Channel and considered as founded, and penalties reported in EDPR's Financial Statements.

## GRI 406-1 – Incidents of discrimination and corrective actions

# taken

EDPR has no knowledge of any incident of discrimination in 2023, neither in 2022.

Note: For the information reported in this indicator, EDPR claims/doubts reported in the Speak Up Channel and considered as founded, and penalties reported in EDPR's Financial Statements.

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## GRI 407-1 – Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

Throughout EDPR's operations, both employees and suppliers must comply with the EDPR's Code of Ethics, which has specific clauses to respect freedom of trade union association and recognise the right to collective bargaining. During 2023, neither in 2022, EDPR did not register any claims/doubts in the Speak Up Channel regarding operations with significant risk where the right to freedom of association and collective bargaining may be at risk. In a previous study to characterise EDPR's supply chain, performed in 2015, including the analysis of the exposure to economic, social and environmental risks, performed using the ESCHER (Efficient Supply Chain Economic and Environmental Reporting) methodology developed by PwC, it was determined that ~0 of EDPR's direct purchases were identified in which the right to exercise freedom of association and collective bargaining may be at significant risk. Through this study, EDPR aimed to identify areas where should focus its improvement activities in order to significantly reduce its exposure to risk and optimise impacts.

#### GRI 408-1 – Operations and suppliers at significant risk for incidents of child labour

Throughout EDPR's operations, both employees and suppliers must comply with the EDPR's Code of Ethics, which has specific clauses against child labour. During 2023, neither in 2022, EDPR did not register any claims/doubts in the Speak Up Channel regarding operations with significant risk for incidents of child labour. In a previous study to characterise EDPR's supply chain, performed in 2015, including the analysis of the exposure to economic, social and environmental risks, performed using the ESCHER (Efficient Supply Chain Economic and Environmental Reporting) methodology developed by PwC, it was determined that ~0 of EDPR's direct purchases were as having significant risk for incidents of child labour. Through this study, EDPR aimed to identify areas where should focus its improvement activities in order to significantly reduce its exposure to risk and optimise impacts. In order to avoid potential human and labor rights risks in the supply chain, especially related to forced and child labor, EDPR assess main equipment suppliers regarding to their commitments and measures in this area, as well as their own supply chain management to protect human and labour rights in the upstream processes. In addition, during the contractual phase, EDPR includes ESG and traceability clauses in critical equipment contracts, in order to avoid risk situations and areas. Finally, EDPR maintains a continuous engagement with suppliers during their contractual relationship, in order to learn about new measures and best practices in this area.

Please refer additionally to sections 3.5 Supply Chain Capital and 4.6 Suppliers Management for more information on human rights management in the supply chain.

# GRI 409-1 – Operations and suppliers at significant risk for incidents of forced or compulsory labour

Throughout EDPR's operations, both employees and suppliers must comply with the EDPR's Code of Ethics, which has specific clauses against forced labour. During 2023, neither in 2022, EDPR did not register any claims/doubts in the Speak Up Channel regarding operations with significant risk for incidents of forced and compulsory labour. In a previous study to characterise EDPR's supply chain, performed in 2015, including the analysis of the exposure to economic, social and environmental risks, performed using the ESCHER (Efficient Supply Chain Economic and Environmental Reporting) methodology developed by PwC, it was determined that ~0 of EDPR's direct purchases were as having significant risk for incidents of forced or compulsory labour. Through this study, EDPR aimed to identify areas where should focus its improvement activities in order to significantly reduce its exposure to risk and optimise impacts. In order to avoid potential human and labour rights risks in the supply chain, especially related to forced and child labour, EDPR assess main equipment suppliers regarding to their commitments and measures in this area, as well as their own supply chain management to protect human and labour rights in the upstream processes. In addition, during the contractual phase, EDPR includes ESG and traceability clauses in critical equipment contracts, in order to avoid risk situations and areas. Finally, EDPR maintains a continuous engagement with suppliers during their contractual relationship, in order to learn about new measures and best practices in this area.

Please refer additionally to sections 3.5 Supply Chain Capital and 4.6 Suppliers Management for more information on human rights management in the supply chain.

#### Other corporate ethics topics

#### Money laundering

The money laundering risk involves acquiring, possessing, using, converting, or transmitting goods knowing that they have their origin in a criminal activity, or perform any other act that seeks to cover their illicit origin. EDPR has identified in its Compliance Model the money laundering risk and has developed several controls and measures to minimise the probability of occurrence. Currently, the money laundering risk is categorised as low.

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Image /page/171/Picture/27 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, with the "d" and "p" connected. The "p" extends upwards, creating a vertical line that is taller than the other letters. Below the letters, in a smaller font, is the word "Renewables".

# 4.15. Reporting principles

EDPR has reported in accordance with the GRI Standards for the period from January 1st, 2023, to December 31st, 2023.

# **GRI Standards reporting principles**

## Reporting quality

#### Balance

The content of the Report considers both the most positive facts of the year and those less positive when materially relevant.

#### Comparability

The information reported covers a two-year time series in the material topics indicators relevant to EDPR's business (Chapter 4.1. Materiality assessment) and enables a comparative analysis of the company's performance.

#### Transparency

A glossary is provided at the end of this report, helping to understand some of the technical terms used.

#### Accuracy

The scope of the Report is explained, as well as the consolidation criteria. All exceptions and changes to criteria are duly identified and highlighted. The definitions and descriptions of the calculation methodologies of the main indicators employed are available online, in the glossary.

#### Timeliness

The Report has an annual frequency and covers the calendar year 2023.

#### Reliability

External verification is a guarantee of the reliability of the content, regarding the indicators included in Annex III and Annex IV of this chapter.

# Content principles

#### Sustainability context

Within the framework of the defined strategy, EDPR fosters a corporate culture of permanent demand for excellence in sustainability.

EDPR's sustainability performance is globally reported based on the consolidation criteria defined and described in the next point. Regarding the subsidiary companies, the group defines a clear strategy for continuous improvement of its performance, supported by the internal process of identifying the year's material issues and emerging trends in the sector, always considering the local conditions in which it operates. Regarding the jointly controlled companies, the group positively influences its performance and highlights the major initiatives of the year throughout the Report, when materially relevant. In the supply chain, the approach is management, and the material issues are published. In this context, the group advocates a relationship supported in trust, collaboration and shared value creation.

#### Consolidation criteria

The consolidation criteria of non-financial information includes the subsidiary companies where the group exercises control, and the performance of companies is reported at 100%. A list with the companies and the respective consolidation method is available in Annex I of Part II – Financial statements.

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Image /page/172/Picture/20 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font. The "e" and "d" are connected, and the "p" has a long vertical stroke that extends below the baseline. Below the letters, in a smaller font, is the word "Renewables" in a lighter gray color.

#### Inclusion of stakeholders

The principle of inclusion envisages that stakeholders are consulted, that their expectations and concerns are known and are incorporated into the decision-making process.

Periodically, interaction initiatives are promoted with different segments of the company's stakeholders, while there are also dedicated communication channels devoted to specific segments.

#### Response and Integrity

EDPR undertook commitments and delineated action plans for material topics, replying strategically to the main stakeholders' expectations. The Objectives and Goals are listed in Chapter 2.2. Strategic approach, and in Chapter 4.1. Materiality assessment is EDPR's materiality matrix for 2023, whose topics are developed throughout the document.

#### Materiality

In terms of sustainability management and reporting on its performance, EDPR periodically identifies the topics and trends that in the short, medium and long term are capable of influencing value creation for the company. The Material Issues add both financial and non-financial dimensions, namely those of the economic, environmental and social dimensions that may influence, or be influenced by, different EDPR stakeholders.

The materiality analysis assesses and prioritises the relevance of an issue for EDPR and its respective stakeholders, periodically reviewing their expectations in order to support the organisation's decision-making and strategy development process.

More detail on the EDP group's internal methodology for determining Materiality, as well as the list of topics analysed in 2023, is available in Chapter 4.1. Materiality assessment.

#### External assurance

The external verification of non-financial content, carried out by PwC with the scope of a limited assurance engagement, covers the information identified in Annex III: Statement of Non-Financial Information, and Annex IV: GRI Content Index.

# Global Reporting Initiative

The GRI Standards are the first global standards for sustainability reporting, representing the global best practice for reporting on a range of economic, environmental and social impacts. A company's adherence to this initiative means that it concurs with the concept and practices of sustainability. This Annual Report has been prepared with reference with the GRI Standards in its Core option, and these Standards have been independently assured according to ISAE 3000 by PwC.

# United Nations Global Compact

Global Compact is an initiative of the United Nations launched in 2000 that defines guideline directives for businesses that opt to contribute to sustainable development. EDPR has become signatory of this initiative and is committed to put these principles into practice, informing society of the progress it has achieved.

Additionally, in 2015, in the United Nations General Assembly, the world leaders decided to assume a set of global goals to change the world until 2030. The agenda that must guide the joint work of governments, citizens, companies, and organisations, consists of 17 Sustainable Development Goals (SDGs) with the ambition of ending poverty, fighting against inequality and stopping climate change. EDPR will direct its contributions to eight of the 17 Sustainable Development Goals.

Image /page/172/Picture/17 description: The image is a black and white logo for the UN Global Compact. The logo consists of a globe with horizontal lines representing lines of longitude. The globe is surrounded by a circular border with the text "UN GLOBAL COMPACT" in capital letters. Below the globe is a laurel wreath.

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Annual Report 2023 Annex I: Alignment with TCFD recommendations

Image /page/173/Picture/12 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark blue color.

# Annex I: Alignment with TCFD recommendations

## Background of TCFD and climate-related risks and opportunities

Climate change has become one of society's greatest challenges in the short, medium and long term. In addition, international organisations such as the Intergovernmental Panel on Climate Change (IPCC) highlight the significant impact that changes in climate patterns may have in the coming future. Faced with this scenario, all organisations, from investors to companies themselves, are working to make their assets more resilient to changes in weather and climate patterns. Given the growing concern of various stakeholders about the resilience of companies to the risks and opportunities of climate change, the Task Force on Carbon-related Financial Disclosures (TCFD) published in 2017 a set of recommendations on how to analyse, incorporate and disclose climate transition and longterm resilience, with the aim of increasing transparency and information provided to stakeholders.

The EDP Group and EDPR have been adopting the recommendations issued by the TCFD, and in 2021 launched a project to deepen them, specifically in the integration of climate and its risks and opportunities within the governance, strategy, risk management and metrics and targets of the companies, as well as in the implementation of a regular process for assessing climate risks and opportunities (including their identification and quantification).

EDPR integrates weather patterns in its decision making and analysis of its assets, in order to anticipate and implement adaptation measures for any potential risk. In this annex, EDPR reports its theoretical approach to TCFD recommendations and some of the measures implemented to integrate climate-related risks and opportunities are the following ones.

#### EDPR's Climate Governance

The organisation has an ESG Committee that leads and oversees the management of the Company's ESG aspects. This ESG Committee, which is part of the Board of Directors composed of independent directors - is the highest governance body in the management of climate-related risks and opportunities. In addition, given the relevance of climate aspects for the financial performance of the company, the person responsible for the supervision of climate aspects at Management Team level is the Chief Financial Officer (CFO).

EDPR's governance receives regular updates on the identification and assessment of climate risks and opportunities, as well as the implementation of concrete measures in this regard. In addition, the Board of Directors' remuneration policy includes among its KPIs a series of ESG objectives for the Company, with climate action, through an increase in renewable installed capacity, being one of the priorities.

Finally, at the technical and operational level, the process is led by the Global Risk and Sustainability/ESG Departments, with the collaboration of other departments. Different departments and teams contribute with their expertise in the process, in terms of technical knowledge, information in the field or in dealing with specific climate and environmental issues. The following figure summarises the internal supervision and monitoring process for climate issues:

Image /page/173/Figure/14 description: The image shows an organizational chart. At the top is a gray circle labeled "Board of Directors ESG Committee". Below that is a dark blue rectangle labeled "Management Team" with a white circle containing the text "CFO" to the right. Below that are two light blue rectangles. The left one is labeled "Global Risk Analysis Team" and the right one is labeled "ESG Team". At the bottom is a light blue rectangle labeled "Operational and supporting teams".

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# Strategy, Climate Risks and Opportunities

Climate risks have an annual basis dedicated process, that aims to assess which are the most relevant climate risks and opportunities, in order to test financial resilience regarding climate transition. The main activity carried out is a quantification exercise led by the corporate Risk Global Unit, analysing each significant risk according to three-time horizons (Business Plan horizon of 3 years (2025), 2030 and 2050) and under three different climate scenarios, each one integrating a physical and a transition scenario. The exercise is later on consolidated at Group level to obtain a global result.

#### Climate-related time horizons and scenarios

A narrative was constructed for each scenario, based on the RCP (Representative Concentration Pathway) scenarios of the IPCC for the analysis of physical risks, and on the IEA (International Energy Agency) scenarios, with some internal adjustments to better reflect our reality, for the analysis of transition risks. This table below summarises the main risks and opportunities that the Company has analysed:

| Physical Risks                                                                                      | Transition Risks          | Transition<br>Opportunities |
|-----------------------------------------------------------------------------------------------------|---------------------------|-----------------------------|
| Chronic risk                                                                                        | Regulatory and legal risk | Energy sources              |
| • Rising temperatures<br>• Rising sea levels<br>• Water availability<br>• Wind availability         | Market risk               | Products and services       |
|                                                                                                     | Technology risk           | Resource efficiency         |
| Acute risk                                                                                          | Reputacional risk         | Markets                     |
| • Days of extreme heat/cool<br>• Consecutive days of<br>extreme heat/cool<br>• Extreme events (wind |                           | Resilience                  |

All of the above risks are aggregated into three main scenarios that have been used to quantify risks and opportunities:

Image /page/174/Picture/6 description: The image shows three icons with text descriptions. The first icon is a green circle with a white drawing of a solar panel and sun. The text next to it reads "As green c gets (AGG". The second icon is a blue circle with a white drawing of a line graph with an upward trend. The text next to it reads "A bit gree today (BG". The third icon is a gray circle with a white drawing of three smokestacks emitting smoke. The text next to it reads "Slow mov transition".

The physical scenarios have the following narrative:

• RCP 2.6: considers (1) compliance with the Paris Agreement; (2) that the energy system reaches carbon neutrality by 2070; (3) that the temperature rises between 1.5ºC and 2ºC; and (4) that the average sea level rises by 0.4m and ocean acidification begins to

- recover by 2050;
- 
- 

• RCP 4.5: considers that (1) the Paris Agreement is not fulfilled; (2) the temperature rises between 2ºC and 3ºC and extreme temperatures become more frequent; and (3) the sea level rises by 0.5m and many species are unable to adapt;

• RCP 8.5: considers that (1) the Paris Agreement is not fulfilled; (2) the temperature rises by more than 3ºC; (3) extreme events become more frequent and there are large variations in rainfall; and (4) the sea level rises by 0.7m.

The transition scenarios have the following narrative:

- Net Zero Scenaric
sector achieves ne
related to sustaina
international co-op

|                    | Transition scenario                                                                                                                                                                                                              | Physical scenario          |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|
| as it<br>(...)     | Net Zero Scenario (IEA)                                                                                                                                                                                                          | RCP 2.6 (IPCC)             |
| ner than<br>(...)  | Base case scenario (resulting<br>from several international<br>sources), assuming that of<br>market prices changes will not<br>be significant between the two<br>scenarios, due to short/ mid<br>term nature of transition risks | RCP 4.5 (IPCC)             |
| e towards<br>(SMT) |                                                                                                                                                                                                                                  | RCP 8.5 (IPCC)             |
| ssed               | • 2025<br>• 2030<br>• 2050                                                                                                                                                                                                       | • 2025<br>• 2030<br>• 2050 |

• Net Zero Scenario (NZE) with internal adjustments: assumes (1) that the global energy sector achieves net zero CO<sup>2</sup> emissions by 2050; (2) economic growth and job creation related to sustainable energy; (3) a more resilient and cleaner energy system; and (4) full international co-operation for sustainable development;

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Image /page/175/Picture/28 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a simple, sans-serif font, stacked above the word "Renewables" in a smaller, similar font. The letters and word are in a dark color, possibly dark blue or black, against a white background.

• Base Scenario: assumes that (1) the announced policies are generally complied with, and no additional effort is made towards sustainable development; and (2) policies, albeit limited, are adopted to reduce the use of fossil fuels, but demand is still high.

#### Climate-related risks and opportunities

EDPR has three specific climate risk and opportunity taxonomies, which are aligned with the structure recommended by TCFD, and is validated and updated regularly. Climate risks are present in several risk categories, mainly the physical risks impact at business level, the energy market risks and other at the operational level such as damages, efficiency losses or delays. Transition risks and opportunities impact at strategic level, the surrounding context (technological disruption, changes in competitive paradigm…), at business level (commodity, pool prices, regulation…) and at an operational level (legal, compliance, ethics…).

When analysing the risks, both physical and transitional, the Company has taken into consideration the following descriptions and variables when determining whether or not they were significant in the different time horizons and scenarios:

#### **Physical risks description in EDPR's climate scenarios**

#### **Transition risks description in EDPR's climate scenarios**

#### **Transition opportunities description in EDPR's climate scenarios**

| PHYSICAL RISKS |                                 |                                                                        |
|----------------|---------------------------------|------------------------------------------------------------------------|
| RISK CATEGORY  | RISK                            | VARIABLE                                                               |
| Chronic        | Temperature increase            | Average temperatura rise                                               |
|                | Sea level rise                  | Rise of sea level                                                      |
|                | Water availability              | Average precipitation variation<br>Average days with rainfall <1mm var |
|                | Wind availability               | Average wind speed                                                     |
| Acute          | Extremely hot days              | Days w/ temperature >35°C                                              |
|                | Extremely consecutive hot days  | Consecutive days w/ temperature >35°C                                  |
|                | Extremely cold days             | Days w/ temperature <0°C                                               |
|                | Extremely consecutive cold days | Consecutive days w/ temperature <0°C                                   |
|                | Extreme wind events             | Extreme events per year                                                |
|                | Extreme rain events             |                                                                        |
|                | Extreme wildfire events         | Wildfires per 100ha                                                    |

#### **TRANSITION RISKS** RISK CATEGORY VARIABLE Regulatory and legal risk Related to concerted government action to adopt climate mitigation and adaptation strategies, e.g. change in renewable energy support schemes Market Risk Resulted from changes in market dynamics, influenced, for example, by changes in customer behaviour and changes in market fundamentals Technological Risk Related to the adaptation of new technologies requiring greater investment by organizations Reputational Risk Referred to increased stakeholder concern and influence of public opinion

Regulatory and legal risk

Market Risk

Technological Risk

Reputational Risk

# **TRANSITION OPPORTUNITIES** TRANSITION CATEGORY VARIABLE

Products and Services

Resource Efficiency

Markets

Resilience

Energy Source Resulted from the use of incentive policies for renewable generation, leveraging on the existing generation portfolio

Products and Services Driven by the development and expansion of low carbon products and services, and in the electrification of consumption as a measure to decarbonise the economy, and (potentially) in the increased demand for energy for heating/cooling due to the influence of physical risks

Resource Efficiency Related to the reduction of operational costs by increasing efficiency in the processes of the value chain

Markets Related to the access to new markets through geographic, technological, and business diversification. The issue of Green Bonds for low carbon generation is also a new opportunity

Resilience Driven by the development of adaptive capacity to respond to climate change, to manage the associated risks and take advantage of the opportunities

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Image /page/176/Picture/23 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font. The letters are connected, with the "e" and "d" sharing a vertical stroke. Below the letters, in a smaller, lighter gray font, is the word "Renewables."

#### Quantification of climate-related risks and opportunities. *Value@Risk*

EDPR has identified and quantified a set of climate risks and opportunities assuming its current strategy, over the three scenarios and time horizons mentioned above. The quantification methodology is based on individual analysis of the impact on EBITDA of each risk (physical and transition) and opportunity, carried out for most of EDPR's portfolio. This quantification considers the identification of the physical variables and their evolution according to specialists, and the political/ social/ economic/ technological narratives related to the different scenarios.

The quantification method depends on each risk and opportunity, using, whenever possible, the direct method (expected loss/ gain and maximum loss/ gain P95%), or alternatively the indirect method (probability/ frequency, average impact, and maximum impact P95%).

This process enables the company to identify significant climate risks, manage them and implement mitigating measures to reduce their impact on financial results.

g. Physical and transition significant risks

| CATEGORY              | RISK                                           | MAIN IMPACTS                                                             | ADAPTATION<br>MEASURES                                                                                                                                                                                                                                                             |
|-----------------------|------------------------------------------------|--------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Physical Chronic Risk | Temperature<br>increase                        | Rise of energy losses<br>Loss of efficiency<br>Demand increase           | Diversification in geographies<br>and technologies;<br>Increase in demand as a<br>natural mitigation;<br>Firewalls in facilities;<br>Emergency and Self Protection<br>plans.<br>Merchant exposure                                                                                  |
| Physical Acute Risk   | Extreme<br>temperatures (heat<br>or cold wave) | Unpredictability of consumption<br>Malfunction of turbines and<br>panels | Energy risk management<br>through hedging strategy;<br>Cooling systems in turbines;<br>Assets strengthening and<br>resilience;<br>Firewalls in facilities;<br>Emergency and Self Protection<br>plans;<br>Preventive shutdown systems<br>for wind turbines in extreme<br>situations |

| CATEGORY                        | RISK                                                                                      | MAIN IMPACTS                                                                            | ADAPTATION<br>MEASURES                                                                                                                                                                                                                               |
|---------------------------------|-------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Physical Acute Risk             | Extreme events<br>(wind and rain)                                                         | Disruption of generation activities<br>and damage to assets<br>Increase operating costs | Preventive maintenance<br>Insurance plans;<br>Asset resiliency and facility<br>strengthening<br>Strengthening of business<br>continuity and crisis<br>management plans.<br>Preventive shutdown systems<br>for wind turbines in extreme<br>situations |
| Transition Risk -<br>Technology | Existing assets<br>devaluation or<br>substitution due to<br>technological<br>obsolescence | Devaluation/ replacement of<br>assets due to technological<br>obsolescence              | Business Innovation;<br>Repowering and dismantling<br>processes;<br>Monitoring of market trends.                                                                                                                                                     |

The assessment carried out on physical and transition risks lead to the following

conclusions:

• Acute physical risks are slightly higher in the AGG scenario, in which extremely cold days should be more frequent, correlating with the existence of phenomena such as snow downs and blizzards that are a principal cause for malfunctions of EDPR's assets.

• Physical variables such as temperature increase, and higher number of extremely hot days are aggravated. This results in higher demand, that drives up pool prices, implying better merchant revenues and turning into an opportunity to EDPR.

• EDPR's risk is slightly bigger in the AGG scenario, explained by the impact of market

- 
- 
- variables and lower pool prices.
- with an increase in MWs.

• Policy & legal risk refers to noncompliance with regulations obtained from internal knowledge, assumed to be constant for current portfolio and increase proportionally

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Annual Report 2023 Annex I: Alignment with TCFD recommendations

![edp Renewables](https://i.imgur.com/949999l.png)

Renewables

==

↩

#### h. Transition opportunities

| CATEGORY                                         | OPPORTUNITIES                           | MAIN IMPACTS AND<br>BENEFITS                                         |
|--------------------------------------------------|-----------------------------------------|----------------------------------------------------------------------|
| Transition opportunity- Energy<br>Source         | Use of lower-emission sources of energy | Resource efficiency                                                  |
| Transition opportunity- Products<br>and Services | Rise of power demand                    | Increase in business opportunities                                   |
| Transition opportunity- Markets                  | Access to new markets                   | Increase in installed capacity and<br>different remuneration schemes |

The assessment carried out on transition opportunities lead to the following conclusions:

- Transition opportunities are more valuable in the AGG scenario, when the transition effectively occurs.
- The access to new markets and use of more efficient modes of transport should see an upsurge in the AGG scenario, thus presenting a greater opportunity for installing additional MWs and obtaining extra revenues.

From the analysis, it was concluded that the geographical and technological diversification from EDPR's portfolio significantly helps mitigate the potential risks. In addition, for those risks that EDPR has quantified as significant, the Company has identified a series of adaptation and mitigation measures that EDPR has currently in place in some markets and may replicate in others in the short, medium and long term.

This entire process of identifying, quantifying, and monitoring risks and opportunities allows the Company to integrate changes in weather patterns and climate change possible impacts into its decision making, planning and financial strategy, thus improving the Company's resilience to a changing climate.

# Climate Metrics and Targets

The analysis and quantification of the above-mentioned climate issues establishes the criteria and variables that the Company has identified when evaluating these risks and opportunities.

To monitor compliance with the medium and long-term objectives established at Group level, a set of indicators and metrics has been defined to monitor EDPR's climate performance, including both contribution to climate change mitigation and how the Company adapts its assets.

#### **Climate-related metrics and targets**

| INDICATOR                                | CATEGORIES                                                                                                                                                                                               | REFERENCE                    |
|------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|
| Scope 1 emissions                        | Mobile combustion: car fleet emissions<br>Fugitive emissions: e.g., SF6<br>Gas consumption in office buildings                                                                                           | GHG Protocol, TCFD, CDP, GRI |
| Scope 2 emissions                        | Electricity consumption in office<br>buildings, if supplied by third parties<br>Self-consumption of electricity in wind<br>and solar parks, provided that it is<br>supplied by third parties             | GHG Protocol, TCFD, CDP, GRI |
| Scope 3 emissions                        | Purchased goods and services<br>Capital goods<br>Fuel and energy related activities<br>Upstream transport and distribution<br>Wastes generated in operations<br>Business travel<br>Employee commuting    | GHG Protocol, TCFD, CDP, GRI |
| CO2 specific emissions                   | GHG emissions (scope 1 or Scope 2 and<br>3) per MWh generated or turnover                                                                                                                                | GRI                          |
| % Renewable installed capacity           | EU1 indicator GRI                                                                                                                                                                                        | GRI                          |
| % Renewable generation                   | EU2 indicator GRI                                                                                                                                                                                        | GRI                          |
| % Fleet electrification                  | 305-1 Indicator GRI                                                                                                                                                                                      | GRI                          |
| Avoided CO2 (by renewable<br>generation) | Emissions that would have occurred if<br>electricity from renewable energy<br>sources in each geography had been<br>solely produced by the mix of<br>thermoelectric power stations in that<br>geography. | GRI                          |

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Image /page/178/Picture/13 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark blue color.

The consolidation of these indicators is done quarterly at corporate level through a Results Report, and annually in the Annual Report. The data is verified annually by an independent auditor. It is thus possible to monitor the evolution of the indicators against the defined targets, both quarterly and annually.

Regarding climate change mitigation and adaptation targets, EDPR's activity inherently contributes to the fight against climate change. Emissions generated by the Company and its supply chain in 2023 represent only 12% of its avoided emissions.

EDPR, aware of the importance of its supply chain in achieving its business objectives and reducing emissions, has launched an engagement effort with its main suppliers, with the aim of promoting decarbonization in the supply chain and in the emissions generated in the Company's upstream processes.

Lastly, it should be noted that the Company has worked in 2023 on identifying solutions that will enable it to identify physical and transition risks at the asset level. Work will continue in the coming months, with the aim of being able to compile this type of risk at the level of wind or solar farm or set of distributed panels.

#### Adaptation to climate change in EDPR

The implementation of a working group, as well as the identification of risks in the markets in which the Company operates, allows EDPR to implement adaptation measures that are adjusted to the meteorological conditions of the location where the facility is located.

Adaptation measures start from the selection of the facility in the development phase, with environmental and other complementary studies. After this first step, the Company identifies the characteristics necessary for the equipment to withstand the potential weather conditions of the region, current and future ones.

Among the adaptation measures implemented by the company are the impact studies on the site to be developed, self-protection plans for the facilities and weather stations are some of the transversal adaptation measures implemented by EDPR.

In addition, depending on the technology (solar or wind), during the procurement process, priority is given to characteristics such as: greater panel thickness, position of the structures, ice protection systems, lightning protection, measures to prevent corrosion or measures to protect the assets against extreme winds or other meteorological events.

In addition, the Company complements the asset generation monitoring exercise by including meteorological variables to determine the impact on generation caused by abnormal wind or sun conditions.

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# Annex II: Taxonomy Alignment. KPIs under Article 8º of EU Taxonomy

## **Background and EDPR's taxonomy approach**

The European Union Taxonomy Regulation published in the official journal of the European Union on June 18, 2020 (EU 2020/852) sets out the criteria for an activity to be qualified as environmentally sustainable. It is the key instrument to achieve the path of carbon neutrality proposed by the European Commission and adopted in 2019 with the European green deal. It is also a forward-looking tool for the transition finance process purpose of the companies. Concerning capital expenditure, EDPR is a 100% renewable energy company and its investments are aimed at continuing to grow its renewable installed capacity, investing in new technologies such as hydrogen and storage.

The EU Taxonomy Regulation has the following three main areas according to article 3º:

- The performance levels of activities which make a substantial contribution (SC) to at least one of the six EU's environmental objectives as defined in the articles 10º to 15º regulation of the Taxonomy (1. Climate change mitigation; 2. Climate change adaptation; 3. Protection and restoration of biodiversity & ecosystems; 4. Transition to a circular economy; 5. Sustainable use and protection of water and marine resources; 6. Pollution prevention and control) and complies with technical screening criteria (TSC) that have been established in accordance with Articles 10º to 15º
- Do no significant harm (DNSH) to any of the other five environmental objectives as stipulated in the article 17º of Taxonomy and
- Comply with the minimum social safeguards (MSS) as stipulated in the article 18º of Taxonomy which meaning governance standards and do not violate social norms, including human rights and labour rights.

#### **Articles 10**º **to 15**º **Substantial contribution to the six environmental objectives**

The two environmental objectives that were in force in FY2022

• Climate change mitigation economic activities should contribute substantially to the stabilisation of greenhouse gas emissions by avoiding or reducing them or by enhancing greenhouse gas removals (article 10º)

• Climate change adaptation economic activities that pursue the environmental objective of climate change adaptation should contribute substantially to reducing or preventing the adverse impact of the current or expected future climate, or the risks of such adverse impact, whether on that activity itself or on people, nature or assets

- 
- (article 11º)

The two environmental objectives that were in force in FY2023:

• The **sustainable use and protection of water and marine resources** activities should contribute substantially to the good status or the good ecological potential of bodies of water, including surface water and groundwater, or to the good environmental

• Economic activities should contribute substantially to the **transition to an economy circular**, for example, if they increase the durability, reparability, upgradability, and reusability of products, or can reduce the use of resources through the design and choice of materials, facilitating repurposing, disassembly and deconstruction in the buildings and construction sector, in particular to reduce the use of building materials and promote the reuse of building materials (article 13º)

- status of marine waters (article 12º)
- 
- greenhouse gasses (article 14º)
- 

• An economic activity shall qualify as contributing substantially to **pollution prevention and control** where that activity, for example, preventing or, where that is not practicable, reducing pollutant emissions into air, water, or land, other than

• An economic activity shall qualify as contributing substantially to the **protection and restoration of biodiversity and ecosystems** where that activity contributes substantially to protecting, conserving, or restoring biodiversity or to achieving the good condition of ecosystems, or to protecting ecosystems that are already in good condition, through for example, nature and biodiversity conservation and sustainable land use and management (article 15º)

•

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#### **Doing no significant harm (Article 17º – Significant harm to environmental objectives)**

- **Climate change mitigation** if it does not lead to significant greenhouse gas (GHG) emissions
- **Climate change adaptation** if it does not lead to an increased adverse impact of the current climate and the expected future climate, on the activity itself or on people, nature, or assets
- **The sustainable use and protection of water and marine resources** if it is not detrimental to the good status or the good ecological potential of bodies of water, including surface water and groundwater, or to the good environmental status of marine waters
• **The circular economy**, including waste prevention and recycling, if it does not lead
- to significant inefficiencies in the use of materials or in the direct or indirect use of natural resources, or if it does not significantly increase the generation, incineration,
or disposal of waste, or if the long-term disposal of waste does not cause significant -term disposal of waste does not cause significant and long
- and long-term environmental harm
 **Pollution prevention and control** if it does not lead to a significant increase in emissions of pollutants into air, water, or land
- **Protection and restoration of biodiversity and ecosystems** if it is not significantly detrimental to the good condition and resilience of ecosystems, or not detrimental to the conservation status of habitats and species, including those of EU interest

#### **Article 18º – Minimum safeguards (MSS)**

•

º of the Taxonomy Regulation lays down specific requirements for minimum safeguards referring both to international standards of responsible business conduct under Article 18(1) (Organisation for Economic Cooperation and Development Guidelines for Multinational Enterprises (OECD MNEs) and the UN Guiding Principles on Business and Human Rights (UNGP)) and to the principle of 'do no significant harm' of the Sustainability-related disclosures in the financial services sector (SFDR) under Article 18(2), which requires the consideration of a list of principal adverse indicators. equires the consideration of a list

Article 18 of principal adverse indicators

• This has the function to establish social and governance criteria for the entity which carries out an environmentally beneficial activity as defined by technical screening criteria. It is expected that the companies under the Corporate Sustainability disclosures under article 8º of the EU Taxonomy Regulation Reporting Directive (CSRD) assess their compliance with MSS as part of their

• **Human Rights:** equal opportunities for all -secure and adaptable employment; wages; social dialogue; collective bargaining and the involvement of the workers; work-life balance; a healthy safe and well-adapted work environment; other fundamental rights for the respect of Human rights

- disclosures under article 8
- work
- **Bribery:** anti -corruption and anti • **Bribery:** anti-corruption and anti-bribery
• **Bribery:** anti-corruption and anti-bribery
• **Taxation:** good practices
- 
- **Fair competition:** good practices
- cover the following six steps:
- procedures
- **2.** Identification and assessment of adverse impacts
- **3.** Tracking actions and **4.** racking implementation of the actions
- **5.** Communicating publicly and **6.** Providing or cooperating in remediation

• The due diligence process for verifying the implementation of the article 18º should

• **1.** adopting and embedding a commitment to those topics into policies and

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# EU Taxonomy Key Dates

**2020** – Taxonomy Regulation| Regulation (EU) 2020/852 of the Parliament and of the Council of June 2020.

**2021** - Climate Taxonomy| Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 (applicable from 1 January 2022) which establishes the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation

**2021** - Taxonomy article 8º| Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021- specify the content and presentation of information to be disclosed by undertakings subject to Articles 19a or 29a of Directive 2013/34/EU concerning environmentally sustainable economic activities, and specifying the methodology to comply with that disclosure obligation. Includes also the templates for the KPIs of non-financial companies (applicable from 1 Jan. 2022)

**2022**- Climate Taxonomy| Commission Delegated Regulation (EU) 2022/1214 of 9 March 2022 which amending the delegated regulation 2021/2139 and 2021/2178, which includes the activities for nuclear energy generation and gas natural

**2023**- Climate Taxonomy| European Commission Communication of the 27 June 2023, C(2023) 3850 amending Delegated Regulation (EU) 2021/2139 of 27 June 2023, establishing additional technical screening criteria for determining the conditions under which certain economic activities qualify as contributing substantially to climate change mitigation (on macro-sectors of 3. manufacturing; 6. transport) or climate change adaptation (5. Water supply, sewerage, waste management and remediation; 8. Information and communication; 9. Professional, scientific and technical activities; 14. Disaster Risk Management)

**2023** - Environmental Taxonomy| European Commission Communication of the 27 June 2023, C(2023) 3851,supplementing Regulation (EU) 2020/852, of 27 June 2023, by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially:

• to the sustainable use and protection of water and marine resources (1. Manufacturing; 2. Water supply, sewerage, waste management and remediation; 3. Disaster Risk Management; 4. Information and communication)

• to the transition to a circular economy (1. Manufacturing; 2. Water supply, sewerage, waste management and remediation; 3. Construction and real estates activities; 4. Information and communication; 5. Services)

• to pollution prevention and control or to the protection and restoration of biodiversity and ecosystems (1. Manufacturing; 2. Water supply, sewerage, waste management and

• to protection and restoration of biodiversity and ecosystems (1. Environmental protection and restoration activities; 2. Accomodation activities)

- 
- remediation)
- 
- apply from January 2024)

• Includes also the amendments to templates of the delegated act (EU) 2021/2178 (due to

**2023** – Taxonomy Regulation| European Commission Communication of 16 June 2023, 2023/C 211/01, on the interpretation and implementation of certain legal provisions of the EU Taxonomy Regulation and links to the Sustainable Finance Disclosure Regulation

**2023**- Climate Taxonomy| European Commission Communication of 20 October 2023, C/2023/267, on the interpretation and implementation of certain legal provisions of the EU Taxonomy Climate Delegated Act

**2023** – Article 8º of EU Taxonomy| European Commission Communication of 20 October 2023, C/2023/305 on the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of EU Taxonomy Regulation

## **Transparency of the company in non-financial statements**

#### Scope of the disclosure for the three financial environmental

# indicators

The scope refers to the compliance with the EU Taxonomy requirements for the assets where EDPR exercises control as of 31 December 2023. These assets and entities have their revenues consolidated in the EDPR's revenues (note 7 "Revenues and cost of energy sales and services and other" of Part II – Financial Statements and notes of the Integrated Annual Report 2023).

The investments in joint ventures and associates are included in the consolidated financial statements under the equity method from the date the Group acquires joint control/and has significant influence, to the date it ceases. These entities do not have their revenues

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consolidated in the EDP's revenues, only the changes in the company's value (note 21 - "Investments in Joint Ventures and Associates" in the notes of Part II – Financial Statements and notes of the Integrated Annual Report 2023.

For changes in the consolidation perimeter, please refer to Integrated Annual Report 2023, Part II – Financial Statements, note 6 "Consolidation perimeter".

The companies, like EDPR, subject to Article 19ºa or article 29a of Directive 2013/34/EU must give information about the eligibility based on the list of environmental sustainable economic activities under Taxonomy, the alignment in accordance with the main parts mentioned before (SC; TSC; DNSH; MSS) and the disclosure about the taxonomy-aligned activities expressed as share of turnover (reflecting the share of green revenues from green activities) Capital Expenditure (reflecting the share of green investments from green activities) and Opex (reflecting the share of green operational costs from green activities).

#### Disclosure for the three financial environmental indicators

The disclosure of the proportion of the turnover, capital expenditure and operating expenditures aligned, eligible and non-eligible with the European Taxonomy is made under the new templates for reporting the financial environmental key indicators under the Annex V of the European Commission Notice C (2023) 3851 which amends the Annex II of the Commission Delegated Regulation (EU 2021/2178). In addition, the disclosure of the proportion of fossil gas energy activities is made under the templates of the annex XII of the Commission Delegated Regulation (EU 2022/1214).

The eligibility by NACE code activities for mitigation climate change

- EDPR generation activities: Considering that EDPR's core business is the development, construction, operation and maintenance of electricity generating power stations using renewable energy sources (wind and solar).
	- D35.11 Electricity generation using solar photovoltaic technology (activity 4.1); Electricity generation from wind power (4.3);
	- F42.22 Installation, maintenance and repair of renewable energy technologies (7.6).

This Annex II includes information on how EDPR complies with the taxonomy requirements:

• The substantial contribution to meet the climate change mitigation (TSC).

• The confirmation that its activities do no significant harm (DNSH) the remaining

- 
- environmental objectives.
- 
- 

• The compliance with the Minimum Safeguards (MS).

• The turnover, the capital expenditures (CAPEX) and the operational expenditures (OPEX) associated eligible, aligned and non-eligible.

# **EDPR's verification process regarding to DNSH requirements**

In its Environmental Policy, EDPR outlines a set of commitments (Climate Change mitigation; Circular Economy promotion; and Biodiversity protection) that safeguard the implementation and maintenance of appropriate and effective environmental management systems and processes.

EDPR's Environmental Policy provides the framework for determining material environmental issues. EDPR promotes environmental protection and integrates it into the decision-making processes in the different phases of the projects: 1) Development; 2) Construction; 3) Operation and maintenance; 4) Dismantling and Repowering. The Company also includes a previous prospection phase, in order to identify the best locations for the future facilities. This additional phase also includes the identification of potential environmental issues.

EDPR's approach regarding to DNSH criteria is detailed below.

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## Climate Change Adaptation

#### **How EDPR demonstrates that has a process to evaluate climate risk and perform vulnerability assessment for our projects and operations?**

Climate change-related risks and opportunities are fully integrated into EDPR's risk management procedures, . The Company assess these risks and opportunities each year following a a process structured into three distinct phases:

- **Phase 1** EDPR ensures an identification of risks and opportunities in its main markets, under the TCFD's recommendations. This identification involves the validation process of the taxonomy of climate risks and opportunities aligned with EDP's corporate taxonomy. For more details consult Index GRI Reporting, 4.14 "Reporting Principles", and also Annex I Alignment with TCFD recommendations of the Consolidated Management Report 2023. It should be noted that the identification of material risks for EDPR is based on a prior list, as identified in the table in Section II of Appendix A of Annex I of the Delegated Regulation 2021/2139, of June 4. The TCFD Annex indicates the risks identified as material by the Company.
- **Phase 2** In its climate-related risk analysis EDP is looking for validating and update the climate-related scenarios for physical and transition risks. To incorporate both physical and transitional scenarios, EDP developed three unique scenarios. A narrative is created for each scenario, and the various risk variables are assessed for the 2025, 2030, and 2050 time frames. EDP restricted the number of physical scenarios to three: RCP 2.6, RCP 4.5 and RCP 8.5, and for transitional risks, EDP is using the scenario Net Zero (NZE) of International Energy Agency (IEA) and a baseline scenario that came from international sources, as for example, Aurora and Baringa, among others.
- **Phase 3**–Climate-risk quantification and analysis of the risks based on the aggregated climate-related value@risk. Each Business Unit and each area does a unique analysis of the impact of each risk and opportunity (physical and transitional) on EBITDA, which forms the basis of the quantification process. This quantification considers the expert identification of physical variables, their evolution, and the narratives about politics, society, economy, and technology associated with the various scenarios. Whenever feasible, the direct technique (anticipated loss/gain and maximum loss/gain at P95%) or, alternatively, the indirect method (probability/frequency, impact medium, and maximum impact P95%) is used to quantify each risk and opportunity. The aggregation of losses and gains takes into account correlations between opportunities and risks as well as between geographies for the Group's analysis. In addition, the Group has climate change adaptation plans in place in its business units to ensure the resilience of

infrastructure that may be exposed to extreme events of greater intensity and frequency, compared to reality as we know it to-day.

In addition, the identification of climate risks, not only at the level of corporate risk identification but also at the operational level, allows the Company to identify and implement adaptation measures from the purchase of equipment to the operation and maintenance phase of the projects, including the development and construction phases. Procurement teams select the appropriate equipment with the necessary characteristics to adapt the assets to the weather conditions in the different regions. Finally, the Company implements climate change adaptation measures at its own facilities and continuously monitors environmental variables that may affect its activity.

For more details about our approach and compliance with Appendix A "Generic Criteria for DNSH to climate change adaptation" consult EDP website (https://www.edp.com/en/sustainability/adaptation-to-climate-change) for a breakdown of the physical risks associated with climate change by activity, an assessment of the main physical risks, and examples of initiatives that execute solutions for climate change adaption.

It should be emphasised that EDPR has not made a differentiation between CAPEX related to eligible activities that contributes substantially to Climate Change Mitigation to which that are CAPEX associated with climate change adaption initiatives.

Please also refer to Annex I. TCFD Alignment for more information regarding EDPR's climate- related risks and opportunities assessment and adaptation measures.

Please, refer to Annex I for more information regarding EDPR's TCFD Alignment.

## Protection and restoration of biodiversity and ecosystems

EDPR's Business Plan for 2023-2026 includes targets related to Nature, with the overarching goal of achieving net zero emissions by 2040. EDP has set a corporate objective to attain a Biodiversity "Net Gain" in all new projects with significant residual impacts by 2030. By 2026, EDP aims to have implemented Net Gain Biodiversity tracking systems in 100% of new projects, signifying the need for all internal knowledge and resources to be in place to enable the company to meet Nature's 2030 targets. Additionally, under EDP's corporate commitments, EDP R will not build new generation facilities in Natural Heritage Sites from the UNESCO World Heritage List".

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edp
Renewables

EDPR is aware of the sensitivity of natural ecosystems and the pressures affecting biodiversity. EDPR's Environmental Policy establishes the Company's specific commitments to contribute to the mitigation of climate change, the promotion of the circular economy and the protection of biodiversity. This Policy is supplemented by internal guidance to establish a shared understanding of how to act, emphasizing the use of the mitigation hierarchy approach throughout the project life cycle as the initial step in fulfilling the overall biodiversity commitments.

Moreover, it is EDPR's duty to contribute to the development of research and conservation programs, as well as to broaden scientific knowledge on biodiversity matters by supporting institutions and strengthening dialogue and partnerships.

To support these commitments the EDP Group is still working on a document that will define the specific content of Biodiversity Action Plans (BAP). A Biodiversity Action Plan (BAP) is an initiative, or a set of initiatives, framed by the mitigation hierarchy framework, with the overall goal of enhancing the biodiversity quality of the surrounding areas of an infrastructure/asset or a region where several infrastructures/assets of the company are located. These BAPs will be implemented in those areas considered at risk for biodiversity. This document outlines the main components of a BAP, the biodiversity monitoring process and the reporting and communication process.

Protecting biodiversity during all the phases of EDPR's projects

a. Development

EDPR projects/operations comply with EU regulations or equivalent national provisions or international standards.

During the development phase of any project of the Company, the potential environmental impacts are analysed in detail in the environmental impact studies and other specific environmental studies, always performed by professional external experts. These studies evaluate the possible impacts of the projects in factors such as fauna, flora, soil, air and water bodies, among others.

Through the prospection phase and prior to other procedures and EIAs (Environmental Impact Assessments), EDPR carries out an analysis of environmental constraints and other environmental issues, with the objective of selecting the best location for the project, based on various criteria.

The environmental studies and impact assessment (EIAs and other studies) procedures are developed and conducted to ensure that the necessary studies are carried out to identify the environment state and the potential impacts so that they are avoided, minimised and compensated -following the mitigation hierarchy- during all the project phases. EDPR is committed to protecting the environment and biodiversity, and therefore the scope of environmental assessment follows the regulation and legal requirements defined by Authorities. Based on the environmental impact assessments, the national authority approves or not the project's construction, by submitting a declaration through the Environmental Impact Statement (EIS) or other kind of declarations..

b. Construction an

#### b. Construction and operation phases

During the construction and operational phases, EDPR conducts on-site environmental monitoring to identify and prevent possible impacts on the biodiversity.

During the construction phase, the Company implements a set of minimisation, restoration and compensation measures, necessary to avoid and remediate potential impacts. The main preventive measure the Company has in place is the environmental surveillance during the construction phase. This surveillance enables EDPR to check that applicable requirements are fulfilled and preventive measures are implemented, as well as to control potential impacts not expected and manage them properly. In addition, the guarantee of a mitigation hierarchy approach is considered and incorporated into national laws. Under the responsibility of National Authorities, the licensing process is overseen throughout the project cycle; otherwise, the right to operate this project is inhibited.

EDPR interacts with relevant stakeholders such as wildlife regulatory agencies, in order to assess the best solutions to compensate environmental impacts of present and future operations.

Finally, EDPR has a Health & Safety and Environmental Management System, certified according to ISO 14001 and ISO 45001 by an accredited external independent third party. To obtain this certificate external audits are performed each year to assess:

- 
- 

#### • The implementation of Environmental Policy

• The internal procedures in place to minimise the potential effects of EDPR activity on the environment (mainly Climate Change, Biodiversity, Circular Economy).

EDPR has achieved 100% ISO 14001:2018 environmental certifications reinforcing its commitments and procedures for managing environmental aspects. The calculation is based on installed capacity EBITDA.

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For the different markets, EDPR has procedures for compliance with applicable environmental regulations. This regulatory monitoring is reviewed periodically and allows establishing measures and action plans to ensure compliance.

c. Dismantling and repowering phase

Finally, during this phase the Company adopts the necessary measures to reduce and mitigate any environmental impact that may occur.

Please refer to the Natural Capital section for more information on our approach to biodiversity. Also refer to GRI Reporting for additional information on the protection of biodiversity in EDPR's activity.

#### **Mitigation and compensation measures for protecting the environment**

Through its on-site management systems, EDPR promotes continuous improvement in its facilities, identifying any opportunity for improvement in its processes. All those projects located near or inside a protected area include the necessary studies and measures to protect biodiversity. EDPR's initiatives have the same mitigation hierarchy: avoid, minimise, restore and compensate all the negative impacts that our projects could have.

EDPR establishes several measures, procedures and commitments towards biodiversity protection:

- Contribute to preventing or reducing biodiversity loss by promoting dynamic, global and locally owned management, long-term thinking and the search for a positive global balance.
- Contribute to deepening scientific knowledge on different aspects of biodiversity, including through the establishment of partnerships.
- EDPR has created landscape and wildlife protection programs in impacted areas, in partnership with local public entities. These efforts have been recognised as valuable to maintain biodiversity and natural heritage.
- Depending on the environment and its facilities' EDPR has compulsory and voluntary initiatives in place in terms of biodiversity and habitat conservation. The main environmental initiatives can be found on the Report of Environmental Activities.
- Not building new generation facilities in areas included in the UNESCO World Heritage List, ensuring that it continues to have no presence in these territories. EDPR monitors all its facilities located in protected areas in order to identify those wind farms and solar plants that may have a potential impact on biodiversity and ensuring that all the

necessary measures are in place. This monitoring process helps the Company to implement actions to avoid and mitigate such impact. In Europe and Latin America, EDPR is working on a materiality analysis in 2023, which aims to identify potential impacts on biodiversity.

• During the construction and operation phases, EDPR conducts on-site environmental monitoring to identify and prevent possible impacts on biodiversity and the ecosystem.

• EDPR has mechanisms in place to fight biodiversity potential impacts within its facilities, such as: Monitor collisions of birds and bats and their cumulative effect on species while limiting indiscriminate accesses that disturb sensitive species and habitats, restoration

- 
- of affected vegetation areas, etc.
- environments.

• EDPR, as part of a group-wide initiative, is working on identifying Nature Based Solutions (NBs) that can be replicated by the different companies in their facilities and surrounding

For more details, consult Index GRI Reporting, 3.5 Natural Capital and 4.9 Environmental Management of the 2023 Consolidated Management Report.

Transition to a circular economy and waste management

EDPR promotes Circular Economy and the efficient use of natural resources during all its value chain. The Company has set our four ambitious circular economy targets for 2026 and 2030 supported in four main axis of action(efficient use of resources and materials; durability; digitalization and resources enhancement).

The Company's Environmental Policy outlines the circular economy commitments and how EDPR promotes efficient use of natural resources in its activities, wherever possible, within the framework of a life-cycle analysis, in particular:

• Minimise the use of natural resources necessary to properly carry out its activities;

• Optimise and efficiently manage internal products and services, promoting a circular

- 
- economy for our customers;
- 

• Maximise the recovery of waste and its reintroduction into the economy as by-products.

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edp

Renewables

#### **EDPR includes circularity and waste management aspects from the procurement phase**

EDPR's supplier management approach is based on a holistic view of the sustainable supply chain which that enables the Group to ensure the integrated coordination of activities.

EDPR's supply chain management also includes waste management and circular economy. The Company also includes circular economy within its engagement process with suppliers:

- Sustainable Procurement Policy
- Sustainable Procurement Protocol that defines the Company's action protocol and due diligence process
- EDP Supplier Code of Conduct
- For EU&LATAM contract conditions: there are suppliers sustainability guides for construction and O&M phases, including recycling guidance and recommendations
- ESG priorities for strategic suppliers, including circular economy

#### **Engaging with manufacturing suppliers to promote circular economy**

In 2023, EDPR has updated its additional analysis on five ESG priorities in its tenders (Request for Proposals and other processes) for strategic equipment purchases, mainly solar and wind equipment: Decarbonisation, Circular Economy, Human and Labour Rights, Health and Safety, and Transparency and Biodiversity The Company has also engaged with suppliers to share their LCAs and environmental information about their products, including circular economy and recycling rates and information. During EDPR's engagement process with suppliers, the Company shares its ESG priorities with turbine, modules, structure and inverters suppliers.

#### **EDPR waste approach during operations and dismantling**

EDPR promotes the recycling during its operations. The Company engages with waste treatment suppliers and contractors to find solutions that help the Company achieve its expected recovery rates.

The efficiency of wind turbines and solar panels, as well as their end of life, are evaluated by the Company for their replacement or dismantling. The repowering of wind farms has been one of the solutions applied by EDPR, which consists of reducing the number of wind

turbines and replacing them with more efficient models. The new modern models allow the Company to increase installed capacity, CO2 avoided, and clean energy generated, while reducing the land area per MW.

#### **Joining industry initiatives, forums and pilot projects**

Since 2017, the Company has joined some initiatives and projects, and has also worked with suppliers such as: the collaboration with Thermal Recycling of Composite (R3FIBER), RECICLALIA, the LIFE REFIBRE project or the pilot project with the Associação Portuguesa de Energias Renováveis (APREN). EDP is also a member of the Global Alliance for Sustainable Energy, which also addresses the circular economy.

In 2023, in order to further advance its circular economy objectives, EDPR has launched a pilot project called the Close the Loop Program, focused on keeping the environment at the forefront through more efficient use of resources and materials, promoting solutions that extend the life cycle of products and ensuring accountability of product materials and assets. This announcement comes with EDPR North America Platform partnership with SOLARCYCLE, an advanced technology-based solar recycling company, alongside continuing work with 18 additional leaders in the recycling services sector throughout North America. For more details, consult Index GRI Reporting, 3.4 Supply Chain Capital and Index GRI Reporting, 4.6 Suppliers Management of the Consolidated Management Report 2023.

#### Water

Given EDPR's activity and the criteria included in the EU Taxonomy through the technical criteria and DNSH, the Company has no impact on water and aquatic resources.

# Prevention of pollution

Given EDPR's activity and the criteria included in the EU Taxonomy through the technical criteria and DNSH, the Company has no impact on pollution.

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# **Minimum Safeguards**

EDPR's approach to compliance with the established minimum safeguards is detailed below. Some specific procedures, policies and measures are established at EDP Group level and therefore cover all Business Units (BUs), including EDPR.

EDPR has several measures and procedures that allow the Company to manage the minimum safeguards requirements and ensure that risk situations do not occur, regarding to:

- Corruption and Bribery
- Fair Competition
- Taxation
- Human and Labour Rights

EDPR complies with guidelines pertaining to human rights and labour rights, as well as corruption, taxation and fair competition. EDP's policies are listed below:

- Human and Labour Rights Policy is publicly available in this link: https://www.edpr.com/sites/edpr/files/2022-11/EDPR\_IntegrityPolicy\_2022.pdf
- The Integrity Policy (bribery and corruption) is available in this link: https://www.edpr.com/sites/edpr/files/2022-11/EDPR\_IntegrityPolicy\_2022.pdf
- EDP Group Fiscal Policy is publicly available in this link: https://www.edp.com/en/edp-group-fiscal-policy
- Healthy Competition Practices Commitment is publicly available in this link: https://www.edp.com/en/healthy-competition-practices-commitment

## Ethics and compliance in EDPR

#### **EDPR's policies and procedures on human and labour rights, anti-bribery and anticorruption are listed below:**

EDPR has launched its Human and Labour Rights Policy where the Company commits to respect and undertakes to promote fair human and labour rights practices, being committed to guarantee responsible operations throughout the whole value chain.

In addition, the Company has an Integrity Policy that defines the general principles of action and duties for EDPR to prevent illegal conducts such as crimes of corruption, bribery, undue receipt of advantages, money laundering and terrorism financing, antitrust/anticompetitive practices and non-compliance with data protection requirements.

These policies allow the Company to comply with international guidelines such as:

- OECD Guidelines for Multinational Enterprises
- OECD Guidelines on Responsible Business Conduct
- UN Guiding Principles on Business and Human Rights
- International Labour Organisation's (ILO) declaration on Fundamental Rights and Principles at Work
- The eight ILO core conventions
- International Bill of Human Rights

The Company's Code of Ethics also includes how the Company commits to ensure respect to human and labour rights and also how it prevents corruption and bribery situations.

#### **EDPR's measures and processes to combat corruption, bribery, bribe solicitation and extorsion**

The Company has internal control procedures, as well as ethics and compliance programs in place to detect and avoid potential corruption and bribery risks.

The Company has a Global Compliance Program which includes:

- Integrity Compliance Program
- Criminal Compliance Program for Spain
- Global Data Compliance Program
- And Local Compliance Program according to regulations

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#### **Ethics, Integrity and Compliance Governance within the Company**

EDPR has a Compliance Standard that formalise the mission and responsibilities of the Compliance functions and establishes different measures and procedures that enable the Company to fight and prevent corruption and bribery:

- Audit Control and Related Party Transactions Committee responsible for the supervision of the financial information and internal control, risk management and Compliance systems;
- EDPR Ethics Committee to ensure the Code of Ethics compliance within the Company. This Committee is composed by: (i) the Chairman of the Appointments and Remunerations Committee, who shall chair the Committee, (ii) the Chairman of the Audit, Control, and Related Party Transactions Committee, (iii) The Ethics Ombudsperson, (iv) the Compliance Officer, (v) the Human Resources Director, (vi) the General Counsel & Compliance of EDPR North America LLC, and (vii) the Secretary of the Board of Directors, who shall also perform the duties of the Secretary of the Ethics Committee meetings.
- The Ethics Ombudsperson together with the Compliance Officer receive ethical nature complaints and investigates them;
- Specific Compliance Department to lead all the ethical, integrity and compliance measures. The Compliance Officer is the Director of the Corporate Compliance Department. The Compliance Officer reports to the Audit, Control and Related Party Transactions Committee (hereinafter "CAUD") and to the CEO.

#### **Risk Management, including ESG and integrity issues**

- Risk identification and assessment processes for assessing the non-compliance risk
- Risk analysis and evaluation of the adequacy and effectiveness of existing control mechanisms
- Risk mitigation and control measures
- Other policies and procedures to ensure integrity and ethics in the Company:
- EDPR Code of Ethics
- EDPR Integrity Policy
- EDP Code of conduct for Top Management and Senior Financial Officers
- EDP Suppliers Code of Conduct
- Third parties' Integrity Due Diligence (IDD) processes
- Interaction with Public Agents and Politically Exposed Persons procedure
- Prevention of Conflicts of Interests procedure
- Donations and Sponsorships procedure
- Offers and Events procedure
- Intermediary Agreements procedure

EDPR, only enters formalised legal transactions with third parties and other partners that comply with the laws of their countries and adopt internal procedures that are aligned with EDPR internal policies and standards.

The Company's Integrity Policy is based on zero-tolerance policy in dealing with the prevention and fight against this type of illicit acts, such as corruption and bribery. The Policy establishes a common commitment and minimum requirements for legal compliance.

The Policy sets out several measures and control mechanisms, such as those listed below:

- Procedures and Internal control mechanisms: As result of risk assessment, EDPR implements transversal and specific control mechanism to ensure the application of EDPR's Integrity Policy.
- Training and Communication: The procedures associated with the Global Compliance Program are shared to all employees by specific and transversal trainings. All current and employees must understand and commit to what the Policy outlines and global communication campaigns are often launched to all the employees.
- Contact and Reporting Channels (Whistleblowing): EDPR makes available several reporting channels for communicating irregularities and encourages its own employees to report any type of behaviour that breaches of this Policy. Some of these channels are: Speak Up Channel; Specific internal whistle-blower channels for EDPR companies, in which any whistleblowing related to matters provided for in the aforementioned legislation can be reported; Ethics Ombudsperson; and Compliance Department.
- Monitoring, Continuous Improvement and Report: Compliance teams are responsible for promoting appropriate mechanisms to monitor the Global Compliance Program, lead the analysis of misalignment situations and promote corrective actions.
- Audit: The Company has an Internal Audit Department in charge of ensuring that audits comply with the Global Compliance Program and that they guarantee the fight against corruption and bribery, as well as risk management. The Company also has an external audit process that allows EDPR to obtain a double certification from AENOR that verifies

{189}------------------------------------------------

edp
Renewables

and accredits that the Company has developed a system of criminal and anti-bribery compliance based on UNE 19601 and ISO 37001 standards. The AENOR Certifications (UNE 19601 and ISO 37001) were obtained in 2021 and, in both 2022 and 2023, EDPR has renewed both Certifications.

#### Compliance with the fair competition requirements of the Minimum Safeguards

The Company follows the applicable regulations on fair competition, ensuring compliance in all markets in which it operates.

Through its Code of Ethics EDPR prioritises relationships of trust and fair competition with all its stakeholders, promoting an honest and respectful relationship with all of them. In this sense, it is fundamental for the Company to promote integrity in its business practices, through good practices of healthy competition.

In this sense, the Company establishes through its Code the guidelines for action and the situations that must be avoided, in order to ensure that no anti-competitive practices take place. EDPR, through training of new hires on the Company's Code of Ethics and periodic communications regarding the Code and its compliance.

#### Compliance with tax regulation, tax governance and tax risk management processes

The Company ensures compliance with applicable tax regulations and has certifications to support it. The EDP Group's Tax Policy establishes the Company's approach to tax management. In addition, EDPR reports in its Annual Report, Chapter 4 of GRI Reporting (GRI – 207), its approach to tax issues, as well as tax governance, risk management and its tax contribution country by country.

For more information, please also refer to the EDP Group's tax policy.

# Compliance with Human and Labour Rights and due diligence requirements from the EU Taxonomy and the Minimum Safeguards

The Company's commitment to respect human rights is part of its public statements and commitments, such as the Human and Labour Rights Policy, the Code of Ethics, the Integrity Policy and the Supplier Code of Conduct, among others.

The Company understands the protection of human rights throughout the value chain. To this end, it starts with a materiality analysis to identify human and labour rights as a fundamental criterion for the activity of the Company and its stakeholders.

As a result of this materiality study, it analyses the potential risks that may occur in the value chain (from the supply chain to the communities in which it operates, including its direct activity and that of its employees), with the aim of establishing policies, procedures, codes and systems to avoid any type of risk.

EDPR identifies its supply chain as a key segment to achieve its sustainability goals and anticipate potential risks. The Company has a due diligence process for the management of the supply chain, which can be summarised as follows:

• Series of commitments established by the Company to ensure respect for human and

eening process;

• Monitoring of suppliers and continuous dialogue and engagement with the supply chain, in order to anticipate and avoid potential risks.

- labour rights in its activity;
- Supply chain screening process;
- Risk assessment;
- 
- its value chain.

• For the direct activity of EDPR and its contractors, the Company has a series of policies and procedures that outline its commitments and measures to manage human rights in

Please refer to Supply Chain Capital section and also Suppliers Management in the GRI Reporting for more information.

The Company also has in place several policies to protect human and labour rights in its

own operations.

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Image /page/190/Picture/5 description: The image features the logo of EDP Renewables. The logo consists of the lowercase letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The color of the text is a dark gray or blue-gray, and the background is white.

Annual Report 2023 Annex II: Taxonomy Alignment. KPIs under Article 8º of EU Taxonomy

Regarding to human capital EDP has internal policies and procedures that seek to promote equality and non -discrimination, the recruitment and retention of talent and the reconciliation of work and personal life. In addition, for each country in which the Company operates, it has systems in place to ensure compliance with regulations regarding 
collective bargaining agreements and workers' rights. Please refer to the Human Capital section and also to GRI Reporting for more information.

6 Suppliers In the Index GRI Reporting, 3.4.2 Respect human and labour rights, 4.6
Management and 4.14 Ethics and compliance of the Consolidated Management Report 2023, the Company includes more details about how EDPR is addressing the compliance with article 18 º of the EU Taxonomy for not being involved with violations of the UN Global Compact Principles, as well as the implementation of processes to monitor compliance with the ILO core labour norms, fair competition practices and fiscal transparency and the associated indicators such as reporting cases or fines occurred related to those issues.

Finally, the Social Capital section in the Management Report acts as an index to all the human and labour rights protection practices that the Company has in place.

{191}------------------------------------------------

# Annual Report 2023 Annex II: Taxonomy Alignment. KPIs under Article 8º of EU Taxonomy

edp
Renewables

#### **Templates of the European Commission Communication of the 27 June 2023, C(2023) 3851 which amends templates of the delegated act (EU) 2021/2178**

| Financial year 2023                                                                                                  | SUBSTANTIAL CONTRIBUTION CRITERIA(5) |                       |                                             |                               |                               |           |               |                      |                   |                                       |                                       |                   |                       | DNSH(6)                      |                          |                                |                                                                                           |                                      |
|----------------------------------------------------------------------------------------------------------------------|--------------------------------------|-----------------------|---------------------------------------------|-------------------------------|-------------------------------|-----------|---------------|----------------------|-------------------|---------------------------------------|---------------------------------------|-------------------|-----------------------|------------------------------|--------------------------|--------------------------------|-------------------------------------------------------------------------------------------|--------------------------------------|
|                                                                                                                      | 2023                                 |                       |                                             |                               |                               |           |               |                      |                   |                                       |                                       |                   |                       |                              |                          |                                |                                                                                           |                                      |
| ECONOMIC ACTIVITIES (1)                                                                                              | CODE (2)                             | TURNOVER (3)<br>euros | PROPORTION OF TURNOVER year(4)<br>2023<br>% | CLIMATE CHANGE MITIGATION (5) | CLIMATE CHANGE ADAPTATION (6) | WATER (7) | POLLUTION (8) | CIRCULAR ECONOMY (9) | BIODIVERSITY (10) | CLIMATE CHANGE MITIGATION (11)<br>Y/N | CLIMATE CHANGE ADAPTATION (12)<br>Y/N | WATER (13)<br>Y/N | POLLUTION (14)<br>Y/N | CIRCULAR ECONOMY (15)<br>Y/N | BIODIVERSITY (16)<br>Y/N | MINIMUM SAFEGUARDS (17)<br>Y/N | PROPORTION OF TAXONOMY ALIGNED (A.1.) OR<br>ELIGIBLE (A.2.) TURNOVER, YEAR 2022 (18)<br>% | CATEGORY ENABLING ACTIVITY (19)<br>E |
| A. TAXONOMY-ELIGIBLE ACTIVITIES                                                                                      |                                      |                       |                                             |                               |                               |           |               |                      |                   |                                       |                                       |                   |                       |                              |                          |                                |                                                                                           |                                      |
| A.1. Environmentally sustainable activities (Taxonomy-aligned)                                                       |                                      |                       |                                             |                               |                               |           |               |                      |                   |                                       |                                       |                   |                       |                              |                          |                                |                                                                                           |                                      |
| Electricity generation using solar photovoltaic technology                                                           | CCM 4.1                              | 143,125,853           | 6.2%                                        | Y                             | N/EL                          | N/EL      | N/EL          | N/EL                 | N/EL              | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 3.6%                                                                                      |                                      |
| Electricity generation from wind power                                                                               | CCM 4.3                              | 2,103,082,592         | 91.4%                                       | Y                             | N/EL                          | N/EL      | N/EL          | N/EL                 | N/EL              | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 94.6%                                                                                     |                                      |
| Installation, maintenance and repair of renewable energy technologies                                                | CCM 7.6                              | 51,019,322            | 2.2%                                        | Y                             | N/EL                          | N/EL      | N/EL          | N/EL                 | N/EL              | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 1.2%                                                                                      | E                                    |
| Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)                                          |                                      | 2,297,227,767         | 99.8%                                       | 99.8%                         | 0%                            | 0%        | 0%            | 0%                   | 0%                | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 99.5%                                                                                     |                                      |
| Of which Enabling                                                                                                    |                                      | 51,019,322            | 2.2%                                        | 2.2%                          | 0%                            | 0%        | 0%            | 0%                   | 0%                | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 1.2%                                                                                      | E                                    |
| Of which Transitional                                                                                                |                                      | 0                     | 0.0%                                        |                               |                               |           |               |                      |                   | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 0.0%                                                                                      |                                      |
| A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)               |                                      |                       |                                             |                               |                               |           |               |                      |                   |                                       |                                       |                   |                       |                              |                          |                                |                                                                                           |                                      |
| Turnover of Taxonomy eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) |                                      | 0                     | 0%                                          | 0%                            | 0%                            | 0%        | 0%            | 0%                   | 0%                |                                       |                                       |                   |                       |                              |                          |                                | 0%                                                                                        |                                      |
| A. Turnover of Taxonomy eligible activities (A.1+A.2)                                                                |                                      | 2,297,227,767         | 99.8%                                       | 99.8%                         | 0%                            | 0%        | 0%            | 0%                   | 0%                |                                       |                                       |                   |                       |                              |                          |                                | 99.5%                                                                                     |                                      |
| B. TAXONOMY-NON-ELIGIBLE ACTIVITIES                                                                                  |                                      |                       |                                             |                               |                               |           |               |                      |                   |                                       |                                       |                   |                       |                              |                          |                                |                                                                                           |                                      |
| Turnover of Taxonomy non-eligible activities                                                                         |                                      | 4,574,230             | 0.2%                                        |                               |                               |           |               |                      |                   |                                       |                                       |                   |                       |                              |                          |                                |                                                                                           |                                      |
| Total                                                                                                                |                                      | 2,301,801,997         | 100%                                        |                               |                               |           |               |                      |                   |                                       |                                       |                   |                       |                              |                          |                                |                                                                                           |                                      |

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Image /page/192/Picture/2 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue sans-serif font, with the "d" being taller than the "e" and "p". Below the letters, in a smaller font, is the word "Renewables" in the same dark blue color.

|     | PROPORTION OF TURNOVER/TOTAL TURNOVER |                                    |  |
|-----|---------------------------------------|------------------------------------|--|
|     | TAXONOMY-ALIGNED PER<br>OBJECTIVE     | TAXONOMY-ELIGIBLE PER<br>OBJECTIVE |  |
| CCM | 99.8%                                 | 99.8%                              |  |
| CCA | 0%                                    | 0%                                 |  |
| WTR | 0%                                    | 0%                                 |  |
| CE  | 0%                                    | 0%                                 |  |
| PPC | 0%                                    | 0%                                 |  |
| BIO | 0%                                    | 0%                                 |  |

{193}------------------------------------------------

![](https://raw.githubusercontent.com/charmored/mmmultimodal/main/imgs/drawing.png)

edp
Renewables

| Financial year 2023                                                                                               |          | 2023 SUBSTANTIAL CONTRIBUTION CRITERIA (5) |                              |                               |                               |           |               |                      | DNSH(6)           |                                       |                                       |                   |                       |                              |                          |                                | PROPORTION OF TAXONOMY ALIGNED (A.1.) OR<br>ELIGIBLE (A.2.) TURNOVER, YEAR N-1 (18)<br>% | CATEGORY ENABLING ACTIVITY (19)<br>E |  |
|-------------------------------------------------------------------------------------------------------------------|----------|--------------------------------------------|------------------------------|-------------------------------|-------------------------------|-----------|---------------|----------------------|-------------------|---------------------------------------|---------------------------------------|-------------------|-----------------------|------------------------------|--------------------------|--------------------------------|------------------------------------------------------------------------------------------|--------------------------------------|--|
| ECONOMIC ACTIVITIES (1)                                                                                           | CODE (2) | CAPEX (3)<br>euros                         | PROPORTION OF CAPEX (4)<br>% | CLIMATE CHANGE MITIGATION (5) | CLIMATE CHANGE ADAPTATION (6) | WATER (7) | POLLUTION (8) | CIRCULAR ECONOMY (9) | BIODIVERSITY (10) | CLIMATE CHANGE MITIGATION (11)<br>Y/N | CLIMATE CHANGE ADAPTATION (12)<br>Y/N | WATER (13)<br>Y/N | POLLUTION (14)<br>Y/N | CIRCULAR ECONOMY (15)<br>Y/N | BIODIVERSITY (16)<br>Y/N | MINIMUM SAFEGUARDS (17)<br>Y/N |                                                                                          |                                      |  |
| A. TAXONOMY-ELIGIBLE ACTIVITIES                                                                                   |          |                                            |                              |                               |                               |           |               |                      |                   |                                       |                                       |                   |                       |                              |                          |                                |                                                                                          |                                      |  |
| A.1. Environmentally sustainable activities (Taxonomy-aligned)                                                    |          |                                            |                              |                               |                               |           |               |                      |                   |                                       |                                       |                   |                       |                              |                          |                                |                                                                                          |                                      |  |
| Electricity generation using solar photovoltaic technology                                                        | CCM 4.1  | 3,306,686,506                              | 65.4%                        | Y                             | N/EL                          | N/EL      | N/EL          | N/EL                 | N/EL              | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 60.2%                                                                                    |                                      |  |
| Electricity generation from wind power                                                                            | CCM 4.3  | 1,634,814,944                              | 32.3%                        | Y                             | N/EL                          | N/EL      | N/EL          | N/EL                 | N/EL              | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 32.9%                                                                                    |                                      |  |
| Installation, maintenance and repair of renewable energy technologies                                             | CCM 7.6  | 103,894,154                                | 2.1%                         | Y                             | N/EL                          | N/EL      | N/EL          | N/EL                 | N/EL              | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 4.7%                                                                                     | E                                    |  |
| CAPEX of environmentally sustainable activities (Taxonomy-aligned activities) (A.1.)                              |          | 5,045,395,603                              | 99.8%                        | 99.8%                         | 0%                            | 0%        | 0%            | 0%                   | 0%                | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 97.8%                                                                                    |                                      |  |
| Of which Enabling                                                                                                 |          | 103,894,154                                | 2.1%                         | 2.1%                          | 0%                            | 0%        | 0%            | 0%                   | 0%                | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 4.7%                                                                                     | E                                    |  |
| Of which Transitional                                                                                             |          | 0                                          | 0%                           | 0%                            | 0%                            |           |               |                      |                   | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 0%                                                                                       |                                      |  |
| A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)            |          |                                            |                              |                               |                               |           |               |                      |                   |                                       |                                       |                   |                       |                              |                          |                                |                                                                                          |                                      |  |
| CAPEX of Taxonomy eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) |          | 0                                          | 0%                           | 0%                            | 0%                            | 0%        | 0%            | 0%                   | 0%                | 0%                                    |                                       |                   |                       |                              |                          |                                |                                                                                          | 0%                                   |  |
| A. CAPEX of Taxonomy eligible activities (A.1+A.2)                                                                |          | 5,045,395,603                              | 99.8%                        | 99.8%                         | 0%                            | 0%        | 0%            | 0%                   | 0%                | 0%                                    |                                       |                   |                       |                              |                          |                                |                                                                                          | 97.8%                                |  |
| B. TAXONOMY-NON-ELIGIBLE ACTIVITIES                                                                               |          |                                            |                              |                               |                               |           |               |                      |                   |                                       |                                       |                   |                       |                              |                          |                                |                                                                                          |                                      |  |
| CAPEX of Taxonomy non-eligible activities                                                                         |          | 10,283,645                                 | 0.2%                         |                               |                               |           |               |                      |                   |                                       |                                       |                   |                       |                              |                          |                                |                                                                                          |                                      |  |
| Total                                                                                                             |          | 5,055,679,248                              | 100.0%                       |                               |                               |           |               |                      |                   |                                       |                                       |                   |                       |                              |                          |                                |                                                                                          |                                      |  |

Note: Eligible and aligned Capex in 2022 restated to consider the same denominator criteria than in 2023.

{194}------------------------------------------------

|     | PROPORTION OF CAPEX/TOTAL CAPEX   |                                    |
|-----|-----------------------------------|------------------------------------|
|     | TAXONOMY-ALIGNED PER<br>OBJECTIVE | TAXONOMY-ELIGIBLE PER<br>OBJECTIVE |
| CCM | 99.8%                             | 99.8%                              |
| CCA | 0%                                | 0%                                 |
| WTR | 0%                                | 0%                                 |
| CE  | 0%                                | 0%                                 |
| PPC | 0%                                | 0%                                 |
| BIO | 0%                                | 0%                                 |

{195}------------------------------------------------

Annual Report 2023 Annex II: Taxonomy Alignment. KPIs under Article 8º of EU Taxonomy

Image /page/195/Picture/3 description: The image contains the logo for EDP Renewables. The logo consists of the letters "edp" in a simple, sans-serif font, stacked above the word "Renewables" in a smaller font size. The letters and word are in a dark color, possibly dark blue or black, against a white background.

=

| Financial year 2023                                                                 |          | 2023              |                             |                               |                               |           | SUBSTANTIAL CONTRIBUTION CRITERIA (5) |                      |                   |                                       |                                       | DNSH (6)          |                       |                              |                          |                                |                                                                                          |                                      |                                          |
|-------------------------------------------------------------------------------------|----------|-------------------|-----------------------------|-------------------------------|-------------------------------|-----------|---------------------------------------|----------------------|-------------------|---------------------------------------|---------------------------------------|-------------------|-----------------------|------------------------------|--------------------------|--------------------------------|------------------------------------------------------------------------------------------|--------------------------------------|------------------------------------------|
| ECONOMIC ACTIVITIES (1)                                                             | CODE (2) | OPEX (3)<br>euros | PROPORTION OF OPEX (4)<br>% | CLIMATE CHANGE MITIGATION (5) | CLIMATE CHANGE ADAPTATION (6) | WATER (7) | POLLUTION (8)                         | CIRCULAR ECONOMY (9) | BIODIVERSITY (10) | CLIMATE CHANGE MITIGATION (11)<br>Y/N | CLIMATE CHANGE ADAPTATION (12)<br>Y/N | WATER (13)<br>Y/N | POLLUTION (14)<br>Y/N | CIRCULAR ECONOMY (15)<br>Y/N | BIODIVERSITY (16)<br>Y/N | MINIMUM SAFEGUARDS (17)<br>Y/N | PROPORTION OF TAXONOMY ALIGNED (A.1.) OR<br>ELIGIBLE (A.2.) TURNOVER, YEAR N-1 (18)<br>% | CATEGORY ENABLING ACTIVITY (19)<br>E | CATEGORY TRANSITIONAL ACTIVITY (20)<br>T |
| A. TAXONOMY-ELIGIBLE ACTIVITIES                                                     |          |                   |                             |                               |                               |           |                                       |                      |                   |                                       |                                       |                   |                       |                              |                          |                                |                                                                                          |                                      |                                          |
| A.1. Environmentally sustainable activities (Taxonomy-aligned)                      |          |                   |                             |                               |                               |           |                                       |                      |                   |                                       |                                       |                   |                       |                              |                          |                                |                                                                                          |                                      |                                          |
| Electricity generation using solar photovoltaic technology                          | CCM 4.1  | 11,145,227        | 4.1%                        | Y                             | N/EL                          | N/EL      | N/EL                                  | N/EL                 | N/EL              | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 7.0%                                                                                     |                                      |                                          |
| Electricity generation from wind power                                              | CCM 4.3  | 250,498,867       | 92.0%                       | Y                             | N/EL                          | N/EL      | N/EL                                  | N/EL                 | N/EL              | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 87.4%                                                                                    |                                      |                                          |
| Installation, maintenance and repair of renewable energy technologies               | CCM 7.6  | 3,889,542         | 1.4%                        | Y                             | N/EL                          | N/EL      | N/EL                                  | N/EL                 | N/EL              | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 3.8%                                                                                     | E                                    |                                          |
| OPEX of environmentally sustainable activities (Taxonomy-aligned activities) (A.1.) |          | 265,533,635       | 97.6%                       | 97.6%                         | 0%                            | 0%        | 0%                                    | 0%                   | 0%                | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 98.2%                                                                                    |                                      |                                          |
| Of which Enabling                                                                   |          | 3,889,542         | 1.4%                        | 1.4%                          | 0%                            | 0%        | 0%                                    | 0%                   | 0%                | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 3.8%                                                                                     | E                                    |                                          |
| Of which Transitional                                                               |          | 0                 | 0%                          |                               |                               |           |                                       |                      |                   | Y                                     | Y                                     | Y                 | Y                     | Y                            | Y                        | Y                              | 0%                                                                                       |                                      |                                          |

| A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)           |             |       |       |    |    |    |    |    |  |       |  |
|------------------------------------------------------------------------------------------------------------------|-------------|-------|-------|----|----|----|----|----|--|-------|--|
| OPEX of Taxonomy eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | 0           | 0%    | 0%    | 0% | 0% | 0% | 0% | 0% |  | 0%    |  |
| A. OPEX of Taxonomy eligible activities (A.1+A.2)                                                                | 265,533,635 | 97.6% | 97.6% | 0% | 0% | 0% | 0% | 0% |  | 98.2% |  |
| B. TAXONOMY-NON-ELIGIBLE ACTIVITIES                                                                              |             |       |       |    |    |    |    |    |  |       |  |
| OPEX of Taxonomy non-eligible activities                                                                         | 6,618,048   | 2.4%  |       |    |    |    |    |    |  |       |  |
| Total                                                                                                            | 272,151,683 | 100%  |       |    |    |    |    |    |  |       |  |

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Annual Report 2023 Annex II: Taxonomy Alignment. KPIs under Article 8ºof EU Taxonomy

Image /page/196/Picture/5 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue sans-serif font, stacked above the word "Renewables" in a smaller, lighter blue sans-serif font.

Image /page/196/Picture/4 description: The image contains two horizontal lines at the top, a curved arrow pointing to the left, and the word "economy" written vertically at the bottom.

|     | PROPORTION OF OPEX/TOTAL OPEX     |                                    |
|-----|-----------------------------------|------------------------------------|
|     | TAXONOMY-ALIGNED PER<br>OBJECTIVE | TAXONOMY-ELIGIBLE PER<br>OBJECTIVE |
| CCM | 97.6%                             | 97.6%                              |
| CCA | 0%                                | 0%                                 |
| WTR | 0%                                | 0%                                 |
| CE  | 0%                                | 0%                                 |
| PPC | 0%                                | 0%                                 |
| BIO | 0%                                | 0%                                 |

{197}------------------------------------------------

Annual Report 2023 Annex II: Taxonomy Alignment. KPIs under Article 8º of EU Taxonomy

Image /page/197/Picture/4 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font. The letters are connected and stylized. Below the letters, in a smaller font, is the word "Renewables" in a similar dark blue color.

# **Key performance indicators under the templates of the annex XII of the Commission Delegated Regulation (EU 2022/1214) – Template 1 Nuclear and fossil gas related activities**

| ROW | NUCLEAR ENERGY RELATED ACTIVITIES                                                                                                                                                                                                                                                                                                    | YES/NO |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 1   | The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.                                                                                        | No     |
| 2   | The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | No     |
| 3   | The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.                          | No     |
|     | FOSSIL GAS RELATED ACTIVITIES                                                                                                                                                                                                                                                                                                        | YES/NO |
| 4   | The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.                                                                                                                                                           | No     |
| 5   | The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.                                                                                                                                                  | No     |

|                                                                                                | YES/NO |
|------------------------------------------------------------------------------------------------|--------|
| innovative electricity generation facilities that produce                                      | No     |
| s to produce electricity or process heat, including for es, using best available technologies. | No     |
| e electricity or process heat, including for the purposes upgrades.                            | No     |

{198}------------------------------------------------

Image /page/198/Picture/28 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue sans-serif font, with the "e" and "d" connected. Below the letters, in a smaller font, is the word "Renewables" in a lighter gray color.

# Annex III: Non-financial information statement

#### **NON-FINANCIAL INFORMATION STATEMENT (SPANISH LAW 11/2018)**

- 1.1.2 Global presence (1) ;
- 
- 
- 
- 
- 
- 4.2 Climate Change, GRI EU1, EU2 & 201-2.
- 1.3.3 Integrity and Ethics;
- 3.2 Human Capital;
- 3.3 Supply Chain Capital;
- 3.4 Social Capital;
- 3.5 Natural Capital;
- 4.6 Suppliers management, section "EDPR's due diligence process";
- 4. GRI Reporting, Annex I: TCFD Alignment.

| AREA                                    | CONTENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | SCOPE/<br>PERIMETER | RELATED GRI<br>STANDARDS                                  | CHAPTER                                                                                                                                                                                                                  |
|-----------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|-----------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Business<br>Model                       | Brief description of the Group's business model, which includes:<br>· Its business environment<br>· Its organisation and structure<br>· The markets in which it operates<br>· Its goals and strategies<br>· The main factors and trends that may affect its future evolution.                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Global              | EU1; EU2; 2-1; 2-6; 2-9;<br>201-2                         | 1.1.2 Global presence(1);<br>1.1.3 Business description;<br>1.3 Organisation;<br>2.1 Business Environment;<br>2.2 Strategy;<br>3.1.2 Financial Performance;<br>4.2 Climate Change, GRI EU1, EU2 & 201-2                  |
| Policies                                | A description of the policies that the Group applies regarding these issues, which<br>includes:<br>· Due diligence procedures implemented for the identification, evaluation,<br>prevention and mitigation of significant risks and impacts;<br>· Verification and control procedures, including adopted measures.<br>The results of these policies, including key indicators of relevant non-financial results,<br>that allow:<br>1) Monitoring and evaluating progress; and<br>2) That promote comparability between societies and sectors, in accordance with<br>the national, European or international reference frameworks used for each subject.                                                                               | Global              | 3-3; 2-23                                                 | 1.3.3 Integrity and Ethics;<br>3.2 Human Capital;<br>3.3 Supply Chain Capital;<br>3.4 Social Capital;<br>3.5 Natural Capital;<br>4.6 Suppliers management, section "ED..."<br>4. GRI Reporting, Annex I: TCFD Alignment. |
| Short, medium<br>and long-term<br>risks | The main risks regarding these issues related to the activities of the Group, including,<br>where relevant and proportionate, its business relationships, products or services that<br>may have negative effects in these areas, and<br>· How the group manages these risks,<br>· Explaining the procedures used to detect and evaluate them according to<br>national, European or international reference frameworks for each subject.<br>· Information on the impacts that have been detected must be included, offering a<br>breakdown of them, in particular on the main risks in the short, medium and long term.                                                                                                                | Global              | 201-2; 205-1; 304-2; 407-1;<br>408-1; 409-1; 413-2; 414-2 | 2.3 Risk Management; 4.2 Climate Cha...<br>4.10 Community Engagement, GRI 413-2;<br>4.6 Suppliers Management, GRI 414-2;<br>4.9 Environmental Management, GRI 304-2;                                                     |
| AREA                                    | CONTENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | SCOPE/<br>PERIMETER | RELATED GRI<br>STANDARDS                                  | CHAPTER                                                                                                                                                                                                                  |
| KPIs                                    | Key indicators of non-financial results relevant to the particular business activity and<br>that meet the criteria of comparability, materiality, relevance and reliability.<br>– With the aim of facilitating comparison of information, both over time and between<br>entities, stand-ards for non-financial key indicators that can be generally applied<br>and that comply with European Commission guidelines and Global Reporting<br>Initiative standards will be used especially and the report must mention the national,<br>European or international framework used for each matter.<br>– The key indicators of non-financial results must apply to each of the sections of the<br>non-financial information statement.<br> | Global              | -                                                         | Please refer to Annex IV: GRI Content Index.                                                                                                                                                                             |
| Environmental<br>topics                 | Global Environment:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                     |                                                           | 3.5 Natural Capital;                                                                                                                                                                                                     |
|                                         | • Detailed information on the current and foreseeable effects of the company's<br>activities on the environment and, where applicable, health and safety,<br>environmental assessment or certification procedures;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Global              |                                                           | 4.2 Climate Change, GRI 201-2, 305-1, 305-2, 305-3 & 305-5.                                                                                                                                                              |
|                                         | • Resources dedicated to the prevention of environmental risks;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Global              | 2-23; 3-3; 201-2; 305-1;<br>305-2; 305-3; 305-5           | 4.9 Environmental Management, section "Other environ related topics";                                                                                                                                                    |
|                                         | • The application of the Precautionary Principle, the amount of provisions and<br>guarantees for environmental risks (e.g. derived from the law of environmental<br>responsibility).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                     |                                                           | 4. GRI Reporting, Annex I: TCFD Alignment.                                                                                                                                                                               |
|                                         | Pollution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                     |                                                           |                                                                                                                                                                                                                          |
|                                         | Measures to prevent, reduce or repair carbon emissions that seriously affect the<br>environment, taking into account any form of air pollution specific to an activity,<br>including:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Global              | 3-3; 305-5                                                | 4.2 Climate Change, GRI 305-5.                                                                                                                                                                                           |
|                                         | Noise                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Global              | 413-2                                                     | 4.10 Community Engagement, GRI 413-2.                                                                                                                                                                                    |
|                                         | Light pollution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | -                   | -                                                         | 4.1 Materiality Assessment, notes to the Materiality Matrix.                                                                                                                                                             |
|                                         | Circular economy and waste prevention and management                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                     |                                                           |                                                                                                                                                                                                                          |
|                                         | Circular economy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Global              | 3-3; 306-2                                                | 3.5 Natural Capital;<br>4.9 Environmental Management, GRI 306-2.                                                                                                                                                         |
|                                         | Waste prevention, recycling, reuse, other forms of recovery and disposal.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Global              | 306-1; 306-2; 306-3: 306-4;<br>306-5                      | 4.9 Environmental Management, GRI 306-1, 306-2, 306-3, 306-4, 306-5                                                                                                                                                      |
|                                         | Actions to combat food waste.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | -                   | -                                                         | 4.1 Materiality Assessment, notes to the Materiality Matrix.                                                                                                                                                             |
| AREA                                    | CONTENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | SCOPE/<br>PERIMETER | RELATED GRI<br>STANDARDS                                  | CHAPTER                                                                                                                                                                                                                  |
|                                         | Sustainable use of resources                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                     |                                                           |                                                                                                                                                                                                                          |
|                                         | Water consumption and water supply according to local constraints.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Global              | -                                                         | 4.1 Materiality Assessment, notes to the Materiality Matrix.                                                                                                                                                             |
|                                         | Consumption of raw materials and the measures adopted to improve the efficiency<br>of their use.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Global              | -                                                         | 4.1 Materiality Assessment, notes to the Materiality Matrix.                                                                                                                                                             |
|                                         | Direct and indirect consumption of energy, measures taken to improve energy<br>efficiency and the use of renewable energies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Global              | 3-3; 302-1; 302-4                                         | 3.5 Natural Capital;<br>4.2 Climate Change, GRI 302-1 & 302-4.                                                                                                                                                           |
|                                         | Climate Change                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                     |                                                           | 2.1.1 2023 overview;<br>2.1.2 The evolution of renewables around the world in 2023;<br>3.5 Natural Capital;                                                                                                              |
|                                         | The important elements of greenhouse gas emissions generated as a result of<br>the<br>company's activities, including the use of the goods and services it produces.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Global              | 3-3; 305-1; 305-2; 305-3                                  | 4.2 Climate Change, GRI 305-1, 305-2 & 305-3.                                                                                                                                                                            |
|                                         | The measures adopted to adapt to the consequences of climate change.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Global              | 3-3; 201-2                                                | 4.2 Climate Change, GRI 201-2.                                                                                                                                                                                           |
|                                         | The reduction goals established voluntarily in the medium and long-term to reduce<br>greenhouse gas emissions and the means implemented for that purpose.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Global              | 3-3; 305-5                                                | 4.2 Climate Change, GRI 305-5.                                                                                                                                                                                           |
|                                         | Protection of biodiversity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                     |                                                           | 3.5 Natural Capital.                                                                                                                                                                                                     |
|                                         | Measures taken to preserve or restore biodiversity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Global              | 3-3; 304-1; 304-3                                         | 4.9 Environmental Management, GRI 304-1 & 304-3.                                                                                                                                                                         |
|                                         | Impacts caused by activities or operations in protected areas.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Global              | 304-1; 304-2                                              | 4.9 Environmental Management, GRI 304-1 & 304-2.                                                                                                                                                                         |
|                                         | Employment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Global              |                                                           | 3.2 Human Capital.                                                                                                                                                                                                       |
|                                         | Total number and distribution of employees by gender, age, country and professional<br>category.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Global              | 3-3; 2-7; 405-1                                           | 4.5 People Management, GRI 2-7 & 405-1.                                                                                                                                                                                  |
|                                         | Total number and distribution of work contract modalities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Global              | 2-7                                                       | 4.5 People Management, GRI 2-7.                                                                                                                                                                                          |
| Social and<br>employees<br>topics       | Annual average of permanent contracts, temporary contracts and part-time<br>contracts by gender, age and professional category.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Global              | 2-7; 405-1                                                | 4.5 People Management, GRI 2-7 & 405-1.                                                                                                                                                                                  |
|                                         | Number of dismissals by gender, age<br>and professional category.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Global              | 401-1                                                     | 4.5 People Management, GRI 401-1.                                                                                                                                                                                        |
|                                         | Average remunerations and their evolution disaggregated by gender, age and<br>professional category or equal value. Wage gap, the remuneration of equal or<br>average positions in the company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Global              | 405-2                                                     | 4.5 People Management, GRI 405-2.                                                                                                                                                                                        |
|                                         | Avg. remuneration of directors and executives, incl. variable remuneration,<br>allowances, compensation, payment to l/t savings forecast systems and any other<br>perception disaggregated by gender.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Global              | 405-2                                                     | 4.8 Corporate Governance; 4.5 People Management, GRI 405-2.                                                                                                                                                              |
|                                         | Implementation of labour disconnection policies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Global              | 3-3                                                       | 4.5 People Management, section "Work organisation and implementation of<br>"right to disconnect" policies".                                                                                                              |
|                                         | Employees with disabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Global              | 3-3                                                       | 4.5 People Management, section "Employees with disabilities".                                                                                                                                                            |
| AREA                                    | CONTENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | SCOPE/<br>PERIMETER | RELATED GRI<br>STANDARDS                                  | CHAPTER                                                                                                                                                                                                                  |
|                                         | Work organisation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                     |                                                           |                                                                                                                                                                                                                          |
|                                         | Working hours organisation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Global              | 3-3; EU17                                                 | 4.4 Health & Safety, GRI EU17;<br>4.5 People Management, section "Work organisation and<br>"right to disconnect" policies".                                                                                              |
|                                         | Number of hours of absenteeism.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Global              | 3-3                                                       | 4.4 Health & Safety, section "Absenteeism”.                                                                                                                                                                              |
|                                         | Measures designed to facilitate the enjoyment of conciliation and encourage joint<br>responsibility of these by both parents.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Global              | 3-3                                                       | 4.5 People Management, section "Work life balance".                                                                                                                                                                      |
|                                         | Health & Safety                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                     |                                                           |                                                                                                                                                                                                                          |
|                                         | Conditions of health and safety at work.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Global              | 3-3; 403-1; 403-2; 403-3;<br>403-5; 403-6; 403-7          | 3.4.1 Guarantee the highest health & safety standards;<br>4.4 Health & Safety, GRI 403-1, 403-2, 403-3, 403-5, 403-6 & 403-7.                                                                                            |
|                                         | Work-related accidents, in particular their frequency and severity, occupational<br>diseases, disaggregated by gender.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Global              | 403-9; 403-10                                             | 4.4 Health & Safety, GRI 403-9 & 403-10.                                                                                                                                                                                 |
|                                         | Social Relations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                     |                                                           |                                                                                                                                                                                                                          |
|                                         | Organisation of social dialogue, including procedures for informing and consulting<br>employees and negotiating with them.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Global              | 3-3; 402-1                                                | 4.5 People Management, GRI 402-1.                                                                                                                                                                                        |
|                                         | Percentage of employees covered by collective bargaining agreements by country.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Global              | 2-30                                                      | 4.5 People Management, GRI 2-30.                                                                                                                                                                                         |
|                                         | The result of collective bargaining agreements, particularly in the H&S at work area.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Global              | 2-30                                                      | 4.5 People Management, GRI 2-30.                                                                                                                                                                                         |
|                                         | Mechanisms and procedures that the company has to<br>promote the involvement of<br>workers in the management of the company, in terms of information, consultation and<br>participation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Global              | 403-4                                                     | 4.5 People Management, GRI 403-4.                                                                                                                                                                                        |
|                                         | Training                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                     |                                                           |                                                                                                                                                                                                                          |
|                                         | Policies implemented in the training area.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Global              | 3-3; 404-2; 404-3                                         | 4.5 People Management, GRI 404-2 & 404-3.                                                                                                                                                                                |
|                                         | Total amount of training hours by professional categories.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Global              | 404-1                                                     | 4.5 People Management, GRI 404-1.                                                                                                                                                                                        |
|                                         | Universal accessibility for people with disabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Global              | 3-3                                                       | 4.5 People Management, section "Universal accessibility".                                                                                                                                                                |
|                                         | Equality                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                     |                                                           |                                                                                                                                                                                                                          |
|                                         | Measures taken to promote equal treatment and opportunities between women and<br>men.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Global              | 3-3                                                       | 3.2 Human Capital.                                                                                                                                                                                                       |
|                                         | Equality plans (Chapter III of Organic Law 3/2007, of the 22nd of March, for effective<br>equality of women and men), measures adopted to promote employment, protocols<br>against sexual and gender-based harassment, integration,<br>and the universal<br>accessibility of people with disabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                | Global              | 3-3                                                       | 4.5 People Management, section "Equality plans".                                                                                                                                                                         |
|                                         | Policy against all types of discrimination and, where appropriate, management of<br>diversity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Global              | 3-3                                                       | 1.3.3 Integrity and Ethics; 3.4.2. Respect human and laba<br>Management, section "Adopted measures to promote equality".                                                                                                 |
| AREA                                    | CONTENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | SCOPE/<br>PERIMETER | RELATED GRI<br>STANDARDS                                  | CHAPTER                                                                                                                                                                                                                  |
| Human rights                            | Application of due diligence procedures in the field of human rights; Prevention of the<br>risks of violation of human rights and, where appropriate, measures to mitigate,<br>manage and repair possible abuses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Global              | 3-3                                                       | 1.3.3 Integrity and Ethics;<br>3.4.2. Respect human and labour rights;<br>4.6 Suppliers Management, section "EDPR's due diligence process".                                                                              |
|                                         | Complaints regarding cases of violation of human rights.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Global              | 406-1; 411-1                                              | 1.3.3 Integrity and Ethics;<br>4.10 Community Engagement, GRI 411-1;<br>4.14 Ethics and Compliance, GRI 406-1.                                                                                                           |
|                                         | Promotion and compliance with the provisions of the fundamental Conventions of the<br>International Labour Organization related to respect for freedom of association and<br>the right to collective bargaining.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Global              | 407-1                                                     | 4.14 Ethics and Compliance, GRI 407-1.                                                                                                                                                                                   |
|                                         | The elimination of discrimination in employment and occupation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Global              | 3-3                                                       | 3.4.2. Respect human and labour rights                                                                                                                                                                                   |
|                                         | The elimination of forced or compulsory labour.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Global              | 409-1                                                     | 3.4.2. Respect human and labour rights;<br>4.14 Ethics and Compliance, GRI 409-1.                                                                                                                                        |
|                                         | The effective abolition of child labour.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Global              | 408-1                                                     | 3.4.2. Respect human and labour rights;<br>4.14 Ethics and Compliance, GRI 408-1.                                                                                                                                        |
| Corruption and<br>bribery               | Adopted measures to prevent corruption and bribery.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Global              | 3-3; 205-1; 205-2; 205-3;<br>415-1                        | 4.13 Communication and Transparency, GRI 415-1;<br>4.14 Ethics and Compliance, GRI 205-1, 205-2 & 205-3.                                                                                                                 |
|                                         | Measures to combat money laundering.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Global              | 3-3                                                       | 4.14 Ethics and Compliance, section "Money laundering”.                                                                                                                                                                  |
|                                         | Contributions to foundations and non-profit entities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Global              | 413-1                                                     | 4.10 Community Engagement, GRI 413-1; 4.13 Communication and<br>Transparency, section %Contributions to foundations and non-profit entities                                                                              |
| Society                                 | Company's commitments to the sustainable development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                     |                                                           |                                                                                                                                                                                                                          |
|                                         | The impact of the society's activity on employment and local development.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Global              | 3-3; 202-2; 203-1; 203-2;<br>413-1                        | 4.10 Community Engagement, GRI 202-2, 203-1, 203-2 & 413-1;                                                                                                                                                              |
|                                         | The impact of society's activity on local populations and in the territory.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Global              | 3-3; 413-1; 413-2                                         | 3.4.3. Support communities; 4.10 Community Engagement, GRI 413-1, 413-2.                                                                                                                                                 |
|                                         | The relationships maintained with the local communities and the modalities of<br>dialogue with them.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Global              | 3-3                                                       | 4.10 Community Engagement.                                                                                                                                                                                               |
|                                         | The association or sponsorship actions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Global              | 2-28                                                      | 4.13 Communication and Transparency, GRI 2-28.                                                                                                                                                                           |
|                                         | Subcontracting and suppliers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                     |                                                           |                                                                                                                                                                                                                          |
|                                         | The inclusion of social issues, gender equality and environmental issues in the<br>Procurement Policy. Consideration of the suppliers and subcontractors' social and<br>environmental responsibility when interacting with them.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Global              | 2-6; 3-3; 204-1                                           | 3.3 Supply Chain Capital;<br>4.6 Suppliers Management, GRI 2-6.                                                                                                                                                          |
|                                         | Supervision systems and audits and their results.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Global              | 308-2; 414-2                                              | 3.3 Supply Chain Capital; 4.6 Suppliers Management, GRI 414-2 & 308-2.                                                                                                                                                   |
| AREA                                    | CONTENT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | SCOPE/<br>PERIMETER | RELATED GRI<br>STANDARDS                                  | CHAPTER                                                                                                                                                                                                                  |
|                                         | Customers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                     |                                                           |                                                                                                                                                                                                                          |
|                                         | Measures for the health and safety of consumers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Global              | EU25; 3-3                                                 | 4.4 Health & Safety, GRI EU25.                                                                                                                                                                                           |
|                                         | Complaining system, complaints received and their resolution.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Global              | 3-3                                                       | 1.3.3 Integrity and Ethics.                                                                                                                                                                                              |
|                                         | Tax information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                     |                                                           |                                                                                                                                                                                                                          |
|                                         | Profit before income tax, by country. Corporate income tax paid.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Global              | 201-1; 207-2; 207-3; 207-4                                | 4.3 Business Sustainability, GRI 201-1; 4.13 Communication and<br>Transparency, GRI 207-2, 207-3 & 207-4.                                                                                                                |
|                                         | Financial assistance received from the government.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Global              | 201-4                                                     | 4.13 Communication and Transparency, GRI 201-4.                                                                                                                                                                          |
| Others                                  | Annual total compensation ratio.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Global              | 2-21                                                      | 4.5 People Management, GRI 2-21.                                                                                                                                                                                         |
|                                         | Legal Actions for anti-competitive behaviour, anti-trust and monopoly practices.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Global              | 206-1                                                     | 4.13 Communication and Transparency, GRI 206-1.                                                                                                                                                                          |
|                                         | Compliance with laws and regulations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Global              | 2-27                                                      | 4.13 Communication and Transparency, GRI 2-27.                                                                                                                                                                           |
|                                         | Percentage of employees eligible to retire in the next 5<br>and 10 years broken down by<br>job category and by region                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Global              | EU15                                                      | 4.5 People Management, GRI EU15.                                                                                                                                                                                         |
|                                         | Statement from senior decision-maker.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Global              | 2-22                                                      | Message from the CEO.                                                                                                                                                                                                    |
|                                         | Approach to stakeholder engagement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Global              | 2-29; 3-3                                                 | 1.1.4 Stakeholder management.                                                                                                                                                                                            |
|                                         | List of material topics.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Global              | 3-2                                                       | 4.1 Materiality Assessment, Materiality Matrix.                                                                                                                                                                          |
|                                         | Innovation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Global              | 3-3                                                       | 3.7 Innovation Capital.                                                                                                                                                                                                  |
|                                         | Taxonomy Regulation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Global              | -                                                         |                                                                                                                                                                                                                          |
|                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                     |                                                           | 4.3 Business Sustainability, section "Taxonomy Regulation";<br>4. GRI Reporting, Annex II: Taxonomy Alignment. K                                                                                                         |

2.3 Risk Management; 4.2 Climate Change, GRI 201-2;

- 
- 4.6 Suppliers Management, GRI 414-2;
- 
- 4.9 Environmental Management, GRI 304-2;
- 4.14 Ethics and Compliance, GRI 205-1, 407-1, 408-1 & 409-1;
- 
- 2.3 Risk Management; 4.2 Climate Change, GRI 201-2;

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Image /page/199/Picture/16 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark blue color.

Annual Report 2023 Annex III: Non-financial information statement 

#### **NON-FINANCIAL INFORMATION STATEMENT (SPANISH LAW 11/2018)**

4.2 Climate Change, GRI 201-2, 305-1, 305-2, 305-3 & 305-5.

4.9 Environmental Management, section "Other environmental management related topics";

4.9 Environmental Management, GRI 306-1, 306-2, 306-3, 306-4 & 306-5;

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Image /page/200/Picture/26 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font. The letters are stacked on top of the word "Renewables", which is in a smaller, lighter blue, sans-serif font.

#### **NON-FINANCIAL INFORMATION STATEMENT (SPANISH LAW 11/2018)**

- 4.1 Materiality Assessment, notes to the Materiality Matrix.
- 3.5 Natural Capital;
- 4.2 Climate Change, GRI 302-1 & 302-4.
- 
- 2.1.2 The evolution of renewables around the world in 2023;
- 3.5 Natural Capital;
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 

4.5 People Management, section "Work organisation and implementation of "right to disconnect" policies".

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#### **NON-FINANCIAL INFORMATION STATEMENT (SPANISH LAW 11/2018)**

4.5 People Management, section "Work organisation and implementation of "right to disconnect" policies".

3.4.1 Guarantee the highest health & safety standards; 4.4 Health & Safety, GRI 403-1, 403-2, 403-3, 403-5, 403-6 & 403-7.

1.3.3 Integrity and Ethics; 3.4.2. Respect human and labour rights; 4.5 People Management, section "Adopted measures to promote employment related to equality".

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Annual Report 2023 Annex III: Non-financial information statement

#### **NON-FINANCIAL INFORMATION STATEMENT (SPANISH LAW 11/2018)**

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Annual Report 2023 Annex III: Non-financial information statement 

Image /page/203/Picture/19 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark gray color.

---

( )

#### **NON-FINANCIAL INFORMATION STATEMENT (SPANISH LAW 11/2018)**

4.3 Business Sustainability, GRI 201-1; 4.13 Communication and Transparency, GRI 207-2, 207-3 & 207-4.

4.3 Business Sustainability, section "Taxonomy Regulation";

4. GRI Reporting, Annex II: Taxonomy Alignment. KPIs under Article 8º of EU Taxonomy.

Note: In addition to the indicators included in this table, non-financial information can be found in the following indicators: 2-2, 2-3, 2-4, 2-5, 2-25, 3-1, 401-2.

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Image /page/204/Picture/25 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font. Below the letters is the word "Renewables" in a smaller, lighter blue, sans-serif font.

# Annex IV: GRI content index

**External assurance:** The GRI indicators included in the following table have been verified by PwC. See the correspondent Independent Verification Report in Annex V. Additionally, some GRI indicators refer to Notes in EDPR's 2023 Annual Accounts, which have been audited by PwC. See the correspondent Independent Auditor's Report on the consolidated annual accounts at the beginning of the document.

**Statement of use:** EDPR has reported the information cited in this GRI content index for the 2023 period with reference to the GRI Standards.

2023 Consolidated Annual Accounts - Note 1;

| GRI STANDARD                                                            |                                                                                                                                                       | DISCLOSURES                                                                                                                                                                                                               | CHAPTER                                                                                                                                                                                                                       |
|-------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| GENERAL DISCLOSURES                                                     |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
| GRI 1: Foundation 2022                                                  |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
| GRI 2: General Disclosures 2022                                         |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
|                                                                         | 2-1                                                                                                                                                   | Organisational details                                                                                                                                                                                                    | 2023 Consolidated Annual Accounts - Note 1;<br>1.1.2 Global presence;<br>5. Corporate Governance (A. Shareholder Structure);<br>EDPR head offices are located in Madrid (Spain).                                              |
|                                                                         | 2-2                                                                                                                                                   | Entities included in the organisation's sustainability reporting                                                                                                                                                          | 2023 Consolidated Annual Accounts - Note 6 and Annex                                                                                                                                                                          |
|                                                                         | 2-3                                                                                                                                                   | Reporting period, frequency and contact point                                                                                                                                                                             | 4.15 Reporting Principles;<br>"Contact us" at www.edpr.com.                                                                                                                                                                   |
|                                                                         | 2-4                                                                                                                                                   | Restatements of information                                                                                                                                                                                               | 2023 Consolidated Annual Accounts - Note 6.                                                                                                                                                                                   |
|                                                                         | 2-5                                                                                                                                                   | External assurance                                                                                                                                                                                                        | 4.15 Reporting Principles;<br>4. GRI Reporting, Annex V: Independent verification repor                                                                                                                                       |
|                                                                         | 2-6                                                                                                                                                   | Activities, value chain and other business relationships                                                                                                                                                                  | 2022 Consolidated Annual Accounts - Note 6 & 41;<br>1.1.2 Global presence;<br>1.1.3 Business Description;<br>3.1.2 Financial Performance;<br>3.3 Supply Chain Capital;<br>5. Corporate Governance (A. Shareholder Structure). |
|                                                                         | 2-7                                                                                                                                                   | Employees                                                                                                                                                                                                                 | 4.5 People Management.                                                                                                                                                                                                        |
| GRI STANDARD                                                            | DISCLOSURES                                                                                                                                           | CHAPTER                                                                                                                                                                                                                   |                                                                                                                                                                                                                               |
| 2-9                                                                     | Governance structure and composition                                                                                                                  | 4.5 People Management.                                                                                                                                                                                                    |                                                                                                                                                                                                                               |
| 2-21                                                                    | Annual total compensation ratio                                                                                                                       | Message from the CEO.                                                                                                                                                                                                     |                                                                                                                                                                                                                               |
| 2-22                                                                    | Statement on sustainable development strategy                                                                                                         | 1.3.3 Integrity and Ethics;                                                                                                                                                                                               |                                                                                                                                                                                                                               |
| 2-23                                                                    | Policy commitments                                                                                                                                    | 2.3 Risk Management;<br>3.4.2 Respect human and labour rights;<br>4.6 Suppliers Management, section "EDPR's due diligence process";<br>5. Corporate Governance (C. Internal Organisation).<br>1.3.3 Integrity and Ethics; |                                                                                                                                                                                                                               |
| 2-25                                                                    | Processes to remediate negative impacts                                                                                                               | 3.4 Social Capital;<br>3.5 Natural Capital;<br>4.10 Community Engagement;<br>4.6 Suppliers Management;<br>4.9 Environmental Management.<br>4.13 Communication and Transparency.                                           |                                                                                                                                                                                                                               |
| 2-27                                                                    | Compliance with laws and regulations                                                                                                                  | 4.13 Communication and Transparency.                                                                                                                                                                                      |                                                                                                                                                                                                                               |
| 2-28                                                                    | Membership associations                                                                                                                               | 1.1.4 Stakeholder management                                                                                                                                                                                              |                                                                                                                                                                                                                               |
| 2-29                                                                    | Approach to stakeholder engagement                                                                                                                    | 4.1 Materiality Assessment;<br>4.15 Reporting Principles;<br>Please visit our stakeholders' information on the sustainability section in our website,<br>www.edpr.com.<br>4.5 People Management.                          |                                                                                                                                                                                                                               |
| 2-30                                                                    | Collective bargaining agreements                                                                                                                      | 4.5 People Management.                                                                                                                                                                                                    |                                                                                                                                                                                                                               |
| MATERIAL TOPICS                                                         |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
| Climate Change                                                          |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
| GRI 3: Material Topics 2022                                             | 3-1                                                                                                                                                   | Process to determine material topics                                                                                                                                                                                      | 4.1 Materiality Assessment                                                                                                                                                                                                    |
| GRI 3: Material Topics 2022                                             | 3-2                                                                                                                                                   | List of material topics                                                                                                                                                                                                   | 4.1 Materiality Assessment, Materiality Matrix                                                                                                                                                                                |
| GRI 3: Material Topics 2022                                             | 3-3                                                                                                                                                   | Management of material topics                                                                                                                                                                                             | 2.1 Business Environment;                                                                                                                                                                                                     |
| GRI STANDARD                                                            |                                                                                                                                                       | DISCLOSURES                                                                                                                                                                                                               | CHAPTER                                                                                                                                                                                                                       |
|                                                                         |                                                                                                                                                       |                                                                                                                                                                                                                           | 3.1.1 Operational Performance;                                                                                                                                                                                                |
|                                                                         |                                                                                                                                                       |                                                                                                                                                                                                                           | 3.5 Natural Capital                                                                                                                                                                                                           |
| GRI 201: Economic<br>Performance 2016                                   | 201-2                                                                                                                                                 | Financial implications and other risks and opportunities due to climate change                                                                                                                                            | 4.2 Climate Change                                                                                                                                                                                                            |
| GRI 302: Energy 2016                                                    | 302-1                                                                                                                                                 | Energy consumption within the organisation                                                                                                                                                                                | 4.2 Climate Change                                                                                                                                                                                                            |
|                                                                         | 302-4                                                                                                                                                 | Reduction of energy consumption                                                                                                                                                                                           | 4.2 Climate Change                                                                                                                                                                                                            |
|                                                                         | 305-1                                                                                                                                                 | Direct (Scope 1) GHG emissions                                                                                                                                                                                            | 4.2 Climate Change                                                                                                                                                                                                            |
|                                                                         | 305-2                                                                                                                                                 | Energy indirect (Scope 2) GHG emissions                                                                                                                                                                                   | 4.2 Climate Change                                                                                                                                                                                                            |
| GRI 305: Emissions 2016                                                 | 305-3                                                                                                                                                 | Other indirect (Scope 3) GHG emissions                                                                                                                                                                                    | 4.2 Climate Change                                                                                                                                                                                                            |
|                                                                         | 305-5                                                                                                                                                 | Reduction of GHG emissions                                                                                                                                                                                                | 4.2 Climate Change                                                                                                                                                                                                            |
|                                                                         | EU1                                                                                                                                                   | Installed capacity, broken down by primary energy source and by regulatory regime                                                                                                                                         | 4.2 Climate Change                                                                                                                                                                                                            |
| GRI EU                                                                  | EU2                                                                                                                                                   | Net energy output broken down by primary energy source and by regulatory regime                                                                                                                                           | 4.2 Climate Change                                                                                                                                                                                                            |
| Economic Business Sustainability                                        |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
|                                                                         | 3-1                                                                                                                                                   | Process to determine material topics                                                                                                                                                                                      | 4.1 Materiality Assessment                                                                                                                                                                                                    |
| GRI 3: Material topics<br>2022                                          | 3-2                                                                                                                                                   | List of material topics                                                                                                                                                                                                   | 4.1 Materiality Assessment, Materiality Matrix                                                                                                                                                                                |
|                                                                         | 3-3                                                                                                                                                   | Management of material topics                                                                                                                                                                                             | 2.2 Strategy;<br>3.1.2 Financial Performance.                                                                                                                                                                                 |
| GRI 201: Economic<br>Performance 2016                                   | 201-1                                                                                                                                                 | Direct economic value generated and distributed                                                                                                                                                                           | 4.3 Economic Business Sustainability                                                                                                                                                                                          |
| Health and Safety                                                       |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
|                                                                         | 3-1                                                                                                                                                   | Process to determine material topics                                                                                                                                                                                      | 4.1 Materiality Assessment                                                                                                                                                                                                    |
| GRI 3: Material topics<br>2021                                          | 3-2                                                                                                                                                   | List of material topics                                                                                                                                                                                                   | 4.1 Materiality Assessment, Materiality Matrix                                                                                                                                                                                |
|                                                                         | 3-3                                                                                                                                                   | Management of material topics                                                                                                                                                                                             | 3.4.1 Guarantee the highest health & safety standards                                                                                                                                                                         |
|                                                                         | 403-1                                                                                                                                                 | Occupational health and safety management system                                                                                                                                                                          | 4.4 Health & Safety                                                                                                                                                                                                           |
| GRI 403: Occupational<br>Health and Safety 2016                         | 403-2                                                                                                                                                 | Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities                                                                                             | 4.4 Health & Safety                                                                                                                                                                                                           |
|                                                                         | 403-3                                                                                                                                                 | Occupational health services                                                                                                                                                                                              | 4.4 Health & Safety                                                                                                                                                                                                           |
|                                                                         | 403-4                                                                                                                                                 | Worker participation, consultation, and communication on occupational health and safety                                                                                                                                   | 4.4 Health & Safety                                                                                                                                                                                                           |
|                                                                         | 403-5                                                                                                                                                 | Worker training on occupational health and safety                                                                                                                                                                         | 4.4 Health & Safety                                                                                                                                                                                                           |
| GRI STANDARD                                                            |                                                                                                                                                       | DISCLOSURES                                                                                                                                                                                                               | CHAPTER                                                                                                                                                                                                                       |
|                                                                         | 403-6                                                                                                                                                 | Promotion of worker health                                                                                                                                                                                                | 4.4 Health & Safety                                                                                                                                                                                                           |
|                                                                         | 403-7                                                                                                                                                 | Prevention and mitigation of occupational health and safety impacts directly linked by business relationships                                                                                                             | 4.4 Health & Safety                                                                                                                                                                                                           |
|                                                                         | 403-9                                                                                                                                                 | Work-related injuries                                                                                                                                                                                                     | 4.4 Health & Safety                                                                                                                                                                                                           |
|                                                                         | 403-10                                                                                                                                                | Work-related ill health                                                                                                                                                                                                   | 4.4 Health & Safety                                                                                                                                                                                                           |
| GRI EU                                                                  | EU17                                                                                                                                                  | Days worked by contractor and subcontractor employees involved in construction and O&M activities                                                                                                                         | 4.4 Health & Safety                                                                                                                                                                                                           |
| GRI EU                                                                  | EU25                                                                                                                                                  | Number of injuries and fatalities to the public involving company assets, including legal judgements,<br>settlements and pending legal cases of diseases                                                                  | 4.4 Health & Safety                                                                                                                                                                                                           |
| People Management                                                       |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
|                                                                         | 3-1                                                                                                                                                   | Process to determine material topics                                                                                                                                                                                      | 4.1 Materiality Assessment                                                                                                                                                                                                    |
| GRI 3: Material Topics 2022                                             | 3-2                                                                                                                                                   | List of material topics                                                                                                                                                                                                   | 4.1 Materiality Assessment, Materiality Matrix                                                                                                                                                                                |
|                                                                         | 3-3                                                                                                                                                   | Management of material topics                                                                                                                                                                                             | 3.2 Human Capital                                                                                                                                                                                                             |
| GRI 401: Employment 2016                                                | 401-1                                                                                                                                                 | New employee hires and employee turnover                                                                                                                                                                                  | 4.5 People Management                                                                                                                                                                                                         |
|                                                                         | 401-2                                                                                                                                                 | Benefits provided to full-time employees that are not provided to temporary or part-time employees                                                                                                                        | 4.5 People Management                                                                                                                                                                                                         |
| GRI 402: Labour / Management Relations 2016                             | 402-1                                                                                                                                                 | Minimum notice periods regarding operational changes                                                                                                                                                                      | 4.5 People Management                                                                                                                                                                                                         |
|                                                                         | 404-1                                                                                                                                                 | Average hours of training per year per employee                                                                                                                                                                           | 4.5 People Management                                                                                                                                                                                                         |
| GRI 404: Training and Education 2016                                    | 404-2                                                                                                                                                 | Programs for upgrading employee skills and transition assistance programs                                                                                                                                                 | 4.5 People Management                                                                                                                                                                                                         |
|                                                                         | 404-3                                                                                                                                                 | Percentage of employees receiving regular performance and career development reviews                                                                                                                                      | 4.5 People Management                                                                                                                                                                                                         |
| GRI 405: Diversity and Equal Opportunity 2016                           | 405-1                                                                                                                                                 | Diversity of governance bodies and employees                                                                                                                                                                              | 4.5 People Management                                                                                                                                                                                                         |
|                                                                         | 405-2                                                                                                                                                 | Ratio of basic salary and remuneration of women to men                                                                                                                                                                    | 4.5 People Management                                                                                                                                                                                                         |
| GRI EU                                                                  | EU15                                                                                                                                                  | Percentage of employees eligible to retire in the next 5 and 10 years broken down by job category and by<br>region                                                                                                        | 4.5 People Management                                                                                                                                                                                                         |
| Corporate Governance                                                    |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
| GRI 3: Material Topics 2022                                             | 3-1                                                                                                                                                   | Process to determine material topics                                                                                                                                                                                      | 4.1 Materiality Assessment                                                                                                                                                                                                    |
|                                                                         | 3-2                                                                                                                                                   | List of material topics                                                                                                                                                                                                   | 4.1 Materiality Assessment, Materiality Matrix                                                                                                                                                                                |
|                                                                         | 3-3                                                                                                                                                   | Management of material topics                                                                                                                                                                                             | 1.3 Organisation                                                                                                                                                                                                              |
| GRI STANDARD                                                            |                                                                                                                                                       | DISCLOSURES                                                                                                                                                                                                               | CHAPTER                                                                                                                                                                                                                       |
| Innovation                                                              |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
| GRI 3: Material Topics<br>2022                                          | 3-1                                                                                                                                                   | Process to determine material topics                                                                                                                                                                                      | 4.1 Materiality Assessment                                                                                                                                                                                                    |
|                                                                         | 3-2                                                                                                                                                   | List of material topics                                                                                                                                                                                                   | 4.1 Materiality Assessment, Materiality Matrix                                                                                                                                                                                |
|                                                                         | 3-3                                                                                                                                                   | Management of material topics                                                                                                                                                                                             | 3.7 Innovation Capital                                                                                                                                                                                                        |
| Community Engagement                                                    |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
|                                                                         | 3-1                                                                                                                                                   | Process to determine material topics                                                                                                                                                                                      | 4.1 Materiality Assessment                                                                                                                                                                                                    |
| GRI 3: Material Topics                                                  | 3-2                                                                                                                                                   | List of material topics                                                                                                                                                                                                   | 4.1 Materiality Assessment, Materiality Matrix                                                                                                                                                                                |
| 202<br>2                                                                | 3-3                                                                                                                                                   | Management of material topics                                                                                                                                                                                             | 3.4.3 Support communities                                                                                                                                                                                                     |
| GRI 202: Market<br>Presence 2016                                        | 202-2                                                                                                                                                 | Proportion of senior management hired from the local community                                                                                                                                                            | 4.10 Community Engagement                                                                                                                                                                                                     |
|                                                                         | 203-1                                                                                                                                                 | Infrastructure investments and services supported                                                                                                                                                                         | 4.10 Community Engagement                                                                                                                                                                                                     |
| GRI 203: Indirect<br>Economic Impacts 2016                              | 203-2                                                                                                                                                 | Significant indirect economic impacts                                                                                                                                                                                     | 4.10 Community Engagement                                                                                                                                                                                                     |
| GRI 411: Rights of<br>Indigenous People 2016                            | 411-1                                                                                                                                                 | Incidents of violations involving rights of indigenous peoples                                                                                                                                                            | 4.10 Community Engagement                                                                                                                                                                                                     |
|                                                                         | 413-1                                                                                                                                                 | Operations with local community engagement, impact assessments, and development programs                                                                                                                                  | 4.10 Community Engagement                                                                                                                                                                                                     |
| GRI 413: Local<br>Communities 2016                                      | 413-2                                                                                                                                                 | Operations with significant actual and potential negative impacts on local communities                                                                                                                                    | 4.10 Community Engagement                                                                                                                                                                                                     |
| Suppliers Management                                                    |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
| GRI 3: Material Topics                                                  | 3-1                                                                                                                                                   | Process to determine material topics                                                                                                                                                                                      | 4.1 Materiality Assessment                                                                                                                                                                                                    |
| 2021                                                                    | 3-2                                                                                                                                                   | List of material topics                                                                                                                                                                                                   | 4.1 Materiality Assessment, Materiality Matrix                                                                                                                                                                                |
|                                                                         | 3-3                                                                                                                                                   | Management of material topics                                                                                                                                                                                             | 3.3 Supply Chain Capital                                                                                                                                                                                                      |
| GRI 204: Procurement<br>Practices 2016                                  | 204-1                                                                                                                                                 | Proportion of spending on local suppliers                                                                                                                                                                                 | 4.6 Suppliers Management                                                                                                                                                                                                      |
| GRI 308: Supplier<br>Environmental<br>Assessment 2016                   | 308-2                                                                                                                                                 | Negative environmental impacts in the supply chain and actions taken                                                                                                                                                      | 4.6 Suppliers Management                                                                                                                                                                                                      |
| GRI 414: Supplier Social<br>Assessment 2016                             | 414-2                                                                                                                                                 | Negative social impacts in the supply chain and actions taken                                                                                                                                                             | 4.6 Suppliers Management                                                                                                                                                                                                      |
| GRI STANDARD                                                            | DISCLOSURES                                                                                                                                           | CHAPTER                                                                                                                                                                                                                   |                                                                                                                                                                                                                               |
| Environmental Management                                                |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
| GRI 3: Material Topics<br>2021                                          | 3-1<br>Process to determine material topics                                                                                                           | 4.1 Materiality Assessment                                                                                                                                                                                                |                                                                                                                                                                                                                               |
|                                                                         | 3-2<br>List of material topics                                                                                                                        | 4.1 Materiality Assessment, Materiality Matrix                                                                                                                                                                            |                                                                                                                                                                                                                               |
|                                                                         | 3-3<br>Management of material topics                                                                                                                  | 3.5 Natural Capital                                                                                                                                                                                                       |                                                                                                                                                                                                                               |
| GRI 304: Biodiversity<br>2016                                           | 304-1<br>Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity<br>value outside protected areas | 4.9 Environmental Management                                                                                                                                                                                              |                                                                                                                                                                                                                               |
|                                                                         | 304-2<br>Significant impacts of activities, products, and services on biodiversity                                                                    | 4.9 Environmental Management                                                                                                                                                                                              |                                                                                                                                                                                                                               |
|                                                                         | 304-3<br>Habitats protected or restored                                                                                                               | 4.9 Environmental Management                                                                                                                                                                                              |                                                                                                                                                                                                                               |
| GRI 306: Effluents and<br>Waste 2020                                    | 306-1<br>Waste generation and significant waste-related impacts                                                                                       | 4.9 Environmental Management                                                                                                                                                                                              |                                                                                                                                                                                                                               |
|                                                                         | 306-2<br>Management of significant waste-related impacts                                                                                              | 4.9 Environmental Management                                                                                                                                                                                              |                                                                                                                                                                                                                               |
|                                                                         | 306-3<br>Waste generated                                                                                                                              | 4.9 Environmental Management                                                                                                                                                                                              |                                                                                                                                                                                                                               |
|                                                                         | 306-4<br>Waste diverted from disposal                                                                                                                 | 4.9 Environmental Management                                                                                                                                                                                              |                                                                                                                                                                                                                               |
|                                                                         | 306-5<br>Waste directed to disposal                                                                                                                   | 4.9 Environmental Management                                                                                                                                                                                              |                                                                                                                                                                                                                               |
| Communication and transparency                                          |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
| GRI 3: Material Topics<br>2022                                          | 3-1<br>Process to determine material topics                                                                                                           | 4.1 Materiality Assessment                                                                                                                                                                                                |                                                                                                                                                                                                                               |
|                                                                         | 3-2<br>List of material topics                                                                                                                        | 4.1 Materiality Assessment, Materiality Matrix                                                                                                                                                                            |                                                                                                                                                                                                                               |
|                                                                         | 3-3<br>Management of material topics                                                                                                                  | 1.1.4 Stakeholder management                                                                                                                                                                                              |                                                                                                                                                                                                                               |
| GRI 201: Economic<br>Performance 2016                                   | 201-4<br>Financial assistance received from government                                                                                                | 4.13 Communication and Transparency                                                                                                                                                                                       |                                                                                                                                                                                                                               |
| GRI 206: Anti-<br>competitive Behavior<br>2016                          | 206-1<br>Legal actions for anti-competitive behavior, anti-trust, and monopoly practices                                                              | 4.13 Communication and Transparency                                                                                                                                                                                       |                                                                                                                                                                                                                               |
| GRI 415: Public Policy<br>2016                                          | 415-1<br>Political contributions                                                                                                                      | 4.13 Communication and Transparency                                                                                                                                                                                       |                                                                                                                                                                                                                               |
| GRI 207: Tax 2019                                                       | 207-1<br>Approach to tax                                                                                                                              | 4.13 Communication and Transparency                                                                                                                                                                                       |                                                                                                                                                                                                                               |
|                                                                         | 207-2<br>Tax governance, control, and risk management                                                                                                 | 4.13 Communication and Transparency                                                                                                                                                                                       |                                                                                                                                                                                                                               |
|                                                                         | 207-3<br>Stakeholder engagement and management of concerns related to tax                                                                             | 4.13 Communication and Transparency                                                                                                                                                                                       |                                                                                                                                                                                                                               |
|                                                                         |                                                                                                                                                       | 4.3 Economic Business Sustainability, "Profit before income tax";                                                                                                                                                         |                                                                                                                                                                                                                               |
|                                                                         | 207-4<br>Country-by-country reporting                                                                                                                 | 4.5 People Management, GRI 2-7;                                                                                                                                                                                           |                                                                                                                                                                                                                               |
|                                                                         |                                                                                                                                                       | 4.13 Communication and Transparency;                                                                                                                                                                                      |                                                                                                                                                                                                                               |
| Digital Transformation                                                  |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
|                                                                         | 3-1                                                                                                                                                   | Process to determine material topics                                                                                                                                                                                      | 4.1 Materiality Assessment                                                                                                                                                                                                    |
| GRI 3: Material Topics<br>2022                                          | 3-2                                                                                                                                                   | List of material topics                                                                                                                                                                                                   | 4.1 Materiality Assessment, Materiality Matr                                                                                                                                                                                  |
|                                                                         | 3-3                                                                                                                                                   | Management of material topics                                                                                                                                                                                             | 3.6 Digital Capital                                                                                                                                                                                                           |
| Ethics and Compliance                                                   |                                                                                                                                                       |                                                                                                                                                                                                                           |                                                                                                                                                                                                                               |
|                                                                         | 3-1                                                                                                                                                   | Process to determine material topics                                                                                                                                                                                      | 4.1 Materiality Assessment                                                                                                                                                                                                    |
| GRI 3: Material Topics<br>2021                                          | 3-2                                                                                                                                                   | List of material topics                                                                                                                                                                                                   | 4.1 Materiality Assessment, Materiality Matr                                                                                                                                                                                  |
|                                                                         | 3-3                                                                                                                                                   | Management of material topics                                                                                                                                                                                             | 1.3.3 Integrity and Ethics                                                                                                                                                                                                    |
|                                                                         | 205-1                                                                                                                                                 | Operations assessed for risks related to corruption                                                                                                                                                                       | 4.14 Ethics and Compliance                                                                                                                                                                                                    |
| GRI 205: Anti-corruption<br>2016                                        | 205-2                                                                                                                                                 | Communication and training on anti-corruption policies and procedures                                                                                                                                                     | 4.14 Ethics and Compliance                                                                                                                                                                                                    |
|                                                                         | 205-3                                                                                                                                                 | Confirmed incidents of corruption and actions taken                                                                                                                                                                       | 4.14 Ethics and Compliance                                                                                                                                                                                                    |
| GRI 406: Non-<br>discrimination 2016                                    | 406-1                                                                                                                                                 | Incidents of discrimination and corrective actions taken                                                                                                                                                                  | 4.14 Ethics and Compliance                                                                                                                                                                                                    |
| GRI 407: Freedom of<br>Association and<br>Collective Bargaining<br>2016 | 407-1                                                                                                                                                 | Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk                                                                                                            | 4.14 Ethics and Compliance                                                                                                                                                                                                    |
| GRI 408: Child Labour<br>2016                                           | 408-1                                                                                                                                                 | Operations and suppliers at significant risk for incidents of child labour                                                                                                                                                | 4.14 Ethics and Compliance                                                                                                                                                                                                    |
| GRI 409: Forced or<br>Compulsory Labour 2016                            | 409-1                                                                                                                                                 | Operations and suppliers at significant risk for incidents of forced or compulsory labour                                                                                                                                 | 4.14 Ethics and Compliance                                                                                                                                                                                                    |

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# Annual Report 2023 Annex III: Non-financial information statement

![EDP Renewables](https://i.imgur.com/9999999.png)

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Annual Report 2023 Annex III: Non-financial information statement 

Image /page/206/Picture/5 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a simple, sans-serif font, stacked above the word "Renewables" in a smaller, similar font. The letters and word are in a dark blue color against a white background.

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# 4.5 People Management

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{209}------------------------------------------------

==

↩

{210}------------------------------------------------

CHA

2022 Consolidated Annual Accounts - Note 1;

2022 Consolidated Annual Accounts - Annex I;

Repo
avail

Reporting requirements iv, v, vii, ix and x of GRI 207-4 are omitted as the information is not available with the requested detail by tax jurisdiction. EDPR will work on obtaining the required details in a near future.

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Image /page/211/Picture/0 description: The image shows the PwC logo. The logo consists of the letters "pwc" in a bold, serif typeface, stacked horizontally. Above the "pwc" text is a graphic element composed of several overlapping squares in shades of red and orange.

To the shareholders of EDP Renováveis, S.A.:

Pursuant to article 49 of the Code of Commerce, we have verified, with the scope of a limited
assurance engagement, the accompanying Consolidated Statement of Non-Financial Information
("SNFI") for the year ended 31 December 2023 of EDP Renováveis, S.A. (Parent company) and
subsidiaries (hereinafter "EDPR Group" or the Group) which forms part of the EDPR Group's
consolidated management report.

The content of the SNFI includes information additional to that required by current mercantile
legislation in relation to non-financial information, which has not been covered by our verification work.
In this respect, our work was limited solely to verifying the information identified in “Annex III: Non-
financial information statement” and “Annex IV: GRI content index” included in the accompanying
SNFI.

The preparation of the SNFI included in EDPR Group's consolidated management report and the
content thereof, are the responsibility of the directors of EDP Renováveis, S.A. The SNFI has been
drawn up in accordance with the provisions of current mercantile legislation and in accordance with
the criteria of the Sustainability Reporting Standards of the Global Reporting Initiative (“GRI
Standards”) and Sectorial Electric Utilities Industry Supplement as per the details provided for each
matter in the “Annex III: Non-financial information statement” and “Annex IV: GRI content index” of the
aforementioned Statement.

This responsibility also includes the design, implementation and maintenance of the internal control
considered necessary to allow the SNFI to be free of material misstatement due to fraud or error.

The directors of EDP Renováveis, S.A. are also responsible for defining, implementing, adapting and
maintaining the management systems from which the information required to prepare the SNFI is
obtained.

Our independence and quality management

We have complied with the independence requirements and other ethical requirements of the
International Code of Ethics for Professional Accountants (including International Independence
Standards) of the International Ethics Standards Board for Accountants (IESBA Code of Ethics) which
is founded on fundamental principles of integrity, objectivity, professional competence and due care,
confidentiality and professional behaviour.

Our firm applies International Standard on Quality Management (ISQM) 1, which requires the firm to
design, implement and operate a system of quality management including policies or procedures
regarding compliance with ethical requirements, professional standards and applicable legal and
regulatory requirements.

The engagement team consisted of professionals specialising in Non-financial Information reviews, specifically in information on economic, social and environmental performance.

PricewaterhouseCoopers Auditores, S.L., Torre PwC, Pº de la Castellana 259 B, 28046 Madrid, España

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Image /page/212/Picture/0 description: The image shows the PwC logo. The logo consists of the letters "pwc" in a bold, sans-serif font. Above the letters, there is a graphic element composed of several squares and rectangles in shades of red, orange, and yellow. The squares and rectangles are arranged in a way that creates a sense of depth and dimension.

EDP Renováveis, S.A. and its subsidiaries

Our responsibility is to express our conclusions in a limited assurance independent report based on
the work we have performed. We carried out our work in accordance with the requirements laid down
in the current International Standard on Assurance Engagements (ISAE) 3000 Revised, Assurance
Engagements other than Audits or Reviews of Historical Financial Information (ISAE 3000 Revised)
issued by the International Auditing and Assurance Standards Board (IAASB) of the International
Federation of Accountants (IFAC) and in the Guidelines for verification engagements of the Statement
of Non-Financial Information issued by the Spanish Institute of Auditors (“Instituto de Censores
Jurados de Cuentas de España”).

In a limited assurance engagement, the procedures performed vary in nature and timing of execution,
and are less extensive, than those carried out in a reasonable assurance engagement and
accordingly, the assurance provided is also lower.

Our work consisted of posing questions to management as well as to the various units of EDPR Group
that were involved in the preparation of the SNFI, of the review of the processes for compiling and
validating the information presented in the SNFI, and in the application of certain analytical procedures
and review procedures on a sample basis, as described below:

- 
- 
- 
- 
- 
- 
- 

Based on the procedures performed in our verification and the evidence we have obtained, nothing
has come to our attention that causes us to believe that the SNFI of EDP Renováveis, S.A. and its
subsidiaries, for the year ended 31 December 2023 has not been prepared, in all material respects, in
accordance with the provisions of current mercantile legislation and in accordance with the criteria of
GRI and Sectorial Electric Utilities as per the details provided for each matter in the “Annex III: Non-
financial information statement" and “Annex IV: GRI content index” of the aforementioned Statement.

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Image /page/213/Picture/0 description: The image shows the PwC logo. The logo consists of the letters "pwc" in a serif typeface, with the "p" and "w" connected. Above the letters is a graphic element composed of several stacked, slightly offset squares in shades of red, orange, and yellow.

EDP Renováveis, S.A. and its subsidiaries

Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 relating to
the establishment of a framework to facilitate sustainable investments, as well as the Delegated Acts
promulgated in accordance with the provisions of the aforementioned Regulation, establish the
obligation to disclose information on the manner and extent to which the company's activities are
associated with eligible economic activities in relation to the environmental objectives of sustainable
use and protection of water and marine resources, transition to a circular economy, prevention and
control of pollution and protection and restoration of biodiversity and ecosystems (the rest of the
environmental objectives), and with respect to certain new activities included in the objectives of
mitigation and adaptation to climate change, for the first time for the 2023 financial year, in addition to
the information referring to eligible and aligned activities already required in the 2022 financial year in
relation to the objectives of climate change mitigation and climate change adaptation. Consequently,
comparative information on eligibility in relation to the rest of the environmental objectives indicated
above or on new activities included in the objectives of climate change mitigation and climate change
adaptation, has not been included in the accompanying SNFI. Furthermore, to the extent that the
information relating to the 2022 financial year was not required with the same level of detail as in the
2023 financial year, the information disclosed in the accompanying SNFI is not strictly comparable
either. In addition, it should be noted that EDP Renováveis, S.A.'s directors have incorporated
information on the criteria that, in their opinion, allow for improved compliance with the aforementioned
obligations and which have been defined in section “4.3 Economic business sustainability” and the
“Annex II: Taxonomy Alignment. KPIs under Article 8° of EU Taxonomy” of the accompanying SNFI.
Our conclusion has not been modified in relation to this matter.

This report has been drawn up in response to the requirement established in current Spanish
mercantile legislation and therefore may not be suitable for other purposes and jurisdictions.

PricewaterhouseCoopers Auditores, S.L.

Image /page/213/Picture/7 description: The image shows a signature in blue ink. The signature is illegible, but it appears to be a stylized version of someone's name.

28 February 2024

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# Why we choose solar utility scale

Image /page/214/Picture/1 description: The image shows a row of solar panels in front of a hill. The text "Sun Streams Solar PV, USA" is at the top of the image.

216

Annual Report 2023 Corporate Governance Report

Part I

{215}------------------------------------------------

Part I

Integrated Annual Report 2023 Part I – Corporate Governance Report | Index

Image /page/215/Picture/7 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in white on a dark green background. Below the letters, the word "Renewables" is written in a smaller white font.

217

# 05 Corporate Governance Report

| Part I – Information on shareholder, organisation and |     |
|-------------------------------------------------------|-----|
| corporate                                             |     |
| governance                                            | 218 |
| Part II – Corporate governance assessement            | 278 |
| Annex I – Curricula vitae of the Board                |     |
| of Directores EDP Renováveis S.A.                     | 289 |

{216}------------------------------------------------

Part I

Image /page/216/Picture/23 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters "edp" are in a dark blue color, while the word "Renewables" is in a gray color.

---

# PART I - Information on shareholder structure, organisation and corporate governance

## **A. Shareholder structure**

#### I. Capital structure

#### **1. Capital structure**

EDP Renováveis, S.A. (hereinafter referred to as "EDP Renováveis", "EDPR" or the "Company") total share capital is 5,119,890,505€, following:

- the capital increase for a nominal amount of €254,842,00 executed on March 2nd, 2023, implemented through the issuance of 50,968,400 ordinary shares of the Company, with a nominal value of €5 each (at a subscription price of €19.62 per share and share premium of €14.62 per share) being the resulting share capital of the company €5,057,632,810. and,
- a capital increase charged to reserves executed on May 2nd,2023, where 12,451,539 new ordinary shares were issued.

EDPR total share capital is composed of 1,023,978,101 shares with a nominal value of EUR 5.00 each, fully paid up and the share capital is now €5,119,890,505.

All these shares are part of a single class and series and are listed on the regulated market of Euronext Lisbon. Codes and tickers of EDP Renováveis S.A. share: ISIN:ES0127797019 LEI:529900MUFAH07Q1TAX06

Bloomberg Ticker (Euronext Lisbon): EDPR PL Reuters RIC:EDPR.LS

EDPR main shareholder is EDP – Energias de Portugal, S.A., through EDP – Energias de Portugal, S.A. Sucursal en España, with 71.27% of share capital and voting rights. Excluding EDP, EDPR shareholders comprise more than 35,000 institutional and private investors spread across 40 countries with main focus in the United States,United Kingdom, France

and Singapore.

Institutional Investors represent about 96% of Company shareholders (ex-EDP Group), mainly investment funds and socially responsible investors ("SRI"), while Private Investors, mostly Portuguese, stand for the remaining 4%*.* 

For further information about EDPR shareholder structure please see chapter 1.3 of the Annual Report ("Organisation").

#### **2. Restrictions to the transferability of shares**

EDPR's Articles of Association have no restrictions on the transferability of shares.

#### **3. Own shares**

EDPR does not hold own shares.

#### **4. Change of control**

EDPR has not adopted any measures designed to prevent successful takeover bids, nor defensive measures for cases of a change in control in its shareholder structure or agreements subject to the condition of a change in control of the Company, other than in accordance with normal practice, and therefore, has not adopted any mechanisms that imply payments or assumption of fees in the case of the transfer of control or the change in the composition of the managing body, or that could be likelyto harm the free transferability of shares or shareholder assessment of the performance of the members of the managing body.

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![edp Renewables](https://i.imgur.com/0999999.png)

Notwithstanding the above, the following are normal market practice related to a potential change of control:

- In the case of financing of certain wind farm projects, lenders have the right to approve change in control at the borrower if the later ceased to be controlled, directly or indirectly by EDP.
- In the case of guarantees provided by EDP Group companies, if EDP directly orindirectly ceases to have the majority of EDPR then EDP is no longer obliged to provide such services or guarantees. The relevant subsidiaries will be obliged to provide for the cancellation or replacement of all outstanding guarantees within approximately sixty (60) days of the change of control event.
- In the cases of intra-group services agreements and according to the Framework Agreement signed between EDP Renováveis S.A. and EDP Energias de Portugal S.A., the contracts will maintain their full force as long as (i) EDP maintains its share capital above 50% or the right to exercise directly or indirectly more than 50% of voting rights on EDPR's share capital, or (ii) even if the share capital of EDP or its voting rights are below 50%, but more than half of the Members of the Board are elected through an EDP proposal.

#### **5. Special agreements regime**

EDPR does not have a special system for the renewal or withdrawal of counter measures for the restriction on the number of votes capable of being held or exercised by only one shareholder individually or together with other shareholders.

#### **6. Shareholders' agreements**

The Company is not aware of any shareholders' agreement that may result in restrictions on the transfer of securities or voting rights.

#### II. Shareholdings and bonds held

#### **7. Qualified holdings**

Qualifying holdings in EDPR are subject to the Spanish Law, which regulates the criteria and thresholds of the shareholder's ownerships. The table below includes the information about the qualifying holdings of EDPR and their voting rights as of December 31 st, 2023:

| SHAREHOLDER                                           | SHARES      |
|-------------------------------------------------------|-------------|
| EDP – ENERGIAS DE PORTUGAL, S.A. – SUCURSAL EN ESPAÑA | 729,793,922 |
| GIC                                                   | 43,523,707  |
| BLACKROCK INC.                                        | 34,736,754  |
| Total qualified holdings                              | 808,053,909 |

EDP detains 71.27% of EDPR capital and voting rights, through EDP – Energias de Portugal, S.A. – Sucursal en España.

As of December 31st, 2023, EDPR's shareholder structure consisted in a total qualified shareholding of 78.91%, corresponding to EDP Group, GIC and Blackrock Inc., with 71.27%, 4.25% and 3.39% of the capital, respectively.

#### **8. Shares held by the Members of the Management and Supervisory Boards**

As of December 31st, 2023, only Rui Teixeira, member of the Board of Directors, holds directly 351 EDPR shares out of a total of 1,023,978,101.

#### **9. Powers of the Board of Directors**

The Board of Directors is vested with the broad-ranging powers of administration, management, and governance of the Company, with no other limitations besides the powers which are expressly assigned to the General Shareholders' Meetings in the

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Company's Articles of Association (specifically in article 13) or in the applicable law. In this regard, the powers of the Board include, without limitation1 to:

- Acquire on lucrative or onerous title basis personal and real property, rights, shares and interests that may suit the Company.
- Sell and mortgage or charge personal and real property, rights, shares and interests of the Company and cancel mortgages and other rights in rem.
- Negotiate and enter into loans and credit operations that it may deem appropriate.
- Negotiate and formalize all sort of acts and contracts with public entities or private persons.
- Exercise civil and criminal actions and all further actions to be undertaken by the Company, representing it before governmental officers, authorities, corporations, governing, administrative, administrative-economic, administrative-litigation and judicial courts, labour courts and the labour sections of the Supreme Court and of the High Courts of the Autonomous Communities, with no limitations whatsoever, including before the European Court of Justice, and in general before the Government, in all its levels and hierarchies. to intervene or promote, follow and terminate, through all procedures and instances, the processes, court sections or proceedings. to accept decisions, to file any kind of appeal, including the cassation one and other extraordinary appeals, to discontinue or confess, to agree an early termination of a proceeding, to submit litigious questions to arbitration judges, and to carry out all sorts of notices and requirements and to grant a power of attorney to Court Representatives and other representatives, with the case-related powers and the powers which are usually granted to litigation cases andall the special powers applicable, and to revoke such powers.
- Agree the allotment of interim dividends.
- Call and convene the General Meetings and submit to them the proposals that it deem appropriate.
- Direct the Company and organize its operations and exploitations by acknowledging the course of the Company businesses and operations, managing the investment of funds, making extraordinary amortizations of bonds and realizing anything that it is considered appropriate for the best achievement of the Company's objectives.
- <span id="page-218-0"></span>• Determine the roles of the members of the Board of Directors and to appoint and dismiss other Company's technical and administrative personnel, defining their responsibilities and remuneration.
- 
- 

• Agree any changes of the registered office's address within the same municipal area.

• Incorporate legal entities as stipulated under the law. assigning and investing all sorts of assets and rights, as well as entering merger and cooperation agreements, association, grouping and temporary union agreements between companies or business and joint property agreements, and agreeing their alteration, transformation and termination.

Likewise, the General Shareholders' Meeting held on March 26th, 2020, approved the delegation to the Board of Directors of the power to issue in one or more occasions both:

- 
- 

• Fixed income securities or other debt instruments of analogous nature.

• Fixed income securities or other type of securities (warrants included) convertible or exchangeable into EDP Renováveis, S.A. shares, or that recognize at the Board of Directors' discretion the right of subscription or acquisition of shares of EDP Renováveis, S.A. or of other companies, up to a maximum amount of three hundred million Euros (EUR 300,000,000) or its equivalent in other currency.

As part of such delegation, the General Shareholder's Meeting delegated into the Board of Directors the power to increase the share capital up to the necessary amount to execute the related tasks above. Additionally, it was also approved to authorize the Board of Directors for the acquisition of own shares by the Company and/or the affiliate companies up to the maximum limit of 10% of the subscribed share capital. These delegations may be exercised by the Board of Directors within a period of five (5) years since the proposal was approved, and within the limits provided under the law and the By-Laws.

Likewise, on the General Shareholders' Meeting held on March 31st, 2022, it was also approved the delegation to the Board of Directors of the power to carry out increases of share capital with the exclusion of the pre-emptive subscription rights (on one or several occasions) within the maximum term of five years. The total maximum amount of the increase or increases decided upon under this authorization shall be no higher than 50% of the present share capital. or in the event that the increase of capital excludes the preemptive subscription right of shareholders, than the 20% of the present share capital. This authorization shall be extended, as broadly as may be required by Law, to the setting and determination of those terms inherent in each of the increases in order to obtain any authorizations required under the legal provisions in force (including, but without being limited to, the determination of the amount and date of implementation, the number of shares to be issued, with or without voting rights, with or without a share premium, consisting of the countervalue of the new shares to be issued in monetary contributions,

This list has a merely indicative nature, as the Board of Directors may perform all further powers expressly granted to the Board in the

1 Articles or in the applicable law.

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and being able to determine the terms and conditions of the increase of capital and the characteristics of the shares). Should be noted that, it has been specifically stated with regards to this authorization that the total or partial exclusion of the pre-emptive subscription right shall be performed in terms of the corporate interest and pursuant to the legal requirements, and that the Board of Directors shall issue a report detailing those reasons that justify this in the corporate interest in each specific case, and which shall be made available to the shareholders and communicated at the first General Meeting of Shareholders held after the increase in capital.

Additionally, in compliance with its personal law and Company's internal regulations, some functions of the Board of Directors are non- delegable and, as such, have to be performed at this level, which are the following:

- Election of the Chairperson of the Board of Directors.
- Appointment of Directors by co-option.
- Supervision of the effective functioning of any committees that it may have incorporated and of the performance of any delegated bodies or managers it may have designated.
- Determination of the company's general policies and strategies.
- Authorization or waiver of the obligations arising from the Directors duty of loyalty.
- Its own organization and functioning.
- Formulation of the annual accounts and its submission to the General Shareholders' Meeting.
- Preparation of any type of report required from the board by law, when the underlying transaction to which the report refers cannot be delegated.
- Appointment and removal of the delegated directors ("*Joint Directors*") of the company, as well as the determination of their contract conditions.
- Appointment or removal of the members of the Management Team, as well as the determination of their basic contract conditions, including remuneration.
- Decisions relating to directors' remuneration, within the statutory framework and, if such is the case, within the remuneration policy approved by the General Shareholders' Meeting.
- Calling the General Shareholders' Meeting and preparing the agenda and proposed resolutions.
- Policy relating to own shares.

• Any powers that the General Shareholders' Meeting has vested to the board of directors, unless the board has explicitly authorized that they may be sub- delegated.

• Approval of the strategic or business plan, annual management objectives and budget, investment and financing policies, social sustainability policy and the dividends policy.

• Determination of the risk control and management policy, including those related to tax matters, and the supervision of the internal information and control systems.

• Determination of the company's corporate governance policy as well as the one applicable to the group of which the company is the parent entity. its organization and functioning and, in particular, the approval and amendment of its own regulations.

• Approval of the financial information that the company must disclose periodically.

• The definition of the structure of the group of companies of which the company is the

- 
- 
- 
- 
- 
- parent entity.
- -
	-
	-
- 

• Approval of all type of investments and transactions that due to their high amount or special nature are considered as strategic or that may imply a financial risk, unless their approval falls under the General Shareholders' Meeting. For the purposes of this paragraph, the following transactions shall be considered as included:

I. The purchase and sale of assets, rights or shareholdings by EDPR, included in the business plan approved by the Board of Directors ("the Business Plan"), whenever their [A] (i) book value, or (ii) market value assessed in terms of equity value, or (iii) the transaction price, or (iv) the initial investment value, is over one hundred and fifty million Euros (150,000,000€)2(at present value), or [B] initial investment value consumes the total amount foreseen Business Plan for these type of transactions, whenever their (i) book value, or (ii) its market value assessed in terms of equity value, or (iii) the transaction price, or (iv) the initial investment value, is over seventy-five million Euros (75,000,000€) (at present value).

II. Agreements regarding (i) bank loans and (ii) credit facilities in an amount above two hundred and fifty million Euros (250.000.000€), provided that, as a result of such agreements, EDPR's overall indebtedness exceeds the amount set forth in the approved annual budget.

III. Total or partial opening or closure of establishments, as well as extensions or reductions of its activity, provided that, according to a reasonable estimate of the executive directors, they result in a change in the turnover or in the assets of the Company of over seventy-five million Euros (75,000,000€).

IV. Other operations and relevant transactions, and in particular, those excluded from the scope of the Business Plan whenever their (i) book value or (ii) market value

<sup>2</sup>For the purposes of this provision, the amounts of the respective financial guarantees shall be considered in aggregate.

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assessed in terms of equity value, or (iii) the transaction price, or (iv) the initial investment value is above seventy-five million Euros (75,000,000€)3 (at present value).

- V. Any operations not directly related to the energy sector which amount is above twenty million Euros (20,000,000€).
- VI. Setting up or terminating strategic partnerships or any other forms of enduring cooperation, in an amount above twenty million Euros (20,000,000€).4
- The approval of the creation or acquisition of shares in special purpose entities or registered in countries or territories considered tax havens, as well as any other transaction or operation of a similar nature that, due to its complexity, may undermine the transparency of the company and its group.
- The approval of Related Party Transactions, unless:
- I. Its approval corresponds to the Shareholders' Meeting; or
- II. transactions (i) between companies of the same group and that are performed in the ordinary management of the company and under market conditions, or (ii) closed under standardized conditions and wholesale applied to a high number of clients, and at prices or tariffs generally established by the supplier of the good or service, the amount of which does not exceed the 0.5% of the net annual company turnover. which will be approved by the Audit, Control and Related Party Transactions Committee.
- The determination of the company's tax strategy.
- The supervision of the elaboration and submission process of the financial information and the management report, th[a](#page-220-0)t will include, as the case may be, the required nonfinancial information and the submission of the recommendations or proposals presented to the Board aimed to [p](#page-220-1)rotect its integrity.

Should be noted that in case of duly justified urgency situations, or when considered convenient in an interim period between meetings of the Board of Directors, the decisions related to the reserved matters referred above may be adopted by the delegated bodies or individuals and will be ratified at the first Board meeting to be held after the adoption of the decision.

Notwithstanding the above, from October 2022, a fast-track procedure has been established by the Board of Directors of EDPR for certain matters that require urgent approval. This procedure is extensively ruled under the regulations of the Board of Directors. As per the governance model adopted, EDPR has to comply with the regulation established under the Spanish Companies Act, which among others, as mentioned above, stablishes that the approvals of the strategic lines and policies of the company are a reserved matters of the Board of Directors that cannot be delegated, and that shall be necessarily approved at this level. Therefore, in compliance with recommendation V.1 and its personal Law (Spanish one), in case of proposal of a new Business Plan, in EDPR such will be first assessed by the Audit, Control and Related Party Transactions Committee (as per its Governance Model does not have a Supervisory Body), and being the final proposal approved at the Board of Directors level.

#### **10. Significant business relationships between the holders of qualifying holdings and**

# **theCompany**

Information on any significant business relationships between the holders of qualifying holdings and the Company is described on topic 90 of this Chapter 5 of the Annual Report.

#### **B. Corporate Boards and Committees**

#### I. General Shareholders' Meeting

On March 31st, 2022 the General Shareholders' Meeting resolved to approve the Regulations of the General Shareholders' Meeting of EDP Renováveis, S.A., which establishes the principles of its organization and operation, and, that contain the rules governing the convening, preparation, information, attendance and development of the General Shareholders' Meeting, as well as the exercise of the corresponding rights of the shareholders when it is convened and held, all in accordance with the applicable regulations in force. These regulations are available at the website of the Company www.edpr.com. Any amendment to these Regulations shall require the resolution to be adopted by the General Shareholders' Meeting but not with qualified quorum.

4 5 For the purposes of this provision, partnerships or other forms of cooperation which do not have a strategic and lasting character, namely regarding cases where such partnerships are limited to specific transactions in predominantly commercial and operational

<span id="page-220-1"></span><span id="page-220-0"></span><sup>3</sup> For the purposes of this provision, the amounts of the respective financial guarantees shall be considered in aggregate.

matters, or which relate to the Company's core activities.

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---

a) Composition of the Board of the General Meeting

#### **11. Board of the General Shareholders' Meeting**

Since 2021, EDPR adopted the general practice followed under the personal law of the Company (Spanish one) that allows the Shareholders' Meeting to be chaired by the Chairperson of the Board of Directors, and in the absence thereof, to the Vice-Chairperson (in the absence of both of them, it will be assigned to the oldest director).

As such, the Chairperson of the Board of Directors - or whoever acting as substitute together with the remaining Members of the Board, shall constitute the Board of the General Shareholders' Meeting; and its Secretary will be the Secretary of the Board of Directors. Therefore, as of December 31th, 2023 the role of Chairperson of the Shareholders' Meeting corresponds to António Gomes Mota, - who was appointed as member of the Board for a three-year (3) term by the General Shareholders' Meeting held in April 12th, 2021, and for the position of Chairperson of the Board of Directors on its meeting subsequently held on the same date—and the role of the Secretary of the General Shareholders' Meeting corresponds to the Secretary of the Board of Directors, María González Rodríguez, who was appointed for that position on November 2nd, 2021.

Should be also highlighted that accordance with article 180 of the Spanish Companies' Law, all the Board of Directors' Members are obliged to attend the General Meetings.

The Chairperson of the General Shareholders' Meeting of EDPR has at his disposal, the necessary human and logistical resources required for the performance of his duties. Therefore, in addition to the resources provided by the Company's General Secretary, in 2023 the Company hires a specialized entity to give support to the meeting and to collect, process and count the votes submitted by the shareholders on the Ordinary Shareholders' meetings.

b)Exercising the right to vote

#### **12. Voting rights restrictions**

Each EDPR share entitles its holder to one vote. Neither EDPR's Articles of Association, nor General Shareholders' Meeting Regulations establish any restriction regarding voting rights. Additionally, the Articles of Association do not include any provisions for double loyalty voting.

#### **13. Voting rights**

Neither EDPR's Articles of Association, nor General Shareholders' Meeting Regulations have any reference to a maximum percentage of voting rights that may be exercised by a single shareholder or by shareholders that are in any relationship. All shareholders, regardless the number of shares owned, may attend to the General Shareholders' Meeting and request the information or explanations that they consider relevant regarding the matters included in the Agenda of the convened meeting, and are entitled as shareholders of the Company, to take part in its deliberations and to participate in its voting process. The logistics for the exercise of the voting rights, including the procedure and requirements for the submission through mail and electronic communication of voting forms, and the cutoff date for the shareholders to be able to exercise such rights, are set forth in the Regulations of the General Shareholders' Meeting.

Any shareholder may be represented at the General Shareholders' Meeting by a third party by means of a revocable Power of Attorney (even if such representative is not a shareholder). The Board of Directors may require shareholders' Power of Attorney to be in the Company's possession at least two (2) days in advance, indicating the name of the representative.

These Powers of Attorney shall be granted specifically for each General Shareholders' Meeting and can be evidenced in writing or by remote means of communication such as email or post.

According to the applicable law and the Company's Articles of Association, the notice of EDPR's General Shareholders' Meetings is published in the Official Gazette of the Commercial Registry and on the Company's website at least thirty (30) days prior to the meeting date. Likewise, the Notice of the General Shareholders' Meeting is published at the website of *Sociedade Gestora de Sistemas de Liquidação e de Sistemas Centralizados de Valores Mobiliários, S.A* ("Interbolsa") and on the website of the *Comissão do Mercado de Valores Mobiliários* ("CMVM") – at www.cmvm.pt - and of the *Comisión Nacional del Mercado de Valores* ("CNMV") – at www.cnmv.es. Simultaneously with the publication of the meeting Notice, the supporting documentation in relation to the General Shareholders' Meeting is published on the CMVM website. Likewise, as soon as the notice of the meeting was formally published, the following information and documentation related to the General Shareholders' Meeting was made available at the Company's website (www.edpr.com):

- 
- 

• The notice of the General Shareholders' Meeting.

• The total number of shares and voting rights at the date of the Meeting notice.

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- The template of the letter of representation and the template of the ballot to be sent by mail, and also, the links to the electronic platform that the Company provides for the voting on the topics included in theAgenda.
- The full texts of the proposed resolutions (included when received if such were the case, those proposed by shareholders) and related supporting documentation, that will be submitted to the General Shareholders' Meeting for approval.
- The consolidated texts in force (Articles of Association and the other applicable regulations).

In 2023, the Company included the English and Portuguese versions of the information and documents related to the Shareholders´ Meetings on its website (www.edpr.com) with the notice of the meetings being the Spanish version of the documents the one that prevailed.

Shareholders may vote on the topics included on the Shareholders' Meeting Agenda, in person (including by means of the corresponding representative) at the meeting, by ordinary mail, or by electronic communication (in this latest case, through a telematic vote platform made available at the Company's website or sending the related filled and signed templates by email), and in any case providing the documentation indicated in the General Shareholders' Meeting Regulations.

Pursuant to the terms of article 15 of the Articles of Association and Article 24.7 of the General Shareholders' Meeting Regulations, both electronic and mail-in votes must be received by the Company before midnight (24.00 hours) of the day before the scheduled meeting date of

first call. Remote votes can be revoked subsequently by the same means used to cast them, always within the deadlines established for that purpose, or by personal attendance to the General Shareholders' Meeting of the shareholder who casted the vote to his/her representative.

In addition to the above-mentioned means, and pursuant IPGC recommendation III.4, the EDPR General Shareholder's Meeting held the 4th April, 2023 offered to the shareholders the possibility of attending the Meeting by telematic means in accordance with article 15.6 of the Bylaws and articles 11.3.e) and 16.5 of the General Shareholders' Meeting Regulations.

#### **14. Decisions that can only be adopted by a qualified quorum**

According to EDPR's Articles of Association and the General Shareholders' Meeting Regulations, and as established in the law, both ordinary and extraordinary General Shareholders' Meetings are validly constituted when first called if the shareholders, either present or represented, jointly reach at least twenty-five percent (25%) of the subscribed voting capital. On second call, the General Shareholders' Meeting will be validly constituted regardless of the amount of the capital present or represented.

Notwithstanding the above percentages, to validly approve the issuance of bonds, the increase or reduction of capital, the transformation, global assignment of assets and liabilities, merger or spin-off of the Company, the transfer of the Registered Office abroad, the elimination or limitation of pre-emptive rights of new shares and in general, any necessary amendment to the Articles of Association, in the Ordinary or Extraordinary Shareholders' Meeting, it is required that on first call, the Shareholders, either present or represented, reach at least fifty percent (50%) of the subscribed voting capital and, on second call, at least twenty-five percent (25%) of the subscribed voting capital.

In relation to the quorum required to validly approve these matters, in accordance with the Law, the Articles of Association and the General Shareholders' Meeting Regulations, when the shareholders attending represent more than fifty percent (50%) of the subscribed voting capital, the above mentioned resolutions will be validly adopted by absolute majority, and in the case the shareholders attending represent between the twenty-five percent (25%) and the fifty percent (50%) – but without reaching it - the favorable vote of the two-thirds (2/3) of the present or represented capital in the General Shareholders' Meeting will be required to approve these resolutions.

EDPR has not established any mechanism that may intend to cause mismatching between the rights to receive dividends or the subscription of new securities and the voting right of each common share and has not adopted mechanisms that hinder the passing of resolutions by shareholders, including fixing a quorum for resolutions greater than that provided by the law.

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#### II. Management and supervision

#### a) Composition

#### **15. Corporate Governance model**

EDPR is a Spanish Company listed in a regulated stock exchange in Portugal. The corporate organization of EDPR is subject to its personal law and to the extent possible, to the recommendations contained in the Corporate Governance Code of the Instituto Português de Corporate Governance ("IPCG"), resulted as of the Protocol signed on October 13th, 2017, between the Comissão do Mercado de Valores Mobiliários ("CMVM" – Portuguese Securities Market Commission) and the IPCG, which was last reviewed in 2023. This governance code is available at the IPCG website (https://cam.cgov.pt/). As such, the Company intends to comply with both legal systems but always taking into account that its personal law is the Spanish one, and that in case of discrepancy, the aim is to adopt the law that entails more protectionism for its shareholders.

The governance structure of EDPR is the one applicable under its personal law, that comprises a General Shareholders' Meeting and a Board of Directors that represents and manages the Company. Additionally, parallelly seeks to correspond it to the so-called "Anglo-Saxon" model set forth in the Portuguese Commercial Companies Code, in which the management body is a Board of Directors, and the supervision and control duties are of the responsibility of an Audit, Control and Related Party Transactions Committee. The organization and functioning of EDPR corporate governance model aims to achieve the highest standards of corporate governance, business conduct and ethics referenced on the best national and international practices.

In line with the governance model above referred, and as detailed along topics 15 - 29 of this Chapter 5 of the Annual Report and contemplated in the law and Articles of Association of the Company, as of December 31 st, 2023, EDPR does not have a Supervisory Board, but its Board of Directors has set up three Delegated Committees entirely composed by Independent Members of the Board of Directors: the Audit, Control and Related-Party Transactions Committee, the Appointments and Remunerations Committee and the Environmental, Social and Corporate Governance Committee. This structure and its functioning, enables a fluent workflow between all levels of the governance model, as: i) each of the Delegated Committees shall report the decisions taken to the Board of Directors (drafting the minutes of each of the meetings and also providing whatever further clarification is required by the Board), and ii) as the committees members are also Members of the Board, all of them will also receive the complete information at Board of Directors level (as convening of the meetings, supporting documents and related minutes) in order to take the corresponding decisions; and all in all, thus ensuring in time and manner the access to all the information to the whole Board of Directors in order to appraise the performance, current situation and perspectives for the further development of theCompany.

The General Secretary constitutes the focal point in charge of the centralization of the reception and management of all the information and documents to be provided to the different Governing Bodies. This information is prepared by the different departments of EDPR, with the support, when necessary, of external experts, and always managed in a strictly confidential basis. Additionally, the corresponding duties and functioning procedures for the Governing Bodies (including but without limitation, the performance of their functions, their Chairmanship, periodicity of meetings, their functioning and the duties of their Members) have been defined at the Articles of Association, the General Shareholders' Meeting Regulations, and Board of Directors and Delegated Committees Regulations (which are published at the website of the Company www.edpr.com), with the aim of ensuring the adequacy in terms of time and manner of the elaboration, management and access to the information in order to procced at each level with the corresponding acknowledgements and decisions. In line with the above, the General Secretary sends the notices and supporting documents of the topics to be discussed in each meeting of the Board and of each of its committees, to their proper discussion during the meeting. Besides the above, Secretary to the Board of Directors also provides necessary legal advice to the Governing Bodies. Finally, the minutes of all meetings of the Board of Directors and Delegated Committees are drawn and also circulated by the General Secretary.

The governance model of EDPR was designed to ensure the transparent and meticulous separation of duties, management, and the specialization of supervision, through the following governing bodies:

- General Shareholders' Meeting
- Board of Directors
- Audit, Control and Related Party Transactions Committee
- Appointments and Remunerations Committee
- Environmental, Social and Corporate Governance Committee

The experience gained operating the Company through this structure indicates that the governance model approved by EDPR shareholders, and adopted in EDPR, is the most appropriate in line with the corporate organization of its activity, especially because it affords transparency and a healthy balance between the management and the supervisory functions.

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The links of the Company Website that refers to the information of the Governing Bodies and its regulations are indicated in topics 59-65 of this Chapter 5 of the Annual Report.

#### **16. Rules for the nomination and replacement of directors**

According to Article 29.5 of the Company's Articles of Association, the Appointments and Remunerations Committee is empowered by the Board of Directors to propose, advise, and inform the Board regarding the appointments (including by co- option), re-elections, removals and remuneration of the Board Members, as well as the composition of the committees of the Board. This committee also advises on the appointment, remuneration and dismissal of top management officers.

As also referred in the Company Articles of Association (Article 21) the term of office of the Board Members shall be of three (3) years and may be re-elected once or more times for equal periods. The appointment proposals shall be approved by majority.

Following the best Corporate Governance practices, at the meeting of 24 October 2023, there were analysed and reviewed the possible criteria applicable in the selection of the new members of its Governing Bodies. For these purposes the criteria and requirements to be met by future Board Members, depending on their role, have been defined beforehand. The market trends, the Recommendation II.2.1. and the specific needs of EDPR were taken into account by profiling a blueprint of the professional competences of the current Members, in order to ensure the suitability of the roles, the contribution of the new profiles to a better performance, and the aim of ensuring a balanced composition in the bodies of the Company. As a conclusion of this reflection, the Appointments and Remunerations Committee agreed to consider as a reference certain standards and requirements in accordance with the following:

- Individual attributes: education, competence, integrity, availability, and experience that were particularized into:
- Core industry, Strategy & Business Development, Financial Acumen, Accounting, Auditing and Control, International Experience, M&A and Capital Markets, Legal, Governance, Environmental and Sustainability, Health and Safety, People Management, IT/Cybersecurity, Digital Transformation, Technology, Procurement, Operations, Communications and Public Affairs, Regulation, amongst others.
- Diversity: to be considered as a wide criteria, analyzed in accordance with the nature and complexity of the businesses developed, as well as according to the social and environmental context from time to time, and that will include, among others, gender, age and culture or geographical origin.

It was expressly stated that this list should not be considered as an exhaustive nor limiting reference, and that in any case, depending on the needs and competences required, other criteria may be taken into account.

Based on the above criteria, after the previous advice of the Appointments and Remunerations Committee, the Board of Directors submits the related proposals to the General Shareholders' Meeting (including for sake of clarity, the curriculum vitae of the candidates, and the justifying report, which shall be publicly disclosed with the other supporting documents of the meeting in the terms referred in topic 13 above). For more information about the composition of the Board of Directors please check the Sustainability Chapter of the Annual Report at its topic GRI 405-1, and the Annex I of this Chapter 5 of the Annual Report, which includes the curricular details of its Members. Additionally, in case of a vacancy, pursuant to the Articles of Association and the Spanish Companies Law, the Board of Directors may co-opt a new Board Member, who will occupy the position until the next General Shareholders' Meeting, to which a proposal will be submitted for the ratification of such appointment by co-option. Pursuant to the Spanish Companies Law, the co-option of Directors must be approved by absolute majority of the Directors at the Board meeting. Finally, pursuant to Article 23 of the Articles of Association and article 243 of the Spanish Companies Act, shareholders may group their shares until constituting an amount of capital equal or higher than the result of dividing the company's capital by the number of Members of the Board, to be entitled to appoint a number of Directors equal to the result of the fraction using only whole amounts. Those shareholders making use of this power, cannot intervene in the nomination of the other Members of the Board of Directors.

#### **17. Composition of the Board of Directors**

Pursuant to Article 20 of the Company's Articles of Association, the Board of Directors shall consist of no less than five (5) and no more than seventeen (17) Directors. Taking into account the size of EDPR and the complexity of the risks intrinsic to its activity, following the proposal of the Appointments and Remunerations Committee, the Board of Directors EDPR submitted to the Extraordinary Shareholders Meeting held on February 22nd, 2021, the proposal to adjust the number of Directors of the Company to a total of twelve (12) members. As also referred in the Company Articles of Association (Article 21) the term of office of the Board Members shall be of three (3) years and may be re-elected once or more times for equal periods. On March 13th, 2023, the Board acknowledged the resignation of Miguel Nuno Simões Nunes Ferreira Setas to his position as Director (with effects April 12th, 2023). The General Shareholders' Meeting held on April 4th resolved the continuation of the existing vacancy on the Board of Directors, leaving the position unfilled. Therefore, as of December 31st, 2023, the Board of Directors was composed by the following Directors:

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| MEMBER                       | POSITION                            | FIRST<br>APPOINTMENT | RE- ELECTION | END OF<br>TERM |
|------------------------------|-------------------------------------|----------------------|--------------|----------------|
| António Gomes<br>Mota        | Independent<br>Chairperson          | 12/04/2021           | -            | 12/04/2024     |
| Miguel Stilwell<br>d'Andrade | CEO & Executive<br>Vice-Chairperson | 19/02/2021           | 12/04/2021   | 12/04/2024     |
| Rui Teixeira                 | CFO and<br>Executive<br>Director    | 29/10/2019           | 12/04/2021   | 12/04/2024     |
| Vera Pinto Pereira           | Director                            | 26/02/2019           | 12/04/2021   | 12/04/2024     |
| Ana Paula<br>Marques         | Director                            | 19/02/2021           | 12/04/2021   | 12/04/2024     |
| Manuel Menén<br>dez          | Director                            | 04/06/2008           | 12/04/2021   | 12/04/2024     |
| Acácio Piloto                | Director                            | 26/02/2013           | 12/04/2021   | 12/04/2024     |
| Allan<br>J. Katz             | Director                            | 09/04/2015           | 12/04/2021   | 12/04/2024     |
| Rosa García Gar<br>cía       | Director                            | 12/04/2021           | -            | 12/04/2024     |
| José Manuel Félix<br>Morgado | Director                            | 12/04/2021           | -            | 12/04/2024     |
| Kay Mc Call                  | Director                            | 1/06/2022            | 4/04/2023-   | 4/04/2026      |

Likewise, since November 2nd, 2021, the Secretary non-member of the Board of Directors is María González Rodríguez, and the Vice-Secretary of the Board of non-member is Borja Pérez Dapena.

#### **18. Executive, Non-Executive and Independent Members of the Board**

The independence of the Directors is evaluated according to the Company's personal law, and annually confirmed by each of the corresponding Directors through the signature of an independence declaration. Likewise, EDPR Board of Directors Regulations, and Article 20.2 of its Articles of Association, defines independent Directors as those who are able to perform their duties without being limited by relations with the Company, its significant Shareholders, or its management officers and comply with the other legal requirements.

In order to comply with Recommendation IV.2.5 (cooling-off period) and explain Recommendation IV.2.4. (Independence requirements) of the IPGC, the Company provides an explanation of the considerations used to categorize Independent Directors.

As the independence of directors is regulated by law in Spain, the Company is required to adhere strictly to its personal law. While the alignment between Spanish law and the IPGC recommendation is highly similar, it is not fully comprehensive. Therefore, the Company follows the "comply-or-explain" principle with respect to Recommendation IV.2.4. In this regard, the following is a reproduction of Article 524duodecies 4 of the Spanish Corporate Law, which outlines the criteria for the classification of independent directors.

[..] 4. Independent Directors are those who, appointed based on their personal and professional qualities, can perform their duties without being influenced by relationships with the company or its group, significant shareholders, or executives. • In no case can those who are in any of the following situations be considered independent Directors:

a) Those who have been employees or executive Directors of group companies, unless 3 or 5 years, respectively, have elapsed since the end of that relationship. •

b) Those who receive from the company or its group any amount or benefit for a concept other than Director's remuneration, unless it is not significant for the Director. For the purposes of this criteria, dividends or pension supplements received by the Director due to their previous professional or employment relationship will not be considered, provided that such supplements are unconditional and, therefore, the company that pays them cannot suspend, modify, or revoke their accrual without a breach of its obligations.

c) Those who are or have been partners of the external auditor or responsible for the audit report during the last 3 years, whether it is the audit of the listed company or any other company in its group. •

d) Those who are executive-Directors or senior executives of another company in which any executive Director or senior executive of the company is an external director.

e) Those who maintain, or have maintained during the last year, a significant business relationship with the company or any company in its group, either on their own behalf or as a significant shareholder, Director, or senior executive of an entity that maintains or has maintained such a relationship. Business relationships will be considered those of supplier of goods or services, including financial ones, and advisor or consultant. •

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f) Those who are significant shareholders, executive Directors, or senior executives of an entity that has received donations from the company or its group during the last 3 years. Those who are mere trustees of a foundation that receives donations will not be included in this letter.

g) Those who are spouses, persons linked by an analogous affective relationship, or relatives up to the second degree of an executive Director or senior executive of the company.

h) Those who have not been proposed, either for their appointment or renewal, by the appointments committee.

i) Those who have been Directors for a continuous period of more than 12 years.

j) Those who are in any of the situations referred to in letters a), e), f), or g) above with respect to a significant shareholder or representative on the board. In the case of the relationship of kinship referred to in letter g), the limitation will apply not only with respect to the shareholder but also to their dominical Directors in the participating company.

Corporate Governance recommendations of the IPCG Code state that the number of nonexecutive directors should be higher than the number of executive directors, and that at least one third over the total members shall be non-executive members that also comply with the independence criteria. In this sense, and provided that the independence criteria applicable to EDPR Directors are the ones established under its personal law, from a total of eleven (11) positions that composed of EDPR's Board of Directors as of December 31st, 2023, nine (9) were non-executive, being six (6) of them also independent. In accordance with the law and Articles of Association, it has been established that Non- Executive Directors can only be represented in the Board meetings by another Non- Executive Director.

As such, it has been concluded that the composition of the Board and its Delegated Committees is suitable for the size of the company and the complexity of the risks intrinsic to its activity mainly considering that enables a separation of duties, management and specialization of supervision at the same time that the non-executive and independent directors take part in all the decisions also at the Board of Directors level. Should be noted to this extent that the Board of Directors is composed by a majority of non-executive members, with a high percentage of independents. and that the Audit, Control and Related Party Transactions Committee, the Appointments and Remunerations Committee and the Environmental, Social and Corporate Governance Committee are entirely composed by non- executive and independent Members. Likewise, the executive line of the Board is centralized in two directors, who are supported in the daily activity of the Company by the Members of a Management Team.

Spanish law, Regulations of the Board of Directors and Company Articles of Association regulate the criteria for the incompatibilities with the position of Director. Specifically, Article 23 of the Articles of Association, establish that the following can not be Directors:

• Those who are directors of or are associated with any competitor of EDPR or have family relations with them. In this respect a Company shall be considered as a competitor of EDPR, whenever it is engaged, if it is directly or indirectly involved in the production, storage, transport, distribution, marketing or supply of electricity or fuel gas. or also if has interests opposed to those of EDPR, or to the ones of any competitor or any of the companies in its group, and the Board Members, employees, lawyers, consultants, or representatives of any of them. Under no circumstances shall companies belonging to the same group as EDPR, including abroad, be consideredcompetitors.

• Those who are in any other situation of incompatibility or prohibition under the law or EDPR's Articles of Association. Under Spanish law, among others, are not allowed to be Directors those who are underage – under eighteen (18) years - and were not emancipated-, disqualified, competitors, convicted of certain offences, or that hold

- 
- certain management positions.

The prevention and avoidance of the conflict of interest in the performance of the duties of the Directors of EDPR is regulated in line with the terms contained in article 229 of the Spanish Companies Law and implemented in article 28.3 of the Board of Directors Regulations, which is also applicable to the committees under article 12 of their respective regulations. This article states that in case any direct or indirect conflict of interest arose, it shall be communicated to the Board of Directors, being the Director involved obliged to abstain from intervening in the corresponding operation. Additionally, all the Board Members (and hence those of its Delegated Committees, as they are entirely composed by Members of the Board) shall annually sign an statement declaring their compliance with the terms of the requirements stated under article 229 of the Spanish Companies Law, and their commitmentto notifyanyvariation in the informationdeclared underthe statement as soon as itmayoccur, in order to fully comply with the loyalty duty and avoid any interference or irregularity in any decision-making process.

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Part I

Annual Reportt 2023 Management Report | Corporate Governance

The following table includes the executive, non-executive, and independent members of the Board of Directors as of December 31st, 2023:

| BOARD MEMBER              | POSITION                                  |
|---------------------------|-------------------------------------------|
| António Gomes Mota        | Chairperson (non-Executive & independent) |
| Miguel Stilwell d'Andrade | CEO and Executive Vice-Chairperson        |
| Rui Teixeira              | CFO and Executive Director                |
| Vera Pinto Pereira        | Non-Executive Director                    |
| Ana Paula Marques         | Non-Executive Director                    |
| Manuel Menéndez           | Non-Executive Director                    |
| Acácio Piloto             | Non-Executive and independent Director    |
| Allan J. Katz             | Non-Executive and independent Director    |
| Rosa García García        | Non-Executive and independent Director    |
| José Morgado              | Non-Executive and independent Director    |
| Kay Mc Call               | Non-Executive and independent Director    |

#### **19. Professional qualifications and biographies of the Members of the Board of Directors**

The skills and main positions held by the Members of the Board of Directors, as well as those that they currently hold in Group and non-Group companies and other relevant curricular information details are available in the Annex I of this Chapter 5 of the Annual Report.

# **20. Family, professional and business relationships of the Members of the Board of**

**Directors with qualifying shareholders**Qualifying Shareholders in EDPR are subject to the Spanish Law, which regulates the criteria and thresholds of the shareholders' holdings. As of December 31 st, 2023, and as far as the Company was informed, there are no family or business relationships of Members of the Board of Directors with qualifying shareholders but only professional relationships due to the fact that some of the Members of EDPR's Board of Directors are currently Members of the Board of Directors in other companies belonging to the same group as EDP Renováveis S.A., which are the following: Miguel Stilwell d' Andrade, Rui Teixeira, Vera Pinto Pereira, Ana Paula Marques and Manuel Menéndez.

#### **21. Corporate bodies and management structure**

As exposed in topic 15 above, the governance model of EDPR was designed to ensure the transparent and meticulous separation of duties and the specialization of supervision through the following governing bodies and management structure:

Image /page/227/Figure/13 description: The image is an organizational chart. At the top is a gray circle labeled "General Shareholders' Meeting." Below that is a light blue rectangle labeled "Board of Directors." Inside that rectangle are two smaller rectangles. The one on the left is labeled "Executive Directors," and the one on the right is labeled "Non Executive Directors." Below the "Executive Directors" rectangle is a dark blue rectangle labeled "Management Team." To the right of the "Management Team" rectangle and below the "Non Executive Directors" rectangle is a gray rectangle labeled "General Secretary." Below the "Management Team" rectangle and the "General Secretary" rectangle is a horizontal line with the text "Committees of the Board of Directors" above it. Below that line are three light blue rectangles. The one on the left is labeled "Appointments and Remunerations Committee." The one in the middle is labeled "Audit Control and Related Party Transactions Committee." The one on the right is labeled "Environmental, Social, and Governance Committee."

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Part I

General Shareholders' Meeting: which is the body in which the shareholders participate. Represents the Company with the full authority corresponding to its legal personality and has the power to deliberate, vote and adopt decisions, particularly on matters that the law and Articles of Association reserve for its decision and that must be submitted for its approval.

Board of Directors: that represents and administrates the Company under the broadest powers of management, supervision and governance with no limitations other than the responsibilities expressly and exclusively granted to the jurisdiction of the General Shareholders' Meeting in the Company's Articles of Association, in the General Shareholders' Regulations or in the applicable law.

Executive Directors: EDPR has two Executive Directors who are also Joint Directors, Miguel Stilwell de Andrade (CEO) and Rui Teixeira (CFO), to whom the Board agreed to delegate all the competences that can be delegated as per established under the Company Bylaws and the applicable law.

Delegated Committees: as regulated by the applicable Law and pursuant to the best corporate governance recommendations, EDPR has set up three additional specialized internal committees:

- The Audit, Control and Related Party Transactions Committee, whose main duties are the supervision of the financial information and internal control, risk management and Compliance systems. It also assumes the functions related to the analysis and, when applicable, the approval of the Related Party Transactions of the Company.
- The Appointments and Remunerations Committee, whose main duties are the assistance and report to the Board of Directors in the appointments, re-elections, dismissals, evaluation, and remunerations of Directors and Management Team Members.
- The Environmental, Social and Corporate Governance Committee, whose main duties are the assistance and report to the Board of Directors in the alignment with the market trends and the company needs regarding Environmental, Social and Corporate Governance matters, with the aim of also providing the investors with more transparent and exhaustive information regarding matters related to Corporate Governance and Sustain ability.

Management Team: On January 2021 the Board of Directors agreed to create this body in order to assume the conduction and supervision of the daily activity and performance of the Company.

Considering the growing tendence of EDPR and its presence in new geographies, it has been concluded that in order to ensure the required support to the needs to be covered both in business and technical terms, the appropriate composition of the Management Team will be the CEO and CFO, the representatives of EDPR's Platforms (Europe, LaTam, APAC and North America), and a member in charge of the coordination of the technical functions and Offshore business.

Therefore, as of 31st, December 2023 the composition of the Management Team of EDPR

Andrade (CEO)
)
Europe&LaTam)
os (COO APAC)
■thy (COO NA)
ez (CTO & Business Offsho

was as follows:

- Miguel Stilwell d'Andrade (CEO)
- Rui Teixeira (CFO)
- Duarte Bello (COO Europe&LaTam)
- Pedro Vasconcelos (COO APAC)
- Sandhya Ganapathy (COO NA)
- Bautista Rodríguez (CTO & Business Offshore)

b) Functioning

#### **22. Board of Directors regulations**

EDPR's Board of Directors Regulations were last amended on December 12th, 2022, and are available at Company's website (www.edpr.com), and at Company's headquarters at Plaza del Fresno, 2, Oviedo, Spain.

#### **23. Number of meetings held by the Board of Directors and attendance report**

According to the Law and its Articles of Association, EDPR's Board of Directors meetings take place at least once every quarter. During the year ended on December 31st, 2023, the Board of Directors held eleven (11) meetings. The notices and supporting documents of the topics to be discussed in each meeting are sent to the Board Members in advance to their proper discussion during the meeting. Additionally, the minutes of all meetings are drawn and also circulated.

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Part I

The following table expresses the attendance percentage of the participation of the Directors to the meetings held during 2023:

| BOARD MEMBER              | POSITION                                        | ATTENDANCE* |
|---------------------------|-------------------------------------------------|-------------|
| António Gomes Mota        | Chairperson (non-Executive and independent)     | 100%        |
| Miguel Stilwell d'Andrade | CEO and Executive Vice-Chairperson              | 100%        |
| Rui Teixeira              | CFO and Executive Director                      | 100%        |
| Vera Pinto Pereira        | Non-Executive Director                          | 91%         |
| Ana Paula Marques         | Non-Executive Director                          | 100%        |
| Miguel Setas              | Non-Executive Director                          | 100%*       |
| Manuel Menéndez           | Non-Executive Director                          | 100%        |
| Acácio Piloto             | Non-Executive Director and independent Director | 100%        |
| Allan J. Katz             | Non-Executive Director and independent Director | 100%**      |
| Rosa García García        | Non-Executive Director and independent Director | 100%**      |
| José Félix Morgado        | Non-Executive Director and independent Director | 100%        |
| Kay Mc Call               | Non-Executive Director and independent Director | 100%**      |

\*The percentage reflects the meetings attended by the Members of the Board during 2023, provided that Miguel Setas resigned on March3rd, 2023 (with effects April 12st, 2023), thus the percentage shown in the table reflects the attendance calculated over the meetings celebrated until such date.

\*\* Miguel Setas was not able to attend to the Board of Directors meeting held on February 27th ,2023 but in line with the Company bylaws and the applicable law, he delegated his representation and vote into other non-executive member of the Board (António Gomes Mota).

\*\*Allan J. Katz was not able to attend to the Board of Directors meetings held on March 2nd and April 4th, 2023, but in line with the Company bylaws and the applicable law, he delegated his representation and vote into other non-executive member of the Board (Acácio Piloto and António Gomes Mota, respectively).

\*\*Rosa García and Kay Mc Call were not able to attend to the Board of Directors meeting held on March 2nd, 2023, but in line with the Company bylaws and the applicable law, they delegated their representation and votes into other non-executive member of the Board (António Gomes Mota).

Likewise, on January 23rd, 2023, it was held a meeting of non- executive Directors in order to analyze and assess the organization, composition and functioning of the Board of Directors and its Committees.

With the aim of improving the quality of corporate governance, focusing on supervision and decision-making, two Offsite meetings were held, one in Madrid and another in São Paulo in 2023. The meetings were held in a different environment from the usual one, encouraging dialogue and creating a dynamic of interaction and cohesion among Board Membersand with the Management Team Members, with the aim of improving the climate for future debates. Both meetings focused on the medium-term business model, with particular involvement of the teams from the geographical areas where the meetings were held.

The Company has reported that it did not use artificial intelligence as a decision-making tool for social bodies in 2023, in accordance with IPCG Recommendation VII.9. The Company's approach is to be cautious about the potential risk associated with the implementation of automated decision-making systems. However, EDPR recognizes the importance of efficient management of Board meetings and, to this end, has adopted initiatives to support the Board of Directors. These tools are not directly related to automated artificial intelligence, but rather to facilitate meeting management, decision support in a data-driven culture and enhance operational efficiency. The Company remains committed to closely monitoring the evolution of the artificial intelligence market and emerging trends in the use of AI in decision-making. EDPR is committed to maintaining a proactive stance by closely monitoring technological innovations and developments in the field. This is achieved through a multi-disciplinary team of technology, business, ethics, legal and compliance experts.

#### **24. Competent body for the performance appraisal of Executive Directors**

The key performance indicators for the appraisal of the Executive Directors are set in advance and approved by the General Shareholder's Meeting.

Once the corresponding fiscal year is completed, the Appointments and Remunerations Committee performs the first assessment about the compliance with such key performance indicators, and submits its recommendation to the Board of Directors, which evaluates the proposal of this committee and makes the final decision. Should be noted that according to the personal law of EDPR, the definitive assessment of this performance is a non-delegable competence of the Board of Directors.

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Part I

#### **25. Performance evaluation criteria applicable to Executive Directors**

The criteria for assessing the Executive Directors' performance are described on topics 70, 71 and 72 of this Chapter 5 of the Annual Report.

#### **26. Availability of the Members of the Board of Directors**

The availability of the Members of the Board of Directors is one of the individual attributes considered by EDPR in the selection processes, and a reference that is clearly being more observed and acquiring material relevance in the Market. As such, and with the aim of complying with the best governance practices, the Board of Directors resolved at its meeting held in October 25th, 2022 to rule under its Regulations the performance of EDPR Executive Directors when they have executive functions in entities outside the Group; in accordance to which it has been stablished hat: i) the Executive Members of the Board of Directors may not exercise executive functions in more than two companies outside EDP Group.; and ii) the exercise of that functions will be subject to prior assessment of the Appointments and Remunerations Committee and of the approval by the Board of Directors.

The Members of Board of Directors of EDPR are fully available for the performance of their duties having no constraints for the execution of this function simultaneously with other positions.

The positions held at the same time in other companies within and outside the Group, and other relevant activities undertaken by Members of the Board of Directors throughout the financial year are listed in the Annex I of this Chapter 5 of the Annual Report.

c) Committees within the Board of Directors or Supervisory Board and Board Delegates

#### **27. Board of Directors' Committees**

As previously exposed, in line with Spanish Law and as specifically foreseen in Article 10 of the Company's Articles of Association, theBoard of Directors is entitled to create delegated bodies. The Board of Directors of EDPR has set up three committees:

- Audit, Control and Related-Party Transactions Committee
- Appointments and Remunerations Committee
- Environmental, Social and Corporate Governance Committee

The three Committees are composed exclusively by non-executive and independent

is the Chairperson.

:ía

x Morgado

=

↻

Members.

#### **28. Details of the Executive Delegates of the Board**

On January 19th, 2021, the Board of Directors agreed to appoint Miguel Stilwell d'Andrade and Rui Teixeira as Joint Executive Directors, delegating in them all the competences that can be delegated as per established under the Company Bylaws and the applicable law. On April 12th, 2022, the Board agreed to re-elect both of them as Joint Executive Directors, as well as to again delegate in them all the competences that can be delegated as per established under the Company Bylaws and the applicable law. The reserved matters of the Board of Directors are identified in topic 9 of this Chapter 5 of the Annual Report and article 9 of the Board of Directors Regulations.

#### **29. Committees' competences**

#### **Audit, Control and Related Party Transactions Committee**

#### **Composition**

Pursuant to Article 28 of the Company's Articles of Association and Article 9 of its Regulations, the Audit, Control and Related Party Transactions Committee consists of no less than three (3) and no more than five (5) members.

Following the proposal submitted by the Appointments and Remunerations Committee, its Chairperson, Acácio Piloto, was first elected for this position on June 27th, 2018, and

re-elected on April 12<sup>th</sup>, 2021.
The Audit, Control and Related Party Transactions Committee consists of three (3). non-executive and independent Members, who as of December 31 st2023, are the following:

- Acácio Piloto, who is the Chairperson.
- Rosa García García
- José Manuel Félix Morgado

Additionally, María González Rodríguez is the Secretary of the Audit, Control and Related Party Transactions Committee since November 2nd, 2021.

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Part I

—
—

( )

The committee Members shall maintain their positions for as long as they are Company Directors. Nevertheless, the Board may decide to discharge members of the committee at any time, and also the members may resign of these positions but still maintaining their seat as Members of the Board of Directors.

#### **Competences**

Notwithstanding the other duties that the Board may assign to this committee, it shall perform supervisory functions of Audit and Control independently from the Board of Directors, as well as, by delegation of the Board of Directors, the supervisory functions of the transactions between Related Parties, as follows:

- a) Audit and Control functions:
- Reporting through the Chairperson on questions falling under its jurisdiction to the General Shareholders' Meetings.
- Proposing the appointment of the Company's auditors to the Board of Directors for subsequent approval by the General Shareholders' Meeting, as well as the contractual conditions, scope of the work – specially concerning audit services, "audit related" and "non-audit" – annual activity evaluation and revocation or renovation of the auditor appointments.
- Supervising the finance reporting and the functioning of the internal risk management and control systems, evaluating those systems and proposing the adequate adjustments according to the Company necessities, as well as supervising the suitability of the preparation process and the disclosure of financial information by the Board of Directors, including suitable accounting policies, estimates, judgments, relevant disclosure and its consistent application between financial years in a duly documented and communicated form.
- Supervising internal audits, in particular: i) approving and supervising in coordination with the CEO, the Annual Internal Audit Plan. ii) approving and reviewing the Internal Audit Rule. and iii) supervising in coordination with the CEO and Management Team the implementation of the recommendations issued by Internal Audit.
- Establishing a permanent contact with the External Auditors to assure the conditions, including independence, that may be adequate for provision of services performed by them, acting as the Company speaker for the subjects related to the auditing process, and receiving and maintaining information on any other questionsregarding accounting subjects.
- 
- 
- 
- 
- 
- 
- 

• Preparing an annual report on its activities, including eventual constraints, and expressing an opinion on the Management Report, the accounts and the proposals presented by the Board of Directors.

• Receiving notices of financial and accounting irregularities presented by the Company's employees, shareholders, or entities that have a direct interest and judicially protected, related with the Company's socialactivity.

• Engaging the services of experts to collaborate with committee Members in the performance of their functions (when engaging the services of such experts and determining their remuneration, it must be taken into account the importance of the matters entrusted to them and the economic situation of theCompany).

• Drafting reports at the request of the Board and its Committees.

• Approving and supervising, in coordination with the Management Team, the Annual Activity Plan of the Corporate Compliance Department.

• Appreciating and monitoring the recommendations on measures to be taken in situations of significant non-compliance.

• Supervising compliance with regulations and alignment of business processes with the requirements of the Compliance Management System in order to achieve a sustainable compliance culture throughout the Company.

b) Related Party Transactions functions:

- -
	-

• By delegation of the Board of Directors:

I. Analyzing and, where appropriate, approving the (i) (a) intragroup transactions or (b) transactions performed between EDPR Group and EDP Group when their amount is below 10% of the total assets at the last annual balance sheet approved by the company, as long as they are in the ordinary management of the company and under market conditions. (ii) transactions executed under contracts with standardized terms that are wholesale applied to a high number of clients under prices or tariffs generally established by the supplier of the goods or services, and which amount does not exceed the 0,5% of the net annual company turnover. and periodically informing the Board of Directors about the transactions approved by this Committee in the exercise of the above referred delegation, stating the fairness and transparency of such transactions, and as the case may be, the compliance with the applicable legal criteria.

II. Analyzing and informing about any modification of the Framework Agreement signed by EDP and EDP Renováveis on 7 May 2008.

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Part I

- III. Submitting reports to the Board of Directors of the Company regarding the Related Party Transactions – that shall be approved by the Board of Directors of EDPR SA or by its Shareholder's Meeting in accordance with the law – and that shall include: (i) the information regarding the nature of the operation and the relation with the Related Party, (ii) the identity of the Related Party, the date and value or amount of the compensation of the transaction, and any other information necessary to appraise if the operation is fair and reasonable for the company and for the non-Related Party shareholders.
- IV. Asking EDP for access to the information needed to perform its duties.

#### **Functioning**

In addition to the Articles of Association and the law, this committee is governed by its regulations (that were last amended on February 15th 2022), which are available at the Company's website (www.edpr.com).

The committee shall meet at least once a quarter and additionally whenever its Chairperson deems it appropriate. The notices and supporting documents of the topics to be discussed in each meeting of this committee are sent to its Members in advance to their proper discussion during the meeting. Additionally, this committee shall draft minutes of every meeting held and inform the Board of Directors of its decisions at the first Board held after each committee meeting.

Decisions shall be adopted by majority and the Chairperson shall have the casting vote in the event of a tie.

#### **2023 Activity**

In 2023 the Audit, Control and Related Party Transactions committee's activities included the following:

a) A[udit an](http://www.edpr/)d Control Activities:

- Monitor the closure of quarterly accounts, first half-year and year-end accounts.
- Information about the proposals of application of results for the fiscal year ended on December 31st 2022, and the distribution of dividends.
- Information about the independence of the External Auditor.

• Assessment of the external auditor's work, especially concerning the scope of work in 2023, approval of all "audit related" and "non- audit" services and analysis of external

• Assessment on the policies and remunerations systems of the Company.

• Supervision of the quality and integrity in the preparation and disclosure of the financial information in accordance with the applicable accounting policies, estimates and

- auditor's remuneration.
- 
- judgments.
- 
- for the 2024 Internal Audit Plan.
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 

• Issuance of an opinion about the individual and consolidated reports (including the Corporate Governance report) and accounts, in a quarterly, half year and yearly basis.

• Monitorization of Internal Audit Activity, including the supervision of the execution of the Audit Plan for 2023, its Budget and headcount and pre-approval of the draft prepared

• Monitorization of the recommendations issued by Internal Audit.

• Follow-up and supervision of the quality, integrity and efficiency of the treasury management (finance and debt), the Internal Control System, Compliance (including the supervision of the execution of the Activity Plan for 2023 for EDPR and OW and approval of the draft prepared for the 2024 Activity Plan) and Risk Management.

• Monitorization and evaluation of the risk management performed during 2023, issuing a report including the assessment about Internal Control System and Risk Management.

• Information about claims received regarding financial irregularities.

• Information about the contingencies affecting to the Group.

• Issuance of the report of its activities performed during 2022.

• Issuance of a self-assessment about its performance and an appraisal of the Internal Audit functions regarding fiscal year 2022.

• Consideration and review of the Enterprise Risk Management Framework (ERM), taking into account the new reference limits and changes to the taxonomy. Recommendation to the Board of Directors for approval.

• Following the best Corporate Governance practice, the Committee held a specific and complementary meeting with the External Auditors twice a year to discuss any remark in the process of the elaboration of the Company half year and year end accounts.

• Propose minor amendments to the Regulation of the Provision of Servicesby the External Auditor of EDPR (both audit and non-audit), under which, they are regulated, among others, the provision of their services, and the relationship with the External Auditor, to include the amendment to Article 40 of the Law on Auditing, which would allow the extension of the term of the external auditor's appointment (i) for an additional 10 years

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if the appointment is made on a competitive basis, or (ii) for an additional 14 years if another audit firm is appointed for the additional period.

- Subsequent to Recommendation V.1 (formerly III.6) a dedicated session took place on March 1st to discuss the monitoring and risk assessment of the 2023-2026 Business Plan before its submission to the Board of Directors.
- From 11 to 13 September, attended an off-site together with other Audit Committees of the Group's companies. The purpose of the meeting was to discuss best practices for internal audit, risk, compliance, accounting and tax functions, as well as to analyze key challenges regarding these committees' responsibilities. The event paid particular attention to sustainability information and reporting and new legislation in this area. Subsequently, on 4 December, the Committee attended another monographic session on sustainability in Lisbon.
- On the 14th and 15th of November, a meeting was held in Singapore to establish the focus and upcoming milestones for the 2024 audit of the APAC region. The meeting included site visits and interviews with managers and employees in the region. The primary objective of these activities was to obtain firsthand information to formulate strategies and action plans.
- b) Related Party Transactions Activities:

Among the most relevant activities in relation with Related Party Transactions during 2023, the following ones can be highlighted:

On April 12th, 2023, the Audit, Control and Related Party Transactions Committee reviewed, and recommended for approval the Financing Framework Agreement between EDP Renováveis, SA (EDPR) and EDP Energias de Portugal, SA (EDP). This recommendation was motivated by EDP's ability to obtain financial agreements on more favorable terms and to provide necessary financing to Group companies. This allows EDPR and its subsidiaries to benefit from EDP's credit ratings and extensive access to international credit and capital markets. As a result, EDP offers various forms of financing and hedging arrangements, such as loans, guarantees, swaps, and cash management services, to support the development and fulfillment the Company's and its subsidiaries activities.

Furthermore, during the first half of 2023 the following contacts were analyzed: (i) an Energy Transfer Master Agreement (ii) an Environmental Attributes Transfer Master Agreement, and (iii) a Market Access Master Agreement, between EDP Renováveis SA and its subsidiaries and EDP GEM Portugal, SA. Following due analysis, in July 2023 the Audit, Control and Related Party Transactions Committee recommended their approval to the

Board of Directors.

Section E – I, topic 90 of Chapter 5 this Annual Report includes a description of the fundamental aspects of the agreements and contracts between related parties.

The Audit, Control and Related Party Transactions Committee found no constraints during its control and supervision activities.

The information regarding the meetings celebrated by this Committee and the attendance of its related members during the year 2023 is described at topic 35.

#### **Appointments and Remunerations Committee**

#### **Composition**

Pursuant to Article 29 of the Company's Articles of Association and Article 9 the Appointments and Remunerations Committee Regulations, this committee shall consist of no less than three (3) and no more than six (6) Members. At least one of its Members must be independent and shall be its Chairperson.

In accordance with its personal law (Spanish law), with recommendation V.3.3. of the Corporate Governance Code of IPCG, and to the extent possible with recommendation V.2.1. of the Corporate Governance Code of IPCG (as considering that in Spain this committee shall be created by the Board and being entirely comprised by Members of its Board of Directors), the Appointments and Remunerations Committee of EDPR is entirely integrated by Non-Executive and Independent Directors.

The Appointments and Remunerations Committee consists of three (3) non-executive an independent, as of December 31st 2023, are the following:

• António Gomes Mota, who is the Chairperson.

ía

- 
- Rosa García García
- José Félix Morgado

Additionally, María González Rodríguez is the Secretary of the Appointments and Remunerations Committee since November 2nd, 2021.

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Renewables

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None of the committee Members are spouses or up to third degree relatives in direct line of the other members of the Board of Directors.

The committee Members shall maintain their positions for as long as they are Company Directors. Nonetheless, the Board may decide to discharge members of the committee at any time and the members may resign said positions while remaining Company Directors.

#### **Competences**

The Appointments and Remunerations Committee is a permanent body belonging to the Board of Directors with an informative and consultative nature and its recommendations and reports are not binding.

The Appointments and Remunerations Committee has no executive functions. The main functions of this committee are to assist and report to the Board of Directors about appointments (including by co-option), re- elections, removals and remuneration of Directors and Members of the Management Team. It also informs the Board of Directors on general remuneration and incentives for Board Members and executive staff. These functions include the following:

- Defining the standards and principles governing the composition of the Board of Directors and the selection and appointment of its Members.
- Proposing the appointment and re-election of Directors (including nominations by cooption) for the submission to the General Shareholders' Meeting by the Board of Directors.
- Proposing to the Board of Directors the candidates for the different Committees.
- Proposing to the Board, within the limits established in the Articles of Association, the remuneration system, distribution method, and amounts payable to the Directors.
- Making proposals to the Board of Directors on the conditions of the contracts signed with Directors.
- Informing and making proposals to the Board of Directors regarding the appointment and/or removal of executives and the conditions of their contracts and generally defining the hiring and remuneration policies of executive staff.
- Reviewing and reporting on incentive plans, pension plans, and compensation packages.
- Any other functions assigned in the Articles of Association or by the Board of Directors.

In accordance with the personal law of EDPR, all the Board Members shall attend to the General Shareholder's Meeting, and as exposed in topic 15 of this Chapter 5 of the Annual Report, all the Delegated Committees are composed Directors. As such, the Chairperson of the Appointments and Remunerations Committee shall attend the Shareholder's Meetings, and in case its agenda includes any topic related to remuneration of the company's governing bodies, this Director will be most adequate to answer.

In 2023 it was held one Shareholders' Meeting on April 4th, and the Chairperson of the Committee, Antonio Gomes Mota, attended.

#### **Functioning**

In addition to the Articles of Association, the Appointments and Remunerations Committee is governed by its Regulations (that were last amended on October 25th, 2022), which are available at the Company's website (www.edpr.com).

The notices and supporting documents of the topics to be discussed in each meeting of this committee are sent to its Members in advance to their proper discussion during the meeting. Additionally, this committee shall draft minutes of every meeting held and inform the Board of Directors of its decisions at the first Board held after each committee meeting.

Decisions shall be adopted by majority and the Chairperson shall have the casting vote in

the event of a tie.

#### **2023 Activity**

In 2023 the Appointments and Remunerations Committee held four (4) meetings, and the main activities performed were:

• Issued its opinion regarding the performance evaluation for year 2022 of the Board of Directors, the CEO, the CFO and the Management Team Members, as well as of the

• Reviewed and approved the remuneration policy to be applied to the Members of the

- Delegated Committees.
- Management Team.
- General Shareholders' Meeting.
- 

• Reviewed and approved the Remuneration Policy that will apply to the Board of Directors and its delegated Committees in 2023-2025, submitted by the Board of Directors to the

• Reviewed and approved the Corporate Governance Report related to 2022, submitted by the Board of Directors to the General Shareholders' Meeting.

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- Reviewed and approved the Remunerations Report related to 2022, submitted by the Board of Directors to the General Shareholders' Meeting.
- Acknowledged the resignation to the position as Board Member presented by Miguel Setas (with effects April 12th, 2023) and analyzed the criteria drivers for the recruitment process to be launched.
- Drafted the report of its activities performed during the year 2023.
- Reviewed and approved the Development Program proposed for the Non-Executive Directors (including General Training Programs regarding Corporate Governance Matters and Board effectiveness. specific trainings regarding Committee's competences, and in-house programs to be defined).
- Discussed and acknowledged the feedback received by the CEAM regarding the Corporate Governance report issued for 2022 and agreed with the action plan proposed.
- Adapted "ex-ante and abstract" selection criteria for Board Members to ensure that they are suitable to their roles, contribute to better performance and the maintenance of a good balance composition. In order to achieve this objective, a new "competency map" has been proposed, following recommendation II.2.1 of the IPGC.

#### **Environmental, Social and Corporate Governance Committee.**

It was on October 25th, 2022, when the Board of Director agreed, in accordance with the proposal submitted the Appointments and Remunerations Committee, to incorporate in EDPR an Environmental, Social and Corporate Governance Committee, and also specifically approving its competences, composition, remuneration of its members and the regulations applicable to the Committee.

#### **Composition**

Pursuant to Article 9 the Environmental, Social, and Corporate Governance Committee Regulations, this committee shall consist of no less than three (3) and no more than six (6) members, and the majority of them shall be independent. The Chairperson of the Environmental, Social, and Governance Committee shall be appointed by the Board of Directors amongst the Committee's members and must necessarily be an independent

director.
The Environmental, Social, and Corporate Governance Committee consists of five (5) nonexecutive an independent, that as of December 31 st 2023, are the following:

• Antonio Gomes Mota, who is the Chairperson.

ll

García

x Morgado

- 
- Allan J. Katz
- Cynthia Kay Mc Call
- Rosa María García García
- José Manuel Félix Morgado

Additionally, María González Rodríguez is the Secretary of the Environmental, Social, and Corporate Governance Committee since its incorporation, on October 25th, 2022.

The committee members shall maintain their positions for as long as they are Company Directors. Nonetheless, the Board may decide to discharge members of the committee at any time and the members may resign said positions while remaining Company Directors.

#### **Competences**

The Environmental, Social, and Governance Committee is a specialized and delegated committee of a merely informative and consultative nature whose recommendations are not binding and that performs no executive functions. This Committee assists and reports to the Board of Directors in the alignment with the market trends and the company needs regarding Environmental, Social, and Governance matters, with the aim of also providing the investors with more transparent and exhaustive information regarding matters related to Corporate Governance and Sustainability. These functions include the following:

- 
- 
- 
- 
- 
- 

• Oversee the Company's key environmental, social and corporate governance key performance indicators included in the Business Plan and monitor their achievement.

• Propose to the Board of Directors EDPR's sustainability and environmental, social, and corporate governance policies and their update.

• Promote, steer, and oversee the Company's objectives, action plans and practices in health, safety and occupational risk prevention.

• Review and present to the Board of Directors the Annual Report (EINF). The Committee shall also monitor the Company's relationship and reporting to investors, indexes and rating agencies on sustainability issues.

• Monitor and conduct a regular review of the main environmental, social, and corporate governance trends and regulatory developments relevant to the Company's activity.

• Analyse the integration of environmental, social, and corporate governance risks and opportunities into the Company´s procedures and its Risk Management System.

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- Update and inform the Board of Directors on the stakeholder relations and dialogue model, in order to understand the needs and expectations of all EDPR's stakeholders (employees, clients, suppliers, subcontractors, and others).
- Oversee and assess the Company's corporate image and its reputation with the various stakeholders, namely in terms of the market in general and consumers, investors and supervisory authorities, public and published opinion, monitoring the activity of the Company's competent services, taking into consideration the implemented strategies, policies, process and procedures implemented, privileging the spirit of service to the Community.
- Oversee and assess the suitability of the corporate governance model implemented by the Company and their compliance with internationally accepted models of corporate governance, forwarding any appropriate recommendations in this area to the Board of Directors.
- Supervise compliance with, and the correct application of, the corporate governance principles and standards in force, promoting and requesting the exchange of information necessary for this purpose.
- Any other functions assigned to it in the Articles of Association or by the Board of Directors.

#### **Functioning**

In addition to the Articles of Association, the Environmental, Social and Corporate Governance Committee is governed by its Regulations (approved on October 25th, 2022), which are available at the Company's website (www.edpr.com).

The committee shall meet whenever its Chairperson deems it appropriate. The notices and supporting documents of the topics to be discussed in each meeting of this committee shall be sent to its members in advance to their proper discussion during the meeting. Additionally, this committee shall draft minutes of every meeting held and inform the Board of Directors of its decisions at the first Board held after each committee meeting.

Decisions shall be adopted by majority and the Chairperson shall have the casting vote in the event of a tie.

#### **2023 Activity**

In 2023, the Environmental, Social and Governance Committee met four (4) meetings, and the main activities performed were:

- Review the strategy for the Net Zero ESG target for 2023-2025.
- Review of non-financial information reporting for the 2022 financial year.
- Analysis of the scores achieved in the Dow Jones Sustainability Benchmark Index and areas for improvement.
- Review the status of the 2021 recommendations included in the 2022 CEAM IAGC and confirm the content of the 2022 IAGC.
- Review the EDPR governance structure and model.
- Propose a Security Policy to the Board of Directors.
- Review the key challenges and initiatives contained in the 2023 Human Resources Plan.
- Analysis of the distribution and direction of the vote at the 2023 Annual General Shareholders' Meeting.
- Analysis of the 2023 IPCG Code of Good Governance.
- Analysis of the social engagement of the EDPR in the region of La Guajira in Colombia, as well as with other local communities.

a) 2023 Sustainability Overview

The principles and values that guide EDPR's actions for environmental and social objectives are defined in the public commitments made, in the policies and procedures adopted, and more broadly in EDPR's Code of Ethics. Under its Environmental Policy, EDPR is committed to environmental protection, mitigating its impacts, managing risks, stimulating R&D + Innovation, and promoting continuous improvement of processes, practices, and performance through a collaborative approach with stakeholders. The management of social aspects is based globally on several corporate policies, the management of which is distributed across various organizational units within EDPR.

For details, see EDPR's health & safety, human and labour rights, local communities, ethics & compliance and stakeholders webpages, and the table of Non-Financial Information Statement (Spanish Law 11/2018) for details on monitoring the implementation of Environmental and Social Policies and where the various points/subpoints of the report are addressed, developing the progress of targets associated with objectives.(This disclosure is in line with Recommendation I.2. of the IPGC).

ity Overview

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To address environmental, social, and sustainability risks, the Company implements a procedure for gathering and analyzing data pertaining to these areas:

- Throughout the year 2023, the EDP Group began the process of preparing the company for sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD). Considering the new requirements, it made sense to initiate the implementation of an Internal Control System for Sustainability Reporting (SCIRS). Although not currently mandatory, it made sense to promote interdisciplinary involvement of various organizational units to have a formalized control system that allows for the prevention of future risks and the immediate detection of gaps.
- Sustainability governance has been in place for several years. The Sustainability Committee was established in 2013 at Executive Committee level. In 2022, the ESG Committee was created as a specialized and delegated committee of the Board of Directors, which assists and reports to the Board of Directors in the alignment with the market trends and the company needs regarding ESG matters, with the aim of also providing the investors with more transparent and exhaustive information regarding matters related to Corporate Governance and the Environmental and Social pillars. For details, see EDPR's webpage. (This disclosure is in line with Recommendation VII.7 of the IPGC)

EDPR is a clear example of how fighting against climate change creates business opportunities. The Company's core business, to deliver clean energy by developing, building and operating top quality wind farms and solar plants, inherently implies the reduction of greenhouse gas emissions, contributing to the world's fights against climate change and its impacts. Accordingly, EDPR reports the risks and opportunities for the company derived from climate change and the alignment with TCFD recommendations in the Natural Capital and Climate Change chapters of the Annual Report where the integration of climate change into EDPR's decision-making processes is detailed. (This disclosure is in line with Recommendation VII.8 of the IPGC)

#### III. Supervision

a) Supervision

#### **30. Supervisory Board - model adopted**

EDPR's governance model, as long as it is compatible with its personal law (Spanish law), corresponds to the so -called "Anglo- Saxon" model set forth in the Portuguese Commercial Companies Code, in which the management body is a Board of Directors, and the supervision and control duties are of the responsibility of an Audit, Control and Related Party Transactions Committee.

#### **31. Composition of the Audit, Control and related Parties Transactions**

The Audit, Control and Related Parties Transactions is entirely integrated by non-executive an independent Directors. Committee members retain their positions for as long as they are Company Directors-applicable regulations to the mandate of the Board Members and the information on the periods are available in section 17 of this Chapter 5 of the Annual Report.

As of 31st, 2023 the composition of the Audit, Control and Related Parties Transactions of EDPR was as follows:

| MEMBER             | POSITION  | FIRST APPOINTMENT |
|--------------------|-----------|-------------------|
| Acácio Piloto      | President | 27/06/2018*       |
| Rosa García García | Member    | 12/04/2021        |
| José Félix Morgado | Member    | 12/04/2021        |

1.

\*Re-elected on April 12th, 2021.

Additionally, María González Rodríguez is the Secretary of the Audit, Control and Related Party Transactions Committee since November 2nd, 2021.

#### **32. Independence of the Members of the Audit, Control and Related Party Transactions Committee**

Information concerning the independence of the members of the Audit, Control and Transactions Party Committee is available on the chart of topic 18 of this Chapter 5 of the Annual Report. As mentioned on the first paragraph of topic 18, the independence of the members of the Board and of its committees is evaluated according to the Company's personal law, the Spanish law.

#### **33. Professional qualifications and biographies of the Members of the Audit, Control andRelated Party Transactions Committee**

Professional qualifications of each member of the Audit, Control and Related Party Transactions Committee and other important curricular information, are available in the Annex I of this Chapter 5 of the Annual Report.

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Image /page/238/Picture/21 description: The image features the logo of EDP Renewables. The logo consists of the lowercase letters 'edp' in a rounded, sans-serif font, stacked above the word 'Renewables' in a smaller, lighter font. The color of the text is a dark blue or gray.

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#### b) Functioning

#### **34. Audit, Control and Related Party Transactions CommitteeRegulations**

The Audit, Control and Related Party Transactions Committee regulations are available at the Company's website (www.edpr.com) and at the Company's Headquarters at Plaza del Fresno, 2, Oviedo, Spain.

#### **35. Number of meetings held by the Audit, Control and Related Party Transactions Committee**

The Audit, Control and Related Party Transactions Committee periodically meets representatives of the internal specialized departments involved in the areas under committee's competences in order to discuss the information periodically reported about, among others, work plans and resources of Internal Audit, Compliance and SCIRF, Company accounts, detection claims regarding financial irregularities, global risk management and audit and non-audit services provided by the External Auditor (including the appraisal about its independence). This regular interaction, in particular with regards to the periodical discussion of the development and status of the alignment of the level of risk and the accomplishment of objectives set by the Board of Directors, provides the committee with the necessary information for the development of its functions and in particular, for the assessments issued under the appraisal report over the functions of Internal Audit, and the Report regarding Risk Management and appraisal of the Internal Control System , that this committee issues for every fiscal year.

During 2023, the Audit, Control and Related Party Transactions Committee held a total of eleven (11) meetings, and as referred in paragraph above, in order to better perform its supervisory functions over the activities reported by the areas within its competences, the committee invited the responsible teams of the related areas to several of these meetings to provide the updates of the status of their activity and accomplishment of targets. As such, the participation of these departments at these meetings in 2023 was as follows: Internal Audit participated in seven (7), Compliance and Internal Control in four (4), Global Risk in five (5), Planning and Control in four (4). Finance in four (4) and Administration, Consolidation and Tax in four (4). Likewise, the committee invited the External Auditors to three (3) of these meetings.

The following table reflect the attendance of the members of the Audit, Control and Related Party Transactions Committee to its meetings held during 2023:

| MEMBER                    | POSITION    | ATTENDANCE |
|---------------------------|-------------|------------|
| Acácio Piloto             | Chairperson | 100%       |
| Rosa García García        | Vocal       | 100%       |
| José Manuel Félix Morgado | Vocal       | 100%       |

On November 14th and 15th, an extraordinary meeting of the Committee was held in Singapore to discuss the audit plan and the situation in the APAC region, with in-person meetings with the teams and leaders of this geographical area.

In addition, PwC experts conducted specialized seminars on non-financial information disclosure and reporting in September in Porto and in December in Lisbon.

#### **36. Availability of the Members of the Audit, Control and Related Party Transactions Committee**

The members of the Audit, Control and Related Party Transactions Committee are fully available for the performance of their duties having no constraints for the execution of this function simultaneously with positions in other companies. The positions held simultaneously in other companies inside and outside the Group and other relevant activities undertaken by members of this committee throughout the financial year are listed in Annex I of this Chapter 5 of the Annual Report.

c) Powers and duties

#### **37. Procedures for hiring additional services to the External Auditor**

On July 2022, EDPR approved an internal regulation to rule the provision of services and relationship with the External Auditor, with regards to both audit and non-audit services to be hired, and the reporting and approval procedure to be applied. These regulations also establish the independence criteria to be considered.

In accordance with the rules included under this regulation, and in line with recommendation VII.2.1. of the IPCG Corporate Governance Code, in EDPR there is a policy of pre- approval by the Audit, Control and Related Party Transactions Committee of the provision of non-audit services to be provided by the External Auditor and any related entity. This policy was strictly followed during 2023. This competence is also established under Article 8. A) b) of the Committee Regulations.

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The analysis of the adequacy of the provision of non- audit services by the External Auditor and entities in a holding relationship (with or incorporated in the same network as the External Auditor) is performed considering the following aspects: (i) such services having no effect on the independence of the External Auditor and any safeguards used and (ii) the position of the External Auditor in the provision of such services - notably the External Auditor's experience and knowledge of the Company.

Furthermore, although hiring services other than auditing services to the External Auditor is admissible, it is envisaged as an exception. In 2023 such services reached only around 5.32% of the total amount of services provided to the Company.

#### **38. Other duties of the Audit, Control Related Party TransactionsCommittee**

Apart from the competences expressly delegated on the Audit, Control and Related Party Transactions Committee according to Article 8 of its Regulations, and in order to safeguard the independence of the External Auditor, the following additional competences of this committee were exercised during the 2023 financial year and should behighlighted:

- Pre-approval of any services to be hired from the External Auditor and perform its direct and exclusive supervision.
- Assessment of the qualifications, independence, and performance of the External Auditors, and obtaining, yearly and directly from the External Auditors, written information on all relations existing between the Company and the Auditors or associated persons, including all services rendered and all services in progress. In order to evaluate independence, the Audit Committee, obtained the information regarding External Auditors' independence in light of the Spanish Law no. 22/2015 of July 20th, 2015 ("*Ley de Auditoría de Cuentas*").
- Review of the transparency report, signed by the Auditor and disclosed at its website. This report covers the matters provided for under Law no. 22/2015 of July 20th, 2015 ("Ley de Auditoría de Cuentas") including those regarding the quality control internal system of the audit firm and the quality control procedures carried out by the competent authorities.
- Review with the External Auditors their scope, planning, andresources to be used in their provision ofservices.
- Following the best Corporate Governance practice, the Committee held a specific and complementary meeting with the External Auditors twice a year to discuss any remark in the process of the elaboration of the Company half year and year end accounts.

# IV-V. STATUTORY AND EXTERNAL AUDITORS

#### **39-41.**

According to the Spanish law, the External Auditor ("*Auditor de Cuentas*") is appointed by the General Shareholders' Meeting and corresponds to the statutory auditor body ("*Revisor Oficial de Contas*") described on the Portuguese Law.

The information about the External Auditor is available in topics 42 to 47 of this Chapter 5

of the Annual Report.

#### **42. External Auditoridentification**

The main criteria considered in the selection of the most suitable and competitive firm to be appointed as External Auditor of EDPR are the following:

• Recognized technical and professional track record as External Auditor.

• Competitive contractual conditions and working methodology (including but without limitation, the total estimation of hours required for the development of the servicesboth as a total for the complete provision of services, and per each professional category

- 
- Consolidated *Know-How* about the business developed by the whole Group.
- Tailored and highly prepared working team.
- of the proposed team).
- proposed team.

• Competitive fee proposal, including the final cap and a breakdown referring the price average per hour, and the remuneration per hour for each professional category of the

As a result of a competitive process launched in 2017, during which the above criteria were exhaustively analyzed, PricewaterhouseCoopers Auditores, S.L. was appointed as EDPR SA External Auditor by the Shareholder's Meeting held on April 3rd, 2018. PricewaterhouseCoopers Auditores, S.L., is a Spanish Company registered at the Spanish Official Register of Auditors under number S0242 with Tax Identification Number B-79031290. The renewal of PricewaterhouseCoopers Auditores, S.L. as External Auditor of EDPR SA for years 2021, 2022 and 2023 was approved by EDPR's Shareholders Meeting on April 12th, 2021, and the audit partner in charge of EDPR is Antonio Velasco Dañobeitia.

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#### **43. Number of years of the External Auditor**

PricewaterhouseCoopers Auditores, S.L. is in charge of the audit of EDPR S.A. accounts for the years 2021, 2022 and 2023, being 2018 the first year performing these duties.

#### **44. Rotation Policy**

Until year end of 2022, the personal Law of EDPR –the Spanish Law– and EDPR External Auditor Regulations, established the maximum term for an audit firm as the External Auditor of a listed company in a 10-year term. However, this reference was updated under the Spanish Law with effects January 2023, in order to establish that the maximum term will be a total of 20 years, provided that a public tender is launched after completing the tenth fiscal year.

Following the proposal of the Audit, Control and Related Party Transactions Committee presented to the Board of Directors to its submission to the General Shareholders' Meeting, on its meeting held on April 3rd 2018, it was approved to appoint PricewaterhouseCoopers Auditores, S.L as EDPR's External Auditor for the years 2018, 2019 and 2020. The renewal of PricewaterhouseCoopers Auditores, S.L. as External Auditor of EDPR SA for years 2021, 2022 and 2023 was approved by EDPR's Shareholders Meeting on April 12th, 2021.

In view of the above, the Audit, Control and Related Parties Committee agreed at its meeting on 19 December 2023 to submit to the Board of Directors the proposal for the reelection of PwC as auditors for the period 2024-26, to be presented at the next Annual General Meeting.

Likewise, the applicable regulation requires that in case of listed companies, every five (5) years since the initial contract, the person designated by the External Auditor as its signatory of the audit report shall also rotate. For these purposes, it is hereby stated that 2023 is the first year of Antonio Velasco Dañobeitia, current partner signing the audit report of the Group, as auditor of EDPR Group.

#### **45. External Auditor evaluation**

The Audit, Control and Related Party Transactions Committee is responsible for the overview and annual evaluation of the services provided by the External Auditor according to the competences granted by its Regulations and in line with the rules established under the Regulations for the provision of services by the Statutory Auditor. In order to perform this assessment, this committee periodically includes in the agenda of its meetings a topic regarding the review of the services provided by the External Auditor (both audit and *non-* *audit*) and the fees already incurred and those estimated until year end. Likewise, and as exposed in topic 35 of this Chapter 5 of the Annual Report, the External Auditor attends and participates in some of the meetings held by this committee, mainly in order to analyze the results of their audit reports. As such, the Audit, Control and Related Party Transactions Committee acts as the company speaker with the External Auditor, with whom establishes a permanent contact throughout the year to assure the proper conditions for the provision of both the statutory audit services and non-audit services and being also the body in charge of monitoring its independence along the year. Likewise, the External Auditor shall sign an annual statement declaring its independence.

During 2023, according to the Audit, Control and Related Party Transactions Committee's competences and in line with Recommendation VIII.2.2, this committee was the first and direct recipient and the corporate body in charge of the permanent contact with the External Auditor on matters that may pose a risk to their independence as well as any other matters related to the auditing of accounts.

Additionally, in compliance with the auditing standards in effect, it also receives and maintains the record of information about other matters as provided in the applicable auditing and accounting legislation. The External Auditor, within the scope of its duties, verified the implementation of the remuneration policies and systems of the corporate bodies as well as the efficiency and effectiveness of the internal control mechanisms and report any shortcomings to the Audit, Control and Related Party Transactions Committee of the Company.

#### **46. Non-Audit Services carried out by the External Auditor**

As previously referred, in July 2022, it was approved the regulation on the provision of services by the Statutory Auditor or Statutory Audit Firm, which defines and promotes criteria and methodologies to safeguard the independence of the audit and non-audit services.

In accordance with such regulation, the Audit, Control and Related Party Transactions Committee closely follows the requests of non- audit services, each of which necessarily require the preapproval of this committee before its provision as per exposed in topic 29 of this Chapter 5 of the Annual Report and Article 8.A), b) of its Regulations.

The identification of such non- audit services that will eventually be provided by the External Auditors is performed under the rules issued by the European Union on this matter, in particular under Regulation 537/2014 and the Spanish Auditing Law nº 22/2015, of 20th

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July, as well as when applicable, in line with the particularities of the local regulations where the service is to be provided.

During 2023 the non-audit services provided by the External Auditor of EDP Renováveis S.A (PricewaterhouseCoopers Auditores, S.L) consisted mostly on i) limited review as of March 31, 2023, June 30th, 2023 and September 30th, 2023 of the EDPR Interim Consolidated information; ii) review of the internal control system on financial reporting for the EDPR Group; iii) review of the non-financial information related to sustainability included in the EDPR Group's annual report; and iv) access to a repository of international accounting standards as well as to the PwC Accounting Manual in digital version. Other non-audit services provided by the External Auditor or its network to EDPR's subsidiaries mainly refer to i) agreed-upon procedures related to the review of covenants in the context of bank financing agreements; ii) tax certificates in Greece according to ISAE 3000, iii) procedures for reviewing compliance with financing capacity in accordance with the criteria defined by the European Commission, within the framework of European Regulation 2021/2041, iv) average payment period for invoices to suppliers to comply with European subsidies for investment in the repowering of wind turbines and v) services in relation to compliance with the merger project of certain group companies.

PricewaterhouseCoopers Auditores, was engaged to provide the above-mentioned services due to its in-depth knowledge of the Group's activities and processes. These engagements did not risk their independence as External Auditors and were pre approved by the Audit, Control and Related Party Transactions Committee prior to rendering the services.

#### **47. External Auditor remuneration in 2023 for EDP Renováveis S.A. and subsidiaries**

| SERVICE                                         | EUROPE     | NORTH<br>AMERICA | LATAM    | APAC       | TOTAL      | %      |
|-------------------------------------------------|------------|------------------|----------|------------|------------|--------|
| Audit and<br>statutory au<br>dit of<br>accounts | 1,809,610€ | 2,194,907€       | 387,963€ | 1,008,660€ | 5,401,140€ | 94.68% |
| Other non<br>audit servi<br>ces                 | 283,049€   | 12,69€           | 8,075€   | -          | 303,733€   | 5.32%  |
| Total                                           | 2,092,659€ | 2,207,516€       | 396,038€ | 1,008,660€ | 5,704,873€ | 100%   |

The amount of other non-audit services in Europe includes among others, services that refer to the entire Group such as the review of the internal control system on financial reporting and review of the non-financial information related to sustainability included in EDPR Annual Report, which are invoiced to a European company. This amount also includes the limited review as of June 30th, 2023, of the EDPR Consolidated Financial Statements and other reviews for Group consolidation purposes which are considered non-audit services according to the respective local regulation.

Total amount for Europe includes 969,245 Euros of services provided by PricewaterhouseCoopers Auditores S.L. in Spain from which 693,197 Euros refer to audit services and 276,048 Euros refer to non-audit services.

# **C. Internal organisation**

## I. Articles of Association

#### **48. Amendments to the articles of association**

The amendments of the Articles of Association of the Company are of the responsibility of the General Shareholders' Meeting. According to Article 17 of the Company's Articles of Association ("*Constitution of the General Shareholders' Meeting, Adoption of resolutions*"), and article 9 of the General Shareholders' Meeting Regulations ("*Competences*"). In accordance with the applicable law, and the internal regulations, to validly approve any amendment to the Articles of Association, the Ordinary or Extraordinary Shareholders' Meeting will need:

- 
- 

• On first call, that the Shareholders either present or represented by proxy, represent at least fifty percent (50%) of the subscribed voting capital.

• On second call, that the Shareholders either present or represented by proxy, represent at least twenty-five percent (25%) of the subscribed voting capital.

In the event that the shareholders attending represent more than fifty percent (50%) of the subscribed voting capital, the resolutions referred to in the present paragraph will be validly adopted when reached absolute majority. If the shareholders attending represent between twenty-five percent (25%) and fifty percent (50%) – but without reaching it – the favorable vote of two-thirds (2/3) of the present or represented capital in the General Shareholders' Meeting will be required in order to validly approve these resolutions.

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In 2023, there were three amendments to EDPR Articles of Association:

On March 2nd, 2023, the Board of Directors, with the prior approval of the General Shareholders' meeting held on March 31st 2022, amended article 5 ("Share capital"), in order to align its contents with the execution of a share capital increase for a nominal amount of €254,842,000.00, to be implemented through the issuance of 50,968,400 ordinary shares of the Company, with a par value of €5 each (being the subscription price of €19.62 per share and the share premium of €14.62 per share) The resulting share capital of the company will be €5,057,632,810.

The Annual General Shareholders'Meeting held on April 4th, 2023, approved the amendment of the Articles of Association to reflect the creation of a new Environmental, Social and Corporate Governance Committee by introducing a new article 30 (Environmental, Social and Corporate Governance Committee) and the amendment to Articles 10 (Governing Bodies), 26 (Remuneration of Directors) and 29 (Appointments and Remunerations Committee) of the Company Bylaws.

On 25 May 2023, the Company increased its share capital by issuing new shares out of reserves, using the rights issued under the scrip dividend program. The decision to carry out this capital increase was taken on 2 May 2023 by the Board of Directors, with the prior approval of the General Shareholders' Meeting of on 4 April 2023. The nominal amount of the capital increase was EUR 62,257,695.00 and was carried out by issuing 12,451,539 new ordinary shares with a nominal value of EUR 5 each. As a result, article 5 ("Share capital") of the Articles of Association was amended, and the share capital is now 5,119,890,505€.

#### II. Reporting of irregularities

#### **49. Irregularities communication channels**

#### **Speak up channel**

EDPR has always carried out its activity by consistently impl[ementing measures t](https://www.edpr.com/en/speak-up)o ensure the good governance and the transparency of its companies, including the prevention of incorrect practices, giving voice to those who consider that certain conducts do not comply with ethical principles, legal provisions or internal regulations.

In this sense, EDPR believes that speaking openly about the concerns we have that relate to the way we act in the workplace is crucial for creating a good environment and increasing the psychological security of both individuals and teams.

With this goal, EDPR has the "Speak Up" channel, a global channel, which has been adapted according with the requirements of the Directive (EU) 2019/1937 on the protection of persons who report violations of EU law and also of the Spanish Law 2/2023 of February 20 regulating the protection of people who report regulatory infractions and the fight against corruption, that welcomes the reporting of alleged violations, either of the Code of Ethics, or of any legal issues - among which are those provided for in the Directive (EU) 2019/1937– as well as internal policies and regulations.

Additionally, in geographies where required by local laws, EDPR has specific Speak Up channels. Specifically, in Portugal and United Sates.

These channels are published on the official website available to all the employees and also to any interested party (https://www.edpr.com/en/speak-up).

An essential aspect of the reporting process is the protection of the whistle-blowers, who can also make denounces in an anonymous way. This commitment is predicated on full respect for the principle that anyone who uses the reporting methods in good faith and with justification will be protected from censure or retaliation.

Processes have been designed and implemented to ensure that the complaints are handled and managed with total security, independence, integrity and privacy. All information exchanged is kept confidential and secured against unauthorized access, so that personal data protection is assured.

In 2023, there were seventeen (17) claims submitted through the Speak up channel 13 of them were closed and the others 4are under analysis.

#### **Code of ethics**

EDPR has a strong commitment in relation to the dissemination and promotion of compliance with ethic guidelines and principles like transparency, honesty, integrity, nondiscrimination, equal opportunity, and sustainability, which is encouraged to all employees.

This commitment is faithfully reflected in the Code of Ethics which is reviewed and updated every two years to guarantee compliance with current legislation and the integration of the challenges that EDPR has, and may can come across. In this sense, the Code of Ethics has

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been reviewed and approved in October 2022 by the Ethics Committee and the Board of Directors of EDPR.

The Code of Ethics applies, regardless of functions, geographical location, or functional reporting to all employees of all EDPR companies. The employee's commitments set out in the Code are also applicable to proxies, as well as to agents and suppliers who are in any way empowered to act on behalf of EDPR.

Other suppliers are explicitly required to respect this Code, in accordance with the obligations arising from qualification procedures or signed contracts.

The Code of Ethics is an "action guide" reflecting the way EDPR believes one should work, therefore its enforcement is inevitably mandatory. and employees who do not comply with this Code should be subject to disciplinary actions under the terms of the applicable regulations. The Code is a privileged tool that helps to "do what we have to do well".

The Code of Ethics is published on the corporate website (https://www.edpr.com/en/edpr/ethics-compliance) and there is also a digital version available in the intranet. Annually all employees, including new hires, declare thatthey have received, read, and understood the EDPR Code of Ethics, and they agree to comply with its provisions.

Likewise, this Code has been, in 2023, widely circulated to the employees of the Group through communication initiatives where the most relevant aspects of the Code of Ethics are disseminated. In this sense, new hires receive a specific training on introduction to the Code of Ethics called "*Let's live our Code of Ethics". Additionally, in 2023, specific training actions have been developed with the members of EDPR Board Directors and all of them have received the most relevant trainings on ethics and compliance, including the training on introduction to the Code of Ethics ("Let's live our Code of Ethics").* 

In order to support and achieve the Ethics Code and Ethics commitments and initiatives, and with the aim of minimizing the risk of unethical practices, generating transparency and trust in relationships, EDPR has also approved and implemented the following initiatives in the last years:

In 2021, EDPR decided to review organization and functioning of its Ethics Commissionand as consequence, a new Ethics Committee was created with the following goals:

- 
- 
- 
- 

• Ensure independence from executive management.

• Decrease the number of members for more efficient operation.

• Allow the analysis and decision on ethical complaints in a more restricted context.

• Allow more participatory debates on structuring Ethics themes, as well as on the annual Ethics Plan and its regular follow-up.

In 2023, the regulation of the Ethics Committee was updated and, having in consideration the Code of Ethics and the obligations imposed by the EU Directive 2019/1937 on the protection of persons who report breaches of the Union Law, the following functions were defined:

• The assumption of the position of Responsible of the Internal Information System, as a collegiate body, in charge of ensuring its proper management.

• To appoint the Compliance Officer as designated person for the management of the Internal Information System for the purposes of notifications and dialogue with the publics authorities competent in the matter.

• To establish guidelines for complying with the Code of Ethics.

• To propose to the Board of Directors multi-annual Ethics Programs and the relevant annual Plans prepared by the Compliance Area and the Ethics Ombudsperson.

• To appraise the quarterly Reports on the implementation of the Group's annual ethics plans prepared by the Compliance area and the Ethics Ombudsperson or other elements

• To review the cases of infraction of the Code of Ethics instructed by the Ethics Ombudsperson with the support of the teams that manage complaints at EDPR and to

• To issue recommendations, when requested by any of the management bodies of the companies that make the EDPR Group, on practices or codes of conduct in the fields of ethics or deontology, developed within the framework of specific, legal, or regulatory

- 
- 
- 
- 
- on ethical performance.
- issue a binding opinion thereon.
- needs.
- Directors for approval.
- 

• To continuously ensure that the Code of Ethics and the procedures deriving from it are appropriate to the needs of the EDPR Group and to promote reviews of that document, at least every two years, duly supported by a review report to be sent to the Board of

• To make the Board of Directors aware of the annual report on the actions undertaken by the Ethics Committee in the exercise of its powers.

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In this sense, the current Ethics Committee is composed by:

- I. The Chairperson of the Appointments and Remunerations Committee, who shall chair the Committee.
- II. The Chairperson of the Audit, Control, and Related Party Transactions Committee.
- III. The Ethics Ombudsperson.
- IV. The Compliance Officer.
- V. The Human Resources Director.
- VI. The General Counsel & Compliance of EDPR North America LLC.
- VII. The Secretary of the Board of Directors, who shall also perform the duties of the Secretary of the Ethics Committee meetings.

**Ethics Ombudsperson:** receives complaints and doubts submitted through the Speak Up Channel and investigates and documents the procedure for each of them, with guaranteed confidentiality in relation to the identity of the claimant. The appointment for this position is made by the Appointments and Remunerations Committee and approved by the Board of Directors.Its main functions are therefore as follows:

- To be an independent, impartial listener, respecting confidentiality, and anonymity, at the disposal of those who seek him/her to clarify any situations on allegedly ethical grounds, bearing in mind the framework and the provisions of the EDPR Code of Ethics.
- To receive communications of an ethical nature and, where appropriate, to instruct, document and submit the respective ethical infraction processes to the Ethics Committee.
- To monitor each of the infraction proceedings, until their adjournment, establishing, whenever necessary and appropriate, the liaison with the complainant.
- To regularly promote, jointly with the Compliance Area, initiatives with the areas of the Group that are the subject of complaints, to improve procedures and practices that will enable future complaints to be avoided and especially, to promote behavior that is more in line with the EDPR Code of Ethics.
- Prepare with the Compliance Area initiatives to be included in the Compliance and Ethics Programmes and Annual Plans.
- To advice the Ethics Committee regarding strengthening the consistency of the Group´s Ethic Policy.
- To annually report on the activity with the scope of their assigned function.

• To annually review and update the procedure for managing all contacts addressed to

them.

Since January 2019, the Ombudsperson of EDPR is Maria Manuela Casimiro da Silva.

**Other activities:** In 2023, with the goal of reinforcing the ethics culture, EDPR has launched different communication campaigns to all the employees. Specifically, a new initiative was developed called "The Energy of Ethics" where monthly different directors and leaders of all the Group have launched important messages in relation with the topics of the Code of Ethics through videos on the Intranet. As every year, the Global Ethics Day (October 18th) was celebrated and different initiatives were performed as: publication of news on the intranet, videos with messages from the Ethics Ombudsperson r, different posts on ethics themes in the internal tools (Viva Engage) and a talk about the importance to develop a Speak Up culture in the organization was took place with a known speaker specialist on the subject. Additionally, in 2023, in the context of the biennial study "Employee's view on Ethics at EDP", an ethics survey was launched to all the employees with the goal to know the perception of the employees on ethics matters and learn more about the evolution of ethical environment in EDP.

# III. Internal Control and Risk Management

#### **50. Internal Audit**

EDPR's Internal Audit Department ("IAD") is composed by eleven (11) members.

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.

The Internal Audit department has the mission of enhance and protect organizational value by providing risk-based and objective assurance, advice and insight, covering the following areas of activity:

• Evaluate and issue recommendations to improve the Company's governance

- processes.
- 

• Assist the organization to improve risk management processes and maintaining effective controls by evaluating their effectiveness and efficiency and by promoting

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continuous improvements covering the governance, operations and information systems of the organization, regarding to:

- I. Achievement of the organization's strategic objectives.
- II. Reliability and integrity of financial, non-financial and operational information.
- III. Effectiveness and efficiency of operations and programs.
- IV. Safeguarding assets.
- V. Compliance with laws, regulations, policies, procedures and contracts.

The Internal Audit services can be divided into two categories: assurance services and consulting.

- Assurance services consist in objective analyses of evidence to provide an independent assessment of the organization's governance, risk management, and control.
- The consulting services performed at the specific request of the Company Governing Bodies or of any of its Officers. They consist of advisory activities and related services designed to add value and improve the organization's governance, risk management, and control processes without the internal auditor assuming any management responsibility.

The fulfillment of these objectives aims to reduce the risks in pursuing the activity and increase the creation of value for the Group. Therefore, approaches based on a proactive view of internal control measures geared to the relevant risks must be taken, making them a relevant support tool for management.

The IAD is not an executive body of EDPR, so it has no power in making management decisions in the Group's activities, nor any hierarchical or functional link with the audited units, thus maintaining a relationship of total independence and objectivity in relation to them. This positioning makes it possible to achieve the following objectives:

- Ensure the independence of the Internal Audit activity and fulfils its responsibilities.
- Ensure objectivity in obtaining the conclusions of work carried out and the resulting recommendations, as well improvement actions to be implemented.

As such, the Internal Audit, in development of its function, should be an instrument to support management with proactive view of internal control systems. In this sense, the collaboration of the entire Organization is essential to achieve the objective set.

The Internal Audit Department, as well as all professionals assigned to this function, will govern their performance by Internal Audit Standard, the Fundamental Principles for the Practice of Internal Auditing, the Code of Ethics and the International Standards for the Professional Practice of Internal Audit approved by The Institute of Internal Auditors (IIA).

The functions of the Internal Audit Department of EDPR were evaluated by the "Instituto de Auditores Internos" for the first time in 2020, obtaining the highest qualification.

#### **51. Organisational structure of Internal Audit**

The Internal Audit function in the EDPR Group is a corporate function, carried out by the Internal Audit Department (IAD), which has administrative dependence to the CEO of EDPR and functional dependence to the Audit, Control and Related Parties Committee which supervise the activities and to which Internal Audit activities are reported.

#### **Administrative Dependence**

In terms of the IAD's administrative dependence to the CEO of EDPR, the CEO of EDPR shall:

Create adequate information flows that allow IAD to keep up to date on the company's

activities, plans and initiatives.

- Support the internal audit function, positioning the IAD at an appropriate level within the EDPR's organization.
- Facilitate direct and open communication to the EDPR Group's Management and Administration bodies.
- Provide the appropriate technical, human, financial and information-gathering means that enable the IAD to fulfill its functions, in accordance with the approved Audit Plan.
- Request assurance and consultancy projects from IAD that it deems necessary considering the Organization's objectives and risks.
- Approve, annually, in coordination with the Audit, Control and Related Party Transactions Committee, the IAD Audit Plan, based on the EDPR's risk matrix and the Basic Standard for Internal Audit.
- Approve, whenever applicable, in coordination with the Audit, Control and Related Party Transactions Committee, the remuneration of the IAD Director and the process of his/her appointment, evaluation and removal.
- Assess the activity and performance of the IAD and the adequacy of working conditions, namely in terms of human resources and technical and financial means, checking if

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—
—

there are limitations or interferences within the scope of the Internal Audit function or its budget that may make it impossible to IAD to fulfill its responsibilities.

• Overseeing the effectiveness of the internal audit systems and, if necessary, proposing improvement measures.

#### **Functional Dependence**

In terms of the IAD's functional dependence to the Audit, Control and Related Party Transactions Committee, the Audit, Control and Related Parties Committee should:

- Approve, annually, in coordination with the CEO of EDPR, the IAD Audit Plan, based on the EDPR's risk matrix and the Basic Standard for Internal Audit. In this context, also approve the human and financial resources to be made available by EDPR to the IAD.
- Approve, in coordination with the CEO of EDPR, the remuneration of the IAD Director and the process for his/her appointment, evaluation and removal.
- Receive communications and individual reports and conclusions, issued by IAD, on the activity developed by IAD.
- Assess the activity and performance of the IAD and the adequacy of working conditions, namely in terms of human resources and technical and financial means, checking if there are limitations or interferences within the scope of the Internal Audit function or its budget that may make it impossible to IAD to fulfill its responsibilities.
- Overseeing the effectiveness of the internal audit systems and, if necessary, proposing improvement measures.

The functions of the Audit, Control and Related Party Transactions Committee regarding to Internal Audit are defined in its Internal Regulation.

The articulation between EDPR Internal Audit and EDP Internal Audit is carried out through the Functional Reporting of the EDPR Internal Audit Director to the EDP Internal Audit Corporate Director, in which the associated management function includes the promotion and harmonization of work policies and methodologies, the management of action plans and reporting activities to EDP Internal Audit Director.

#### **52. Risk Management**

EDPR's Enterprise Risk Management Process is an integrated and transversal management model that ensures the minimization of the effects of risk on EDPR's capital and earnings, as well as the implementation of best practices of Corporate Governance and transparency. The process aligns EDPR's risk exposure with the company's desired

risk profile.

The Enterprise Risk Management Framework was approved in 2016, in accordance with the guidelines agreed at its Board of Directors level. Based on this risk framework, the Company developed a Risk Management System through individual risk policies and procedures for most relevant risks, where it is defined the methodology to calculate probability of occurrence and impacts, as well as mitigation measures and thresholds. In addition, these risk policies and procedures establish the process for control, periodic evaluation, and eventual adjustments. The approvals necessary to proceed with this system are submitted to the Management Team, which will inform the Board of Directors of the progress. Likewise, the Risk Management System is closely followed and supervised by the Audit, Control and Related Party Transactions Committee, an independent supervisory body composed of non-executive members that reports to the Board of Directors, in charge, among others, of the monitorization of the compliance and progresses of the Risk Management Plan and possible improvements to the measures and controls for mitigating potential risks identified within EDPR.

Risks that fall under the Energy Market, Financial, Strategic, Counterparty, Operational and ESG categories are identified, and their impacts regularly evaluated and checked against limits established by Risk Policies which are defined and implemented across the Company, with the aim of mitigating risks without compromising potential business opportunities, thus optimizing return versus exposure.

In 2023, following both external and internal assessments carried out on the maturity of its ERM Framework, EDPR reviewed its Risk Taxonomy and made some additional updates to its Enterprise Risk Management Framework, in order to act on the audits' recommendations and further strengthen its risk governance, policies and procedures. The revised ERM Framework and the new Risk Taxonomy, which now includes a specific section dedicated to ESG Risks, were approved during the second half of 2023.

Also, during 2023, an historical analysis was performed on the profitability of EDPR's projects at the time of approval, to understand how the different profitability risk metrics for the portfolio have evolved in the last decade and to provide higher visibility on the riskreturn relationship, at approval, for different technologies and geographies. Slight changes in methodology were proposed and a set of recommendations were issued to further improve resilience of current profitability risk metrics being used.

Additionally, during the year, a deep dive on EDPR's historical and projected structural merchant exposure was performed, to understand how future capacity additions could

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impact the company's desired long term risk profile. The analysis provided insights on current trends, how average contracted life of EDPR's assets is evolving and offered recommendations to ensure exposure is aligned with the company's desired risk profile for the following years.

Another risk initiative developed throughout 2023 is related to the review of EDPR's Net Investment FX Risk strategy, which aims to mitigate the potential impact of exchange rate movements in the Group's net assets denominated in foreign currency. A thorough review of the methodology was carried out and adjustments were made to better align the Net Investment Strategy with EDPR's Business Plan and desired risk profile, while seeking out the optimization of the risk-return trade off.

Also in 2023, EDPR reassessed its internal Operational Risk, executing a bottom-up analysis across all departments, while also relying on historical data. The analysis provided an updated visibility on the main operational risks impacting the company, how they have evolved over time and whether they could be seen as representative for the future, as EDPR implements its current Business Plan.

Likewise, throughout the year, other specific analyses were carried out, covering different subjects:

- Task Force on Climate-Related Financial Disclosure (TCFD): Review of current process for annual assessment of climate risks and their impacts on the company's performance, while issuing some recommendations to further improve resilience of current disclosures under the ESG Risk management pillar.
- Counterparty Risk Policy: Overview of the current policy and its limits implemented at EDPR, with proposed amendments to better align them with current company and market reality.
- DG Community Solar: Deep-dive analysis on the risk profile of the DG Community Solar business in the US vs other DG opportunities, while recommending mitigation measures to align exposure with desired risk profile.
- Country risk: Detailed annual assessment of country risk for those geographies in which EDPR is currently present and for those that could potentially be part of EDPR's portfolio.

Finally, during 2023, a comprehensive series of trainings were performed across the organization to reinforce EDPR's risk culture and promote awareness of risk management topics among its employees. Main trainings carried out throughout the year were as follows:

• Counterparty Risk: Reinforce the importance of the topic in EDPR and the main fundamentals on how to manage it. Training was provided to the Procurement, Purchasing, Origination and M&A teams, across all platforms.

• Operational Risk: Present the results of the Operational Risk analysis carried out in 2023, including main conclusions and recommendations. Training was provided to all senior

• Profitability and FX Risk: Overview of risk metrics and sensitivity analyses performed on FX and project profitability for investment approval. Training was provided to the M&A

- 
- management of the company.
- teams across all platforms.
- 
- 

• Business Continuity and Crisis Management: Detail Crisis Management Policy, processes, and procedures, while reinforcing importance of employees' awareness to prevent crises. Training was provided to all employees in the company.

• Commodities Risk: Overview of main raw materials indexes and their liquidity and how to project future prices for cost estimations. Training was provided to the Procurement, Purchasing and Storage teams in Europe, LATAM and NA.

Some of these trainings have been incorporated in EDPR's knowledge catalogue and will be provided on a recurrent basis to maintain the level of risk awareness and promote a risk culture across the company.

#### **53. Risk Map**

Risk Management at EDPR is focused on covering all risks of the company. In order to have a holistic view of risks, they are grouped in Risk Categories, which are Energy market, Financial, Strategic, Counterparty, Operational and ESG. The definition of Risk Categories at EDPR is as follows:

- 
- 
- 

• **Energy Market Risk** – It refers to the risk to EDPR resulting from movements in market prices. Due to the relationship between wind and solar production and energy price, production risk is considered within market risk. Moreover, liquidity risk is also included due to its relationship with extreme changes in energy prices.

• **Financial Risk** - It refers to risks affecting EDPR's ability to fulfil its financial obligations due to movements in the financial markets. It includes movements in Interest Rates, Exchange Rates (FX), Inflation and Commodity prices. It also includes Capital Gains risk, due to the importance of EDPR's asset rotation strategy in its business.

• **Strategic Risk** – It refers to risks coming from macroeconomic, political, social, or environmental situation in geographies where EDPR is present, as well as those coming from a change in competitive landscape, from technology disruptions, or from supply

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---

chain issues. Investment Decisions criteria and Reputational issues also fall under this category.

- **Counterparty Risk** (credit and operational) Risk that a counterparty to a transaction could default before final settlement of the transaction's cash flows. A direct economic loss would occur if transactions with the counterparty had positive economic value at the time of default. Even in the case of not defaulting, it may not comply with its contract obligations (timing, quality, etc.), implying additional higher costs due to its replacement or to delays in fulfilling the contract.
- **Operational Risk** (other than counterparty) Defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events (such as an increase in equipment default rates, increasing O&M, or natural disasters), including the effect of a loss created by not being able to ensure business continuity.
- **ESG Risk** It refers to risks related with Environment, such as Climate change or Circular economy; Social, such as Communities or Health & Safety, and Governance, which includes risks related to Corporate Governance or Business Ethics. They help define a set of standards for a company's behavior used by socially conscious investors to screen potential investments.

Within each Risk Category, risks are classified in Risk Groups.

#### **1. Energy Market Risk**

#### 1. i) Energy price risk

EDPR faces limited energy price risk as it pursues a strategy of being present in geographies with long -term visibility on revenues. In most countries where EDPR is present, prices are determined through regulated framework mechanisms. In those countries with no regulated tariffs, power purchase agreements are negotiated with different off takers to eliminate price risk from Electricity and Environmental attributes (Green Certificates, Guarantees of Origin or RECs- Renewable Energy Certificates).

Despite EDPR's strategy of minimizing market price risk, EDPR still has some plants with merchant exposure.

In Europe, EDPR operates in countries where the selling price is defined by a feed-in-tariff (Portugal and France) or a contract for differences remuneration scheme (Italy, Hungary, UK or Greece). EDPR also operates in markets where, on top of the electricity price, it receives either a pre-defined regulated premium or a green certificate, whose price is achieved on a regulated market (Spain, Belgium, Poland or Romania).

In countries with a predefined regulated premium or a green certificate scheme, EDPR is exposed to energy price fluctuations.

Considering current Power Purchase Agreements (PPAs) in place, EDPR is exposed to energy price risk in Romania, in Poland, in Belgium, in Netherlands and partially in Spain. Additionally, in European countries with a green certificate scheme (Romania, Belgium and Poland), EDPR is exposed to fluctuation on the price of green certificates.

The US market does not provide a regulated framework system for the electricity price. Nevertheless, renewable generation is incentivized through PTCs (Production Tax Credits) and regional Renewable Portfolio Standard (RPS) programs that allow receiving RECs for each MWh of renewable generation. REC prices are fairly volatile and depend on the regional supply/demand equilibrium in the relevant market.

Most of EDPR's capacity in the US has predefined prices determined by bundled (electricity + REC) long-term contracts with local utilities or C&Is, in line with the Company's policy of minimizing energy price risk. Despite existing long-term contracts, some EDPR's plants in the US do not have PPA and are selling merchant with exposure to electricity and REC prices. Additionally, some plants with existing PPAs do not sell their energy where it is produced and are therefore exposed to basis risk (difference in price between the location where energy is produced and that where that energy is sold).

In Ontario (Canada), the selling price is defined by a long-term feed-in-tariff, thus, there is no energy price exposure.

In Brazilian, Colombian and Chilean operations, the selling price is defined mainly through a public auction which is later translated into a long-term contract. Energy price exposure is limited, with reduced exposure for the production above or below the contracted production.

In APAC, EDPR operates in markets where the selling price is defined by a feed-in-tariff (Vietnam, Japan, Malaysia and Taiwan) or through Power Purchase Agreements (Singapore, Cambodia, China, Malaysia, Indonesia, Korea and Thailand).

Under EDPR's global approach to minimize the exposure to market energy prices, the Company evaluates on a permanent basis, if there are any deviations to the pre-defined limits (measured through EBITDA at risk, Net Income at risk and total merchant exposure).

EDPR aims to minimize Environmental Attributes price risk with the signing of bundled PPAs with private off takers, which include the sale of the electricity and the Green

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Certificates, Guarantees of Origin or RECs. In some cases, the off taker may be interested in contracting only the Green Certificate or the REC, thus a GCPA (Green Certificate Purchase Agreement) or a RECPA (REC Purchase Agreement) is signed.

In those geographies with remaining merchant exposure, EDPR uses various commodityhedging instruments in order to minimize the exposure to fluctuating market prices. In some cases, due to the lack of liquidity of financial derivatives, it may not be possible to successfully hedge all existing merchant exposure, after considering PPAs in place.

As aforementioned, some US plants have exposure to REC price risk and/or basis risk (difference in electricity price between locations). EDPR hedges REC prices through forward sales and basis exposure through financial swaps or FTR (Financial Transmission Rights).

#### 1. ii) Energy Production Risk

The amount of electricity generated by EDPR's renewable plants is dependent on weather conditions, which vary across locations, from season to season and from year to year.

Variation on the amount of electricity that is generated affects EDPR's operating results and efficiency.

Not only the total wind or solar production in a specific location is relevant, but also the profile of production. Wind usually blows more at night than at daytime, and the opposite for solar, with each technology capturing a different price. Generation profile will affect the discount or add-on in price of a plant versus a baseload generation.

Finally, curtailment of a plant will also affect its net production. Curtailment occurs when the production of a plant is stopped by the TSO (Transmission System Operators) for external reasons to the Company. Examples of cases of curtailment are upgrades in transmission lines or exceptional congestion (high level of electricity generation for available transmission capacity).

EDPR mitigates wind and solar resource volatility and seasonality through geographical diversification of its asset base in different countries and regions.

EDPR acknowledges the correlation between different plants in its portfolio that allows for this geographical diversification, which enables EDPR to partially offset production variations in each region and to keep the total energy generation relatively steady. Currently, EDPR is present in 28 international markets: Belgium, Brazil, Cambodia, Canada, Chile (No generation), China, Colombia (No generation), France, Greece, Germany (no generation), Hungary (no generation), Indonesia, Italy, Japan, Malaysia, Mexico, Netherlands (No generation), Poland, Portugal, Romania, Singapore, South Korea (No generation), Spain, Taiwan, Thailand, UK, US and Vietnam.2023 was a year with actual generation below the one initially forecasted, mainly due to the effects of the El Niño phenomenon. EDPR continues to analyse the potential use of financial products to hedge wind volume risk and might use this product in future years to mitigate risk in specific cases.

Profile risk and curtailment risk are managed ex-ante. For every new investment, EDPR factors the effect that expected generation profile and curtailment will have on the output of the plant. Generation profile and curtailment of EDPR's plants are constantly monitored by EDPR's Risk department to detect potential future changes.

1. iii) Liquidity risk

Liquidity risk is the risk of EDPR not meeting its financial obligations. Liquidity risk is mainly related to extreme market movements in energy prices, interest rates, exchange rates or credit markets, which may change the expected cash flow from revenues, OPEX, margin calls or funding (due to credit downgrades).

EDPR tracks liquidity risk in the short term (margin calls, etc.) and in the long term (financing sources) in order to meet strategic targets previously set (EBITDA, debt ratio and others).

EDPR's strategy to manage liquidity risk is to ensure that its liquidity is sufficient to meet financial liabilities when due, under both normal and stressed conditions, and without incurring unacceptable losses or risking damage to EDPR's reputation.

Different funding sources are used such as Tax Equity investors, commercial banks, multilateral organizations, corporate debt and asset rotation in order to ensure long-term liquidity to finance planned projects and working capital.

The Directors have estimated cash flows that show that the Group will meet the commitments existing at the close of the 2023 financial year and those foreseen for 2024.

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#### **2. Financial Risk**

#### 2. i) Interest Rate Risk

Given the policies adopted by EDPR Group, current exposure to variable interest rate is not significant and financial cash flows are substantially independent from the fluctuation of interest rates.

The purpose of interest rate risk management policies is to reduce the exposure of longterm debt cash flows to market fluctuations, mainly by contracting long term debt with a fixed rate.

When long-term debt is issued with floating rates, EDPR settles derivative financial instruments to swap from floating to fixed rate.

EDPR has a portfolio of interest-rate derivatives with maturities of up to 15 years. Sensitivity analyses of the fair value of financial instruments to interest-rate fluctuations are periodically performed.

With most of interest rates being fixed, main exposure to interest rates arises at refinancing. To protect against this risk, EDPR intends to maintain a balanced maturity profile for its corporate fixed debt, thus, diversifying the risk of bad timing when refinancing occurs. Repricing calendar of debt is continuously monitored together with interest rates in order to detect good timing for restructuring debt.

Additionally, Risk and Finance teams regularly perform analyses on the possibility of carrying out pre-hedging of interest rates, in order to identify potential opportunities to further mitigate this risk.

During 2023, the EUR-denominated pre-hedges carried out in the previous year were applied to new debt raised by EDPR during the year. As for the USD-denominated prehedges, they were unwound due to the optimization of the EUR/USD position, following the review of EDPR's Net Investment Hedge strategy.

Taking into account risk management policies and approved exposure limits, Global Risk Area supports the Finance team in interest rate hedging decisions and the Finance team submits the appropriate financial strategy to each project/location for Management Team 's approval.

#### 2. ii) Exchange Rate Risk

As a global company present in almost 30 different markets, EDPR is exposed to the exchange-rate risk resulting from investments in foreign subsidiaries. Under construction and operating plants can have currency exposure to the US dollar, Romanian leu, Polish zloty, Brazilian real, British pound, Canadian dollar, Hungarian forint, and Colombian peso. In APAC, main FX exposure comes from Singaporean dollar, Chinese renminbi, and Taiwanese dollar, with relatively small exposure to other southeast Asian currencies. In addition, EDPR has also a marginal fiscal exposure to MXN due to its Mexican assets.

EDPR hedges risk against currency fluctuations by procuring financing in the same currency as the revenues of the project. When local financing is not available, EDPR hedges debt cash flows though cross currency interest rate swaps.

EDPR also hedges its net investment (investment after deducting local debt obligations) in foreign currency through cross currency interest rate swaps and forward instruments.

Finally, EDPR contracts foreign exchange forwards to hedge the risk for specific transactions, mainly in payments to suppliers which may be denominated in different currencies than the projects' revenues, and also to hedge proceeds from Asset Rotation deals.

EDPR's hedging efforts minimize exchange rate volatility, but do not completely eliminate this risk due to the high costs associated to hedging FX in certain situations.

2. iii) Inflation Price Risk

In certain geographies, regulated remuneration is linked to inflation. Additionally, O&M costs are considered to be linked to inflation in most cases.

Exposure to inflation in revenues may be naturally hedged with exposure to interest rates. EDPR regularly analyses inflation exposure and its relationship with interest rates to adjust the level of interest rate coverage in project finance structures.

Exposure to inflation in O&M costs for each project is managed at the moment of the investment decision, by carrying out sensitivity analyses on the evolution of O&M costs.

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#### 2. iv) Commodity Price Risk (other than energy)

In projects in which there is a significant time lag between investment decision and the start of construction, EDPR may be exposed to the price of the materials used in turbine, solar panel and battery manufacturing, foundations, and interconnection, through escalation formulae included in the contracts signed with suppliers.

In order to manage this risk, EDPR may hedge the market exposure in OTC/future commodity markets, considering the risks (potential impact on project profitability) and the cost of the hedge.

#### 2. v) Capital Gains Risk

Risk of depreciation in the value of assets being considered for sale, due to changes in market conditions such as exchange rates, interest rates, energy prices or inflation, among others.

To manage this risk, EDPR tries to mitigate the impacts of the abovementioned effects by hedging its exposure, whenever possible, while also performing sensitivity analysis on the estimated amount of capital gains from Asset Rotation transactions, resulting from changes in market variables.

Additionally, EDPR maintains a diversified portfolio of projects in terms of geographical location, technology and risk profile and is constantly reassessing its Asset Rotation strategy, with the aim of extracting the highest value out of its projects.

#### **3. Strategic risk**

#### 3. i) Country Risk

Country Risk is defined as the probability of occurrence of a financial loss in a given country due to macroeconomics, political or natural disasters. EDPR has defined a Country Risk Policy that assesses country risk through an internal scoring based on publicly available data. This internal scoring is compared with external assessments from renowned entities. Each risk factor affecting country risk is evaluated independently to decide on potential mitigating actions:

• **Macroeconomic Risk:** risks from the country's economic evolution, affecting revenue or cost time of the investments.

• **Political Risk:** all possible damaging actions or factors for the business of foreign companies that emanate from any political authority, governmental body or social group

- in the host country.
- 

• **Natural disaster Risk:** natural phenomena (seismicity, weather) that may impact negatively in the business conditions.

Before approving a project in a new geography, EDPR analyses the risk of the new country and compares it to its existing portfolio. Mitigation measures may be decided when this risk is above a certain threshold.

In addition, EDPR uses a Security risk index to rank countries from a security and safety standpoint, establishing mitigation measures for employees when above a pre-defined threshold.

3. ii) Regulatory Risk (renewables)

The development and profitability of renewable energy projects is subject to policies and regulatory frameworks. The jurisdictions in which EDPR operates provide different types of incentives supporting energy generated from renewable sources.

Remuneration schemes have become less competitive in some countries due to inflationary pressures affecting supply chains and construction costs, and it cannot be guaranteed that current support will be maintained in all EDPR's geographies or that future renewable energy projects will benefit from current support measures. Regulation promoting green energy has been revised or is under revision in some of the countries where EDPR is present.

In 2023, the conflict between Ukraine and Russia continued influencing electricity prices, particularly in Europe, which led the EU to maintain the emergency cap on gas prices. Some countries, like Spain, Poland or Romania also implemented their own cap measures and kept them in place throughout the whole of 2023, with the aim of limiting electricity prices.

EDPR is managing its exposure to regulatory risks through diversification, by being present in several countries and through participation as an active member in several wind and solar associations.

Regulatory Risk in each of EDPR's countries is monitored continuously, considering current regulation, potential drafts of new laws, feedback from associations, evolution of installed renewable generation capacity and other inputs. EDPR has developed an internal

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quantitative assessment of Regulatory Risk that serves as an indicator for changes in supporting schemes. This measure is updated regularly in all EDPR´s geographies.

Regulatory Risk is also considered ex-ante, at the moment of the investment, through sensitivity analyses that are performed to evaluate its impact in project profitability under different scenarios.

3. iii) Competitive Landscape Risk

In the renewables business, size can be an advantage or disadvantage in specific situations. For example, in development of renewable projects, small and dynamic companies are usually more competitive than larger companies.

On the other hand, when participating in tender processes for offshore wind farms, the size of the investment benefits larger companies.

Additionally, the consequences of a change in the competitive landscape due to mergers and acquisitions may also be a risk.

To mitigate the risks stemming from the competitive landscape, EDPR has a clear knowledge of its competitive advantages and tries to leverage on them. When EDPR has no advantage versus its competitors, alternatives are considered in order to become competitive. For example, for offshore wind farms, EDPR has partnered with large companies with previous experience in large electricity generation projects, in order toform a more competitive consortium.

3. iv) Technology Disruptions Risk

Most renewables are relatively recent technologies, which are continuously evolving and improving efficiency. As such, some initially expensive technologies can become competitive in a relatively short time.

EDPR growth focuses in the most competitive renewable technologies at the moment, which are onshore wind, offshore wind, solar PV and Distributed Generation, but also participates in other innovative projects such as floating offshore wind, batteries development or green hydrogen.

3. v) Investment Decisions Criteria and Energy Planning

Not all projects have the same risk profile. This will depend on the duration of the fixed remuneration, the amount of merchant exposure, construction risk, etc.

In order to take proper business decisions, EDPR uses Risk Adjusted Metrics for investment decisions, which take into consideration the different risks inherent to each project.

Assumptions in future evolution of energy markets affect the profitability of the investments for the period after the fixed remuneration is over (regulated tariff or PPAs). Structure of electricity markets in most of EDPR geographies (marginal setting price) were not designed to consider a great share of generation from renewable sources with zero marginal price. Thus, the increase in renewable generation could lead to lower pool prices in medium term if reforms of electricity markets are not properly undertaken.

When investing, EDPR performs sensitivity analyses to stress pool price scenarios for the period without fixed remuneration to understand the robustness of the profitability of the investment.

3. vi) Supply Chain Risk

Price of equipment is affected, not only by market fluctuations of the materials used, but also by the demand of this equipment or a possible increase in trade tariffs and levies.

For every new project, EDPR secures the demand risk by engaging in advance with manufacturers, elected through a competitive process.

The demand for new plants may offset the offer of equipment. Currently, the local component requirement in some geographies (ex: Brazil) may create this shortfall situation. In the event of a trade war, supply chain of equipment suppliers may be affected, creating further imbalances in local component requirements.

EDPR currently faces limited risk to the availability and price increase of equipment after project investment approval, due to existing framework agreements with major global suppliers. The Company uses a large mix of suppliers in order to diversify its equipment supply risk. For geographies with specific requirements of local content, EDPR typically does not engage in a project before securing the supply of that equipment. This risk is further explained on EDPR's annual report due to its current relevance to the business.

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#### 3. vii) Reputational Risk

Companies are exposed to public opinion and today's social networks are a rapid means to express and propagate particular opinions. A bad reputation could eventually harm financial results of a company in the short and in the long term.

To address and mitigate reputational risk, EDPR is committed not only in building a better future, but also in doing it the right way, in an ethical and sustainable manner, complying with legal requirements, following best practices, and creating awareness and providing trainings to its employees.

#### **4. Counterparty Risk**

#### 4. i) Counterparty Credit Risk

If the transactions or portfolio of transactions with the counterparty has a positive economic value at the time of default, an economic loss would occur.

To control credit risk at EDPR, thresholds of Expected Loss and Unexpected Loss are established at company level as defined under Basel Standards and re-evaluated monthly. If the threshold is surpassed by the company as a whole, mitigation measures are implemented in order to remain within the pre-established limit.

Additionally, Expected Loss limits are established for each individual counterparty or Group of counterparties (parent and subsidiaries).

#### 4.ii) Counterparty Operational Risk

If the transactions or portfolio of transactions with a counterparty do not have a positive economic value at the time of default, it will still impact operations. Despite no direct loss at the time of default, the replacement of the counterparty could imply a cost to EDPR due to potential delays, higher contract value with a new counterparty (replacement costs), etc.

Suppliers, Construction and O&M subcontractors are counterparties to which EDPR is exposed from an operational point of view.

To minimize the probability of incurring in potential replacement costs with third parties, EDPR´s policy concerning counterparty operational risk is managed by an analysis of the technical capacity, competitiveness, credit quality and replacement cost of the counterparty.

#### **5. Operational Risk**

5. i) Development Risk

Renewable plants are subject to strict regulations at different authority levels (international, national, state, regional and local) relating to the development, construction, grid interconnection and operation of power plants. Among other things, these laws regulate landscape and environmental aspects, building licenses, land use and land securing and access to the grid issues.

While permitting processes might be different depending on the geographies, EDPR acknowledges a trend for legislations to align towards concentrating the most restrictive rules and development risks on the consenting (environmental and urban permissions) and interconnection (electricity connection of the plant to the national grid).

In this context, EDPR's experience gathered in different markets is useful to anticipate and deal with similar situations in other countries.

During the development and design phase, EDPR focuses on the optimization of its projects. By mastering the variables, such as choice of locations, layout, etc., the objective is to make the projects more resilient to permitting risks.

Additionally, EDPR mitigates development risk by generating optionality, with development activities in 28 different markets and a portfolio of projects in several stages of maturity. EDPR has a large pipeline of projects that provide a "buffer" to overcome potential delays in the development of prioritized projects, ensuring growth targets and being able to compensate permitting delays in some geographies.

5. ii) Construction Risk

During the construction of the foundations, interconnection and substation of a plant, and the installation of the equipment, different events (bad weather, accidents, etc.) might occur that could imply an over cost or a delay in the commercial operation date of the plant:

• The delay implies a postponement of cash flows, affecting profitability of the investment.

• When a plant has a PPA, a delay of the commercial operation date might imply the payment of Liquidated Damages (LDs), with the consequent loss of revenues and the

- 
- impact on annual financial results.

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During the design phase, EDPR's technical and engineering teams supervise the engineering and the installation method. Construction is subcontracted to technically capable construction companies.

In both cases, a critical path analysis is performed to assess the reliability of the construction and installation plan. Also, collaterals may be required to the counterparties providing the construction services, following EDPR's Counterparty Risk Policy.

5.iii) Operation Risk

a. Damage to Physical Assets Risk

Renewable plants under construction and in operation are exposed to weather hazards, natural disasters, etc. These risks depend on the location of the assets.

All plants are insured against physical damage during construction and operation stages. Also, for operating projects, any natural disaster, weather hazard or accident will be partially insured against revenue losses caused the event.

b. Equipment Performance Risk (O&M costs)

Output from renewable plants depends upon the operating availability of the equipment.

EDPR mitigates this risk by using a mix of suppliers which minimizes technological risk, avoiding exposure to a unique manufacturer.

EDPR also engages suppliers through medium-term full-scope maintenance agreements during the first years of operation to ensure alignment with supplier in minimizing technology risk.

Finally, for older plants, EDPR has created an Operation and Maintenance (O&M) model with an adequate preventive and scheduled maintenance program. EDPR externalizes non-core technical O&M activities of its renewable plants, while primary and value-added activities continue to be controlled by EDPR.

#### 5. iv) IT/OT Risk

IT (Information Technologies) and OT (Operational Technologies) risk may occur in the technical network (information network for plants operation) or in the office network (information network of corporate services: ERP, accounting…)

EDPR mitigates this risk creating redundancy of servers and control centers of renewable plants. Redundancy is created in a different location to anticipate potential natural disasters, etc.

5. v) Legal claims Risk (compliance, corruption, fraud)

Like any other organization, EDPR faces potential claims from third parties and could be subjected to charges of corruption and fraud of its employees.

EDPR has implemented an internal "Code of Ethics" and an Anticorruption Policy where the company commits to comply with legal obligations in every community where EDPR is established.

Additionally, the company Ombudsperson receives all the complaints sent through the "Code of Ethics" channel and decides the appropriate procedure for each one of them. An anticorruption mailbox is also available to report any questionable practice.

5.vi) Personnel Risk

EDPR identifies four main risk factors regarding personnel: turnover, health and safety, human rights, and discrimination, violence or behavior against human dignity.

• Turnover: A high turnover implies direct costs of replacement and indirect costs of knowledge loss. EDPR mitigates turnover through constant reassessment and benchmarking of remuneration schemes in different geographies. Additionally, EDPR offers flexibility to its employees to improve work life balance. In 2023, EDPR was elected as "Top Employer" in Spain by the Top Employers Institute.

• Health and safety: EDPR has deployed an H&S management system, complying with OHSAS 18001, pursuing the "zero accidents" target.

• Human rights: EDPR has committed, through its "Code of Ethics", to respect international human rights treaties and best work practices. All counterparties which sign a contract with EDPR are committed to respect EDPR's "Code of Ethics".

• Discrimination, violence or behavior against human dignity: EDPR forbids any kind of discrimination, violence or behavior against human dignity, as stated in its "Code of Ethics". Strict compliance is enforced, not only through the reporting channel of the Ombudsperson, but also through constant awareness from all employees of the

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#### 5. vii) Processes Risk

Internal processes are subject to potential human errors that may negatively affect the outcome. Internal Audit Department regularly reviews internal processes and recommends the establishment of new controls or the improvement in the implementation of existing procedures.

Moreover, business continuity is ensured by a Global Crisis Plan, which defines the procedure to follow for each level of crisis and frames individual emergency plans at activity or asset level. Also, a tool to oversee different events that could impact Business Continuity is being used to ensure and support the correct management of crisis.

#### **6. ESG Risk**

#### 6. i) Environmental Risk

Environmental risks include the actual or potential threats and economic impacts of adverse effects on the environment by activities carried out by organizations and countries. Some issues analysed under this topic include climate change, circular economy or biodiversity.

EDPR performs some analyses to Identify climate-related risks and opportunities, such as those based on the Task-Force on Climate-Related Financial Disclosures (TCFD) recommendations.

The impact of these risks and opportunities are assessed on an annual basis and mitigated through environmental measures, contingency plans and other related initiatives.

#### 6. ii) Social Risk

Social Risk encompasses activities that affect how relations are managed with employees, suppliers, customers and communities where EDPR operates.

EDPR focuses mainly on factors such as human rights, health and safety within the company and also with its third-party contractors, and labour issues in the markets where the company is present.

#### 6. iii) Corporate Organization and Governance

Corporate governance systems should ensure that a company is managed in the interests of its shareholders and other relevant stakeholders.

In particular, EDPR has an organization in place with a special focus on transparency, where the management body (Board of Directors) is separated from the supervision and control duties (Audit, Control and Related Party Transactions Committee). Members of this Committee are invited to attend the General Risk Committee of EDPR, which is held on a quarterly basis.

#### **54. Risk functions and framework**

A corporation can manage risks in two different ways, one risk at a time on a largely and compartmentalized basis, or all risks together within a coordinated and strategic framework. The latter approach is called "Enterprise Risk Management" and is the approach used at EDPR. Risk Management at EDPR is supported by three distinct organizational functions, each on a different role: Strategy (Risk Profiler), Management (Risk Manager) and Controlling (Risk Controller).

| RISK FUNCTIONS                                                 | DESCRIPTION                                                                                                                                                                                        |
|----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Strategy – General risk<br>strategy & policy                   | Global Risk Department provides analytically supported pro-<br>posals to general strategic issues.<br>Responsible for proposing guidelines and policies for risk<br>management within the company. |
| Management – Risk<br>management & risk busi-<br>ness decisions | Implement defined policies by Global Risk<br>Responsible for day-to-day operational decisions and for re-<br>lated risk taking and risk.                                                           |
| Controlling – Risk moni-<br>toring                             | Responsible for follow-up of the results of risk-taking deci-<br>sions and for contrasting alignment of operations with general<br>risk policy approved by the board.                              |

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The Risk Committee is the forum where the different Risk Functions discuss the policies to be implemented and control the risk exposure of the company. EDPR's Risk Committee integrates and coordinates all Risk Functions and assures the link between corporate's risk appetite and defined strategy and the operations of the company.

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EDPR created three distinct meetings of the Risk Committee in order to separate discussions on execution of mitigation strategies from those on the definition of new policies:

- **Restricted Risk Committee:** Held every month, it is mainly focused on execution risk and counterparty risk, as well as providing visibility on the decisions on energy hedging strategies taken in the Global Energy Management (GEM) Steering Committees, where EDPR's risk officer is one of the permanent members. Currently, the Restricted Risk Committee is the forum to:
- c. Discuss the status of projects under development and construction.
- d. Review exposure to offtakers, suppliers and financial institutions.
- e. Track merchant exposure and provide visibility on hedging decisions taken in the GEM Sterring Committees.
- f. Monitor compliance with risk thresholds defined in EDPR's risk policies (market, counterparty, operational and country risk).

Main participants in the Restricted Risk Committee include EDPR's Management Team and several Corporate and regional teams involved in the decision making of these topics.

• **Financial Risk Committee:** Held every quarter, it is the forum to review main financial risks and discuss the execution of mitigation strategies. Exchange rate risk, interest rate risk, liquidity risk, commodities risk and credit risk from financial counterparties are most relevant risks reviewed in this committee.

Main participants of the Financial Risk Committee include EDPR's CEO and CFO and selected members of the Finance, Planning & Control, Acccounting & Consolidation, M&A and Global Risk teams.

• **General Risk Committee:** Held every quarter, it is the forum where new strategic analysis is discussed, and new policies and procedures are proposed for approval to the Management Team. Additionally, EDPR's overall risk position is reviewed, together with EBITDA@Risk and Net Income@Risk.

Main participants of the General Risk Committee include EDPR's Management Team, Global Risk, Internal Audit, Compliance & Internal Control, and other directors of the Company from selected departments. Additionally, the members of the Audit, Control and Related Party Transactions Committee are permanently invited participants of the General Risk Committee.

Moreover, the Audit, Control and Related Parties Committee receives information from the Global Risk Director, on a quarterly basis, on the company's risk management status and evaluation (see Recommendation VII.3). During these meetings, a detailed review of the level of each risk category within the risk taxonomy is conducted, comparing it with the maximum thresholds established in the ERM Framework. In addition, a comparison is made with the results from the previous quarter and the previous year, in order to assess the evolution of risks and take preventive measures if necessary. During the year 2023, the Committee received reports on EDPR's risk management status in March, June, September, and December. These reports allowed the Committee to be updated about the risks and make informed decisions to protect the interests of EDPR and its shareholders. The quarterly review of the risk taxonomy is an essential practice to ensure effective management of business risks and maintain the financial stability of the company.

To provide clarification on IPGC Recommendation V.1, EDPR's Audit, Control and Related Parties Committee conducted a review and gave a favorable opinion for the revised Enterprise Risk Management Framework, which included updated baseline limits, a revised risk taxonomy and other content additions.

Following this review,the revised ERM Framework was presented and approved by EDPR's Board of directors on its July 25th meeting.

55. Details on the internal control and risk management systems implemented in the company regarding the procedure for reporting financial information

With the purpose of not only controlling risks, but also managing them ex-ante, EDPR has created Global Risk policies that are enforceable at a Global Level. These policies are proposed and discussed in the Risk Committee and approved by the Management Team.

EDPR's Enterprise Risk Management Process is inspired on Basel Committee on Banking Supervision's principles, guidelines and recommendations and is similar to other risk management frameworks. In this respect, performance of risk metrics at EDPR and their compliance with established internal risk limits are assessed on a monthly basis. Additionally, a formal review and update of each Risk Policy, and the adequacy of its limits, is performed every two years.

#### **Internal control system over financial reporting**

EDPR has an Internal Control System over Financial Reporting (SCIRF) updated and monitored in line with international standards of Internal Control.

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This system covers the main aspects of the COSO framework: maintaining a control environment for the preparation of qualified financial information, assessment of the risks of financial reporting, existence of control activities to mitigate risks of error, information and communication and evaluation mechanisms.

In addition, the SCIRF Standard was approved in 2022. The purpose of this Standard is to formalize the mission and responsibilities of the SCIRF function, as well as to define the principles and methodological rules governing the exercise of its function and the relationship model with all its stakeholders.

#### **Scope revision and update**

The SCIRF Manual includes the annual update of the scope that aims to identify companies, areas and processes that must be included in the scope of SCIRF, according to criteria of materiality and risk, including the risk of error or fraud.

The risk analysis included in the scoping process for SCIRF, includes both the different types of risk (operational, economic, financial, technological or legal) and the control objectives of financial reporting (existence and occurrence, completeness, measurement, presentation, disclosure and comparability, and rights and obligations in terms of their potential impact on the financial statements).

The results of the updated scope with the methodology outlined are communicated at all levels of the organization involved in the SCIRF and supervised by the Audit, Control and Related Party Transactions Committee.

#### **Control activities**

In documented SCIRF processes and controls, information capture mechanisms are established (including identification of the scope of consolidation) and are specified the steps and checks that are carried out for the preparation of the financial information that will be part of consolidated financial statements.

The procedures for the review and approval of financial information are provided by the areas of Planning and Control, and Administration, Consolidation and Tax. Financial information is supervised in the scope of its competences by the Audit, Control and Related Party Transactions Committee, prior to the formulation of the accounts by the Board of Directors.

The SCIRF includes control activities related to these processes, embodied in Entity Level Controls, Process Controls and General IT Controls. These processes include review and approval activities of the financial information which are described in the processes of elaboration of individual and consolidated accounts and processing of consolidated financial statements.

EDPR has descriptions of Competency Profiles for the Positions to be carried out in the exercise of the main features of each position that includes a description of the main responsibilities. These include the descriptions of the key positions involved in the preparation of financial information. These descriptions include responsibilities in the preparation of financial information and compliance with internal control procedures.

The documentation of processes and associated controls designed include among others, the completion of closure activities by completing monthly closing checklists, setting due dates for the closures, the identification of the relevance of the operations in order to be reviewed at the appropriate level, conducting analytical reviews of financial information, the existence of limitations in systems to prevent erroneous records or access by unauthorized persons, analysis of deviations from the budget, the analysis by the Management Team of relevant and significant facts that could cause a significant impact on the accounts, or the allocation of responsibilities for calculating amounts to be provisioned for them to be carried out by authorized personnel with the right skills.

In addition to the mentioned reporting processes, major transactional processes resulting from the scope are documented. The description of the activities and controls are designed with the aim of ensuring the registration, evaluation, appropriate presentation and disclosure of transactions in financial reporting.

Control activities of EDPR's SCIRF also include those relating to systems and information technology (General IT Controls) following an international reference, the COBIT framework (Control Objectives for Information and related Technologies). The importance of this area is that information systems are the tools with which financial information is prepared and is therefore relevant for transactions conducted with them.

These control activities include those related to access control to applications and systems, segregation of duties, management of corrective and preventive maintenance, new projects implementation, administration and management of the systems, facilities and operations (back-ups, security incidents) and their proper monitoring and planning. These activities are developed taking into account the requirements of control and supervision.

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Among the activities of SCIRF's scope update, there is a periodic analysis of the existence of service suppliers that perform relevant activities in relation to the processes of preparing financial information.

#### **SCIRF supervision**

The Audit, Control and Related Party Transactions Committee supervises the SCIRF in the scope of the exercise of their activities through the monitoring and supervision of the developed mechanisms for SCIRF's implementation, evolution and evaluation, and the results of the scope analysis and the extent of the situation in terms of coverage. To this extent, the Internal Control Area assists the Audit, Control and Related Party Transactions Committee.

EDPR has an Internal Control area, integrated in the Compliance and Internal Control Department, which report to the CEO. The Audit, Control and Related Party Transactions Committee supervises the Internal Control area activities.

The main functions of the Internal Control area are set out in the SCIRF Manual, which includes, among others, the evaluation of the activities of internal control systems or support in the implementation and maintenance of the Internal Control system over Financial Reporting.

Internal Control supports the Audit, Control and Related Party Transactions Committee in supervising the implementation and maintenance of SCIRF and reports the results of the evaluation, improvement actions identified and their evolution.

The entity has action plans for improvement actions identified in SCIRF's assessment processes, which are accompanied and supervised by the Internal Control area, considering their impact on the financial information.

Also, in the year 2023, as in previous years, a process of self-certification was made by the owners of the various controls and Entity Level Control regarding proper documentation update on SCIRF controls and processes in their area of responsibility and the implementation of controls with corresponding evidence.

Additionally, in 2023, additional activities have been carried out for the integration of new platforms and businesses acquired by the company within the existing Internal Control System. In this regard, a specific identification of their associated risks and a review of the control matrix have been carried out.

Finally, in 2023, the Internal Control area, as part of its supervisory functions as a second line of defense, has carried out a monitoring activity of a selection of controls, reviewing their design and risks and reviewing the evidence of execution of the controls in order to verify that they are updated, in operation and that their design is adequate.

#### **SCIRF evaluation**

Besides the monitoring and evaluation activities described in the preceding paragraphs, in case the auditors identified internal control weaknesses in the scope of their financial audit work, they are expected to communicate these circumstances to the Audit, Control and Related Party Transactions Committee, which regularly monitors the results of the audit work.

Additionally, in 2023 the EDPR Group decided to have its SCIRF audited by the external auditor. As a result of its evaluation, the external auditor issued a report with a favorable opinion on the SCIRF of the EDPR Group, according to ISAE 3000 (International Standard on Assurance Engagements 3000), included in Annex II of this Chapter 5 of this Annual Report.

#### **Corporate Compliance**

The implementation of a solid corporate culture of compliance, integrity and transparency has always been a priority for EDPR, structuring its supervision and monitoring, through a regulatory compliance conduct basis and through the adoption of ethical values and principles; both consolidated as central elements of its business model.

Taking into account the Group's priority, the Compliance Model has evolved over the years:

• during 2016 and 2017, the Compliance Officer position and the Criminal and Legal Risk Prevention Model (Specific Compliance Model) were created.

• during 2018, the Company completed the first update of the Criminal Compliance Model and started working on the definition of a criminal risk matrix at an international level including an inventory of the potential risks and its controls in each of the geographies

- 
- where EDPR operates.
- 

• in June 2019, the Compliance Area was created to support and provide assistance to the Compliance Officer. In February 2020, with the commitment of strengthening the Compliance culture and to comply with the international standards in Corporate Governance, the area evolved to the Department of Compliance and Internal Control – a new department which reports, directly, to the CEO.

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• in 2022, the Compliance Area has been working on the implementation of a Global Compliance Model with actions addressed to reinforce the establishing of a Ethic and Compliance culture in the whole Group.

Reinforcing what stated in the previous point, in 2022, the Compliance Areas has created the Ethics and Corporate Compliance Area (ECC) in the North America platform as support area of the Compliance Officer.

#### **Global compliance model**

In the definition of the Global Compliance Model, the Global Compliance structure has been defined, and a great effort has been made to develop a robust set of policies and procedures for the Group, which includes the following:

- the Compliance Standard, approved by the Board of Directors in November 2021 and reviewed and updated in October 2022, which establishes the basic principles, the methodological rules that govern the carrying out of the Compliance function and the specific Compliance functions of all employees.
- the Code of Conduct for Top Management and Senior Financial Officers, approved by the Board of Directors in July 2021, that reinforces and complements the Code of Ethics, and reflects the commitment of the people who have been given the responsibility and power to carry out the supervisory and administrative functions of the EDPR Group.

The Global Compliance Model integrates specific models depending on the risks affecting the Group:

- A specific Integrity Compliance Program focused on the prevention of corruption and bribery risks. EDPR has a zero-tolerance approach to bribery and corruption and is committed to act professionally, fairly and with integrity in all business dealings and relationships wherever the Group operates. For this reason, the specific Integrity Compliance Program has as its central axis the Integrity Policy, which replaces the previous Anticorruption Policy; was approved by the Board of Directors in July 2021 and reviewed and updated in October 2022. The Integrity Policy has been complemented by other procedures that facilitate the application of this Policy. Among others:
	- i. The Donations and Sponsorships Procedure, approved by the Management Team in June 2021.
	- ii. The Offers and Events Procedure, approved by the Management Team in June 2021 and reviewed and updated in December 2022.

iii. The Conflict-of-Interest Procedure, approved by the Management Team in June

iv. The Integrity Due Diligence Procedure and the Procedure for relationship with Public Officials and Politically Exposed Persons, approved on 2020 and developed during 2021 through different electronic platforms. The creation of a technological platform for third-party analysis, which can be used by all Group employees, is noteworthy. Both of them have been reviewed and updated in December 2022.

v. The Intermediary Agreements Procedure, approved by the Management Team in

- 2021.
- 
- July 2022.
- 
- in December 2017).
- assessment).
- 

vi. A specific Criminal Compliance Program focused on the prevention of criminal risks in Spain taking into consideration the regulation in Spain.

• during this 2022 the Criminal Compliance Policy has been updated (initially approved

• the risk and control matrix has been updated. All the Areas/departments of EDPR Group have reviewed the assigned controls and have validated the applicable controls (self-

• a Control Audit Plan has been established and the controls assigned in the Plan have been audited by an independent third party.

In addition, the Risk Assessment Methodology has been updated in order to have a more objective risk assessment.

A specific Personal Data Protection Compliance Program focused on the protection of personal data to which EDPR has access and for which it is responsible. In this context, EDPR has been strengthening its management system to ensure the compliance and adequacy of EDPR Group's entities to the applicable legal requirements regarding Data Protection in the different geographies. The specific Personal Data Protection Compliance Program has as its central axis in the principles reflected on the Personal Data Protection Policy, approved by the Board of Directors in 2020. The main matters involved this Program are periodically reviewed taking into account new requirements and the expansion of the Group in new geographies. The Cookie Policies across different geographies have been updated in 2022.

Since September 2022, the internal Data Protection Procedures and Methodologies, defined and developed at a group level in 2021, are being reviewed taking in to account the regulatory requirements established in the legislations of the new geographies in which EDPR has a presence.

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In October 2022, EDPR started a Project for the review and identification of International Personal Data Transfers accompanied by the elaboration of a Gap Analysis and Action Plan for the subsequent regularization of those transfers that may require it.

In December 2022, EDPR has started the development of a new Master Data Protection Policy at a Group Level.

All this normative development has implied a strong work to make the new policies and procedures of the Group known, having made special focus this year in training and communication in the field of Compliance.

#### **Training and communication**

Training and communication are fundamental tools to strengthen and disseminate the ethic and compliance culture. In this sense, the following training courses have been developed:

- *Compliance at EDP* with the goal of showing all the employees how the EPDR's Compliance Management System works.
- *ComplianceFLIX "how I met integrity"* which aims to make employees reflect on situations that may involve illegal acts and improper/unethical conducts and show them how they should act to comply with the EDPR Integrity Policy. *ComplianceFLIX The Personal Data Protection Lady* with the goal of reflecting on situations involving the processing of personal data, sometimes resulting in personal data incidents, and showing all the employees how they should act to comply with the law and internal regulations on data protection.
- *Follow Criminal Compliance* which contains the main guidelines of EDPR's Criminal Compliance Policy and the consequences of not complying with them. This training is addressed to new hires or employees who had not completed this training last year.
- *Ethics is value: Let's live our Code of Ethics,* which is based on different videos of the Directors of EDPR who describe the structure and the main elements of the Code of Ethics.
- Ethics for leaders to guarantee that middle management knows the relevant ethics tools to apply in the management of their teams.
- Specific trainings online to different areas (Procurement, M&A, Legal) and geographies in order to guarantees the correct implementation of the Integrity Due Diligence Process.

- Training sessions
Brazil, Colombia
compliance polici

• Training sessions in person in different geographies (Italy, Greece, France, Romania, Brazil, Colombia and Hungary) in order to assure the correct acknowledge of all compliance policies and procedures.

## ---

These trainings have been complemented with communication activities as the (i) monthly Ethics and Compliance Comic which shows practices cases where apply the Code of Ethics and the Compliance policies and procedures, (ii) Global Ethics Day campaign, (iii) periodic posts on the intranet and internal platforms over compliance topics and (iv) different thematic campaigns as the Privacy Day, GRPD anniversary or Anticorruption Day.

#### **Reporting system**

Lastly, the reporting system to Top Management and Senior Management has also been improved, establishing reports about the Global Compliance Model to: (i) the CEO (monthly), (ii) the Audit Control and Related Party Transactions Committee (CAUD) (quarterly), (iii) the Management Team (at least quarterly) and (iv) to the Board of Directors (yearly).

#### **Operation, methodology and certifications**

The entire operation and methodology for the management of the Criminal Compliance Program and the Integrity Compliance Program has been compiled in an internal departmental document called Integrated Management System for Criminal Compliance and Antibribery Handbook updated during 2022. Additional documents, for the support and documentation of this system, have been also drafted.

All this development has allowed EDPR, at the end of 2021, to obtain a double certification from AENOR that verifies and accredits that the company has developed a system of criminal and anti-bribery compliance that meets the requirements of reference standards UNE 19601 and ISO 37001.

With said recognitions, EDPR demonstrates that it has an effective anti-bribery management system (ISO 37001) and that its Spanish criminal risks Prevention Model complies with best practices to prevent crime, reduce risk, and foster an ethical and legally compliant business culture (UNE 19601).

In 2022, EDPR has renewed its AENOR certifications in Criminal Compliance and Anti Bribery, reinforcing, once more time, EDPR's commitment to promote a culture of compliance and strengthen values such as integrity, accountability and transparency.

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#### IV. Investor Assistance

#### **56. Investor Relations department**

EDPR seeks to provide to shareholders, investors, financial analysts and other stakeholders and the market in general, all the relevant information about the Company and its business environment, on a regular basis and whenever a relevant fact takes place. The promotion of transparent, consistent, rigorous, easily accessible, and high-quality information is essential to an accurate perception of the Company's strategy, financial situation, accounts, assets, prospects, risks, and significant events.

EDPR, therefore, looks to provide the market with accurate information that can support them in making informed, clear and concrete investment decisions.

The Investor Relations Department was created to ensure a direct and permanent contact with all market related agents and stakeholders, to guarantee effective communication, equality between shareholders and to prevent imbalances in the information access.

The EDPR Investor Relations Department (IR) is the intermediary between EDPR and its actual and potential shareholders, the financial analysts that follow Company's activity, all investors and other members of the financial community. The main purpose of the department is to guarantee the principle of equality among shareholders, by preventing asymmetries in the access of the information and reducing the gap between market perception and Company's strategy and intrinsic value. The Investor Relations department centralizes all relevant and material information that could impact EDPR share price. This information is prepared by the different departments of EDPR, with the support, when necessary, of external experts, and always managed in a strictly confidential basis. The department responsibility also comprises developing and implementing EDPR's communication strategy and preserving an appropriate institutional and informative relationship with the financial market, the stock exchange at which EDPR shares trade and the regulatory and supervisory entities (CMVM – *Comissão de Mercado de Valores Mobiliários* – in Portugal and CNMV – *Comisión Nacional del Mercado de Valores* – in Spain.

EDPR is clearly aware of the importance of detailed and transparent information, delivered on-time to the market. Consequently, EDPR publishes Company's price sensitive information before the opening or following the closing of the Euronext Lisbon stock exchange through CMVM's information system and, simultaneously, make that same information available on the website investors' section and through the IR department's mailing list. In 2023, EDPR made more than 30 market notifications, in addition to quarterly, semi-annual and annual results presentations, handouts and operating data statement elaborated by the IR Department. In addition, the IR Department also elaborates key data files and interim presentations which are available on the website investors' section.

On each earnings announcement, EDPR promotes a conference call and webcast, opened to the market in general, at which the Company's management updates the market on EDPR's activities. On each of these events, shareholders, investors and analysts had the opportunity to directly submit their questions and to discuss EDPR's results as well as the Company's outlook and strategy.

EDPR IR Department is coordinated by Miguel Viana and is located at the Company's head offices in Madrid, Spain. The department structure and contacts are as follows:

- Miguel Viana, Head of Investor Relations and Sustainability
- Avenida de Burgos, 89; Edificio Adequa 1 A 7th floor; 28050 Madrid España
- Website: www.edpr.com/en/investors
- E-Mail: ir@edpr.com
- Phone: +34 900 830 004

EDPR IR Department was in continuous contact with capital markets agents, namely shareholder and investors, along with financial analysts who evaluate the Company. In 2023, as far as the Company is aware, sell-side analysts issued more than 90 reports

evaluating EDPR's business and performance. At the end of the 2023, as far as the Company is aware of, there were 26 institutions elaborating research reports and following actively EDPR activity. As of December 31 st 2023, the average price target of those analysts was of Euro 20.67 per share with 14 "Buy", 11 "Neutral" and 1 "Sell" recommendations.

- 
- 

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| COMPANY              | ANALYST               | PRICE<br>TARGET | DATE      | RECOMMENDA-<br>TION |
|----------------------|-----------------------|-----------------|-----------|---------------------|
| Alantra              | Fernando Lafuente     | € 22.35         | 22-Dec-23 | Buy                 |
| Bank of Ame-<br>rica | Ekaterina Smyk        | € 18.50         | 17-Mar-23 | Underperform        |
| Barclays             | Jose Ruiz             | € 20.20         | 21-Dec-23 | Equalweight         |
| Bestinver            | Daniel Rodríguez      | € 19.75         | 31-Oct-23 | Buy                 |
| Berenberg            | Lawson Steele         | € 27.00         | 10-Oct-22 | Buy                 |
| BNP Paribas          | Manuel Palomo         | € 18.8          | 31-Oct-23 | Outperform          |
| CaixaBank BPI        | Flora Trindade        | € 19.40         | 24-Oct-23 | Buy                 |
| Citi                 | Jenny Ping            | € 23.50         | 6-Nov-23  | Neutral             |
| Deutsche Bank        | Olly Jeffery          | € 16.00         | 17-Oct-23 | Hold                |
| Goldman Sachs        | Alberto Gandolfi      | € 19.5          | 3-Nov-23  | Buy                 |
| HSBC                 | Charles Swabey        | € 20.00         | 7-Dec-23  | Buy                 |
| Intermoney           | Guillermo Barrio      | € 23.00         | 23-Oct-23 | Buy                 |
| JB Capital           | Jorge Guimarães       | € 24.00         | 11-Oct-23 | Buy                 |
| Jefferies            | Skye Landon           | € 27.50         | 22-Jul-22 | Buy                 |
| JP Morgan            | Javier Garrido        | € 22.00         | 30-May-23 | Neutral             |
| Kepler<br>Cheuvreux  | Jose Porta            | € 23.30         | 14-Dec-23 | Buy                 |
| Morgan Stanley       | Arthur Sitbon         | € 19.00         | 24-Oct-23 | Overweight          |
| Morning Star         | Tancrede Fulop        | € 21.00         | 5-Dec-23  | Buy                 |
| MedioBanca           | Enrico Bartoli        | € 18.20         | 1-Nov-23  | Neutral             |
| Mirabaud             | Sonia Ruiz de Garibay | € 21.00         | 31-Oct-23 | Hold                |
| ODDO BHF             | Philippe Ourpatian    | € 20.50         | 14-Sep-23 | Neutral             |
| RBC                  | Fernando Garcia       | € 18.00         | 6-Nov-23  | Equalweight         |
| Redburn              | Fawwaz Janjua         | € 22.00         | 2-Feb-23  | Neutral             |

| COMPANY            | ANALYST                     | PRICE<br>TARGET | DATE      | RECOMMENDA-<br>TION |
|--------------------|-----------------------------|-----------------|-----------|---------------------|
| Santander          | Bosco Muguiro               | € 20.85         | 23-Jun-23 | Neutral             |
| Société Gé- nérale | Jorge Alonso                | € 19.30         | 20-Sep-23 | Buy                 |
| UBS                | Gonzalo Sanchez-<br>Bordona | € 16.35         | 25-Oct-23 | Neutral             |

#### **57. Market Relations Representative**

EDPR representative for relations with the market at CNMV and CMVM is Rui Teixeira, Chief Financial Officer.

#### **58. Information Requests**

EDPR's aims to communicate to the marketwith objectiveandtransparent information that is understandable to all stakeholders. In order to achieve such intent and bearing in mind the importance of keeping a trustworthy and sustainable behavior, EDPR has adopted a financial reporting policy based on transparent and consistent information properly conveyed to investors and analysts.

In 2023, the Investor Relations received several requests for information during the year and the average response time to queries was less than 24 hours, with complex requests being replied within one

# -week time. V. Website – Online information

**59 -65.**

EDPR considers online information a powerful tool in the dissemination of material information, updating its website with all the relevant documents. Apart from all the required information by CMVM and CNMV regulations, EDPR website also carries financial and operational updates of Company's activities ensuring an easy access to the information.

EDPR website: www.edpr.com

===

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| INFORMATION                                              | LINK                                                                                             |
|----------------------------------------------------------|--------------------------------------------------------------------------------------------------|
| Company information                                      | www.edpr.com/en/who_we_are                                                                       |
| Corporate by-laws and bodies/committees' regulations     | www.edpr.com/en/investors/corporate-governance/company-data                                      |
| Members of the corporate bodies and management structure | https://www.edpr.com/en/investors/corporate-governance/governing-bodies-and-management-structure |
| Market relations representative, IR department           | www.edpr.com/en/investors                                                                        |
| Information channels                                     | www.edpr.com/en/edpr                                                                             |
| Financial statements documents                           | www.edpr.com/en/investors/investors-information/reports-and-results                              |
| Corporate events Agenda                                  | www.edpr.com/en/investors                                                                        |

# **D. Remuneration**

#### I. Power to establish

#### **66. Competences to determine the Remuneration of the Corporate Bodies and Executive Staff**

The Appointments and Remunerations Committee is a permanent body belonging to the Board of Directors with an informative and advisory nature. Its recommendations and reports are non-binding.

The Appointments and Remunerations Committee has no executive functions. The main functions of the Appointments and Remunerations Committee are to assist and inform the Board of Directors regarding the appointments (including by co-option), re-elections, dismissals, and the remuneration of the Directors and executive staff. It also informs the Board of Directors on general remuneration and incentive policies and incentives for Board members and executive staff.

As such, the Appointments and Remunerations Committee is the body responsible for proposing to the Board of Directors the remuneration of the Executive and Non-Executive Directors, the members of the Board Committees and the Executive Staff; the Remuneration Policy; the evaluation and compliance of the KPI's (Key Performance Indicators); the annual and multi annual variable remuneration, if applicable.

The Board of Directors is responsible for the approval of the above-mentioned proposals except the Remuneration Policy which is approved by the General Shareholders' Meeting. The Board of Directors also evaluates with an annual periodicity its own performance and the performance of its delegated Committees. The evaluation of the performance of the Board of Directors, is then additionally submitted for the approval of the General Shareholders' Meeting.

The proposal on the Remuneration Policy is submitted by the Board of Directors for the approval of the General Shareholders' Meeting as an independent proposal, which will be in effect for a maximum of a three-year period. According to the Company's Articles of Association the Board of Directors remuneration is subject to a maximum value that can only be modified by a Shareholders' agreement.

## II. Appointments and Remunerations Committee

#### **67. Appointments and Remunerations Committee composition. Relevant service**

# **providers in 2023.**

The composition of the Appointments and Remunerations Committee is reflected on topic 29 of this Chapter 5 of the Annual Report.

The Company has not stablished any restrictions within its Articles of Association, Regulations or internal policies limiting the competence of the Appointments and Remunerations Committee to hire any consulting services that may be considered necessary to carry out its duties. additionally in case such services would be hired, it should be noted that they should be rendered independently, ensuring that the service provider do not provide any other services to EDPR or to any company in controlling or group relationship.

In 2023 the Committee hired the services of Egon Zehnder for the identification of the best Independent Directors profiles to cover potential vacancies, and the provision of these services strictly complied with the referred requirements.

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#### **68. Knowledge and experience regarding Remuneration Policy**

The members of the Appointments and Remunerations Committee have knowledge and experience regarding Remuneration Policy.

#### III. Remuneration structure

#### **69. Remuneration Policy**

Pursuant to Article 26 of the Company's Articles of Association, the Directors shall be entitled to a remuneration which consists of a fixed amount to be determined annually by the General Shareholders' Meeting for the whole Board of Directors. The above-mentioned article also establishes the possibility of the Directors of receiving attendance fees or being remunerated with Company shares, share options, or other securities granting the right to obtain shares or by means of share-indexed remuneration systems. In any case, the system chosen must be approved by the General Shareholders' Meeting and comply with current legal provisions.

The total amount of the remunerations that the Company will pay to its Directors shall not exceed the amount determined by the General Shareholders' Meeting.

Pursuant to Article 26.5 of the Company's Articles of Association, the rights and duties of any kind derived from the condition of Board Member shall be compatible with any other rights and obligations either fixed or variable that could correspond to the Board Members as a consequence of other employment or professional engagements, if any, carried out in the Company.

Variable remuneration resulting from said contracts or from any other relationship, including being a Board Member, will be limited to a maximum annual amount to be also established by the General Shareholders' Meeting.

For these purposes, the General Shareholders' Meeting held on May 13th, 2008, set a maximum annual amount for the Board of Directors for fixed remuneration of EUR 2,500,000. and at its meeting held on April 8th, 2014, also resolved to establish a maximum annual amount for variable remuneration of EUR 1,000,000 for executive directors.

For 2023 onwards, the maximum annual amount for fix and variable remuneration for the Board of Directors has been set in EUR 3,500,000 by the approval of the General Shareholders' Meeting held on March 31 st, 2022. This amount results of the merge of the former EUR 2,500,000that was stablished for fix renumeration and the EUR 1,000,000 that was established for variable annual remuneration.

EDPR, in line with EDP Group corporate governance practices, has signed a Management Services Agreement with EDP, under which the Company bears the cost for such services to some of the members of the Board of Directors to the extent their services are devoted to EDPR.

The Non-Executive Directors only receive a fixed remuneration, which is calculated on the basis of their work as Directors and a complement as Member or Chairperson of the Appointments and Remunerations Committee, and /or the Audit, Control and Related Party Transactions Committee and/or the Environmental, Social and Corporate Governance Committee. Such amounts are cumulative, except for the Chairman of the Board of Directors who does not receive any complement derived from his role at any Committee.

EDPR has not incorporated any share remuneration or share purchase options plans as components of the remuneration of its Directors.

No Director has entered into any contract with the Company or third parties that have the effect of mitigating the risk inherent in the variability of the remuneration established by the Company.

In EDPR there are not any payments for the dismissal or termination of Director's duties.

#### **70. Remuneration Structure**

The General Shareholders' Meeting held on March 31, 2022, approved the Renumeration Policy to be applied for 2023-2025 term, following the proposal of the Appointments and Remunerations Committee. This Remuneration Policy maintains a structure with a fixed remuneration for all members of the Board of Directors, whereas for the Executive Directors also defines a fixed and a variable remuneration, with an annual component and a multiannual component. In 2023, the Board of Directors Remuneration Policy in place for this term was duly applied.

#### **71. Variable Remuneration**

Variable annual and variable multi-annual remuneration apply to the Executive Directors.

Variable annual and multi-annual remuneration will be a percentage of fixed annual component, with a superior weight for multiannual vs. annual component (120% vs. 80%).

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Annual Reportt 2023 Management Report | Corporate Governance

**edp**
Renewables

Thus, the value of the variable remuneration may range between 0% and 85% of the 80% in the case of the annual variable, and between 0% and 85% of the 120% in the case of the multi-annual variable. Such percentages are applied over the gross annual fixed remuneration. According to the Remuneration Policy approved by the General Shareholders' Meeting, the maximum variable remuneration (annual and multi-annual) is applicable if all the KPI's were achieved, and the performance evaluation is equal or above 110%.

The key performance indicators (KPIs) used to determine the amounts of the annual and multi - annual variable remuneration for each year of the term are proposed by the Appointments, and Remunerations Committee with the aim of aligning them with the strategic pillars of the Company: growth, risk control and efficiency. The KPIs considered for the variable remuneration paid in 2023 (as a result of the performance developed in 2022), as well as those to be considered in 2024 for the appraisal of the performance of year 2023 were the following:

| CLUSTER                       | WEIGHT | KEY PERFORMANCE INDICATOR                                 | CEO / CFO |              |
|-------------------------------|--------|-----------------------------------------------------------|-----------|--------------|
|                               |        |                                                           | WEIGHT    | EDPR RESULTS |
| Total Sharehol-<br>der return | 15%    | TSR vs. Wind peers & PSI 20                               | 100%      | 96%          |
| Shareholders                  | 60%    | Operating Cash Flow<br>(€ million)                        | 10%       | 76%          |
|                               |        | AR/Sell-down + Tax Equity<br>(€ million)                  | 10%       | 98%          |
|                               |        | EBITDA+ sell down gains<br>(€ million)                    | 10%       | 120%         |
|                               |        | Net Profit<br>(€ million)                                 | 10%       | 120%         |
|                               |        | Core Opex Adjusted<br>(€ thousand/MW)                     | 10%       | 93%          |
|                               |        | Projects with FID<br>(% of total '19-'22 additions in BP) | 10%       | 111%         |
| Clients                       | 80%    | Renewable Capacity Built<br>(in MW)                       | 10%       | 0%           |
| Assets & Ope-<br>rations      | 10%    | Technical Energy Availability<br>(%)                      | 5%        | 98%          |
|                               | 10%    | Capex per MW<br>(€ thousand)                              | 5%        | 97%          |
| Environment &<br>Communities  | 5%     | Certified MW<br>(%)                                       | 5%        | 100%         |
| Innovation &<br>partners      | 5%     | H&S frequency rate<br>(employees + contractors)           | 5%        | 84%          |
| People5<br>Management         | 10%    | People Management                                         | 10%       | 108%         |
| Remuneration<br>Committee     | 5%     | Appreciation remuneration committee                       | 100%      | 100%         |

|                           | WEIGHT |      |
|---------------------------|--------|------|
| Total Shareholder return  | 15%    | 100% |
| Shareholders              |        | 60%  |
| Clients                   | 80%    | 10%  |
| Assets & Ope- rations     |        | 10%  |
| Environment & Communities |        | 5%   |
| Innovation & partners     |        | 5%   |
| People5 Management        |        | 10%  |
| Remuneration              |        |      |

<sup>5</sup> The policy has considered the labour conditions and the remuneration of the Company employees in order to define its terms, and in particular, has established this KPI, that includes the results of the Climate Survey launched to the employees in which the satisfaction level with the performance and applicable conditions is reflected.

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#### **72. Deferral period applicable to variable Remuneration**

In line with corporate governance practices, the Remuneration Policy incorporates the deferral for a period of three years of the multi-annual variable remuneration, being the relevant payment conditioned to the lack of any willful illicit action, known after the appraisal and which endangers the sustainable performance of the company.

#### **73. Variable Remuneration based on shares**

EDPR has not allocated variable remuneration on shares and does not maintain Company shares that the Executive Directors have had access to.

#### **74. Variable Remuneration based on options**

EDPR has not allocated variable remuneration on options.

#### **75. Annual Bonus and non-monetary benefits**

The key factors and grounds for any annual bonus scheme are described on topics 71 and 72.

No non-monetary benefits are paid by EDPR to its Board Members, except for a company car for the Chairman of the Board of Directors (whose total related cost for four years was borne and reported in in 2021) and the retirement savings plan for Executive Directors referred in the following section.

It is disclosed, as recommended by VI.2.3. of the IPGC, that no additional costs were incurred by the Company in connection with the termination of Miguel Setas' mandate in 2023.

#### **76. Retirement Savings Plan**

The retirement savings plan applicable to 2023, which is included within the Remuneration Policy applicable for such term was defined and proposed by the Appointments and Remunerations Committee to the Board of Directors for its submission to the General Shareholder's Meeting, which was duly approved. For the Executive Directors of EDPR (Miguel Stilwell d' Andrade and Rui Teixeira) it was stablished in a 5% of the fixed fee under the Management Services Agreement. For the year 2023, EDPR paid a fee to EDP under the Management Services agreement of 27,500€ corresponding to the retirement saving plan of Miguel Stilwell d' Andrade, and of 18,000€ corresponding to the retirement saving plan of Rui Teixeira.

#### IV. Remuneration disclosure

#### **77. Board of Directors remuneration**

Below the list of EDPR Directors that composed the Board during 2023, and the amounts paid by EDPR either (i) as remuneration to them for their functions at the Board level or (ii) as fee to EDP under the Management Services Agreement for their services (not remuneration). The following figures reflect the period of 2023 in which each relevant Director was member of the Board:

| DIRECTOR                      | REMUNERATION | FEES MANAGEMENT SERVICES<br>AGREEMENT EDP-EDPR |                       |
|-------------------------------|--------------|------------------------------------------------|-----------------------|
| EXECUTIVE DIRECTORS           |              | FIXED<br>COMPONENT                             | VARIABLE<br>COMPONENT |
| Miguel Stilwell d'<br>Andrade | 0€-          | 550,000€*                                      | 455,835€              |
| Rui Teixeira                  | 0€-          | 360,000€*                                      | 344,250€              |
| NON-EXECUTIVE DIRECTORS       |              | FIXED<br>COMPONENT                             |                       |
| António Mota                  | 230,000€     |                                                | -                     |
| Vera Pinto Pereira            | 0€-          | 65,000€*                                       | -                     |
| Ana Paula Marques             | 0€-          | 65,000€*                                       | -                     |
| Miguel Setas(***)             | 0€-          | 21,667€*                                       | -                     |
| Manuel Menéndez               | 65,000€      |                                                | -                     |
| Acácio Piloto(**)             | 120,000€     |                                                | -                     |
| Allan J.Katz(**)              | 75,000€      |                                                | -                     |
| Rosa García(**)               | 110,000€     |                                                | -                     |

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Image /page/267/Figure/25 description: The image shows three horizontal lines, with the top line being thinner than the other two. Below the lines is a circular arrow pointing to the left. The text "Part I" is at the bottom of the image.

| DIRECTOR         | REMUNERATION | FEES MANAGEMENT SERVICES<br>AGREEMENT EDP-EDPR |
|------------------|--------------|------------------------------------------------|
| José Morgado(**) | 110,000€     | -                                              |
| Kay Mc Call (**) | 75,000€      | -                                              |
| Sub-Total        | 785,000€     | 1,061,667€ 800,085€                            |
| Total            |              | 2,646,752€                                     |

\*These amounts correspond to the service fee paid by EDPR to EDP under the Management Services Agreement for the services rendered in 2023 by such director. In addition, EDPR pays to EDP a 5% of such service fee which is applied to the retirement savings plan for Executive Directors described in topic 76 of this Chapter 5 of the Annual Report.

\*\*These Directors also received remuneration for their participation in the Delegated Committees that is detailed at Chapter 6 of this Annual Report.

\*\*\* Miguel Setas presented the resignation to his positions as Board Members with effects April 12th, 2023, and therefore the amounts indicated in the table above reflect the remuneration accrued in 2023 until his resignation.

#### **78. Remuneration from other Group Companies**

The members of the Board of Directors as of end of December 2023 do not receive any payment from any company under EDPR control or subject to EDPR common control.

#### **79. Remuneration paid in form of profit sharing and/or bonus payments**

In EDPR there is no payment of remuneration in the form of profit sharing and/or bonus payments and the reasons for said bonuses or profit sharing being awarded.

#### **80. Compensation for contract termination of Executive Board Members**

In 2023 there was no compensation paid or owed to former Executive Directors concerning contract termination during the financial year.

Should be noted for these purposes that in 2022, the General Shareholders' Meeting approved the Remuneration Policy to be applied for 2023-2025 under which, except as provided in section below, is specifically established that no severance payment shall be made to Directors for termination of their duties before the end of the term of office for which they were appointed, and that Executive Directors shall not sign contracts, either with EDPR or with third parties, that have the effect of mitigating the risk inherent in the variability of the remuneration set by EDP.

Considering the terms laid down by law and market practice, and approved under the Remuneration Policy for 2023-2025, as on the remuneration of Executive Directors in the event of early termination of office it has been established that:

• In the event of termination for reasons not attributable to the Executive Director, he/she shall be entitled to receive the full fixed component until the end of the term of office for which he/she was elected, and the variable component accrued until the date of termination of office, but shall lose the right to receive any other benefits inherent to the effective exercise of functions for periods of annual or multi-annual performance not

- completed in their entirety.
- 
- 

• In the event of resignation not arising from an early termination agreement with EDPR, the Executive Director shall be entitled to receive only the fixed and variable remuneration accrued up to the date of resignation, the payment of which shall be made on the same terms and conditions as for serving executive Directors.

• In the event of termination of service by agreement with EDPR whereby the Executive Director agrees to resign, the Executive Director shall be entitled to receive the amount agreed at that time, which shall not exceed (i) the amount of the fixed component until the end of the term of office, plus (ii) the full variable component for the annual or multiyear period payable after it is determined at the end of the relevant period, as if the Executive Director had remained in office.

#### **81. Audit, Control and Related Party Transactions Committee Remuneration**

Except in the case of the Chairperson of the Board of Directors, the directors that are also members/chairperson of the Delegated Committees receive for these functions a complement to their fixed remuneration as members of the Board. Below the list of members of the Audit, Control and Related Party Transactions Committee as of December 31st 2023, and the amounts paid by EDPR as remuneration to them for the functions performed at this body.

| COMMITEE MEMBER    | POSITION | REMUNERATION |
|--------------------|----------|--------------|
| Acácio Piloto      | Chairman | 55,000€      |
| Rosa García García | Vocal    | 25,000€      |
| José Félix Morgado | Vocal    | 25,000€      |

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#### **82. Remuneration of the Chairperson of the General Shareholders' Meeting**

In 2021 it was decided to adopt the general practice followed under the personal law of the Company (Spanish one) that allows the Shareholders Meeting to be chaired by the Board of Directors Chairman. Therefore, there are no additional remunerations applies for the chairmanship of the General Shareholders' Meeting, as it is performed by the Chairperson
of the Board of Directors (António Gomes Mota).

#### **83-84 Agreements with remuneration implication.**

EDPR has no agreements with remuneration implication.

For avoidance of doubt, the Company has not adopted any mechanism that imply payments or assumption of fees in the case of change in the composition of the managing body (Board of Directors), and which could be likely to harm the free transferability of shares
and a shareholder assessment of the performance of the members of this managing body.

#### **85-88 Share-allocation and/or Stock Option Plans.**

EDPR does not have any Share-Allocation and/or Stock Option Plans.

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# **E. Related-Party Transactions**

#### I. Control mechanisms and procedures

#### **89. Related-Party Transactions Controlling Mechanisms**

The Spanish Companies Act sets the regulation and requirements for Related Party Transactions, including the definition of Related Party Transactions, and the approval and disclosure procedures of these type of operations.

This definition of Related Party Transactions under Spanish Law considers those performed by a company or its subsidiaries, with Directors, shareholders holding a 10% or more of the voting rights or represented at the Board of the company, or with whomever that shall be considered as related party under the International Accounting Standards.

With regards the competence to approve Related Party Transactions, as of such amendment, it has been stablished an assignation of competence to different governing bodies depending on the amount as follows:

- The Shareholders Meeting: transactions of an amount equal or above a 10% of the total assets according to the last annual balance sheet. These transactions shall be submitted together with a supporting report issued by the Audit Committee of the Company.
- The Board of Directors: transactions of an amount below a 10% of the total assets according to the last annual balance sheet. These transactions shall be also submitted together with a supporting report issued by the Audit Committee of the Company.

Delegated Bodies: the Board of Directors may delegate the approval of: (i) transactions performed between companies of the same group that are performed in the ordinary management of the company and under market conditions, and (ii) that are executed under contracts with standardized terms that are wholesale applied to a high number of clients under prices or tariffs generally established by the supplier of the goods or services, the amount of which does not exceed the 0.5% of the net amount of the annual company business value.

The transactions approved by the delegated body will not require the issuance of the Audit Committee report, but the Board shall establish a periodic internal reporting and control procedure involving the Audit Committee, which will verify the fairness and transparency of the transactions and the compliance with the applicable legal criteria.

• In light of the above, on July 27th, 2021, the Board of Directors approved to implement the necessary adjustments in the process of analysis and approval of Related Party Transactions, and in particular resolved to take the following decisions:

• To approve the delegation in the Audit, Control and Related Party Transactions Committee of the competence to approve Related Party Transactions that are

- 
- delegable under the law.
- 
- 
- -
	-

' To this extent the following sho
Employee, the children of a Вос
dependent individuals of the Bo

• To approve a procedure for reporting and control of such transactions involving the Audit, Control and Related Party Transactions Committee.

• To approve a new definition of Related Party Transactions to be regulated under the Audit, Control and Related Party Transactions Committee, considering as Related Party the following:(i) any company of the EDP Group, (ii) any company in which both EDPR SA and a Related Party have a stake, (iii) any shareholder holding a 10% or more of the voting rights or with representation at the Board of the Company, and (iv) any party
deemed as related Party under the International Accounting Standards, including without limitation, Board members, Key Employees6 and Relatives7 .

• In order to formalize the above referred delegations, to amend article 8.B. ("Nature and Competence") of the Regulations of the Audit, Control and Related Party Transactions Committee including the necessary competences to perform its duties, as follows:

i. Analise and, where appropriate, approve the (i) (a) intragroup transactions or (b) transactions performed between EDPR Group and EDP Group when their amount is below 10% of the total assets at the last annual balance sheet approved by the company, as long as they are in the ordinary management of the company and under market conditions. (ii) transactions executed under contracts with standardized terms that are wholesale applied to a high number of clients under prices or tariffs generally established by the supplier of the goods or services, and which amount does not exceed the 0,5% of the net annual company turnover, and

ii. Periodically inform the Board of Directors about the transactions approved by this Committee in the exercise of the above referred delegation, stating the fairness

<sup>6</sup> To this extent the following shall be considered as Key Employees: (i) the members of the Management Team of EDP Renováveis, S.A., (ii) the General Secretary of the Company, (iii) the Directors of Internal Audit, Compliance and Internal Control, Global Risk, Finance, ACT, Planning and Control, Investor Relations, Legal, IT, as well as (iv) any other that the Audit, Control, and Related Party Transactions Committee may designate.

<sup>7</sup> To this extent the following shall be considered as Relatives: the spouse or assimilated partners of a Board Member and or/ of a Key Employee, the children of a Board Member and/or of a Key Employee, or of his/her spouse or assimilated partner, as well as the dependent individuals of the Board Member and/or Key Employee or of his/her spouses or assimilated partners.

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and transparency of such transactions, and as the case may be, the compliance

- with the applicable legal criteria.
iii. Analise and inform about any modification of the Framework Agreement signed by EDP and EDP Renováveis on 7 May 2008. 8
- iv. Submit a report to the Board of Directors of the Company regarding the Related Party Transactions that shall be approved by the Board of Directors of EDPR SA or by its Shareholder's Meeting in accordance with the law, and that shall include: (i) the information regarding the nature of the operation and the relation with the Related Party, (ii) the identity of the Related Party, the date and value or amount of the compensation of the transaction, and any other information necessary to appraise if the operation is fair and reasonable for the company and for the shareholders that are not Related Parties.
- v. Request EDP for access to the information needed to perform its duties.

It should be also noted that in accordance with article 13.3 of the Regulations of the Audit, Control and Related Party Transactions Committee, the resolutions adopted by this committee are reported to the Board of Directors at the first Board meeting held following the meeting of the committee in which such proposals were discussed. That means that in case there are Related Party Transactions, they are reported to the Board of Directors at least every quarter (maximum period elapsed between Board of Directors Meeting in accordance with Article 22 of its Regulations).

#### **90. Transactions subject to control during 2023**

During 2023, EDPR [ha](#page-270-0)s not signed any contracts with the members of its corporate bodies or with holders of qualifying holdings, excluding EDP, as mentioned below.

The contracts signed between EDPR and its related parties have been analyzed by the Audit, Control and Related Party Transactions Committee according to its competences, as mentioned on the previous topic, and have been concluded according to the market conditions.

The total amount of supplies and services in 2023 incurred with or charged by the EDP Group was EUR 44,293,208 thousand corresponding to 10% of the total value of Supplies & Services for the year (EUR 438,973,930 thousand).

The most significant

The most significant contracts in force during 2023 are the following:

#### **Framework agreement**

The framework agreement was signed by EDP and EDPR on May 7th 2008 and came into effect when the latter was admitted to trading. The purpose of the framework agreement is to set out the principles and rules governing the legal and business relations existing when it came into effect and those entered into subsequently.

The framework agreement establishes that neither EDP nor the EDP Group companies other than EDPR and its subsidiaries can engage in activities in the field of renewable energies without the consent of EDPR. EDPR shall have worldwide exclusivity, with the exception of Brazil, where it shall engage its activities through a joint venture with EDP Energias do Brasil S.A., for the development, construction, operation, and maintenance of facilities or activities related to wind, solar, wave and/or tidal power, and other renewable energy generation technologies that may be developed in the future. Nonetheless, the agreement excludes technologies being developed in hydroelectric power, biomass, cogeneration, and waste in Portugal and Spain.

It lays down the obligation to provide EDP with any information that it may request from EDPR to fulfil its legal obligations and prepare the EDP Group's consolidated accounts. The framework agreement shall remain in effect for as long as EDP directly or indirectly owns more than 50% of the share capital of EDPR or appoints more than 50% of its Directors.

#### **Management services agreement**

On November 4th, 2008 EDP and EDPR signed a Management Services Agreement that has been amended during the last years in accordance of the variations in the services rendered by EDP to the Company.

Through this contract, EDP provides management services to EDPR, including matters related to the day-to- day running of the Company. As of 31 December 2023, under this agreement EDP renders management services corresponding to five (5) people from EDP which are part of EDPR's Management: (i) two Executive Directors, who are also the CEO and CFO of EDPR, and (ii) two Non-Executive Directors (there were three Non-Executive Directors until April 12th, 2023, when Miguel Setas resigned), for which EDPR pays EDP an amount defined both by the Appointments and Remunerations Committee and by the Audit, Control and Related Party Transactions Committee, and approved by the Board of

developed in line with the market prices, in an arm's length basis, and following certain predefined principles and rules (considering criteria as parties involved, scope and amount).

<span id="page-270-0"></span><sup>8</sup> This Framework Agreement was signed between EDP and EDPR in order to regulate the transactions closed between companies of EDP Group and EDPR Group, stating that in compliance with the transparency purposes for future investors, such shall continue to be

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Directors and the Shareholders Meeting. Under this contract, EDPR incurred an amount of EUR 1,861,752 for the management services rendered in 2023.

#### **Finance agreements and guarantees**

The most significant finance agreements between EDP Group companies and EDPR Group companies were established under the above-described Framework Agreement and currently include the following:

#### **Loan agreements**

EDPR and EDPR Servicios Financieros SA ("EDPR SF" as the borrower) have loan agreements with EDP Finance BV and EDP Servicios Financieros España ("EDP SFE" as the lender), companies 100% owned by EDP. Such loan agreements can be established both
in EUR and SGD, up to 10-year tenor and are remunerated at rates set at an arm's length basis. As of December 31 st 2023, such loan agreements totaled USD 2,813,967,282 EUR 2,267,754,189 and SGD 1,000,000,000.

#### **Current account agreement**

EDPR SF and EDP SFE signed an agreement through which EDP SFE manages EDPR SF's
cash accounts. The agreement also regulates the current account scheme on arm's length basis. As of December 31 st2023, there are two different current accounts with the following balance and counterparties:

- in USD, for a total amount of USD 219,937,523 in favour of EDPRSF
- in EUR, for a total amount of EUR 338,081,671in favour of EDP SFE

The agreements in place are valid for one year as of date of signing and are automatically renewed for equal periods.

#### **Counter-guarantee agreement**

A counter-guarantee agreement was signed, under which EDP or EDP Energias de Portugal S.A., Sucursal en España (hereinafter guarantor or EDP Sucursal) undertakes on behalf of EDPR, EDP Renewables Europe SLU (hereinafter EDPR EU), and EDP Renewables North America LLC (hereinafter EDPR NA) to provide corporate guarantees or request the issue of any guarantees, on the terms and conditions requested by the subsidiaries, which have been approved on a case by case basis by the EDP's Executive Board.

EDPR will be jointly liable for compliance by EDPR EU and EDPR NA. The subsidiaries of EDPR undertake to indemnify the guarantor for any losses or liabilities resulting from the guarantees provided under the agreement and to pay a fee established in arm's length

basis.
Nonetheless, certain guarantees issued prior to the date of approval of these agreements may have different conditions. As of December 31 st 2023, such counter-guarantee agreements totaled in EUR equivalent 705,961,014.

A counter-guarantee agreement was signed between EDPR Group and EDP Sucursal, under which, EDPR Group can request the issue of any guarantee, on the terms and conditions requested by the subsidiaries of EDPR. EDPR group undertake to indemnify the
guarantor for any losses or liabilities resulting from the guarantees provided under this agreement and to pay a fee established in arm's length basis. As of December 31 st 2023, the amount of guarantees issued under this agreement totalled EUR 2,629,249

#### **Cross currency interest rate swaps**

Due to the net investments in North America, Canada, Brazil, United Kingdom, Poland, Romania and in Colombian companies, EDPR's accounts were exposed to the foreign exchange risk. With the purpose of hedging this foreign exchange risk, EDPR Group
companies settled the following Cross Currency Interest Rate Swap (CIRS). As of December 31 st 2023 the total amount of CIRS by geography and currency are as following:

- in USD/EUR, with EDP for a total amount of USD 3,142,365,770
- in CAD/EUR, with EDP for a total amount of CAD 80,698,472
- in BRL/EUR, with EDP for a total amount of BRL 1,222,500,000
- in GBP/EUR, with EDP for a total amount of GBP 35,100,000
- in PLN/EUR, with EDP for a total amount of PLN 526,338,966

#### **Hedge agreements – exchange rate**

EDPR Group companies entered into several hedge agreements with EDP, with the purpose of managing the transactional exposure related to the short term or transitory positions, in Brazil, Colombian, Canada, Hungary, Chile, APAC, Polish, United Kingdom and other
subsidiaries, with USD exposure, fixing the exchange rate mainly for USD and EUR, in accordance to the prices in the forward market in each contract date. As of December 31 st 2023, the total amount of Forwards ("FWDs") and Non Delivery Forwards ("NDFs") by geography and currency are as following:

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- APAC operations, for EUR/JPY, a total amount of EUR 22,876,840.50 (FWDs), for EUR/KRW a total amount of EUR 4.108.622.95 (NDF), for EUR/SGD a total amount of EUR 54,478,473.65 (FWDs plus NDFs), and for EUR/TWD a total amount of EUR 22,179,858 (FWDs plus NDFs) for SGD/CNY a total amount of SGD 52,641,438.74 and for SGD/TWD a total amount of SGD 33,264,242.55.
- Brazilian operations, for EUR/BRL, a total amount of EUR 47,187,618 (NDFs) and, for USD/BRL, a total amount of USD 103,406,841.03 (NDF)
- Colombian operations, for EUR/COP, a total amount of EUR 224,233,467.35 (NDFs) and USD/COP a total amount of USD 137,165,369.08 (FWDs and NDFs) and EUR/USD a total amount of EUR 71.402.210,90
- Canada operations, for USD/CAD, a total amount of USD 114.096.000 (FWDs) and EUR/CAD, a total amount of EUR 173,033,602 (FWDs)
- Hungary operations, for EUR/HUF, a total amount of EUR 16.121.795,42 (FWDs)
- Polish operations, for EUR/PLN, a total amount of EUR 238,287,567 (FWDs plus NDFs) and for USD/PLN, a total amount of USD 21,081,727(FWDs)
- United Kingdom operations, for GBP/EUR a total amount of EUR 182,281,511.31(FWDs)
- Chile operations, for EUR/USD, a total amount of EUR 8.257.444,07 (FWDs)
- Other Subsidiaries operations in Europe (Spain, Portugal, Italy and Netherlands), for EUR/USD, a total amount of EUR 99,708,256 (FWDs)

#### **Hedge agreements – commodities**

EDP and EDPR SA (and its affiliates) entered into hedge agreements (settled) in 2023 for a total volume of 2,605,438.41 MWh (sell position) and 42,794.00 MWh (buy position) at the forward market price at the time of execution related with the expected sales of energy in the Spanish market.

#### **Consultancy service agreement**

On June 4th 2008, EDP and EDPR signed a consultancy service agreement. Through this agreement, and upon request by EDPR, EDP (or through EDP Sucursal) shall provide consultancy services in the areas of legal services, internal control systems, financial reporting, taxation, sustainability, regulation and competition, risk management, human resources, information technology, brand and communication, energy planning, accounting and consolidation, corporate marketing, and organizational development.

The price of the agreement is calculated as the cost incurred by EDP plus a margin. For the first year, it was fixed at 8% based on an independent expert on the basis of market research. For 2023 the estimated cost of these services is EUR 14,687,322. This was the total cost of services provided for EDPR, EDPR EU, and EDPR NA.

The duration of the agreement is one (1) year tacitly renewable for equal periods. **Research and development agreement** 

On May 13<sup>th</sup>, 2008, EDP Inovação S.A. (hereinafter EDP Inovação), an EDP Group Company, and EDPR signed an agreement regulating relations between the two companies regarding projects in the field of renewable energies (hereinafter the R&D Agreement).

The object of the R&D Agreement is to prevent conflicts of interest and foster the exchange of knowledge between companies and the establishment of legal and business relationships. The agreement forbids EDP Group companies other than EDP Inovação to undertake or invest in companies that undertake the renewable energy projects described in the agreement.

The R&D Agreement establishes an exclusive right on the part of EDP Inovação to project and develop new renewable energy technologies that are already in the pilot or economic and/or commercial feasibility study phase, whenever EDPR exercises its option to undertake them. The fee corresponding to this agreement in 2023 is EUR 0.

The agreement shall remain in effect for as long as EDP directly or indirectly maintains control of more than 50% of both companies or appoint the majority of the members of the Board and Executive Committee of the parties to the agreement.

# **Management support services agreement between EDP Renováveis Portugal S.A.,and EDP GLOBAL SOLUTIONS – GESTÃO INTEGRADA de Serviços S.A.**

On January 1<sup>st</sup>, 2003, EDPR – Promoção e Operação S.A., and EDP Global Solutions – Gestão Integrada De Serviços S.A. (hereinafter EDP Global Solutions), an EDP Group Company, signed a management support service agreement.

The object of the agreement is the provision to EDPR – Promoção e Operação S.A. by EDP Global Solutions of services in the areas of procurement, economic and financial management, fleet management, property management and maintenance, insurance, occupational health and safety, and human resource management and training.

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The remuneration accrued by EDP Global Solutions by EDPR Promoção e Operação S.A. and its subsidiaries for the services provided in 2023 totaled EUR 2,029,343. The initial duration of the agreement was five (5) years from date of signing on January 1 st 2008, and tacitly renewable for equal periods of one (1) year. Either party may renounce the contract with one (1) year's notice.

#### **Information techonology management services agreement between EDP Renováveis S.A. and EDP Energias de Portugal S.A.**

There exists an IT management services agreement effective since January 1st, 2020, which supersedes the existing IT management services agreement from that date.

The object of the agreement is to provide to EDPR the information technology services described on the contract and its attachments by EDP.

The amount incurred for the services provided in 2023 totaled EUR 6,514,952.

The initial duration of the agreement is one (1) year from date of signing and it is tacitly renewed for a new period of one (1) year. Either party may renounce the contract with one (1) month notice.

#### **Consultancy agreement between EDP Renováveis Brasil S.A., and EDP Energias do Brasil S.A.**

The object of the agreement is to provide to EDP Renováveis Brasil S.A. (hereinafter EDPR Brasil) the consultancy services described on the contract and its attachments by EDP – Energias do Brasil S.A. (hereinafter EDP Brasil).

Through this agreement, and upon request by EDPR Brasil, EDP Brasil shall provide consultancy services in the areas of legal services, internal control systems, financial reporting, taxation, sustainability, regulation and competition, risk management, human resources, information technology, brand and communication, energy planning, accounting and consolidation, corporate marketing, and organizationaldevelopment.

The amount incurred by EDP Brasil for the services provided in 2023 totalled BRL 293,524.

The initial duration of the agreement is one (1) year from the date of signing and it is tacitly renewed for a new period of one (1) year.

#### **General Services Agreement between EDPR Renováveis S.A. and EDP Energias de Portugal, S.A. Sucursal en España**

On October 1st, 2023, EDPR and EDP Energias de Portugal Sucursal en España signed a General Services Agreement.

The object of the agreement is the provision by EDPR of preventive and corrective maintenance of the offices leased by EDP in Edificio Adequa, Avenida de Burgos, 89 (Madrid), as well as the management of accuses to the facilities, the supply of food and the use of canteen.

The remuneration accrued by EDPR Group by EDP Sucursal for the services provided in 2023 under this agreement totaled EUR 67,400. The duration of the agreement is unlimited from date of signing.

#### **Sub-lease Agreement between EDPR Renováveis S.A. and EDP Energias de Portugal, S.A. Sucursal en España**

Since 2023EDPR Group and EDP Energias de Portugal Sucursal en España entered in a Sub-lease Agreement on the offices leased by EDP in Edificio Adequa, Avenida de Burgos, 89 (Madrid).

The remuneration accrued by EDPR by EDP Sucursal for the sub-lease provided in 2023 under this agreement totaled EUR 1,670,124.10. The duration of the ends on December 31st, 2028.

#### **Additional Transactions analysed in 2023**

Likewise, in the development of the delegation made by the Board of Directors to the Audit, Control and Related Party Transactions Committee regarding the supervision of Related Party Transactions, during 2023, the following were analyzed and approved by this body, and further reported to the Board of Directors:

• PPA between EDP Renováveis though EDP Renovables España S.L.U (Seller) and EDP-Energias de Portugal S.A. (Buyer) for Lomillas solar hybrid project, located in Spain with

- a total capacity of 32MWac.
- 

• PPA between EDP Renováveis though EDP Renovables España S.L.U (Seller) and EDP-Energias de Portugal S.A. (Buyer) for 4 solar projects, Palma, Pedregal, La Herrera, Señora de la Paz, located in Spain with a total capacity of 79.43MWac.

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- PPA between EDP Renováveis though EDP Renováveis Portugal (Seller) and EDP-Energias de Portugal S.A. (Buyer) for Monte de Vez solar hybrid project, located in Portugal with a total capacity of 18.8MWac.
- Termination of the agreement with GEM for solar hybrid projects (Cesaredas, Charneca das Lebres and Serra da Carva), located in Portugal.
- Amendment to the current account agreement signed between EDP Servicios Financieros España S.A. (Lender) and EDP Renováveis Servicios Financieros S.A. (Borrower) to update the interest in accordance with the currents markets rates.
- Framework agreement for financial transactions between EDP Renováveis, S.A. and EDP – Energias de Portugal, S.A.
- Contract between EDP Renovavéis, S.A. and EDP Energias de Portugal, S.A. Sucursal en España for the provision of services in Madrid offices.
- Shared use contract between EDP Renovables España, S.L.U. and Viesgo Distribución Eléctrica, S.L. for the use of a part of the Sierra del Acebo wind farm substation for the instalation of a communications cabinet.
- PPA between EDP Renováveis though EDP Renewables Italia Holding S r l (Seller) and EDP–GEM PORTUGAL, S.A. (Buyer) for Monte di Eboli (10.65MWdc) and Boccadoro (9.77MWdc) solar PV project, located in Italy.
- Market representation agreement for Coentral-Safra Sobreequipamento (EDP Renováveis Portugal, S.A) as generator with GEM (EDP GEM Portugal, S.A.) as Market Agent.
- Amendment to the current account agreement signed between EDP Servicios Financieros España S.A. (Lender) and EDP Renováveis Servicios Financieros S.A. (Borrower) to update the interest in accordance with the currents markets rates.
- New Long-Term Loans with EDP Group with a maximum amount of SGD 1.000M.
- Rollover Pre-Hedge of EUR 212M derivatives for 6 Months.
- EDP Group spreads update to new long-term intercompany loans (EDP to EDPR).
- Brazil: Contract between EDP Renováveis (through EDP Renováveis Brasil S.A.) and EDP - Energias do Brasil S.A. (through EDP Trading Comercialização e Serviços de Energia S.A. (EDPT)) for the sale of energy from Monte Verde wind cluster in 2023.
- Brazil: Termination of the PPA between EDP Renováveis (through EDP Renováveis Brasil S.A.) and EDP - Energias do Brasil S.A. (through EDP Trading Comercialização e Serviços de Energia S.A. (EDPT)) for the sale of energy from Monte Verde wind cluster in 2023.

• Portugal: Market representation agreement for Alto da Coutada Sobreequipamento (Eólica da Coutada II, S.A.) as generator with GEM (EDP GEM Portugal, S.A.) as Market

• Five PPAs between EDP Renováveis (Seller), through EDPR Renovables España S.L. U. and EDP – GEM PORTUGAL, S.A (Buyer) for Oliva, Viñas, Tudela I, Tudela II and Isar Yudego projects and, one PPA beteween EDPR Europe. S.L.U and EDP EDP – GEM PORTUGAL, S.A. for Las Sardas project.

• Sale of Guarantees of Origin (GOs) between EDPR Europe S.L.U. and EDPR PT - Promoção e Operação, S.A.as selling parties ("EDPR") and EDP Energia Italia s.r.l. as

- Agent.
- 
- buying party ("EDPC Italy").
- Financieros SL and EDP SA.
- 
- and EDP GEM PORTUGAL S.A.
- and EDP GEM PORTUGAL S.A.
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 

• Long term hedge in Spain for Operational assets from 2024 between EDPR Servicios

• Environmental Attributes Transfer Agreement between EDP Renewables S.A. and its subsidiaries and EDP GEM PORTUGAL S.A.

• Market Access Services Agreement between EDP Renewables S.A. and its subsidiaries,

• Energy Transfer Master Agreement between EDP Renewables S.A. and its subsidiaries

• Short term hedge in Spain for Operational assets for 2024 between EDP Renewables S.A. and its subsidiaries and EDP GEM PORTUGAL S.A.

• Market representation agreement for Cerca SF (Fotovoltaica Lote A, S.A.) as generator with GEM (EDP GEM Portugal, S.A.) as Market Agent.

• Amendment to the current account agreement signed between EDP Servicios Financieros España S.A. (Lender) and EDP Renováveis Servicios Financieros S.A. (Borrower) to update the interest in accordance with the currents markets rates.

• New Long-Term (LT) Shareholder Loan (SHL) of EUR 500M (5Y Tenor).

• Alto da Coutada short-term hedge in 2H2023.

• EDPR/OW: UK Moray East - Partial Hedging.

• MOU between EDPR, EDP and the Generation Business Units for hydrogen projects in thermal generation transition sites-

• Early Repayment of 3 Shareholder Loans, in a total amount of USD 280m, between EDP Finance BV, S.A. and EDP Renováveis Servicios Financieros S.A.

• New PPA contractual conditions to be applied on PPAs between EDPR and GEM.

• PPA between EDP Renováveis through Farma Fotowoltaiczna Budzyn sp z o. o. and EDP–GEM PORTUGAL, S.A. (Buyer) for for Budzyn PV project, located in Poland.

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- 1-year Market representation contract between EDP Renov 1-year Market representation contract between EDP Renováveis, through EDPR Spain and its SPVs (Seller) and (ii) EDP Spain (Buyer), for the Spanish portfolio.
- Portugal: Market representation agreement for Monte de Vez (Malhadizes • Portugal: Market representation agreement for Monte de Vez (Malhadizes – Energia Eólica, S.A.) as generator with GEM (EDP GEM Portugal, S.A.) as Market Agent.• PPA between EDP Renováveis (Seller), through Ekoenergia Solar 3 sp z o. o. and EDP-
- áveis (Seller), through Ekoenergia Solar 3 sp z o. o. and EDP – GEM PORTUGAL, S.A. (Buyer) for Recz project (composed by Recz North and Recz South PV projects), located in Poland.
- 
- Extension of up to 800 MUSD of EURUSD XCCY Swaps. ña S.A. (Lender) and EDP Renov áveis Servicios Financieros S.A. (Borrower) to update the interest in accordance with the currents markets rates.
- Auto PV pilot project between EDP Inovação SA, EDP Renováveis SA, EDP Renovables España SLU.

#### **91. Description of the procedures applicable to the supervisory body for the assessment of the business deals.**

Non applicable.

#### II. Data on business deals

#### **92. Details of the place where the financial statements including information on business dealings with related parties are available, in accordance with IAS 24, or alternatively a copy of said data.**

The information on business dealings with related parties is available on Note 39 of the Financial Statements.

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# PART II – Corporate Governance Assessment

# **I. Details of the Corporate Governance codeimplemented**

Following the protocol signed between the CMVM and the Portuguese Institute of Corporate Governance (IPCG) on October 13<sup>th</sup>, 2017, the CMVM revoked its Corporate 
Governance Code (2013), which was replaced by a single applicable code, the new Corporate Governance Code of the IPCG, which entered into force on January 1<sup>st</sup>, 2018, and that was reviewed in 2020 and recently in 2023.

For the purposes of the proper preparation of corporate governance reports for the year beginning in 2023, and to be reported in 2024, they should continue to be prepared in accordance with the structure of contents referred the annex to CMVM Regulation No. 4/2013 available at the CMVM website (www.cmvm.pt). The report template is divided into two parts:

- Part I mandatory information on shareholder structure, organisation and governance of the company. This information shall be referred within points 1 to 92 of this Corporate Governance Report in accordance with the structure included in that Annex.
- Part II Corporate governance assessment: should include a declaration in which they must: (i) identify the applicable code, (ii) state wh[ether or not the](http://www.cmvm.pt/))y adhere to each of the recommendations of this code and, (iii) with respect to recommendations that do not

be found on the Protocol signed on October 13<sup>th</sup>, 2017, which is available at the website of CMVM (http://www.cmvm.pt/). Likewise, the reviewed version Corporate Governance Code of the IPCG is published on the website of IPCG and of the Monitoring Committees (https://cam.cgov.pt/)

# **II. Analysis of Compliance with the Corporate Governance code implemented**

The following table shows the recommendations set forth in the Corporate Governance Code of the IPCG and indicates EDPR's compliance with it and the place in this report in which they are described in more detail.

The agreement between CMVM and IPCG on the new Corporate Governance Code may 
be found on the Protocol signed on October 13<sup>th</sup>, 2017, which is available at the website of
CMVM (http://www.cmvm.pt/). Likewise, the reviewed version Corporate Governance
Code of the IPCG is published on the website of IPCG and of the Monitoring Committees
(https://cam.cgov.pt/)

The explanation of the Corporate Governance Code of the IPCG recommendations that EDPR does not adopt or that the Company deems not applicable, reasoning and other relevant comments as well as reference to the part of the report where the description may be found, are in the table below.

{277}------------------------------------------------

Part I

Annual Reportfollow, explain reasonably why.
Also in order to comply with the best Corporate Governance recommendations, and 
according to the results of the reflection made by the Appointments and Remunerations 
Committee, the governance model that was adopted has been ensuring an effective 
performance and articulation of EDPR Governing Bodies and proved to be adequate to the 
Company's governance structure without any constraints to the performance of its checks 
and balances system adopted to justify the changes made in the governance practices of
EDPR. Management Report | Corporate Governance

In this context, EDPR states that it has adopted the Corporate Governance recommendations on the governance of listed companies provided in the Corporate Governance Code of the IPCG, with the exceptions indicated in the following table.

#### **CORPORATE GOVERNANCE RECOMMENDATIONS - STATEMENT OF COMPLIANCE**

#### CHAPTER I · COMPANY'S RELATIONSHIP WITH SHAREHOLDERS, INTERESTED PARTIES AND THE COMMUNITY AT LARGE

I.1. The company specifies in what terms its strategy seeks to ensure the fulfilment of its long-term objectives and what are the main contributions resulting herefrom for the community at large. Adopted Chapter 2.2. of the Management I.2. The company identifies the main policies and measures adopted with regard to the fulfilment of its environmental and social objectives. Adopted Section B- II, c) Topic 29

#### CHAPTER I I · COMPOSITION AND FUNCTIONING OF THE CORPORATE BODIES

#### **II.1. Information**

II.1.1.

The company establishes mechanisms to adequately and rigorously ensure the timely circulation or disclosure of the information required to its bodies, the company secretary, shareholders, investors, financial analysts, other stakeholders and the market at large.

#### **II.2. Diversity in the Composition and Functioning of the Corporate Bodies**

#### II.2.1.

| AT LARGE       |                                                                                                                                                    |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| Adopted        | Chapter 2.2. of the Management Report                                                                                                              |
| Adopted        | Section B-II, c) Topic 29                                                                                                                          |
| Adopted        | Section B - II, a) Topic 15<br>Section C) -III, Topic 55<br>Section C-IV, Topic 56<br>Section C-V, Topics 59 – 65                                  |
| Adopted        | Section B-II, a) Topics 16 and 29                                                                                                                  |
| Adopted        | Section B-II, a) Topic 15                                                                                                                          |
| Adopted        | Section B-II, a) Topic 15<br>Section B-II b), Topic 23<br>Section B-II, c) Topic 29<br>Section B – III, b) Topic 35<br>Section C-V, Topics 59 – 65 |
| Adopted        | Section C-II, Topic 49                                                                                                                             |
| Adopted        | Section B – II, a) Topic 15<br>Section B-II, c), Topics 27 and 29                                                                                  |
| Adopted        | Section B-II, a) Topic 15                                                                                                                          |
| Adopted        | Section B-II, a) Topic 15<br>Section B-II, c) Topic 29                                                                                             |
| Adopted        | Section B-II, a) Topic 18                                                                                                                          |
| Adopted        | Section B-II, a) Topic 18                                                                                                                          |
| Adopted        | Section E-I, Topic 89                                                                                                                              |
| Adopted        | Section B-I, b) Topics 12 and 13                                                                                                                   |
| Not applicable | Section B-I, b) Topic 12                                                                                                                           |
| Adopted        | Section B-I, b) Topic 14                                                                                                                           |
| Adopted        | Section B-I, b) Topic 13                                                                                                                           |
| Adopted        | Section B-I, b) Topic 13                                                                                                                           |
| Not applicable | Section A-I, Topic 5<br>Section B-I, b) Topic 12                                                                                                   |

Image /page/277/Figure/20 description: The image contains two horizontal lines stacked on top of each other, with a single horizontal line above them. Below the lines is a circular arrow pointing to the left.

Companies establish, previously and abstractly, criteria and requirements regarding the profile of the members of the corporate bodies that are adequate to the function to be performed, considering, notably, individual attributes (such as competence, independence, integrity, availability and experience), and diversity requirements (with particular attention to equality between men and women), that may contribute to the improvement of the performance of the body and of the balance in its composition.

#### II.2.2.

The management and supervisory bodies and their internal committees are governed by regulations – notably regarding the exercise of their powers, chairmanship, the frequency of meetings, operation and the duties framework of their members – fully disclosed on the website of the company, whereby minutes of the respective meetings shall be drawn up.

II.2.3.

panies provided in the Corporate Governance Code of the IPCG, with

{278}------------------------------------------------

Part I

Annual ReportII. Analysis of Compliance with the Corporate Governance
code implemented Management Report | Corporate Governance

#### **CORPORATE GOVERNANCE RECOMMENDATIONS - STATEMENT OF COMPLIANCE**

| The composition and number of meetings for each year of the management and supervisory bodies and of their internal committees are disclosed on the website of the company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Adopted |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
| II.2.4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |         |
| The companies adopt a whistle-blowing policy that specifies the main rules and procedures to be followed for each communication and an internal reporting channel that also includes access for nonemployees, as set forth in the applicable law.                                                                                                                                                                                                                                                                                                                                                                                                           | Adopted |
| II.2.5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |         |
| The companies have specialised committees for matters of corporate governance, remuneration, appointments of members of the corporate bodies and performance assessment, separately or cumulatively. If the Remuneration Committee provided for in Article 399 of the Portuguese Commercial Companies Code has been set up, the present Recommendation can be complied with by assigning to said committee, if not prohibited by law, powers in the above matters.                                                                                                                                                                                          | Adopted |
| II.3. Relations between Corporate Bodies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |         |
| II.3.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |         |
| The Articles of Association or equivalent means adopted by the company set out the mechanisms to ensure that, within the limits of the applicable laws, the members of the management and supervisory bodies have permanent access to all necessary information to assess the performance, situation and development prospects of the company, including, specifically, the minutes of the meetings, the documentation supporting the decisions taken, the convening notices and the archive of the meetings of the executive management body, without prejudice to access to any other documents or persons who may be requested to provide clarification. | Adopted |
| II.3.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |         |
| Each body and committee of the company ensures, in a timely and adequate manner, the interorganic flow of information required for the exercise of the legal and statutory powers of each of the other bodies and committees.                                                                                                                                                                                                                                                                                                                                                                                                                               | Adopted |
| II.4 Conflicts of Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |         |
| II.4.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |         |
| By internal regulation or an equivalent hereof, the members of the management and supervisory bodies and of the internal committees shall be obliged to inform the respective body or committee whenever there are any facts that may constitute or give rise to a conflict between their interests and the interest of the company.                                                                                                                                                                                                                                                                                                                        | Adopted |

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Part I

#### **CORPORATE GOVERNANCE RECOMMENDATIONS - STATEMENT OF COMPLIANCE**

II.4.2.
The company adopts procedures to ensure that the conflicted member does not interfere in the decision -making process, without prejudice to the duty to provide information and clarification requested by the body, committee or respective members.

#### **II.5. Transactions with Related Parties**

#### II.5.1.

The management body discloses, in the corporate governance report or by other publicly available means, the internal procedure for verification of transactions with related parties. Adopted Section E-I, Topic 89

#### CHAPTER I I I · SHAREHOLDERS AND GENERAL MEETING

#### III.1.

The company does not set an excessively large number of shares to be entitled to one vote and informs in the corporate governance report of its choice whenever each share does not carry one vote. Adopted Section B

III.2.
The company that has issued special plural voting rights shares identifies, in its corporate governance report, the matters that, pursuant to the company 's Articles of Association, are excluded from the scope of plural voting.

#### III.3.

The company does not adopt mechanisms that hinder the passing of resolutions by its shareholders, specifically fixing a quorum for resolutions greater than that foreseen by law. Adopted Section B

#### III.4.

The company implements adequate means for shareholders to participate in the general meeting without being present in person, in proportion to its size. Adopted Section B

#### III.5.

The company also implements adequate means for the exercise of voting rights without being present in person, including by correspondence and electronically. Adopted Section B

#### III.6.

The Articles of Association of the company that provide for the restriction of the number of votes that may be held or exercised by one single shareholder, either individually or jointly with other shareholders, shall also foresee that, at least every five years, the general meeting shall resolve on the amendment or maintenance of such statutory provision – without quorum requirements greater than that provided for by law – and that in said resolution, all votes issued are to be counted, without applying said restriction.

{280}------------------------------------------------

#### **CORPORATE GOVERNANCE RECOMMENDATIONS - STATEMENT OF COMPLIANCE**

#### III.7.

The company does not adopt any measures that require payments or the assumption of costs by the company in the event of change of control or change in the composition of the management body and which are likely to damage the economic interest in the transfer of shares and the free assessment by shareholders of the performance of the Directors.

#### CHAPTER IV · MANAGEMENT

#### **IV.1. Management Body and Executive Directors**

#### IV.1.1.

The management body ensures that the company acts in accordance with its object and does not delegate powers, notably with regard to: i) definition of the corporate strategy and main policies of the company; ii) organisation and coordination of the corporate structure; iii) matters that shall be considered strategic due to the amounts, risk and particular characteristics involved.

#### IV.1.2.

The management body approves, by means of regulations or through an equivalent mechanism, the performance regime for executive directors applicable to the exercise of executive functions by them in entities outside the group.

|                |                                                                                 | 282                     |
|----------------|---------------------------------------------------------------------------------|-------------------------|
|                |                                                                                 |                         |
| Adopted        | Section A-I, Topic 4<br>Section D - IV, Topic 80<br>Section D - V, Topics 83–84 | Part I                  |
|                |                                                                                 |                         |
| Adopted        | Section A -II, Topic 9                                                          |                         |
| Adopted        | Section B-II, b) Topic 26                                                       |                         |
|                |                                                                                 |                         |
| Not applicable | Section B-II, a) Topic 18                                                       | Governance<br>Corporate |
| Adopted        | Section B-II, a) Topic 18                                                       | ment Report  <br>2023   |
| Adopted        | Section B-II, a) Topic 18                                                       | Annual Report<br>Manage |
|                |                                                                                 |                         |

#### **IV.2. Management Body and Non-Executive Directors**

IV.2.1.
Notwithstanding the legal duties of the chairman of the board of directors, if the latter is not independent, the independent directors – or, if there are not enough independent directors, the non executive directors – shall appoint a coordinator among themselves to, in particular (i) act, whenever necessary, as interlocutor with the chairman of the board of directors and with the other directors, (ii) ensure that they have all the conditions and means required to carry out their duties, and (iii) coordinate their performance assessment by the administration body as provided for in Recommendation VI.1.1.; alternatively, the company may establish another equivalent mechanism to ensure such coordination. Not applicable Section B-II, a) Topic 18

IV.2.2.
The number of non-executive members of the management body shall be adequate to the size of the company and the complexity of the risks inherent to its activity, but sufficient to ensure the efficient performance of the tasks entrusted to them, whereby the formulation of this adequacy judgement shall be included in the corporate governance report. Adopted Section B-II, a) Topic 18

IV.2.3.
The number of non-executive directors is greater than the number of executive directors. Adopted Section B-I

{281}------------------------------------------------

# **CORPORATE GOVERNANCE RECOMMENDATIONS - STATEMENT OF COMPLIANCE**

IV.2.4.
The number of non-executive directors that meet the independence requirements is plural and is not less than one third of the total number of non -executive directors. For the purposes of the present Recommendation, a person is deemed independent when not associated to any specific interest group in the company, nor in any circumstances liable to affect his/her impartiality of analysis or decision, in particular in virtue of:

i. Having carried out, continuously or intermittently, functions in any corporate body of the company for more than twelve years, with this period being counted regardless of whether or not it coincides with the end of the mandate.

ii. Having been an employee of the company or of a company that is controlled by or in a group relationship with the company in the last three years.

iii. Having, in the last three years, provided services or established a significant business relationship with the company or with a company that is controlled by or in a group relationship with the company, either directly or as a partner, director, manager or officer of a legal person.

# 283 Part I Annual Report2023 Management Report | Corporate Governance Explain Section B-II, a) Topic 18 Adopted Section B-II, a) Topic 18 Adopted Section A-II, Topic 9 and 29 Section C -III, Topic 54

![edp Renewables](https://i.imgur.com/9999999.png)

iv. Being the beneficiary of remuneration paid by the company or by a company that is controlled by or in a group relationship with the company, in addition to remuneration stemming from the performance of the functions of director.

v. Living in a non-marital partnership or being a spouse, relative or kin in a direct line and up to and including the 3rd degree, in a collateral line, of directors of the company, of directors of a legal person owning a qualifying stake in the company or of natural persons owning, directly or indirectly, a qualifying stake.

vi. Being a holder of a qualifying stake or representative of a shareholder that is holder of a qualifying stake.

#### IV.2.5.

The provisions of paragraph (i) of the previous Recommendation do not prevent the qualification of a new Director as independent if, between the end of his/her functions in any corporate body and his/her new appointment, at least three years have elapsed (cooling -off period).

#### CHAPTER V · SUPERVISION

#### V.1.

With due regard for the competences conferred to it by law, the supervisory body takes cognisance of the strategic guidelines and evaluates and renders an opinion on the risk policy, prior to its final approval by the administration body.

#### V.2.

{282}------------------------------------------------

| Adopted | Section B-II, a) Topic 18<br>Section C -III, Topic 54                                                      |                                           |
|---------|------------------------------------------------------------------------------------------------------------|-------------------------------------------|
|         |                                                                                                            | Part I                                    |
| Adopted | Section A -II, Topic 9<br>Section B-II b), Topic 24<br>Section D – I Topic 66<br>Section D – III, Topic 71 |                                           |
| Adopted | Section B – II, c) Topic 27<br>Section B-II, c) Topic 29<br>Section D – I, Topic 66                        |                                           |
| Adopted | Section D – I, Topic 66<br>Section D – III, Topic 69                                                       |                                           |
| Adopted | Section D -I, Topic 75                                                                                     | Corporate Governance                      |
| Adopted | Section B-I, a) Topic 11<br>Section B-II, a) Topic 29                                                      | Management Report  <br>Annual Report 2023 |

| CORPORATE GOVERNANCE RECOMMENDATIONS - STATEMENT OF COMPLIANCE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                |                                                                                                                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|------------------------------------------------------------------------------------------------------------------------|
| The number of members of the supervisory body and of the financial matters committee should be<br>adequate in relation to the size of the company and the complexity of the risks inherent to its activity,<br>but sufficient to ensure the efficiency of the tasks entrusted to them, and this adequacy judgement<br>should be included in the corporate governance report.                                                                                                                                                                                 | Adopte         |                                                                                                                        |
| CHAPTER VI·PERFORMANCE ASSESSMENT, REMUNERATION AND APPOINTMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                |                                                                                                                        |
| VI.1. Annual Performance Assessment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                |                                                                                                                        |
| VI.1.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |                                                                                                                        |
| The management body – or committee with relevant powers, composed of a majority of non-<br>executive members – evaluates its performance on an annual basis, as well as the performance of the<br>executive committee, of the executive directors and of the company committees, taking into account<br>the compliance with the strategic plan of the company and of the budget, the risk management, its<br>internal functioning and the contribution of each member to that end, and the relationship between the<br>bodies and committees of the company. | Adopte         |                                                                                                                        |
| VI.2 Remunerations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |                                                                                                                        |
| VI.2.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |                                                                                                                        |
| The company constitutes a remuneration committee, whose composition shall ensure its<br>independence from the board of directors, whereby it may be the remuneration committee appointed<br>pursuant to Article 399 of the Portuguese Commercial Companies Code.                                                                                                                                                                                                                                                                                             | Adopte         |                                                                                                                        |
| VI.2.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |                                                                                                                        |
| The remuneration of the members of the management and supervisory bodies and of the company<br>committees is established by the remuneration committee or by the general meeting, upon proposal of<br>such committee.                                                                                                                                                                                                                                                                                                                                        | Adopte         |                                                                                                                        |
| VI.2.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |                                                                                                                        |
| The company discloses in the corporate governance report, or in the remuneration report, the<br>termination of office of any member of a body or committee of the company, indicating the amounts of<br>all costs related to the termination of office borne by the company, for any reason, during the financial<br>year in question.                                                                                                                                                                                                                       | Adopte         |                                                                                                                        |
| VI.2.4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |                                                                                                                        |
| In order to provide information or clarification to shareholders, the president or another member of the<br>remuneration committee shall be present at the annual general meeting and at any other general<br>meeting at which the agenda includes a matter related to the remuneration of the members of bodies<br>and committees of the company, or if such presence has been requested by shareholders.                                                                                                                                                   | Adopte         |                                                                                                                        |
| VI.2.5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                |                                                                                                                        |
| CORPORATE GOVERNANCE RECOMMENDATIONS - STATEMENT OF COMPLIANCE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                |                                                                                                                        |
| Within the budget constraints of the company, the remuneration committee may freely decide to hire,<br>on behalf of the company, consultancy services that are necessary or convenient for the performance<br>of its duties.                                                                                                                                                                                                                                                                                                                                 | Adopted        | Section D – II Topic 67                                                                                                |
| VI.2.6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |                                                                                                                        |
| The remuneration committee ensures that such services are provided independently.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Adopted        | Section D – II Topic 67                                                                                                |
| VI.2.7.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |                                                                                                                        |
| The providers of said services are not hired by the company itself or by any company controlled by or in<br>group relationship with the company, for the provision of any other services related to the<br>competencies of the remuneration committee, without the express authorisation of the committee.                                                                                                                                                                                                                                                   | Adopted        | Section D – II Topic 67                                                                                                |
| VI.2.8.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |                                                                                                                        |
| In view of the alignment of interests between the company and the executive directors, a part of their<br>remuneration has a variable nature that reflects the sustained performance of the company and does<br>not encourage excessive risk—taking.                                                                                                                                                                                                                                                                                                         | Adopted        | Section D – III, Topics 70–72                                                                                          |
| VI.2.9.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |                                                                                                                        |
| A significant part of the variable component is partially deferred over time, for a period of no less than<br>three years, and is linked to the confirmation of the sustainability of performance, in terms defined in<br>the remuneration policy of the company.                                                                                                                                                                                                                                                                                            | Adopted        | Section D – III, Topic 72                                                                                              |
| VI.2.10.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                |                                                                                                                        |
| When the variable remuneration includes options or other instruments directly or indirectly subject to<br>share value, the start of the exercise period is deferred for a period of no less than three years.                                                                                                                                                                                                                                                                                                                                                | Not applicable | Section D – III, Topics 73 and 74                                                                                      |
| VI.2.11.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                |                                                                                                                        |
| The remuneration of non—executive directors does not include any component whose value depends<br>on the performance of the company or of its value.                                                                                                                                                                                                                                                                                                                                                                                                         | Adopted        | Section D – III, Topic 69<br>Section D – IV, Topic 77                                                                  |
| VI.3. Appointments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |                                                                                                                        |
| VI.3.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |                                                                                                                        |
| The company promotes, in the terms it deems adequate, but in a manner susceptible of demonstration,<br>that the proposals for the appointment of members of the corporate bodies are accompanied by<br>grounds regarding the suitability of each of the candidates for the function to be performed.                                                                                                                                                                                                                                                         | Adopted        | Section B–II, a) Topics 16, 17                                                                                         |
| VI.3.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |                                                                                                                        |
| The committee for the appointment of members of corporate bodies includes a majority of<br>independent directors.                                                                                                                                                                                                                                                                                                                                                                                                                                            | Adopted        | Section B– II, c) Topic 29                                                                                             |
| CORPORATE GOVERNANCE RECOMMENDATIONS - STATEMENT OF COMPLIANCE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                |                                                                                                                        |
| VI.3.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |                                                                                                                        |
| Unless it is not justified by the size of the company, the task of monitoring and supporting the appointments of senior managers shall be assigned to an appointment committee.                                                                                                                                                                                                                                                                                                                                                                              | Adopted        | Section B-II, c) Topic 29                                                                                              |
| VI.3.4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |                                                                                                                        |
| The committee for the appointment of senior management provides its terms of reference and promotes, to the extent of its powers, the adoption of transparent selection processes that include effective mechanisms for identifying potential candidates, and that for selection those are proposed who present the greatest merit, are best suited for the requirements of the position and promote, within the organisation, an adequate diversity including regarding gender equality.                                                                    | Adopted        | Section B-II, a) Topics 16, 17                                                                                         |
| CHAPTER VII • INTERNAL CONTROL                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                |                                                                                                                        |
| VII.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                |                                                                                                                        |
| The management body discusses and approves the strategic plan and risk policy of the company, which includes setting limits in matters of risk-taking.                                                                                                                                                                                                                                                                                                                                                                                                       | Adopted        | Section A -II, Topic 9<br>Section C) - III, Topic 52                                                                   |
| VII.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                |                                                                                                                        |
| The company has a specialised committee, or a committee composed of specialists in risk matters, which reports regularly to the management body.                                                                                                                                                                                                                                                                                                                                                                                                             | Adopted        | Section C) –III, Topic 54                                                                                              |
| VII.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                |                                                                                                                        |
| The supervisory body is organised internally, implementing periodic control mechanisms and procedures, in order to ensure that the risks effectively incurred by the company are consistent with the objectives set by the administration body.                                                                                                                                                                                                                                                                                                              |                | Section B –III,b), Topic 35<br>Section C– III, Topic 52                                                                |
| VII.4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                |                                                                                                                        |
| The internal control system, comprising the risk management, compliance, and internal audit functions, is structured in terms that are adequate to the size of the company and the complexity of the risks inherent to its activity, whereby the supervisory body shall assess it and, within the ambit of its duty to monitor the effectiveness of this system, propose any adjustments that may be deemed necessary.                                                                                                                                       | Adopted        | Section B- II, c) Topic 29<br>Section B- III, Topic 30<br>Section B –III, b), Topic 35<br>Section C– III, Topics 50-55 |
| VII.5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                |                                                                                                                        |
| The company establishes procedures of supervision, periodic assessment and adjustment of the internal control system, including an annual assessment of the degree of internal compliance and performance of such system, as well as the prospects for changing the previously defined risk framework.                                                                                                                                                                                                                                                       | Adopted        | Section C) -III, Topics 52, 54, 55                                                                                     |
| VII.6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                |                                                                                                                        |
| Based on its risk policy, the company sets up a risk management function, identifying (i) the main risks<br>to which it is subject in the operation of its business, (ii) the probability of their occurrence and<br>respective impact, (iii) the instruments and measures to be adopted in order to mitigate such risks, and<br>(iv) the monitoring procedures, aimed at following them up.<br>VII.7.                                                                                                                                                       | Adopted        | Section C) – III, Topics 52 – 55<br>Chapter 2 of this Annual Report                                                    |
| The company establishes processes to collect and process data related to the environmental and<br>social sustainability in order to alert the management body to risks that the company may be incurring<br>and propose strategies for their mitigation.<br>VII.8.                                                                                                                                                                                                                                                                                           | Adopted        | Section B- II, c) Topic 29                                                                                             |
| The company reports on how climate change is considered within the organisation and how it takes<br>into account the analysis of climate risk in the decision-making processes.<br>VII.9.                                                                                                                                                                                                                                                                                                                                                                    | Adopted        | Section B- II, c) Topic 29                                                                                             |
| The company informs in the corporate governance report on the manner in which artificial intelligence<br>mechanisms have been used as a decision-making tool by the corporate bodies.<br>VII.10.                                                                                                                                                                                                                                                                                                                                                             | Adopted        | Section B- II, Topic 23                                                                                                |
| The supervisory body pronounces on the work plans and resources allocated to the services of the<br>internal control system, including the risk management, compliance, and internal audit functions, and<br>may propose adjustments as deemed necessary.<br>VII.11.                                                                                                                                                                                                                                                                                         | Adopted        | Section B- II, Topic 29<br>Section B – III, b) Topic 35                                                                |
| The supervisory body is the addressee of reports made by the internal control services, including the<br>risk management, compliance, and internal audit functions, at least when matters related to<br>accountability, identification or resolution of conflicts of interest and detection of potential<br>irregularities are concerned.                                                                                                                                                                                                                    | Adopted        | Section B- II, Topic 29<br>Section B – III, b) Topic 35                                                                |
| CHAPTER VIII - INFORMATION AND STATUTORY AUDIT OF ACCOUNTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                |                                                                                                                        |
| VIII.1. Information<br>VIII.1.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                |                                                                                                                        |
| The regulations of the supervisory body requires that the supervisory body monitors the suitability of<br>the process of preparation and disclosure of information by the management body, including the<br>appropriateness of accounting policies, estimates, judgements, relevant disclosures and their<br>consistent application from financial year to financial year, in a duly documented and<br>reported<br>manner.                                                                                                                                   | Adopted        | Section B- II, Topic 29<br>Section B – III, b) Topic 35                                                                |
| VIII.2. Statutory Audit and Supervision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |                                                                                                                        |

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Annual Report2023 Management Report | Corporate Governance

#### **CORPORATE GOVERNANCE RECOMMENDATIONS - STATEMENT OF COMPLIANCE**

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#### **CORPORATE GOVERNANCE RECOMMENDATIONS - STATEMENT OF COMPLIANCE**

#### VIII.2.1.

By means of regulation, the supervisory body defines, in accordance with the applicable legal regime, the supervisory procedures to ensure the independence of the statutory auditor. Adopted

#### VIII.2.2.

The supervisory body is the main interlocutor of the statutory auditor within the company and the first addressee of the respective reports, and is competent, namely, for proposing the respective remuneration and ensuring that adequate conditions for the provision of the services are in place within the company.

| Adopted | Section B- II, c) Topic 29<br>Section B – III, c) Topics 37 and 38<br>Section B – IV-V, Topics 45, 46 and 47                    |
|---------|---------------------------------------------------------------------------------------------------------------------------------|
| Adopted | Sections B – II, c) Topic 29<br>Section B – V, Topics 45, 46                                                                    |
| Adopted | Section B - II, c) Topic 29<br>Section B - III a), Topic 30<br>Section B - III, c) Topics 37 and 38<br>Section B-IV-V, Topic 45 |

#### VIII.2.3.

The supervisory body annually evaluates the work carried out by the statutory auditor, its independence and suitability for the exercise of its functions and shall propose to the competent body its dismissal or termination of the contract for the provision of its services whenever there is just cause to do so.

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# Annex I

# **Curriculum vitae of the Board of Directors EDP Renováveis, S.A.**

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Chairman of the Appointments, Remunerations and Corporate Governance Committee – EDP Renováveis, S.A.

| Full Name                     | ANTÓNIO GOMES MOTA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Position                      | Independent Board Member and Chairman of the Board of Directors – EDP Renováveis, S.A.<br>Chairman of the Appointments, Remunerations and Corporate Governance Committee – EDP Renováveis, S.A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Academic Qualifications       | • PhD in management – ISCTE, University Institute of Lisbon<br>• MBA – Nova School of Business and Economics<br>• Bachelor's degree in management – ISCTE, University Institute of Lisbon                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Skills and Experience         | • Non-executive director and Chair of Nominations and Remuneration Committee – CIMPOR<br>• Non-executive director as member of the Supervisory Board and Chair of the Audit Committee – EDP<br>• Non-executive director as Chair of the Audit Committee and then as Chairman of the Board – CTT<br>• Dean – ISCTE Business School<br>• He has been a consultant for large corporations in the areas of corporate restructuring and valuation,<br>governance and remuneration policies<br>• President – Portuguese Institute of Corporate Governance<br>• He is the author of several books in the areas of corporate finance, investments and risk management and a regular invited<br>speaker at professional and industry conferences |
| Current External Appointments | • Full Professor of finance – ISCTE Business School<br>• Chair of the Audit Committee – MYSTICINVEST HOLDING<br>• Chair of the Remuneration Committee – PHAROL, SGPS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

Image /page/287/Picture/16 description: The image contains two horizontal lines at the top and a curved line at the bottom. The curved line is open at the bottom, forming a U-shape.

<sup>o</sup> He has been a consultant for large corporations in the areas of corporate restructuring and valuation, regulation, corporate

<sup>o</sup> He is the author of several books in the areas of corporate finance, investments and risk management and a regular invited

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| Full Name                     | MIGUEL STILWELL D'ANDRADE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Position                      | CEO - EDP - Energias de Portugal, S.A.<br>CEO - EDP Renováveis, S.A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Academic Qualifications       | MBA - MIT Sloan (2003)<br>MEng with Distinction – University of Strathclyde (1998)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Skills and Experience         | President of the Board of Directors of EDP Energias do Brasil, S.A (current)<br>Vice-Chairman of Board of Directors – EDP Renováveis, S.A. (current)<br>CFO – EDP – Energias de Portugal S.A. (2018-2021)<br>Member of Executive Board of Directors – EDP – Energias de Portugal S.A. (since 2012)<br>Member of Board of Directors – EDP – Energias do Brasil (2018-2020)<br>CEO – EDP Comercial and EDP Soluções Comerciais, S.A. (2012-2018)<br>CEO – Hidroeléctrica del Cantábrico (Spain) (2012-2018)<br>CEO – Naturgás Energia Grupo (2012-2015)<br>Member of Board of Directors – EDP Distribuição (2009-2012)<br>Member of Board of Directors – EDP Inovação, EDP Ventures (2007-2012)<br>Strategy, M&A and Corporate Development – EDP – Energias de Portugal S.A. (2000-2001 and 2003)<br>UBS Investment Bank (1998-2000) |
| Current External Appointments | Member of the Executive Committee of WBCSD (since 2023) and Vice-Chair (since 2024)<br>Member of the Alliance of CEO Climate Leaders<br>Co-Chair of the European Clean Hydrogen Alliance<br>Member of the Business Roundtable Portugal<br>Member of General Council of FAE - Forum de Administradores e Gestores de Empresas<br>Member of the Board of Governors - St. Julian's School                                                                                                                                                                                                                                                                                                                                                                                                                                             |

-2009)

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| Full Name                     | RUI MANUEL RODRIGUES LOPES TEIXEIRA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Position                      | CFO - EDP - Energias de Portugal, S.A.<br>CFO - EDP Renováveis, S.A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Academic Qualifications       | • Advanced Management Programme – Harvard Business School (2013)<br>• MBA – Nova University, Lisbon (2001)<br>• Naval Architecture and Marine Engineering Graduate – Instituto Superior Técnico, Lisbon (1995                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Skills and Experience         | • Member of Board of Directors – EDP Renováveis, S.A. (current)<br>• Vice Chairman of Executive Board of Directors – Ocean Winds (current)<br>• Member of Board of Directors – EDP - Energias do Brasil, S.A (current)<br>• Member of Board of Directors – EDP España (current)<br>• Member of Executive Board of Directors – EDP (since 2015)<br>• CEO – EDP España S.A.U. (2018-2021)<br>• CEO – EDP - Gestão da Produção de Energia, S.A. (2015-2020)<br>• Member of Board of Directors – EDP Renováveis, S.A. (2008-2015)<br>• Head of Corporate Planning and Control – EDP (2004-2007)<br>• Consultant - McKinsey & Company (2001-2004)<br>• Ship Surveyor - Det Norske Veritas (1997-2001)<br>• Commercial - Gellweiler – Sociedade de Equipamentos Marítimos e Industriais, Lda. (1996-1997) |
| Current External Appointments | • Strategic Board Member - ISEG MB<br>• Vice-Chairman of the Board - BCSD Portugal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

| ( |  |
|---|--|

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| Image: Person | Full Name                     | VERA DE MORAIS PINTO PEREIRA CARNEIRO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------------|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               | Position                      | Member of Executive Board of Directors – EDP - Energias de Portugal S.A.<br>Non-executive Member of Board of Directors - EDP Renováveis, S.A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|               | Academic Qualifications       | • Executive Education Program – Harvard Business School (2021)<br>• MBA – INSEAD Fontainebleau (2000)<br>• Economics Degree and Post-Graduate Degree – Nova University, Lisbon (1996 and 1998)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|               | Skills and Experience         | • CEO – EDP Comercial – Comercialização de Energia, S.A. (current)<br>• Chairman of the Board of Directors– Fundação EDP (current)<br>• Member of Board of Directors – EDP Energias do Brasil, S.A. (current)<br>• Member of Board of Directors – EDP España S.A.U. (current)<br>• Executive Vice-President and General Director Portugal & Spain and Member of Executive – Fox Networks Group (2014–2018)<br>• Member of Board of Directors – Pulsa Media (2014–2018)<br>• Head of TV Business Unit – MEO (2007–2014)<br>• Head of TV Business Unit – TV Cabo – PT Multimédia (2003–2007)<br>• Founder – Innovagency Consulting (2001–2003)<br>• Mercer Management Consulting (today Oliver Wyman) (1996–1999) |
|               | Current External Appointments | • Board Member – Charge Up Europe<br>• Board Member – Fundação Alfredo de Sousa<br>• Board Member – Confederação Empresarial de Portugal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

<sup>o</sup> Executive Vice-President and General Director Portugal & Spain and Member of Executive Leadership Team Europe & Africa

==

↩

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Image /page/291/Picture/0 description: A portrait of a woman with long brown hair, wearing a black blazer over a red top, and a delicate necklace. She is positioned within a light blue circle against a light blue background. Her arms are crossed, and she is smiling slightly at the viewer.

| Full Name                     | ANA PAULA GARRIDO DE PINA MARQUES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Position                      | Member of Executive Board of Directors – EDP – Energias de Portugal S.A<br>Non-executive Member of Board of Directors – EDP Renováveis S.A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Academic Qualifications       | • Executive Education Program – IMD in Lausanne and Harvard Business School (2009, 2008, 2005)<br>• MBA – INSEAD (2002)<br>• Degree in Economics – Faculdade de Economia do Porto (1991–1996)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Skills and Experience         | • CEO – EDP – Gestão da Produção de Energia, S.A. (current)<br>• CEO – EDP España, S.A.U. (current)<br>• CEO – EDP Labelec – Estudos, Desenvolvimento e Actividades Laboratoriais, S.A. (current)<br>• Member of Board of Directors – EDP – Energias do Brasil, S.A. (current)<br>• Executive Vice-President – NOS (2019–2021)<br>• Executive Board Member – NOS (2013–2019)<br>• Non-Executive Board Member – Sport TV (2016–2020)<br>• President – APRITEL (Associação Portuguesa de Operadores de Telecomunicações) (2011–2014)<br>• Executive Board Member – Optimus (2010–2013)<br>• Marketing and Sales Director (Mobile Residential Business Unit) and Brand Director – Optimus (2001)<br>• SMEs Business Unit Director – Optimus (1998–2001)<br>• Marketing – Procter & Gamble (1996–1998) |
| Current External Appointments | • Board Member – Eurelectric<br>• President of the Board – Elecpor<br>• Board Member – AELEC<br>• Board Member – Enerclub (Club Español de la Energía)<br>• Member of the General and Supervisory Board – Porto Business School<br>• Member of the General Board – COTEC Portugal<br>• Member of the General Board – Instituto Português de Corporate Governance<br>• Non-Executive Board Member – SOGRAPE                                                                                                                                                                                                                                                                                                                                                                                         |

-2008)

==

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Image /page/292/Picture/0 description: A portrait of a man in a suit and tie is set against a light blue background. The man is centered in the frame and appears to be in his late 50s or early 60s. He has short, dark hair and a fair complexion. He is wearing a white dress shirt and a dark suit jacket. The background is a solid light blue color, which provides a clean and simple backdrop for the portrait.

| Full Name                     | MANUEL MENÉNDEZ MENÉNDEZ                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Position                      | External Member of the Board of Directors – EDP Renováveis, S.A.                                                                                                                                                                                                                                                                                                                                                                                                |
| Academic Qualifications       | • PhD in Economic Sciences – University of Oviedo<br>• Degree in Economics and Business Administration – University of Oviedo                                                                                                                                                                                                                                                                                                                                   |
| Skills and Experience         | • CEO – Unicaja Banco, S.A.<br>• CEO – Liberbank, S.A.<br>• Chairman – Cajastur<br>• Chairman – EDP España, S.A.U.<br>• Chairman – Naturgás Energía Grupo, S.A.<br>• Member of the Board – Confederación Española de Cajas de Ahorro (CECA)<br>• Member of the Board – AELÉC<br>• Member of the Board of Directors – EDP Renewables Europe, S.L.U.<br>• University Professor in the Department of Business Administration and Accounting – University of Oviedo |
| Current External Appointments | –                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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• Post- Graduation in Economic Law – Ludwig Maximilian University (scholarship Hanns Seidel Foundation, Munich) • Post - Graduate in European Community Competition Law – Max Planck Institute (scholarship Hanns Seidel Foundation, Munich)

• Several professional education courses in banking, finance, and asset management, namely the International Banking School,

|  | Full Name                     | ACÁCIO PILOTO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | Position                      | • Independent Member of the Board of Directors EDP Renováveis, S.A.<br>• Chairman of the Audit, Control and Related-Party Transactions Committee – EDP Renováveis, S.A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|  | Academic Qualifications       | • Degree in Law – Lisbon University<br>• Post- Graduation in Economic Law – Ludwig Maximilian University (scholarship Hanns Seidel Foundation, Munich)<br>• Post - Graduate in European Community Competition Law – Max Planck Institute (scholarship Hanns Seidel Foundation)<br>• INSEAD Executive Program<br>• Nova SBE Executive Program on Corporate Governance and Leadership of Boards<br>• Several professional education courses in banking, finance, and asset management, namely the International Banking School,<br>Dublin and the Asset and Liability Senior Management Program, Merrill Lynch International, London                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|  | Skills and Experience         | • International Division – Banco Pinto e Sotto Mayor<br>• International and Treasury Division – Banco Comercial Português<br>• Head – BCP International Corporate Banking<br>• Member of the Executive Committee - AF Investimentos SGPS<br>• Chairman & CEO - AF Investimentos SGPS group companies: AF Investimentos, Fundos Mobiliários; AF Investimentos,<br>Imobiliários; BPA Gestão de Patrimónios; BCP Investimentos International; AF Investimentos Internacional and Prime International<br>• Member – BCP Group Investment Committee<br>• Executive Board Member – BCP - Banco de Investimento, in charge of Investment Banking<br>• Treasurer and Head of Capital Markets - Millennium BCP Group<br>• Millennium BCP Chair – Group ALCO<br>• CEO – Millennium Gestão de Ativos SGFIM<br>• Chairman & CEO – Millennium SICAV, Luxembourg<br>• Chairman & CEO – BII International, Luxembourg<br>• Member of the Board of Directors and Member of the Audit Committee – INAPA IPG, S.A.<br>• Member of the Supervisory Board and Chairman of the Risk Committee – Caixa Económica Montepio Geral.<br>• Member of the Nominations and Remunerations Committee – EDP Renováveis, S.A.<br>• Member of the Related-Party Transactions Committee – EDP Renováveis, S.A. |
|  | Current External Appointments | • Member of the General Board – Instituto Português de Corporate Governance (representing EDP Renováveis, S.A.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

• Chairman & CEO - AF Investimentos SGPS group companies: AF Investimentos, Fundos Mobiliários; AF Investimentos, Fundos Imobiliários; BPA Gestão de Patrimónios; BCP Investimentos International; AF Investimentos Internacional and Prime International

{294}------------------------------------------------

Part I

Image /page/294/Picture/17 description: The image shows the logo for EDP Renewables. The logo consists of the letters 'edp' in a dark blue, sans-serif font, stacked above the word 'Renewables' in a smaller, lighter gray, sans-serif font. The letters 'edp' are connected, with the 'e' and 'd' sharing a vertical stroke.

- 
- 
- 
- 
- 
- <sup>o</sup> Board member Junior Museum of Natural History in Tallahassee, Florida City of Tallahassee Commissioner
	-

| Full Name                     | ALLAN KATZ                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Position                      | Independent Member of the Board of Directors – EDP Renováveis, S.A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Academic Qualifications       | • JD – Washington College of Law at American University in Washington DC (1974)<br>• Degree – UMKC (1969)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Skills and Experience         | • National Director of the Public Policy practice group – firm of Akerman Senterfitt<br>• Assistant Insurance Commissioner & Assistant State Treasurer – State of Florida<br>• Legislative Counsel – Congressman Bill Gunter & David Obey<br>• General Counsel – Commission on Administrative Review of the US House of Representatives<br>• Member of the Board – Florida Municipal Energy Association<br>• President – Brogan Museum of Art & Science in Tallahassee, Florida<br>• Board member – Junior Museum of Natural History in Tallahassee, Florida City of Tallahassee Commissioner<br>• First Chair – State Neurological Injury Compensation Association<br>• Member – State Taxation and Budget Commission<br>• City of Tallahassee Commissioner<br>• Ambassador of the United States of America to the Republic of Portugal<br>• Distinguished Professor – University of Missouri Kansas City<br>• Board Member – International Relation Council of Kansas City |
| Current External Appointments | • Founder – the American Public Square<br>• Executive Committee Chair of the Academic and Corporate Board – ISCTE Business School<br>• Board Member – WW1 Commission Diplomatic Advisory Board<br>• Creator – Katz, Jacobs and Associates LLC (KJA)<br>• Frequent speaker and moderator on developments in Europe and on American Politics                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

<sup>o</sup> Executive Committee Chair of the Academic and Corporate Board – ISCTE Business School in Lisbon Portugal

==

( )

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Part I

Image /page/295/Picture/18 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font. The word "Renewables" is written in a smaller, lighter gray font below the "edp" letters.

| Full Name                     | ROSA MARÍA GARCÍA<br>GARCÍA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Position                      | • Independent Member of the Board of Directors –<br>EDP Renováveis, S.A.<br>• Member of the Audit, Control, and Related Party Transactions Committee –<br>EDP Renováveis, S.A.<br>• Member of the Appointments, Remunerations and Corporate Governance Committee –<br>EDP Renováveis, S.A.<br>• Member of the Environmental, Social and Governance Committee –<br>EDP Renováveis, S.A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Academic Qualifications       | • Bachelor's degree in Mathematics –<br>Universidad Autónoma de Madrid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Skills and Experience         | • She has more than thirty years of international experience in the fields of Information Technology, Energy, Infrastructure, and<br>Manufacturing. The majority of her career was spent at Microsoft and at Siemens<br>• Director of Corporate Strategy –<br>Microsoft working at the company's headquarters in Redmond United States (1996-1999)<br>• General Manager –<br>Microsoft Worldwide Partner Group. She directed Microsoft's worldwide strategy for more than 640,000<br>independently owned-and-operated partner companies (1999-2002)<br>• Executive Chair -<br>Microsoft in Spain (2002-2008)<br>• Consumer & Online Vice-President –<br>Microsoft Western Europe (2008-<br>2011)<br>• Executive Chair –<br>Siemens in Spain (2011-2018)<br>• Non-Executive Chair -<br>Siemens Gamesa immediately after the merger of Siemens Wind Power and Gamesa (2017-2018)<br>• She has more than ten years of experience as a Non-Executive Director of the Board for several IBEX companies including Banesto,<br>Bolsas y Mercados Españoles, Acerinox and Bankinter. In every company, she has been either a member of the audit and control<br>committee or of the nominations and remuneration committee<br>• Non-Profit work: Member of the Board at the Asociación para el Progreso de la Dirección (2002-2019). President of the German<br>Chamber of Commerce in Spain (2016-2018). Member of the Advisory Board for the Universidad Europea de Madrid and Vice<br>president of Consejo Social de la Universidad Carlos III de Madrid (2008-2018)<br>• Awarded by AED (the most prestigious Spanish CEO association) as "Spanish CEO of the Year"<br>• Awarded by the President of Germany the Cross of Merit, one of the highest civilian honor that can be granted in the country |
| Current External Appointments | • Member of the Board –<br>Mapfre and Sener<br>• Non-Executive Chair –<br>Exolum                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

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Part I

Image /page/296/Picture/11 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark blue color.

| Image: Person | Full Name                     | JOSÉ MANUEL FÉLIX MORGADO                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------------|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               | Position                      | Independent Member of the Board of Directors – EDP Renováveis S.A.<br>Member of the Audit, Control, and Related Party Transactions Committee – EDP Renováveis S.A.<br>Member of the Appointments and Remunerations Committee – EDP Renováveis, S.A.<br>Member of the ESG Committee – EDP Renováveis, S.A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|               | Academic Qualifications       | • ESG IMD Programme<br>• Postgraduate degree in Corporate Governance – Universidade de Lisboa – Law Department<br>• International Directors Programme – IDP Certification Corporate Governance at INSEAD in Fontainebleau<br>• Degree in Business and Management – Universidade Católica                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|               | Skills and Experience         | • Employed in the investment banking arm of Midland Bank and HSBC (1984)<br>• Joined BCP Investimento in Lisbon as an investment banker and within Banco Comercial Português (1997)<br>• Member of the Board and Chief Financial Officer – Seguros e Pensões SGPS, and member of the board of the insurance<br>companies of the group in Portugal and Mozambique as well as Chairman of the Board of Império Vida y Diversos, S.A. (2000-2005)<br>• Vice President and Chief Financial Officer – ONI SGPS (2005 – 2007)<br>• CEO – INAPA IPG SGPS (2007 – 2015)<br>• Chairman – EUGROPA, European Paper Merchant Association in Brussels (2012 – 2015)<br>• Board Member – REN – Redes Energéticas Nacionais SGPS (2011 – 2012)<br>• Chairman of the Board – OZ Energia, S.A. (2011 – 2015)<br>• CEO - Banco Montepio (2015 - 2018)<br>• Member of the Board – Associação Portuguesa de Bancos (2015 – 2018) |
|               | Current External Appointments | • Chairman of the Board – VERLINGUE – Corretores de Seguros<br>• Member of the Board – NORFIN – SGOIC<br>• Corporate Governance adviser of family-owned groups                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

o Joined BCP Investimento in Lisbon as an investment banker and within Banco Comercial Português (1997[\[23\]](#page-9-1), <sup>o</sup> Member of the Board and Chief Financial Officer – Seguros e Pensões SGPS, and member of the board of the insurance companies of the group in Portugal and Mozambique as well as Chairman of the Board of Império Vida y Diversos, S.A. (2000 -

{297}------------------------------------------------

Part I

Image /page/297/Picture/11 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a simple, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark color, possibly dark blue or black, against a white background.

| Full Name                     | CYNTHIA KAY MCCALL                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Position                      | Independent Member of the Board of Directors – EDP Renováveis, S. A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Academic Qualifications       | • Juris Doctor and Bachelor of Arts degrees – University of Houston<br>• Certificates in Sustainable Energy Development (2020), ESG for Energy Companies (2021) and the Hydrogen Economy<br>(2021) -University of Houston                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Skills and Experience         | • Senior energy industry executive – with broad expertise, including strategy, operational<br>optimization, acquisitions, and<br>governance; with more than a decade of experience in the renewable energy industry working in the conventional power,<br>engineering and construction, and capital equipment manufacturing industries<br>• President, CEO and Board Member - Noble Environmental Power, LLC (2010-2018), a wind energy company backed by<br>private equity<br>• Senior Vice President, General Counsel and Chief Compliance Officer – Noble Environmental Power, LLC (2008-2010)<br>• Member of the leadership team entrusted with addressing global governance and compliance issues – General Electric<br>Company |
| Current External Appointments | • Chairperson Board of Directors – Flexitallic Group<br>• Chairperson Board of Directors – Renewable Energy Alliance Houston<br>• Member of the Board of Advisors – University of Houston Bauer College of Business – Gutierrez Energy Management<br>Institute<br>• Guest lecturer – on topics of leadership in energy at Texas A&M University, Rice University, and the University of Houston                                                                                                                                                                                                                                                                                                                                       |

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Part I

Image /page/298/Picture/0 description: This image shows a document containing information about María González Rodríguez. Her full name is María González Rodríguez. Her position is Secretary non-Member of the Board of Directors – EDP Renováveis, S.A. and Executive Director – EDP Renováveis, S.A. Legal Department. Her academic qualifications include a Bachelor of Laws (LL.B.) and Bachelor Degree in Economics from Universidad Pontificia de Comillas (ICADE), an Executive Program from IE Business School, and an International Directors Program from INSEAD. Her skills and experience include working as a Corporate Lawyer at the Madrid office of Squire, Sanders & Demps law firm between 1997 and 2000, working as a Senior Lawyer at Duro Felguera, S.A. (Spanish EPC contractor, listed on the Stock Exchange) between 2000 and 2008, joining EDPR Legal Department in 2008, and serving as Vice-Secretary from 2019 and Secretary of the Board of Directors and Board C from 2021. Her current external appointments are not specified.

EDP Renováveis, S.A.
department

Economics - Universidad Pontificia de Comillas (ICADE)

<sup>o</sup> Between 1997 and 2000 she worked as Corporate Lawyer at the Madrid office of Squire, Sanders & Dempsey LLP (American

<sup>o</sup> Between 2000 and 2008 she worked as Senior Lawyer at Duro Felguera, S.A. (Spanish EPC contractor, listed at the Spanish

<sup>o</sup> Has served from 2019 as Vice-Secretary and from 2021 as Secretary of the Board of Directors and Board Committees

# =

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Report from Management concerning responsibility for the System of Internal Control over
Financial Reporting

The board of directors and management are responsible for establishing and maintaining an
adequate System of Internal Control over Financial Reporting (SCIRF).

The SCIRF of EDP Renováveis Group is a set of processes designed to provide reasonable
assurance as to the reliability of the financial information and the preparation of the consolidated
annual accounts for external purposes, in accordance with the applicable financial information
reporting framework.

Due to the limitations inherent to all internal control systems, it is possible that the system of internal
control over financial reporting does not prevent or detect all errors that could occur and may only
provide reasonable assurance with respect to the presentation and preparation of the
consolidated annual accounts. Fur-thermore, extrapolating the effectiveness assessment to
future years entails a risk that controls may cease to be adequate due to changing conditions or
erosion in the level of compliance with policies and procedures.

Management has assessed the effectiveness of the SCIRF at 31 December 2023 based on the
criteria established in the Internal Control-Integrated Framework issued in 2013 by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO).

As a result of this assessment, and based on the aforementioned criteria, management concludes
that at 31 December 2023 EDP Renováveis Group had an ef-fective system of internal control over
financial reporting.

The SCIRF of EDP Renováveis Group at 31 December 2023 has been audited by the independent
auditors PricewaterhouseCoopers Auditores, S.L., as indicated in their report included in the
Annual Corporate Governance Report.

Signature

Chief Executive Officer

ANNEX II

Miguel Stilwell De Andrade

Chief Financial Officer

Rui Manuel Rodrigues Lopes Teixeira

{300}------------------------------------------------

Image /page/300/Picture/0 description: The image shows the logo for PwC, a multinational professional services network. The logo consists of the letters "pwc" in a stylized, lowercase font, with a graphic element above. The graphic element is composed of several overlapping squares in shades of red, orange, and yellow, creating a layered effect.

To the board of directors of EDP Renováveis, S.A.

We have carried out a reasonable assurance engagement on the design and effectiveness of the System of
Internal Control over Financial Reporting (hereinafter SICFR) and the accompanying description thereof
included in section 55 of the Corporate Governance Report of EDP Renováveis, S.A (the Company),
prepared in accordance with legislation applicable in Portugal, as at 31 December 2023. This system is
based on the criteria and policies defined by EDP Renováveis, S.A. pursuant to the guidance of the
Committee of Sponsoring Organizations of the Treadway Commission (COSO) provided in its “Internal
Control-Integrated Framework” report, in its most recent framework published in 2013.

A System of Internal Control over Financial Reporting is a process designed to provide reasonable
assurance on the reliability of financial information, in accordance with the applicable financial reporting
framework and includes those policies and procedures that: (i) permit the maintenance, in reasonable
detail, of records that accurately reflect the transactions performed; (ii) provide reasonable assurance that
the transactions are appropriately recorded to permit the preparation of financial information, in accordance
with the applicable financial reporting framework and that these transactions are only performed pursuant to
the pertinent authorisation; and (iii) provide reasonable assurance in relation to the timely prevention or
detection of unauthorised acquisitions, use or disposal of assets which could have a material effect on the
financial information.

In this respect, it should be borne in mind that, in view of the inherent limitations of all Systems of Internal
Control over Financial Reporting, irrespective of the quality of their design and operation, such systems only
permit the provision of reasonable, but not absolute, assurance in relation to the objectives pursued, such
that errors, irregularities or fraud may occur which may not be detected. Also, projections of the evaluation
of internal control to future periods are subject risks such as that internal control may become inadequate
as a result of future changes in applicable conditions or that in the future, the degree of compliance with the
policies or procedures established may deteriorate.

The directors of EDP Renováveis, S.A. are responsible for adopting the necessary measures to reasonably
ensure the implementation, maintenance and supervision of an adequate System of Internal Control over
Financial Reporting, as well as for the evaluation of its effectiveness, the development of improvements to
this system and the preparation and generation of the content of the accompanying information relating to
the SICFR.

Our responsibility is to issue a reasonable assurance report on the design and effectiveness of the System
of Internal Control over Financial Reporting of EDP Renováveis, S.A., based on the work carried out and
evidence we have obtained. We conducted our reasonable assurance engagement in accordance with
International Standard on Assurance Engagements 3000 (ISAE 3000) (Revised), “Assurance Engagements
other than Audits or Reviews of Historical Financial Information”, issued by the International Auditing and
Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC).

PricewaterhouseCoopers Auditores, S.L., Torre PwC, Pº de la Castellana 259 B, 28046 Madrid, España

{301}------------------------------------------------

EDP Renováveis, S.A.

Image /page/301/Picture/1 description: The image shows the logo for PwC (PricewaterhouseCoopers). The logo consists of the lowercase letters "pwc" in a bold, sans-serif font. Above and to the right of the letters is a graphic element composed of several overlapping squares in shades of red and orange, creating a gradient effect.

A reasonable assurance engagement includes understanding the System of Internal Control over Financial
Reporting, assessing the risk that there may be material internal control weaknesses, that controls are not
adequately designed or do not operate effectively, performing tests and evaluations of the design and
effective application of that system, based on our professional judgement, and carrying out those other
procedures which may be considered necessary.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.

We have complied with the independence requirements and other ethical requirements of the International
Code of Ethics for Professional Accountants (including International Independence Standards) of the
International Ethics Standards Board for Accountants (IESBA Code of Ethics), which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour.

Our firm applies International Standard on Quality Management (ISQM) 1, which requires the firm to design,
implement and operate a system of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.

In our opinion, EDP Renováveis, S.A. maintained, as at 31 December 2023, in all material respects, an
effective System of Internal Control over Financial Reporting for the financial year ended 31 December
2023, which is based on the criteria and policies defined by the management of EDP Renováveis, S.A. in
accordance with the guidance of the Committee of Sponsoring Organizations of the Treadway Commission
(COSO) provided in its “Internal Control-Integrated Framework” report in its most recent framework
published in 2013.

Similarly, the accompanying description of the SICFR Report included in section 55 of the Corporate
Governance Report of EDP Renováveis, S.A. as at 31 December 2023 has been prepared, in all material
respects, in accordance with the requirements established in the Code of recommendations of the *Instituto*
*Português de Corporate Governance* (IPCG) and Appendix I of Regulation N°. 4/2013 of the *Comissão do*
*Mercado de Valores Mobiliários* (CMVM) for the purposes of describing the SICFR in Corporate
Governance Reports.

Our work does not constitute an audit and is not subject to prevailing auditing regulations in Spain. We
therefore do not express an audit opinion in the terms envisaged in the aforementioned legislation.

PricewaterhouseCoopers Auditores, S.L.

Antonio Velasco Dañobeitia

28 February 2024

{302}------------------------------------------------

Image /page/302/Picture/6 description: The image shows a field of solar panels under a blue sky with the text "Why we choose to be Net Zero by 2040" superimposed on the image. The text is in a light blue color and is centered on the image.

# Pereira Barreto Solar Park, Brazil

Part I

304

Annual Report 2023 Remunerations Report

Image /page/302/Picture/5 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in white, with the "d" and "p" connected by a vertical line. Below the letters, the word "Renewables" is written in white. The background is a dark, blurry gradient.

{303}------------------------------------------------

Part I

Annual Report 2023 Part I – Remuneration report | Index

305

edp
Renewables

# 06 Remunerations Report

Remunerations Report 306

306

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![edp Renewables](https://s3.amazonaws.com/moonup.prod.static.rendering/public/e569999a-999a-499a-9999-999999999999/images/edprenewables.png)

# Remuneration Report

In compliance with both the Portuguese Securities Code, and the Spanish Companies Act, EDP Renováveis S.A. ("EDPR" or "Company") issues this Remuneration Report with the aim to provide a comprehensive view of the remuneration received by the members of its Governing Bodies, including all benefits, regardless of their form, attributed or due during the 2023 financial year.

The Remuneration Policy of EDPR for 2023 was defined by its Appointments and Remunerations Committee and presented to its Board of Director for its final approval at the Shareholders' Meeting level.

## **Approval procedure of the Remunerations Policy of the Board of Directors**

The definition of the proposal of the Remuneration Policy for the members of the Board of Directors of EDPR is incumbent on the Appointments and Remunerations Committee which is a delegated body of the Board of Directors, that in order to avoid any conflict of interest, is entirely composed by non- executive and independent members. Under such competences this Committee takes the responsibility for proposing to the Board of Directors the determination of the remuneration of the Executive Directors of the Company; the Remuneration Policy, the evaluation and compliance of the KPI's (Key Performance Indicators); the annual and multi annual variable remuneration, and also proposes the remuneration of the Non-Executive Directors and members of the Board Committees.

As such, this Committee prepares a proposal that defines the remuneration to be attributed to Directors, with the purpose that it reflects the performance of each of them, establishing for the Executive Directors a variable component which is consistent with the maximization of the Company's long term performance (variable annual and multi-annual remuneration for a three-year period), for the achievement of the most challenging objectives of the business plan, thereby guaranteeing the alignment of the performance of the governing bodies with the interests of the shareholders.

The Board of Directors is responsible for the approval of the above-mentioned proposals except to the extent it concerns the Remuneration Policy which is approved by the General Shareholders' Meeting as an independent item of the agenda.

As a Company integrated in a multinational business group, EDPR aims to maintain a solid culture that ensures the management, monitoring, control and supervision of the risks that the Group, its shareholders, employees, customers and, in general, all its stakeholders face, including those arising from the remuneration systems it adopts. EDPR adopts the transversal remuneration practices applied in EDP group, consistent and based on common principles that comply with the regulations applicable in the jurisdictions where it operates.

As such, the remuneration systems applied, including those applicable to the Executive Directors, are defined to promote a culture of merit and high performance that ensures that people and teams are recognized, encouraged and awarded on the basis of responsibility, availability, loyalty and competence placed at Group's service, ensuring actions aligned with the long-term interests of shareholders and promoting sustainable initiatives.

The proposal for remuneration policy of the Executive Directors also aimed at simplifying, and provide transparency and clarity, favouring a complete understanding of the framework of principles and rules that constitute it, and which will be applied and evaluated by the Appointments and Remunerations Committee.

## **Definition, revision and renewal of the Policy**

The definition of the Remuneration Policy of EDPR is submitted for approval by the General Meeting, on a proposal from the Board of Directors, based on the proposal presented by the Appointments and Remunerations Committee. Likewise, and in line with EDP Group corporate governance practices, EDPR has signed a Management Services Agreement with EDP under which the Company bears the cost for such services to some of the members of the Board of Directors (Executive and Non-Executive) to the extent their services are devoted to EDPR; and the Audit, Control and Related Party Transactions Committee (which is also entirely composed by non-executive and independent members) is involved in any revision and/or amendment of this agreement.

The definition and possible proposals for revision of the Remuneration Policy by the Appointments and Remunerations Committee are based on the articulation of EDPR longterm objectives, measured according to its strategic plan at all times, in the conclusions of comparative remuneration studies with national listed companies and with foreign sectoral

{305}------------------------------------------------

peers and on an articulation of principles with the remuneration plan of other employees of the Group.

The Appointments and Remunerations Committee may hire the external consultants and support necessary for the performance of comparative remuneration studies within the framework of directors' remuneration policies, assessing their conditions of independence for the provision of the services that may be requested.

#### **Regulatory Framework and principles of the Remuneration Policy applied in 2023**

EDPR is a Spanish Company listed in a regulated stock exchange in Portugal. The corporate organization of EDPR is subject to its personal law and to the extent possible, to the recommendations contained in the Corporate Governance Code of the Instituto Português de Corporate Governance ("IPCG"). As such, the Company intends to comply with both legal systems but always taking into account that its personal law is the Spanish one, and that in case of discrepancy, the aim is to adopt the law that entails more protectionism for its shareholders.

The Remuneration Policy applied in 2023 (duly approved by its Shareholders' Meeting) complies comply with Article 26 – C of the Securities Code (as amended by Law No. 99 A/2021 of 31st December), with article 529 novodecies of the Spanish Companies Act, with the IPCG Corporate Governance Code adopted by EDPR and with the international good practices, being aligned and consistent with the remuneration policy and remuneration practices applied to all employees of the Group.

Total remuneration, and the remuneration model in general, should be competitive, aligned with the practices of the international electricity sector and the renewables market, facilitating the attraction and retention of talent, and the commitment to the challenges and ambitions of the company.

#### **A. Remuneration structure and disclosure**

Pursuant to Article 26 of the Company's Articles of Association the Directors shall be entitled to a remuneration which consists of a fixed amount to be determined annually by the General Shareholders' Meeting for the whole Board of Directors. This article also establishes the possibility of the Directors of receiving attendance fees or being remunerated with Company shares, share options, or other securities granting the right to

obtain shares or by means of share-indexed remuneration systems. In any case,the system chosen must be approved by the General Shareholders' Meeting and comply with current

legal provisions.

The remuneration policy applicable for 2023 defines a structure with a fixed remuneration for all members of the Board of Directors, whereas for the Executive Directors defines a fixed and a variable remuneration, with an annual component, and a multi-annual component.

The Non-Executive Directors only receive a fixed remuneration, which is calculated on the basis of their work exclusively as Directors or, if such is the case, considering their membership/chairmanship of the Appointments and Remunerations Committee, the Audit, Control and Related Party Transactions Committee and the Environmental, Social and Corporate Governance Committee. Except in the case of the Chairperson of the Board of Directors, the directors that are also members/chairperson of the Delegated Committees receive for these functions a complement to their fixed remuneration as members of the Board.

As already indicated, EDPR has signed a Management Services Agreement with EDP, under which the Company bears the cost for such services to some of the members of the Board of Directors to the extent their services are devoted to EDPR. In 2023 these Directors were Miguel Stilwell d'Andrade and Rui Teixeira (Executive Directors), and Vera Pinto, Ana Paula Marques and Miguel Setas (non-Executive Directors). The latter served until April 12th, 2023, the date of his resignation.

The total amount of the remunerations that the Company will pay to its Directors shall not 
exceed the amount determined by the General Shareholders' Meeting. For these purposes, 
the General Shareholders' Meeting held on May 13<sup>th</sup>, 2008, set a maximum annual amount for the Board of Directors for fixed remuneration of EUR 2,500,000; and at its meeting held on April 8th, 2014, also resolved to establish a maximum annual amount for variable remuneration of EUR 1,000,000 for executive directors.

For 2023 onwards, the maximum annual amount for fix and variable remuneration for the 
Board of Directors has been set in EUR 3,500,000 by the approval of the General Shareholders' Meeting held on March 31 st, 2022. This amount results of the merge of the former EUR 2,500,000that was stablished for fix renumeration and the EUR 1,000,000 that was established for variable annual remuneration.

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Image /page/306/Picture/35 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a simple, sans-serif font, stacked above the word "Renewables" in a smaller, similar font. The letters and word are in a dark color, possibly black or a dark gray, against a white background.

![image.png](https://s3.us-west-2.amazonaws.com/secure.notion-static.com/99999999-9999-9999-9999-999999999999/image.png?id=99999999-9999-9999-9999-999999999999&table=block&spaceId=99999999-9999-9999-9999-999999999999&width=9999&userId=&cache=v2)

# I) Remuneration of EDPR Directors for their functions as Members of the Board

This section includes the information regarding the remuneration received by EDPR Board members in 2023 for their functions at the Board of Directors.

#### Fixed component – base remuneration

#### **Conditions**

The fixed remuneration of the members of the Board of Directors is aligned with the base salary strategy practiced by a number of companies comparable to EDPR, the national market and the international electricity sector; in terms of size, market capitalization, risk profile, relevance and geographical implementation, while also considering, at all times, the complexity of the functions performed, the remuneration conditions of its employees and the non-increase of the average market pay gap between workers and administrators.

The Non-Executive Directors only receive a fixed remuneration, which is calculated on the basis of their work as Directors and if such is the case, a complement as Member or Chairperson of the Appointments and Remunerations Committee, the Audit, Control and Related Party Transactions Committee and/or the Environmental, Social and Corporate Governance Committee. Such amounts are cumulative, except for the Chairman of the Board of Directors who does not receive any complement derived from his role at any Committee.

#### **Figures 2023**

Hereunder it is detailed the list of EDPR Directors that composed the Board during 2023, and the amounts paid by EDPR either (i) as remuneration to them or (ii) as fee to EDP under

the Management Services Agreement for their services (not remuneration), for their functions performed at the Board of Directors level:

#### EXECUTIVE DIRECTORS

#### NON-EXECUTIVE DIRECTORS

\*These amounts correspond to
rendered in 2023 by such direc
plan for Executive Directors de:
**These Directors also receive
Chapter 6 of the Annual Report
\*** Miguel Setas presented th
indicated in the table above ref

|                            |              | FIXED COMPONENT                                |
|----------------------------|--------------|------------------------------------------------|
| DIRECTOR                   | REMUNERATION | FEES MANAGEMENT SERVICES<br>AGREEMENT EDP-EDPR |
| EXECUTIVE DIRECTORS        |              |                                                |
| Miguel Stilwell d' Andrade | 0€-          | 550,000€*                                      |
| Rui Teixeira               | 0€-          | 360,000€*                                      |
| NON-EXECUTIVE DIRECTORS    |              |                                                |
| António Mota               | 230,000€     |                                                |
| Vera Pinto                 | 0€-          | 65,000€*                                       |
| Ana Paula Marques          | 0€-          | 65,000€*                                       |
| Manuel Menéndez            | 65,000€      | -                                              |
| Acácio Piloto(**)          | 65,000€      | -                                              |
| Allan J.Katz(**)           | 65,000€      | -                                              |
| Rosa García(**)            | 65,000€      | -                                              |
| José Morgado(**)           | 65,000€      | -                                              |
| Kay Mc Call (**)           | 65,000€      | -                                              |
| Miguel Setas (***)         |              | 21,667€*                                       |
| Sub- Total                 | 620,000€     | 1,061,667€                                     |
| Total                      |              | 1,681,667€                                     |

*\**These amounts correspond to the service fee paid by EDPR to EDP under the Management Services Agreement for the services rendered in 2023 by such director. In addition, EDPR pays to EDP a 5% of such service fee which is applied to the retirement savings plan for Executive Directors described in topic 76 of this Chapter 5 of the Annual Report.

\*\*These Directors also received remuneration for their participation in the Delegated Committees that is detailed at section A) II) of this 
Chapter 6 of the Annual Report.
\*\*\* Miguel Setas presented the resignation to his positions as Board Member with effects April 12<sup>th</sup>, 2023, and therefore the amounts

th , 2023, and therefore the amounts indicated in the table above reflect the remuneration accrued in 2023 until her resignation.

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Image /page/307/Picture/13 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue sans-serif font, with the "d" being taller than the "e" and "p". Below the letters, in a smaller font, is the word "Renewables" in the same dark blue color.

#### Variable component

#### **Conditions**

The annual variable remuneration has the nature of incentive/performance premium linked to financial and non-financial objectives (linked to the Business Plan and budget) of shortterm, evaluated annually, reflecting in the year under analysis and possible repercussion in the following years, being paid in cash.

The amount of the annual performance premium shall be determined within three months of the approval of EDPR's accounts at the ordinary General Meeting in each year, by reference to the previous year/annual performance period.

Variable annual and multi-annual remuneration will be a percentage of fixed annual component, with a superior weight for multiannual vs. annual component (120% vs. 80%). Thus, the value of the variable remuneration may range between 0% and 85% of the 80% in the case of the annual variable, and between 0% and 85% of the 120% in the case of the multi-annual variable. Such percentages are applied over the gross annual fixed remuneration. According to the Remuneration Policy approved by the General Shareholders' Meeting, the maximum variable remuneration (annual and multi-annual) is applicable if all the KPI's were achieved, and the performance evaluation is equal or above 110%.

In line with corporate governance practices, the Remuneration Policy incorporates the deferral for a period of three years of the multi-annual variable remuneration, being the relevant payment conditioned to the lack of any wilful illicit action, known after the appraisal and which endangers the sustainable performance of the company.

The key performance indicators (KPIs) used to determine the amounts of the annual and multi – annual variable remuneration for each year of the term are proposed by the Appointments, and Remunerations Committee with the aim of aligning them with the strategic pillars of the Company: growth, risk control and efficiency. The remuneration policy establishes that the indicators shall be set in accordance with 6 clusters: (i) Shareholders, (ii) People, (iii) Environment & Communities, (iv) Assets and Operations, (v) Innovation & Partners, and (vi) Clients; each of such clusters shall have at least one indicator. The KPIs considered for the variable remuneration paid in 2022 (as a result of the

performance developed in 2021), as well as those to be considered in 2023 for the appraisal of the performance of year 2022, were the following:

| CLUSTER<br>WEIGHT              |     |      | KEY PERFORMANCE<br>INDICATOR                              | CEO / CFO |          |
|--------------------------------|-----|------|-----------------------------------------------------------|-----------|----------|
|                                |     |      |                                                           | WEIGHT    | EDPR RES |
| Total<br>Shareholder<br>return | 15% | 100% | TSR vs. Wind peers & PSI 20                               | 100%      | 96%      |
| Shareholders                   |     |      | Operating Cash Flow<br>(€ million)                        | 10%       | 76%      |
|                                |     |      | AR/Sell-down + Tax Equity<br>(€ million)                  | 10%       | 98%      |
|                                |     |      | EBITDA+ sell down gains<br>(€ million)                    | 10%       | 120%     |
|                                |     | 60%  | Net Profit<br>(€ million)                                 | 10%       | 120%     |
|                                |     |      | Core Opex Adjusted<br>(€ thousand/MW)                     | 10%       | 93%      |
|                                |     |      | Projects with FID<br>(% of total '19–'22 additions in BP) | 10%       | 111%     |
| Clients                        | 80% | 10%  | Renewable Capacity Built<br>(in MW)                       | 10%       | 0%       |
| Assets &<br>Operations         | 10% |      | Technical Energy Availability<br>(%)                      | 5%        | 98%      |
| Environment &<br>Communities   | 5%  |      | Capex per MW<br>(€ thousand)                              | 5%        | 97%      |
| Innovation &<br>partners       | 5%  |      | Certified MW<br>(%)                                       | 5%        | 100%     |
| People<br>Management           | 10% |      | H&S frequency rate<br>(employees + contractors)           | 5%        | 84%      |
| Remuneration<br>Committee      | 5%  | 100% | People Management                                         | 10%       | 108%     |
|                                |     |      | Appreciation remuneration committee                       | 100%      | 100%     |

The policy has considered the labour conditions and the remuneration of the Company employees in order to define its terms, and in particular, has established this KPI, that includes the results of the Climate Survey launched to the employees in which the satisfaction level with the performance and applicable conditions is reflected.

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Image /page/308/Picture/20 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark color, possibly dark blue or black, against a white background.

# =

↺

#### **Figures 2023**

The variable remuneration only applies to Executive Directors, and the evaluation of compliance with the indicators and related level of performance is appraised by the Appointments and Remunerations Committee, which in turn submits it to the Board of Directors for approval.

#### Variable Annual

As of December 31st 2023, the Executive Directors of EDPR were Miguel Stilwell d'Andrade and Rui Teixeira. As a result of the analysis of their performance, the following amounts were paid in 2023 by EDPR to EDP as management fee, for the variable annual component amounts accrued for their services provided in 2022:

| VARIABLE COMPONENT         |              |                                                |
|----------------------------|--------------|------------------------------------------------|
|                            | REMUNERATION |                                                |
| DIRECTOR                   |              | FEES MANAGEMENT SERVICES<br>AGREEMENT EDP-EDPR |
| EXECUTIVE DIRECTORS        |              |                                                |
| Miguel Stilwell d' Andrade | 0€           | 455,835€                                       |
| Rui Teixeira               | 0€           | 344,250€                                       |
| Total                      |              | 800,085€                                       |

Variable multiannual

The multiannual variable component (three years) applies to Executive Directors. As the current Executive Directors of EDPR (Miguel Stilwell d' Andrade and Rui Teixeira) were appointed in 2021, no multiannual variable component was still paid to them for their functions performed at EDPR.

#### **Non-Monetary Benefits**

No non-monetary benefits are paid by EDPR to its Board Members, except for a company car for the Chairman of the Board of Directors, (whose total related cost for four years was borne and reported in 2021) and the retirement savings plan for Executive Directors referred in the following section. No non-monetary benefits have been paid to members of the Board of Directors who have resigned from their positions in the current year.

#### **Retirement Savings Plan**

The retirement savings plan applicable to 2023, which is included within the Remuneration Policy applicable for 2022 onwards, was defined and proposed by the Appointments and Remunerations Committee to the Board of Directors for its submission to the General Shareholder's Meeting. For the Executive Directors of EDPR (Miguel Stilwell d' Andrade and Rui Teixeira) it was stablished in a 5% of the fixed fee under the Management Services Agreement. For the year 2023, EDPR paid a fee to EDP under the Management Services agreement of 27,500€ corresponding to the retirement saving plan of Miguel Stilwell d' Andrade, and of 18,000€ corresponding to the retirement saving plan Rui Teixeira.

# II) Remuneration of EDPR Directors for their functions as Members of the Delegated Committees

#### **Conditions**

In line with Spanish Law and as specifically foreseen in Article 10 of the Company's Articles of Association, the Board of Directors of EDPR is entitled to create delegated bodies. The Board of Directors of EDPR has set up three committees that are composed exclusively by non-executive and independent members:

- Audit, Control and Related-Party Transactions Committee
- Appointments and Remunerations Committee
- Environmental, Social and Corporate Governance Committee

Except in the case of the Chairperson of the Board of Directors, the directors that are also members/chairperson of the Delegated Committees receive for these functions a complement to their fixed remuneration as members of the Board.

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Image /page/309/Picture/17 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters and word are in a dark color, possibly dark blue or black, against a white background.

#### **Figures 2023 – Audit, Control and Related Party Transactions Committee**

Below the list of members of the Audit, Control and Related Party Transactions Committee as of December 31st 2023, and the amounts paid by EDPR as remuneration to them for the functions performed at this body in 2023:

| COMMITEE<br>MEMBER | POSITION    | REMUNERATION |
|--------------------|-------------|--------------|
| Acácio Piloto      | Chairperson | 55,000€      |
| Rosa García García | Vocal       | 25,000€      |
| José Félix Morgado | Vocal       | 25,000€      |

#### **Figures 2023 – Appointments and Remunerations Committee**

Below the list of members of the Appointments and Remunerations Committee as of December 31st 2023, and the amounts paid by EDPR as remuneration to them for the functions performed at this body in 2023. As indicated at the beginning of this section, the Chairman of this Committee, António Gomes Mota, does not receive a complement to its remuneration as Chairperson of the Board for the functions performed at this Committee:

| COMMITEE MEMBER    | POSITION    | REMUNERATION |
|--------------------|-------------|--------------|
| António Gomes Mota | Chairperson | 0            |
| Rosa García García | Vocal       | 10,000€      |
| José Félix Morgado | Vocal       | 10,000€      |

#### **Figures 2023 – Environmental, Social and Corporate Governance Committee**

Below the list of members of the Environmental, Social and Corporate Governance Committee as of December 31st 2023, and the amounts paid by EDPR as remuneration to them for the functions performed at this body in 2023. Likewise, as indicated at the beginning of this section, the Chairman of this Committee, António Gomes Mota, does not receive a complement to its remuneration as Chairperson of the Board for the functions performed at this Committee:

| Rosa García García |
|--------------------|
| José Félix Morgado |
| Allan J. Katz      |
| Kay Mc Call        |

| COMMITEE MEMBER    | POSITION    | REMUNERATION |
|--------------------|-------------|--------------|
| António Gomes Mota | Chairperson | €            |
| Rosa García García | Vocal       | 10,000 €     |
| José Félix Morgado | Vocal       | 10,000 €     |
| Allan J. Katz      | Vocal       | 10,000 €     |
| Kay Mc Call        | Vocal       | 10,000 €     |

# **B. Alignment of the application of the remuneration with the Remuneration Policy adopted. Contribution of the Remuneration Policy to the long-term performance of the Company and criteria taken intoaccount.**

In 2023, the Board of Directors Remuneration Policy in place for this term was duly applied.

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=
\$

**edp**

Renewables

==

↻

As a summary of all the above breakdowns detailed, it is hereby provided a summary table including the total amounts paid by EDPR in 2023either (i) as remuneration to them for Director functions at the Board level and Delegated Committees or (ii) as fee to EDP under the Management Services Agreement for their services (not remuneration):

| DIRECTOR                  | (I) REMUNERATION | (II) FEES MANAGEMENT SERVICES AGREEMENT EDP-EDPF |                              |                            |
|---------------------------|------------------|--------------------------------------------------|------------------------------|----------------------------|
| EXECUTIVE DIRECTORS       |                  | FIXED COMPONENT                                  | ANNUAL VARIABLE<br>COMPONENT | RETIREMENT SAVINGS<br>PLAN |
| Miguel Stilwell d'Andrade | -                | 550,000€*                                        | 455,835€                     | 27,500€                    |
| Rui Teixeira              | -                | 360,000€*                                        | 344.250€                     | 18,000€                    |
| NON-EXECUTIVE DIRECTORS   |                  |                                                  |                              |                            |
| António Mota              | 230,000€         |                                                  |                              |                            |
| Vera Pinto                | -                | 65.000€                                          |                              |                            |
| Ana Paula Marques         | -                | 65,000€                                          |                              |                            |
| Manuel Menéndez           | 65,000€          |                                                  |                              |                            |
| Acácio Piloto             | 120,000€         |                                                  |                              |                            |
| Allan J.Katz              | 75,000€          |                                                  |                              |                            |
| Rosa García               | 110,000€         |                                                  |                              |                            |
| José Morgado              | 110,000€         |                                                  |                              |                            |
| Kay Mc Call               | 75,000€          |                                                  |                              |                            |
| Miguel Setas              |                  | 21,667€                                          |                              |                            |
| Sub- Total 1              | 785,000€         | 1,061,667€                                       | 800,085€                     | 45,500€                    |
| Sub- Total 2              | 785,000€         |                                                  |                              | 1,907,252€                 |
| Total                     |                  |                                                  |                              | 2,692,252€                 |

The total amount paid by EDPR in 2023 either (i) as remuneration and (ii) as fee to EDP under the Management Services Agreement, for the services performed by its Directors as members of its Board (including the retirement savings plan) was of 1,907,252€, which is below the maximum amount agreed by the Shareholders' Meeting for 2022 and subsequent years (2,500,000€). Likewise, the total amounts that were paid as fee to EDP under the Management Services Agreement for the variable remuneration paid to the

Executive Directors in 2023 was of 800,085€ which is also aligned with the maximum amount agreed by the General Shareholders' Meeting for these purposes (1,000,000€).

The remuneration policy adopted by EDPR in 2022 also effective for 2023, included key elements to enhance a Company's management performance not only focused on shortterm objectives, but also incorporate as part of its results the interests of the Company and

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=
↺

of shareholders in the medium and long term. These elements are: (i) the definition of the indicators in accordance with the 6 clusters, (ii) the relative weight assigned to each KPIs to calculate annual and multiannual variable remuneration (iii) the relevance associated with the achievement of such KPIs (iv) the three-year term considered for determining the value of variable multi-annual component of the remuneration (v) the deferral in three years for the payment of the variable multi-annual as recommended by CMVM as a good corporate governance practices, as well as conditioning its payment to the fact of there has not been unlawful actions known after the performance evaluated that may jeopardize the sustainability of the company's performance, (vi) the use of the qualitative criteria focused on a strategic and medium term perspective of the development of the Company, and (vii) the existence of a maximum limit for the variable remuneration.

## **C. Performance of the company and remuneration average of the employees**

#### **Average employees' remuneration (€)**

Note: Exchange rate at constant values (average from 2015 to 2017) 3.72 EUR/BRL, applied to the period 2019 to 2023.

# **D. Remuneration from other Group Companies**

The members of the Board of Directors as of end of December 2023 do not receive any payment from any company under EDPR control or subject to EDPR common control.

#### **E. Share-allocation and/or Stock Option Plans**

EDPR does not have any Share-Allocation and/or Stock Option Plans.

## **F. Refund of a variable remuneration**

In line with corporate governance practices, the Remuneration Policy of EDPR incorporates the deferral for a period of three years of the multi-annual variable remuneration, being the relevant payment conditioned to the lack of any willful illicit action, known after the appraisal and which endangers the sustainable performance of the company.

Image /page/311/Figure/5 description: The image shows a bar graph. The bar is green and is labeled with the number 5,388 above it. The x-axis label below the bar is "2019".

Image /page/311/Figure/13 description: This bar chart shows the values for the years 2019, 2020, 2021, 2022, and 2023. The value for 2019 is 5,388. The value for 2020 is 5,315. The value for 2021 is 5,384. The value for 2022 is 5,651. The value for 2023 is 5,843.

Image /page/311/Figure/2 description: This image is a bar chart showing percentage values for the years 2018, 2019, 2020, 2021, 2022, and 2023. The percentage values for each year are as follows: 2018: 12%, 2019: 36%, 2020: 120%, 2021: -3%, 2022: -6%, and 2023: -9%.

#### **Total shareholder return**

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Image /page/312/Picture/18 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a bold, sans-serif font, stacked above the word "Renewables" in a smaller, regular sans-serif font. The letters and word are in a dark color, possibly black or dark gray, against a white background.

——

# **G. Compliance with the applicable Policy during 2023**

The remuneration policy for 2023 was applied without exceptions since its approval in 2022.

#### **Other remunerations**

i) Remuneration of the Chairman of the General Shareholders' Meeting

Since 2021, EDPR decided to adopt the general practice followed under the personal law of the Company (Spanish one) that allows the Shareholders Meeting to be chaired by the Board of Directors Chairman. Therefore, there are no additional remunerations applies for the chairmanship of the General Shareholders' Meeting, as it is performed by the Chairperson of the Board of Directors (António Gomes Mota).

ii) External Auditor remuneration in 2023 for EDP Renováveis S.A. and subsidiaries

According to the Spanish law, the External Auditor ("Auditor de Cuentas") is appointed by the General Shareholders' Meeting and corresponds to the statutory auditor body ("Revisor Oficial de Contas") described on the Portuguese Law.

As a result of a competitive process launched in 2017, and following the proposal of the Audit, Control and Related Party Transactions Committee to the Board of Directors, PricewaterhouseCoopers Auditores, S.L. was appointed as EDPR SA External Auditor by the Shareholder's Meeting held on April 3rd, 2018. PricewaterhouseCoopers Auditores, S.L., is a Spanish Company registered at the Spanish Official Register of Auditors under number S0242 with Tax Identification Number B-79031290. The renewal of PricewaterhouseCoopers Auditores, S.L. as External Auditor of EDPR SA for years 2021, 2022 and 2023 was approved by EDPR's Shareholders Meeting on April 12th, 2021, and the current audit partner in charge of EDPR is Antonio Velasco Dañobeitia.

On July 2022, EDPR approved an internal regulation to rule the provision of services and relationship with the External Auditor, with regards to both audit and non-audit services to be hired, and the reporting and approval procedure to be applied. These regulations also establish the independence criteria to be considered.

#### **Figures 2023**

| SERVICE                                  | EUROPE     | NORTH<br>AMERICA | LATAM    | APAC       | TOTAL      | %      |
|------------------------------------------|------------|------------------|----------|------------|------------|--------|
| Audit and statutory audit<br>of accounts | 1,809,610€ | 2,194,907€       | 387,963€ | 1,008,660€ | 5,401,140€ | 94,68% |
| Other non-audit services                 | 283,049€   | 12,609€          | 8,075€   | -          | 303,733€   | 5.032% |
| Total                                    | 2,092,659€ | 2,207,516€       | 396,038€ | 1,008,660€ | 5,704,873€ | 100%   |

The amount of other non-audit services in Europe includes among others, services that refer to the entire Group such as the review of the internal control system on financial reporting and review of the non-financial information related to sustainability included in EDPR Annual Report, which are invoiced to a European company. This amount also includes the limited review as of June 30th, 2023 of the EDPR Consolidated Financial Statements and other reviews for Group consolidation purposes which are considered non-audit services according to the respective local regulation.

Total amount for Europe includes 969,245 Euros of services provided by PricewaterhouseCoopers Auditores S.L. in Spain from which 693,197Euros refer to audit services and 276,048 Euros refer to non-audit services.

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# Part II Financial Statements

Image /page/313/Picture/1 description: The image shows the logo for EDP Renewables. On the left is a circular design with three concentric circles in purple, green, and blue. To the right of the design is the text "edp" in white, with the word "Renewables" below it in a smaller font, also in white. The background is a blurry yellow.

Image /page/313/Picture/2 description: The image shows a high-angle view of a building with multiple floors. The building is light-colored, possibly white or light gray, and has a modern architectural style. Each floor has a series of windows, which appear dark against the building's light facade. Some floors have balconies or terraces with glass railings, providing outdoor spaces for the occupants. The overall impression is that of a contemporary residential or commercial building with a clean and orderly design.

Image /page/313/Picture/4 description: The image shows a close-up of a building's exterior, specifically focusing on the area around a window. The number '319' is prominently displayed on the window, suggesting it is a room or building number. The window is divided into multiple panes, and a blue pipe or bar runs horizontally across the window's surface. The overall color scheme is dominated by white and blue, creating a clean and modern aesthetic.

318

Annual Report 2023Financial Statements and Notes

Part II

Solar Panels Installed on the Roof of Singapore's Public Housings

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Image /page/314/Picture/0 description: The image shows the logo for PwC, a multinational professional services network. The logo consists of the lowercase letters "pwc" in a bold, sans-serif font, positioned below a graphic element. The graphic element is composed of several squares arranged in a grid-like pattern, with the squares varying in shades of orange and red, creating a gradient effect.

To the shareholders of EDP Renováveis, S.A.

We have audited the consolidated annual accounts of EDP Renováveis, S.A. (the Parent company)
and its subsidiaries (the Group), which comprise the statement of financial position as at
31 December 2023, and the income statement, statement of comprehensive income, statement of
changes in equity, statement of cash flows and related notes, all consolidated, for the year then
ended.

In our opinion, the accompanying consolidated annual accounts present fairly, in all material respects,
the equity and financial position of the Group as at 31 December 2023, as well as its financial
performance and cash flows, all consolidated, for the year then ended, in accordance with
International Financial Reporting Standards as adopted by the European Union (IFRS-EU) and other
provisions of the financial reporting framework applicable in Spain.

We conducted our audit in accordance with legislation governing the audit practice in Spain. Our
responsibilities under those standards are further described in the *Auditor's responsibilities for the*
audit of the *consolidated annual accounts* section of our report.

We are independent of the Group in accordance with the ethical requirements, including those relating
to independence, that are relevant to our audit of the consolidated annual accounts in Spain, in
accordance with legislation governing the audit practice. In this regard, we have not rendered services
other than those relating to the audit of the accounts, and situations or circumstances have not arisen
that, in accordance with the provisions of the aforementioned legislation, have affected our necessary
independence such that it has been compromised.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.

Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated annual accounts of the current period. These matters were addressed in
the context of our audit of the consolidated annual accounts as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.

PricewaterhouseCoopers Auditores, S.L., Torre PwC, Pº de la Castellana 259 B, 28046 Madrid, España

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Image /page/315/Picture/0 description: The image contains the logo for PwC. The logo consists of the letters "pwc" in a bold, sans-serif font, stacked below a graphic element. The graphic element is a series of overlapping squares in shades of red, orange, and yellow, arranged in a staggered, ascending pattern.

EDP Renováveis, S.A. and its subsidiaries

| Key audit matters                                                                                  | How our audit addressed the key audit<br>matters |
|----------------------------------------------------------------------------------------------------|--------------------------------------------------|
| Assessment of the recovery of the carrying<br>amount of certain non-current assets of the<br>Group |                                                  |

The accompanying consolidated annual
accounts present goodwill, intangible assets,
right of use assets and property, plant and
equipment amounting to 2,235,601 thousand
euros, 379,872 thousand euros, 935,637
thousand euros and 20,252,164 thousand euros,
respectively, as at 31 December 2023.

These assets mainly relate to electricity
generating facilities by means of renewable
sources in Europe, North America, Asia and
Latin America, that are directly affected by the
regulatory framework (note 1) applicable in each
of the countries in which the Group operates.

These assets are allocated to cash generating
units (CGUs) as indicated in note 19 and are
tested for impairment on an annual basis, as
described in note 2.M, by determining the
recoverable amount of these assets on the basis
of the present value of future cash flows
generated by the assets, considering the
business plans approved by management.

The key assumptions used in the preparation of
these cash flows are detailed in note 19.

We started our analysis by obtaining an
understanding of the process and the relevant
controls that the Group has in place to analyse
the recovery of these non-current assets.

In addition, we considered the adequacy of the
allocation of assets to the CGUs and the
process for identifying those requiring an
assessment of impairment, in accordance with
accounting standards.

In addition, we assessed the adequacy of the
valuation models employed, the assumptions
and estimates used in the calculations,
including, among others, the estimated
performance of electricity prices, consistency
with the applicable regulatory framework and the
evolution of discount rates.

With respect to discount rates, in collaboration
with our valuation experts, we verified that the
methodology used in their estimation is
adequate and that their value is within a
reasonable range.

In addition, we checked the mathematical
accuracy of the calculations and models
prepared by management and assessed their
sensitivity calculations, and compared the
recoverable value calculated by the Group with
the assets' carrying amount.

In addition, management carries out a sensitivity
analysis on the key assumptions which, based
on prior experience, may reasonably give rise to
variations, as detailed in note 19.

As a result of the previous analyses, Group
management has concluded that it is necessary
to recognise a net impairment charge during the
2023 financial year for an amount of 186,783
thousand euros (note 13).

This area is key because it entails the
application of critical judgements and significant
estimates by management (note 4) concerning
the key assumptions used in the calculations
performed, which are subject to uncertainty,
regarding significant future changes which could
have a significant impact on the Group's
consolidated annual accounts.

Finally, we assessed the sufficiency of the
information disclosed in the consolidated annual
accounts with respect to the assessment of the
recoverable amount of these assets.

Based on the procedures carried out, we
consider that management's approach and
conclusions and the information disclosed in the
accompanying consolidated annual accounts,
are consistent with the evidence obtained.

{316}------------------------------------------------

EDP Renováveis, S.A. and its subsidiaries

| Key audit matters                             | How our audit addressed the key audit<br>matters |
|-----------------------------------------------|--------------------------------------------------|
| Sale transactions of controlling interests in |                                                  |

As indicated in note 6 to the accompanying
consolidated annual accounts, during the 2023
financial year the Group sold its holdings in
various subsidiaries in Brazil, Spain and Poland,
with the consequent loss of control over those
subsidiaries.

These transactions have generated a profit
amounting to 502,181 thousand euros (note 9)
recognised in the “Other income” line item of the
consolidated income statement as at 31
December 2023.

The accounting for these transactions according
to the policies described in note 2.B requires the
analysis of whether the Group maintains control
or not, once the transaction has taken place,
which entails the application of critical judgments
as indicated in note 4, assumes the existence of
relevant estimates in relation to the results of the
sale, and requires special attention in our audit
because of the magnitude of the amounts
indicated, and so we have therefore considered
this to be a key audit matter.

In auditing the sale transactions carried out by
the Group, we applied, amongst others, the
following procedures:

- 
- 
- 
- 

Based on the procedures performed, we
consider that the accounting treatment followed
by management for the operations mentioned,
and the disclosures included in the
accompanying consolidated annual accounts,
are consistent with the evidence obtained.

As indicated in note 5 to the accompanying
consolidated annual accounts, the Group is
exposed to certain financial risks, namely,
exchange rate risk, interest rate risk and
electricity price risk, due to the activities
performed and the countries where it operates.

In order to manage these risks, management
has contracted several derivatives accounted for
at fair value, whose values as at 31 December
2023 amount to 395,850 thousand euros and
850,841 thousand euros in assets and liabilities,
respectively (note 37).

The fair value of the derivatives is estimated by
means of valuation techniques of varying
complexity that require the application of
judgement and, in certain cases, the use of

We started our analysis by understanding the
procedure established by management to
identify and measure the derivative financial
instruments, as well as the relevant controls in
existence in this area.

For a sample of derivative financial instruments
in existence, we checked their main
characteristics with their respective contracts.

In addition, and with the involvement of our
experts in the valuation of derivative financial
instruments, we assessed the valuation
methodology used and, for a sample of
instruments, we contrasted the valuation
performed by management.

{317}------------------------------------------------

Image /page/317/Picture/0 description: The image shows the logo for PwC, a multinational professional services network. The logo consists of the lowercase letters "pwc" in a bold, sans-serif font, positioned below a graphic element. The graphic element is composed of several overlapping squares in shades of red, orange, and yellow, creating a layered effect.

EDP Renováveis, S.A. and its subsidiaries

| Key audit matters                                                                                                                                                                                                                              | How our audit addressed the key audit<br>matters                                                                                                                                                                                               |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| On the other hand, derivatives designated as<br>accounting hedges are required to meet certain<br>criteria in relation to the documentation of the<br>hedge as indicated in note 2.D.                                                          | Moreover, for a sample of the instruments<br>designated as accounting hedges, we assessed<br>that the documentation is in accordance with<br>requirements established in prevailing<br>accounting standards regarding hedging.                 |
| Due to the uncertainty associated with the<br>estimations of the fair value of these instruments<br>and the complexity of complying with accounting<br>standards on the application of hedge<br>accounting, we consider this area to be one of | Finally, we analysed the sufficiency of the<br>disclosures included in the accompanying<br>consolidated annual accounts regarding<br>derivative financial instruments.                                                                         |
| the key matters of our audit.                                                                                                                                                                                                                  | As a result of our procedures, we consider that<br>the measurement of derivative financial<br>instruments and the information disclosed in the<br>accompanying consolidated annual accounts,<br>are consistent with the information available. |

Other information comprises only the consolidated management report for the 2023 financial year, the
formulation of which is the responsibility of the Parent company's directors and does not form an
integral part of the consolidated annual accounts.

Our audit opinion on the consolidated annual accounts does not cover the consolidated management
report. Our responsibility regarding the consolidated management report, in accordance with
legislation governing the audit practice, is to:

- 
- 

On the basis of the work performed, as described above, we have verified that the information
mentioned in section a) above has been provided in the manner required by applicable legislation and
that the rest of the information contained in the consolidated management report is consistent with that
contained in the consolidated annual accounts for the 2023 financial year, and its content and
presentation are in accordance with applicable regulations.

{318}------------------------------------------------

Image /page/318/Picture/0 description: The image shows the logo for PwC (PricewaterhouseCoopers). The logo consists of the letters "pwc" in a bold, sans-serif font, with the "p" and "w" in lowercase and the "c" in lowercase. Above the letters, there is a graphic element composed of several squares in shades of red, orange, and yellow, arranged in a stacked, stair-step pattern.

EDP Renováveis, S.A. and its subsidiaries

Responsibility of the directors and the audit, control and related party transactions committee
for the consolidated annual accounts

The Parent company's directors are responsible for the preparation of the accompanying consolidated
annual accounts, such that they fairly present the consolidated equity, financial position and financial
performance of the Group, in accordance with IFRS-EU and other provisions of the financial reporting
framework applicable to the Group in Spain, and for such internal control as the aforementioned
directors determine is necessary to enable the preparation of consolidated annual accounts that are
free from material misstatement, whether due to fraud or error.

In preparing the consolidated annual accounts, the Parent company's directors are responsible for
assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless the aforementioned directors
either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

The Parent company's audit, control and related party transactions committee is responsible for
overseeing the process of preparation and presentation of the consolidated annual accounts.

Our objectives are to obtain reasonable assurance about whether the consolidated annual accounts
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with legislation governing the audit practice in Spain will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated annual accounts.

As part of an audit in accordance with legislation governing the audit practice in Spain, we exercise
professional judgment and maintain professional scepticism throughout the audit. We also:

professional judgment and maximum professional skepticism when reading and evaluating it...

- 
- 
- 

{319}------------------------------------------------

Image /page/319/Picture/0 description: The image shows the logo for PwC, a multinational professional services network. The logo consists of the lowercase letters "pwc" in a bold, sans-serif font, positioned to the left of a graphic element. The graphic element is composed of several overlapping squares in shades of red, orange, and yellow, arranged in a stepped or stacked formation, suggesting growth or progress.

EDP Renováveis, S.A. and its subsidiaries

- 
- 
- 

We communicate with the Parent company's audit, control and related party transactions committee
regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Parent company's audit, control and related party transactions committee with a
statement that we have complied with relevant ethical requirements, including those relating to
independence, and we communicate with the aforementioned those matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the Parent company's audit, control and related party
transactions committee, we determine those matters that were of most significance in the audit of the
consolidated annual accounts of the current period and are therefore the key audit matters.

We describe these matters in our auditor's report unless law or regulation precludes public disclosure

bout the matter.

We have examined the digital files of the European single electronic format (ESEF) of EDP
Renováveis, S.A. and its subsidiaries for the 2023 financial year that comprise an XHTML file which
includes the consolidated annual accounts for the financial year and XBRL files with tagging
performed by the entity, which will form part of the annual financial report.

The directors of EDP Renováveis, S.A. are responsible for presenting the annual financial report for
the 2023 financial year in accordance with the formatting and markup requirements established in the
Delegated Regulation (EU) 2019/815 of 17 December 2018 of the European Commission (hereinafter
the ESEF Regulation).

{320}------------------------------------------------

Image /page/320/Picture/0 description: The image contains the logo for PwC. The logo consists of the letters "pwc" in a bold, sans-serif font. Above the letters is a graphic element composed of several overlapping squares in shades of red, orange, and yellow. The squares are arranged in a way that suggests a staircase or a layered structure.

EDP Renováveis, S.A. *and* its subsidiaries

Our responsibility is to examine the digital files prepared by the Parent company's directors, in
accordance with legislation governing the audit practice in Spain. This legislation requires that we plan
and execute our audit procedures in order to verify whether the content of the consolidated annual
accounts included in the aforementioned digital files completely agrees with that of the consolidated
annual accounts that we have audited, and whether the format and markup of these accounts and of
the aforementioned files has been effected, in all material respects, in accordance with the
requirements established in the ESEF Regulation.

In our opinion, the digital files examined completely agree with the audited consolidated annual
accounts, and these are presented and have been marked up, in all material respects, in accordance
with the requirements established in the ESEF Regulation.

Report to the audit, control and related party transactions committee of the Parent company

The opinion expressed in this report is consistent with the content of our additional report to the audit,
control and related party transactions committee of the Parent company dated 28 February 2024.

The General Ordinary Shareholders' Meeting held on 12 April 2021 appointed us as auditors of the
Group for a period of 3 years, as from the year ended 31 December 2021.

Previously, we were appointed by resolution of the General Ordinary Shareholders' Meeting for a
period of 3 years and we have audited the accounts continuously since the year ended
31 December 2018.

Services provided to the Group for services other than the audit of the accounts are disclosed in note
45 to the consolidated annual accounts.

PricewaterhouseCoopers Auditores, S.L. (S

Antonio Velasco Dañobeitia (22286)

28 February 2024

{321}------------------------------------------------

#### Part II

Image /page/321/Picture/7 description: The image contains the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked vertically. The letters are white against a bright turquoise background. Below the letters, the word "Renewables" is written in a smaller, sans-serif font, also in white.

319

# Part II Financial Statements Index

| 01 Consolidated Annual Accounts              | 318 | Consolidated statement                        |
|----------------------------------------------|-----|-----------------------------------------------|
| Consolidated income statement                | 327 | of changes in equity 330                      |
| Consolidated statement                       |     | Consolidated statement of cash flows 331      |
| of comprehensive income                      | 328 | Notes to the consolidated annual accounts 333 |
| Consolidated statement of financial position | 329 |                                               |

{322}------------------------------------------------

**Consolidated income statement for the year ended 31 December** 

#### **2023 and 2022**

| THOUSAND EUROS                                          | NOTES | 2023      | 2022       |
|---------------------------------------------------------|-------|-----------|------------|
| Revenues                                                | 7     | 2,007,789 | 2,137,981  |
| Income from institutional partnerships in North America | 8     | 231,055   | 233,505    |
|                                                         |       | 2,238,844 | 2,371,486  |
| Other income                                            | 9     | 583,203   | 526,026    |
| Supplies and services                                   | 10    | -474,525  | -438,974   |
| Personnel costs and employee benefits                   | 11    | -244,066  | -240,611   |
| Other expenses                                          | 12    | -282,390  | -237,769   |
| Impairment losses on trade receivables and debtors      | 23    | -133      | -2,218     |
|                                                         |       | -417,911  | -393,546   |
| Joint ventures and associates                           | 20    | 13,738    | 179,267    |
|                                                         |       | 1,834,671 | 2,157,207  |
| Provisions                                              | 32    | -16,467   | 5,608      |
| Amortisation and impairment                             | 13    | -943,661  | -751,311   |
| Operating profit                                        |       | 874,543   | 1,411,504  |
| Financial income                                        | 14    | 678,450   | 680,632    |
| Financial expenses                                      | 14    | -991,662  | -1,129,734 |
| Financial result – net                                  |       | -313,212  | -449,102   |
| Profit before tax and CESE                              |       | 561,331   | 962,402    |
| Income tax expense                                      | 15    | -98,932   | -142,225   |
| Extraordinary contribution to the energy sector (CESE)  | 15    | -2,964    | -3,075     |
| Net profit for the year                                 |       | 459,435   | 817,102    |
| Attributable to                                         |       |           |            |
| Equity holders of EDP Renováveis                        | 28    | 309,014   | 616,231    |
| Non-controlling interests                               | 30    | 150,421   | 200,871    |
| Net profit for the year                                 |       | 459,435   | 817,102    |
| Earnings per share basic and diluted - Euros            | 28    | 0.31      | 0.64       |

{323}------------------------------------------------

**Consolidated statement of comprehensive income for the years** 

\$
\circlearrowleft
\$

#### **ended at 31 December 2023 and 2022**

|                                                                                          | 2023                                  | 2022                             |                                       |                                  |
|------------------------------------------------------------------------------------------|---------------------------------------|----------------------------------|---------------------------------------|----------------------------------|
| THOUSAND EUROS                                                                           | EQUITY<br>HOLDERS<br>OF THE<br>PARENT | NON-<br>CONTROLLING<br>INTERESTS | EQUITY<br>HOLDERS<br>OF THE<br>PARENT | NON-<br>CONTROLLING<br>INTERESTS |
| Net profit for the year                                                                  | 309,014                               | 150,421                          | 616,231                               | 200,871                          |
| Items that will never be reclassified<br>to profit or loss                               |                                       |                                  |                                       |                                  |
| Actuarial gains/(losses)                                                                 | 59                                    | 3                                | 113                                   | 8                                |
| Tax effect of actuarial<br>gains/(losses)                                                | -7                                    | -                                | -19                                   | -                                |
|                                                                                          | 52                                    | 3                                | 94                                    | 8                                |
| Items that are or may be reclassified<br>to profit or loss                               |                                       |                                  |                                       |                                  |
| Fair value reserve (Equity<br>instruments at fair value)                                 | -13,471                               | -220                             | 5,239                                 | 368                              |
| Tax effect of fair value reserve<br>(Equity instruments at fair value)                   | 930                                   | -121                             | -                                     | -                                |
| Fair value reserve (cash flow hedge)                                                     | 1,144,934                             | 2,949                            | -467,915                              | 1,567                            |
| Tax effect from the fair value<br>reserve (cash flow hedge)                              | -288,123                              | -946                             | 108,228                               | -132                             |
| Share of other comprehensive<br>income of joint ventures and<br>associates, net of taxes | -80,172                               | -                                | 89,946                                | -                                |
| Reclassification to profit and loss<br>due to changes in control                         | -5,309                                | -                                | -29,325                               | -                                |
| Exchange differences arising on<br>consolidation                                         | 2,474                                 | -18,089                          | 32,740                                | 55,916                           |
|                                                                                          | 761,263                               | -16,427                          | -261,087                              | 57,719                           |
| Other comprehensive income for<br>the year, net of income tax                            | 761,315                               | -16,424                          | -260,993                              | 57,727                           |
| Total comprehensive income for the<br>year                                               | 1,070,329                             | 133,997                          | 355,238                               | 258,598                          |

{324}------------------------------------------------

**Consolidated statement of financial position as at 31 December** 

![image](https://i.imgur.com/9999999.png)

#### **2023 and 2022**

| THOUSAND EUROS                                                          | NOTES | 2023       | 2022 (*)   |
|-------------------------------------------------------------------------|-------|------------|------------|
| ASSETS                                                                  |       |            |            |
| Property, plant and equipment                                           | 16    | 20,252,164 | 17,890,854 |
| Right-of-use assets                                                     | 17    | 935,637    | 988,302    |
| Intangible assets                                                       | 18    | 379,872    | 380,846    |
| Goodwill                                                                | 19    | 2,235,601  | 2,289,912  |
| Investments in joint ventures and associates                            | 20    | 1,079,576  | 1,157,249  |
| Equity instruments at fair value                                        | 40    | 24,785     | 43,321     |
| Deferred tax assets                                                     | 21    | 621,505    | 625,357    |
| Debtors and other assets from commercial activities                     | 23    | 57,944     | 36,006     |
| Other debtors and other assets                                          | 24    | 824,476    | 462,174    |
| Collateral deposits associated to financial debt                        | 31    | 31,914     | 23,311     |
| Total Non-Current Assets                                                |       | 26,443,474 | 23,897,332 |
| Inventories                                                             | 22    | 259,822    | 252,844    |
| Debtors and other assets from commercial activities                     | 23    | 500,948    | 569,687    |
| Other debtors and other assets                                          | 24    | 577,490    | 1,222,906  |
| Current tax assets                                                      | 25    | 341,335    | 302,384    |
| Collateral deposits associated to financial debt                        | 31    | 35,213     | 26,734     |
| Cash and cash equivalents                                               | 26    | 1,371,768  | 1,171,932  |
| Assets held for sale                                                    | 27    | 516,602    | 9,198      |
| Total Current Assets                                                    |       | 3,603,178  | 3,555,685  |
| Total Assets                                                            |       | 30,046,652 | 27,453,017 |
| EQUITY                                                                  |       |            |            |
| Share capital                                                           | 28    | 5,119,891  | 4,802,791  |
| Share premium                                                           | 28    | 2,254,555  | 1,599,013  |
| Reserves                                                                | 29    | -410,482   | -1,171,745 |
| Other reserves and Retained earnings                                    | 29    | 3,789,279  | 3,179,241  |
| Consolidated net profit attributable to equity holders of the<br>parent |       | 309,014    | 616,231    |
| Total Equity attributable to equity holders of the parent               |       | 11,062,257 | 9,025,531  |
| Non-controlling interests                                               | 30    | 1,590,169  | 1,545,134  |
| Total Equity                                                            |       | 12,652,426 | 10,570,665 |
| LIABILITIES                                                             |       |            |            |
| Medium / Long term financial debt                                       | 31    | 6,049,441  | 4,869,851  |
| Provisions                                                              | 32    | 315,746    | 269,490    |
| Deferred tax liabilities                                                | 21    | 857,100    | 638,290    |
| Institutional partnerships in North America                             | 33    | 2,188,245  | 2,212,162  |
| Trade and other payables from commercial activities                     | 34    | 572,179    | 633,049    |
| Other liabilities and other payables                                    | 35    | 1,991,785  | 2,804,292  |
| Total Non-Current Liabilities                                           |       | 11,974,496 | 11,427,134 |
| Short term financial debt                                               | 31    | 1,190,035  | 1,290,103  |
| Provisions                                                              | 32    | 4,060      | 723        |
| Trade and other payables from commercial activities                     | 34    | 3,142,107  | 2,918,744  |
| Other liabilities and other payables                                    | 35    | 608,880    | 1,010,244  |
| Current tax liabilities                                                 | 36    | 200,832    | 235,404    |
| Liabilities held for sale                                               | 27    | 273,816    | -          |
| Total Current Liabilities                                               |       | 5,419,730  | 5,455,218  |
| Total Liabilities                                                       |       | 17,394,226 | 16,882,352 |
| Total Equity and Liabilities                                            |       | 30,046,652 | 27,453,017 |

\* See note 2.A) for details regarding the restatement as a result of the Purchase Price Allocation assessment closing during 2023.

{325}------------------------------------------------

**Consolidated statement of changes in equity for the years ended at** 

#### **31 December 2023 and 2022**

| THOUSAND EUROS                                                                                      | TOTAL<br>EQUITY | SHARE<br>CAPITAL | SHARE<br>PREMIUM | RESERVES<br>AND<br>RETAINED<br>EARNINGS | EXCHANGE<br>DIFFERENCES | HEDGING<br>RESERVE | FAIR<br>VALUE<br>RESERVE | EQUITY<br>ATTRIBUTABLE<br>TO EQUITY<br>HOLDERS<br>OF EDP<br>RENOVÁVEIS | NON-<br>CONTROLLING<br>INTERESTS |
|-----------------------------------------------------------------------------------------------------|-----------------|------------------|------------------|-----------------------------------------|-------------------------|--------------------|--------------------------|------------------------------------------------------------------------|----------------------------------|
| Balance as at 31<br>December 2021                                                                   | 10,174,907      | 4,802,791        | 1,599,013        | 3,275,735                               | -159,922                | -754,882           | 4,146                    | 8,766,881                                                              | 1,408,026                        |
| Comprehensive<br>income                                                                             |                 |                  |                  |                                         |                         |                    |                          |                                                                        |                                  |
| - Fair value reserve<br>(equity instruments at<br>fair value) net of taxes                          | 5,607           | -                | -                | -                                       | -                       | -                  | 5,239                    | 5,239                                                                  | 368                              |
| - Fair value reserve<br>(cash flow hedge) net<br>of taxes                                           | -358,252        | -                | -                | -                                       | -                       | -359,687           | -                        | -359,687                                                               | 1,435                            |
| - Share of other<br>comprehensive<br>income in joint<br>ventures and<br>associates, net of<br>taxes | 89,946          | -                | -                | -                                       | -3,043                  | 82,637             | 10,352                   | 89,946                                                                 | -                                |
| - Reclassification to<br>profit and loss due to<br>changes in control                               | -29,325         | -                | -                | -                                       | -9,116                  | -20,209            | -                        | -29,325                                                                | -                                |
| - Actuarial<br>gains/(Losses)                                                                       | 102             | -                | -                | 94                                      | -                       | -                  | -                        | 94                                                                     | 8                                |
| Exchange differences<br>arising on<br>consolidation                                                 | 88,656          | -                | -                | -                                       | 32,740                  | -                  | -                        | 32,740                                                                 | 55,916                           |
| - Net profit for the<br>year                                                                        | 817,102         | -                | -                | 616,231                                 | -                       | -                  | -                        | 616,231                                                                | 200,871                          |
| Total comprehensive<br>income for the year                                                          | 613,836         | -                | -                | 616,324                                 | 20,581                  | -297,259           | 15,591                   | 355,238                                                                | 258,598                          |
| Dividends paid                                                                                      | -86,450         | -                | -                | -86,450                                 | -                       | -                  | -                        | -86,450                                                                | -                                |
| Dividends<br>attributable to non<br>controlling interests                                           | -62,867         | -                | -                | -                                       | -                       | -                  | -                        | -                                                                      | -62,867                          |
| Share capital<br>increase                                                                           | 40,620          | -                | -                | -                                       | -                       | -                  | -                        | -                                                                      | 40,620                           |
| Other                                                                                               | -109,381        | -                | -                | -10,138                                 | -                       | -                  | -                        | -10,138                                                                | -99,243                          |
| Balance as at 31<br>December 2022                                                                   | 10,570,665      | 4,802,791        | 1,599,013        | 3,795,472                               | -139,341                | -1,052,141         | 19,737                   | 9,025,531                                                              | 1,545,134                        |
| Comprehensive<br>income                                                                             |                 |                  |                  |                                         |                         |                    |                          |                                                                        |                                  |
| - Fair value reserve<br>(equity instruments at<br>fair value) net of taxes                          | -12,882         | -                | -                | -                                       | -                       | -                  | -12,541                  | -12,541                                                                | -341                             |
| - Fair value reserve<br>(cash flow hedge) net<br>of taxes                                           | 858,814         | -                | -                | -                                       | -                       | 856,811            | -                        | 856,811                                                                | 2,003                            |
| - Share of other<br>comprehensive<br>Income in joint<br>ventures and<br>associates, net of<br>taxes | -80,172         | -                | -                | -                                       | -117                    | -76,137            | -3,918                   | -80,172                                                                | -                                |
| - Reclassification to<br>profit and loss due to<br>changes in control                               | -5,309          | -                | -                | -                                       | -5,275                  | -34                | -                        | -5,309                                                                 | -                                |
| - Actuarial<br>gains/(Losses)                                                                       | 55              | -                | -                | 52                                      | -                       | -                  | -                        | 52                                                                     | 3                                |
| Exchange differences<br>arising on<br>consolidation                                                 | -15,615         | -                | -                | -                                       | 2,474                   | -                  | -                        | 2,474                                                                  | -18,089                          |
| - Net profit for the<br>year                                                                        | 459,435         | -                | -                | 309,014                                 | -                       | -                  | -                        | 309,014                                                                | 150,421                          |
| Total comprehensive<br>income for the year                                                          | 1,204,326       | -                | -                | 309,066                                 | -2,918                  | 780,640            | -16,459                  | 1,070,329                                                              | 133,997                          |
| Dividends paid                                                                                      | -20,580         | -                | -20,580          | -                                       | -                       | -                  | -                        | -20,580                                                                | -                                |
| Dividends<br>attributable to non<br>controlling interests                                           | -59,122         | -                | -                | -                                       | -                       | -                  | -                        | -                                                                      | -59,122                          |
| EDPR Capital<br>Increase                                                                            | 993,222         | 317,100          | 676,122          | -                                       | -                       | -                  | -                        | 993,222                                                                | -                                |
| Other changes<br>resulting from<br>acquisitions/sales<br>and equity increases                       | -29,247         | -                | -                | -                                       | -                       | -                  | -                        | -                                                                      | -29,247                          |
| Other                                                                                               | -6,838          | -                | -                | -6,245                                  | -                       | -                  | -                        | -6,245                                                                 | -593                             |
| Balance as at 31<br>December 2023                                                                   | 12,652,426      | 5,119,891        | 2,254,555        | 4,098,293                               | -142,259                | -271,501           | 3,278                    | 11,062,257                                                             | 1,590,169                        |

{326}------------------------------------------------

**Consolidated statement of cash flows for the years ended 31** 

#### **December 2023 and 2022**

| THOUSAND EUROS                                                                                                                                              | 2023       | 2022       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|------------|
| OPERATING ACTIVITIES                                                                                                                                        |            |            |
| Cash receipts from customers                                                                                                                                | 2,222,156  | 2,402,923  |
| Payments to suppliers                                                                                                                                       | -811,570   | -793,374   |
| Payments to personnel                                                                                                                                       | -239,107   | -300,607   |
| Other receipts / (payments) relating to operating activities                                                                                                | -169,791   | -203,364   |
| Net cash from operations                                                                                                                                    | 1,001,688  | 1,105,578  |
| Income tax received / (paid)                                                                                                                                | -157,080   | -56,818    |
| Net cash flows from operating activities                                                                                                                    | 844,608    | 1,048,760  |
| INVESTING ACTIVITIES                                                                                                                                        |            |            |
| Cash receipts relating to:                                                                                                                                  |            |            |
| Changes in cash resulting from perimeter variations*                                                                                                        | 5,046      | 155,314    |
| Property, plant and equipment and intangible assets                                                                                                         | 41,739     | 36,714     |
| Interest and similar income                                                                                                                                 | 81,568     | 41,031     |
| Dividends                                                                                                                                                   | 40,746     | 54,616     |
| Loans to related parties                                                                                                                                    | 564,957    | 679,783    |
| Sale of subsidiaries with loss of control                                                                                                                   | 1,380,999  | 1,476,044  |
| Other receipts from investing activities                                                                                                                    | 22,891     | 10,938     |
|                                                                                                                                                             | 2,137,946  | 2,454,440  |
| Cash payments relating to:                                                                                                                                  |            |            |
| Changes in cash resulting from perimeter variations**                                                                                                       | -71,060    | -99,485    |
| Acquisition of subsidiaries                                                                                                                                 | -40,987    | -1,169,852 |
| Property, plant and equipment and intangible assets                                                                                                         | -4,113,832 | -2,349,595 |
| Loans to related parties                                                                                                                                    | -449,867   | -718,064   |
| Other payments in investing activities                                                                                                                      | -203,671   | -36,067    |
|                                                                                                                                                             | -4,879,417 | -4,373,063 |
| Net cash flows from investing activities                                                                                                                    | -2,741,471 | -1,918,623 |
| FINANCING ACTIVITIES                                                                                                                                        |            |            |
| Payments/receipts related with transactions with non-controlling interest<br>without change of control                                                      | -          | -          |
| Receipts / (payments) relating to loans from third parties                                                                                                  | -5,934     | 323,438    |
| Receipts / (payments) relating to loans from non-controlling interests                                                                                      | -15,354    | -65,542    |
| Receipts / (payments) relating to loans from Group companies                                                                                                | 1,223,900  | 1,481,949  |
| Interest and similar costs including hedge derivatives from third<br>parties***                                                                             | -78,269    | -90,868    |
|                                                                                                                                                             |            |            |
| Interest and similar costs from non-controlling interests                                                                                                   | -1,746     | -5,002     |
| Interest and similar costs including hedge derivatives from Group companies***                                                                              | -111,957   | -149,789   |
| Payments of lease liabilities                                                                                                                               | -61,686    | -54,612    |
| Dividends paid                                                                                                                                              | -66,397    | -155,052   |
| Receipts / (payments) from derivative financial instruments                                                                                                 | -80,027    | -147,472   |
| Receipts / (payments) from institutional partnerships in North America                                                                                      | 370,866    | -77,385    |
| Increases /(decreases) in capital and share premium by non-controlling interests                                                                            | -38,156    | -94,562    |
| Other cash flows from financing activities                                                                                                                  | 4,945      | 689        |
| Share capital increases/ Decreases                                                                                                                          | 993,222    | -          |
| Net cash flows from financing activities                                                                                                                    | 2,133,407  | 965,792    |
| Changes in cash and cash equivalents                                                                                                                        | 236,544    | 95,929     |
| Effect of exchange rate fluctuations on cash held                                                                                                           | -36,708    | 72,219     |
| Cash and cash equivalents at the beginning of the period                                                                                                    | 1,171,932  | 1,003,784  |
| Cash and cash equivalents at the end of the period                                                                                                          | 1,371,768  | 1,171,932  |
| *Refers to the acquisition portfolio (see note 6 and 42).<br>**Refers mainly to sale transactions (see note 6, 9 and 27)<br>***Net of interests capitalized |            |            |

{327}------------------------------------------------

**Variations in the following captions, including cash flow variations,** 

#### **during the period ending December 31, 2023 are as follows:**

| THOUSAND EUROS                                                                      | BANK<br>LOANS* | GROUP<br>LOANS | NON-<br>CONTROLLING<br>INTERESTS<br>LOANS | U.S.<br>INSTITUTIONAL<br>PARTNERSHIPS | DERIVATIVES ** | TOTAL     |
|-------------------------------------------------------------------------------------|----------------|----------------|-------------------------------------------|---------------------------------------|----------------|-----------|
| Balance as of December 31,<br>2022                                                  | 1,322,457      | 4,758,186      | 100,302                                   | 2,212,162                             | 65,666         | 8,458,773 |
| Cash flows                                                                          |                |                |                                           |                                       |                |           |
| - Receipts / (payments)<br>relating to loans from third<br>parties                  | -5,934         | -              | -                                         | -                                     | -              | -5,934    |
| - Receipts / (payments)<br>relating to loans from non-<br>controlling interests     | -              | -              | -15,354                                   | -                                     | -              | -15,354   |
| - Receipts / (payments)<br>relating to loans from Group<br>companies                | -              | 1,223,900      | -                                         | -                                     | -              | 1,223,900 |
| - Interest and similar costs<br>including hedge derivatives<br>from third parties   | -70,063        | -              | -                                         | -                                     | -8,207         | -78,269   |
| - Interest and similar costs<br>from non controlling<br>interests                   | -              | -              | -1,746                                    | -                                     | -              | -1,746    |
| - Interest and similar costs<br>including hedge derivatives<br>from Group companies | -              | -55,544        | -                                         | -                                     | -56,413        | -111,957  |
| - Receipts/ (payments) from<br>derivative financial<br>instruments                  | -              | -              | -                                         | -                                     | -80,027        | -80,027   |
| - Receipts / (Payments)<br>from institutional<br>partnership<br>in North America    | -              | -              | -                                         | 370,866                               | -              | 370,866   |
| Changes of perimeter                                                                | -116,676       | -              | -                                         | -166,754                              | 9,459          | -273,971  |
| Exchange differences                                                                | -3,015         | -110,692       | 2,159                                     | -78,032                               | -3,058         | -192,638  |
| Fair value changes                                                                  | -              | -              | -                                         | -                                     | 76,864         | 76,864    |
| Accrued<br>income/expenses(***)                                                     | 119,371        | 99,767         | 4,100                                     | -                                     | 55,163         | 278,400   |
| Unwinding                                                                           | -              | -              | -                                         | 81,058                                | -              | 81,058    |
| Changes in U.S. Institutional<br>Partnerships related to<br>ITC/PTC                 | -              | -              | -                                         | -231,055                              | -              | -231,055  |
| Balance as of December 31,<br>2023                                                  | 1,246,140      | 5,915,617      | 89,461                                    | 2,188,245                             | 59,447         | 9,498,910 |

\*Net of collateral deposits

\*\*The Group considers as financing activities all derivative financial instruments excluding derivatives related with commodities;

\*\*\*Net of interest capitalized

{328}------------------------------------------------

# Index

Notes to the consolidated financial statements for the years ended 31 December 2023 and 2022

| 01 The business operations of the EDP Renováveis Group                           | 334 |
|----------------------------------------------------------------------------------|-----|
| 02 Accounting policies                                                           | 358 |
| 03 Recent accounting standards and interpretations issued                        | 372 |
| 04 Critical accounting estimates and judgments in applying accounting policies   | 372 |
| 05 Financial risk management policies                                            | 374 |
| 06 Consolidation perimeter                                                       | 380 |
| 07 Revenues                                                                      | 383 |
| 08 Income from institutional partnerships in North America                       | 383 |
| 09 Other income                                                                  | 383 |
| 10 Supplies and services                                                         | 384 |
| 11 Personnel costs and employee benefits                                         | 385 |
| 12 Other expenses                                                                | 386 |
| 13 Amortisation and impairment                                                   | 386 |
| 14 Financial income and financial expenses                                       | 387 |
| 15 Income tax expense and Extraordinary Contribution to the Energy Sector (CESE) | 387 |
| 16 Property, plant and equipment                                                 | 391 |
| 17 Righ of use assets                                                            | 394 |
| 18 Intangible assets                                                             | 396 |
| 19 Goodwill                                                                      | 397 |
| 20 Investments in Joint Ventures and Associates                                  | 399 |
| 21 Deferred tax assets and liabilities                                           | 405 |
| 22 Inventories                                                                   | 406 |
| 23 Debtors and other assets from commercial activities                           | 407 |
| 24 Other debtors and other assets                                                | 407 |
| 25 Current tax assets                                                            | 408 |
| 26 Cash and cash equivalents                                                     | 409 |
| 27 Assets and liabilities held for sale                                          | 409 |
| 28 Share capital and share premium                                               | 410 |
| 29 Other comprehensive income, reserves and retained earnings                    | 411 |
| 30 Non-controlling interests                                                     | 414 |
| 31 Financial debt                                                                | 415 |
| 32 Provisions                                                                    | 417 |
| 33 Institutional partnerships in North America                                   | 418 |
| 34 Trade and other payables from commercial activities                           | 418 |
| 35 Other liabilities and other payables                                          | 420 |
| 36 Current tax liabilities                                                       | 422 |
| 37 Derivative financial instruments                                              | 422 |
| 38 Commitments                                                                   | 425 |
| 39 Related Parties                                                               | 426 |
| 40 Fair value of financial assets and liabilities                                | 431 |
| 43 Environment issues                                                            | 442 |
| 44 Operating segments report                                                     | 442 |
| 45 Audit and non-audit fees                                                      | 443 |
| Annex I                                                                          | 444 |
| Annex II                                                                         | 481 |

{329}------------------------------------------------

01. The business operations of the EDP Renováveis Group

EDP Renováveis, Sociedad Anónima (hereinafter referred to as "EDP Renováveis" or "EDPR") was incorporated in Spain on 4 December 2007. Its main corporate objective is to engage in activities related to the electricity sector, namely the planning, construction, operation and maintenance of electricity generating power stations, using renewable energy sources, mainly wind and solar. The registered offices of the company are located in Oviedo, Plaza de la Gesta 2, Spain. On 18 March 2008 EDP Renováveis was converted into a company incorporated by shares (Sociedad Anónima).

The Company belongs to the EDP Group, of which the ultimate parent company is EDP Energias de Portugal, S.A., with registered offices at Avenida 24 de Julho, 12, Lisbon. As at 31 December 2023, EDP Energias de Portugal, S.A through its Spanish branch EDP S.A. - Sucursal en España Energías de Portugal S.A. ("EDP Branch") held a qualified shareholding of 71.27%(74.98 %as at 31 December 2022) of the share capital and voting rights of EDPR and 28.73% (25.02% as at 31 December 2022) of the share capital was free floated in the Euronext Lisbon.

As of 31 December 2023, EDP Renováveis S.A. directly holds a 100% stake in the share capital of the following companies: EDP Renewables Europe, S.L. (EDPR EU), EDP Renewables North America, LLC (EDPR NA), EDP Renewables Canada, Ltd. (EDPR Canada), EDP Renováveis Brasil, S.A. (EDPR BR), Colombian companies Eolos Energía S.A.S. E.S.P., Vientos del Norte S.A.S. E.S.P., Solar Power Solutions S.A.S. E.S.P, Parque Solar Fotovoltaico El Copey, S.A.S. E.S.P, Vietnamese company EDP Renewables Vietnam Ltd., Singaporean companies Trung Son SG Pte. Ltd., Sunseap Group Pte. Ltd., Chilean company EDP Renewables Chile SpA. and the Mexican company Parque Solar Los Cuervos, S. de R.L. de C.V. Refer to note 6 for the changes in the perimeter.

During 2022, following the acquisition of Sunseap by EDP Renováveis S.A. and consequent entry into the Asian Market, EDP and CTG updated the Strategic Partnership Agreement (concluded in December 2011). This update aims to make the growth strategies of both companies more flexible, ensuring the application of the most demanding corporate governance standards in their future relationships.

The Group essentially operates in the European (Spain, Portugal, Poland, Romania, France, Italy, Greece, UK and Belgium), American (U.S., Brazil, Canada and Mexico) and Asian (Vietnam, Singapore, Taiwan, China, Thailand, Japan and Cambodia) energy sectors.

EDPR Group is currently developing wind and solar onshore projects in other countries such as, Germany, Netherlands, Chile, Colombia, Hungary, South Korea, Indonesia, Philippines and Australia. Further, EDPR Group signed an agreement with ENGIE on January 2020 to establish a co-controlled 50/50 joint venture, OW Offshore S.L. (Ocean Winds), in fixed and floating offshore wind business. This entity is the exclusive vehicle of investment of EDPR and ENGIE for offshore wind opportunities worldwide.

EDP Renováveis Group, through its subsidiaries has an installed capacity, as follows:

| INSTALLED CAPACITY MW    |  | 31 DEC 2023 | 31 DEC 2022 |
|--------------------------|--|-------------|-------------|
| United States of America |  | 6,891       | 6,025       |
| Spain                    |  | 2,042       | 2,166       |
| Portugal                 |  | 1,413       | 1,168       |
| Brazil                   |  | 1,165       | 1,114       |
| Poland                   |  | 798         | 733         |
| Romania                  |  | 521         | 521         |
| Mexico                   |  | 496         | 496         |
| Canada                   |  | 427         | 130         |
| Italy                    |  | 412         | 295         |
| Vietnam                  |  | 402         | 405         |
| Singapore                |  | 315         | 230         |
| France                   |  | 244         | 214         |
| China                    |  | 123         | 44          |
| Chile                    |  | 83          | -           |
| Greece                   |  | 80          | 45          |
| Taiwan                   |  | 43          | 32          |
| Belgium                  |  | 11          | 11          |
| Netherlands              |  | 9           | -           |
| Thailand                 |  | 7           | 1           |
| United Kingdom           |  | 5           | 5           |

15,487 13,635

{330}------------------------------------------------

Additionally, the EDP Renováveis Group through its equity-consolidated companies has an

installed capacity, attributed to EDPR, as follows:

| INSTALLED CAPACITY MW    |  | 31 DEC 2023 | 31 DEC 2022 |
|--------------------------|--|-------------|-------------|
| United States of America |  | 592         | 592         |
| Spain                    |  | 120         | 156         |
| Portugal                 |  | 20          | 31          |
| APAC                     |  | 16          | 15          |
| Rest of Europe           |  | 322         | 311         |
|                          |  | 1,070       | 1,105       |

#### **Regulatory framework for the activities in North America**

EDP Renewables operates in most of the electricity markets in the U.S., Canada, and Mexico. The nature of regulations and market rules vary from market to market with different degrees of influence from Federal and State/Provincial regulators in each market. The opportunities and constraints for EDPR assets and prospects are significantly defined by these regulations and market rules.

Regional Transmission Organizations ("RTO"), Independent System Operators ("ISO") exist throughout much of North America to operate a region's electricity grid, administer the region's wholesale electricity markets, and provide reliability planning for the region's bulk electricity system. RTOs carry additional responsibility for the region's transmission network. U.S. markets with RTOs and ISOs fall under greater Federal influence through the Federal Energy Regulatory Commission ("FERC") which results in more transparent tariff and market rules.

Regulation and market rules for regions not in RTO/ISO footprints tend to be influenced by various combinations of entities including State regulators, vertically integrated utilities, municipal governments, and Federal Agencies. In Canada, the regulatory framework varies depending on the particular Province or Territory. Provincial regulators have jurisdiction over their province's energy generation, intra-provincial transmission, distribution, retail pricing and wholesale markets (if such markets exist).

In general, EDPR seeks to build assets in North American markets where long-term contracts are available for the bulk of the output of its generation facilities. In addition to electrical power, our facilities can produce capacity and ancillary services in regions with demand for these products. Many states have enacted Renewable Portfolio Standards ("RPS") require obligated entities to provide a certain percentage of their energy supply from qualifying renewable sources, similar to the Renewable Energy Directive in the EU. In Canada, Provincial Governments have required utilities to procure supply from renewable facilities with programs such as Ontario's Large Renewable Procurement Programs. Over the last few years, U.S. states have expanded these targets such that renewable portfolio standards in over fifteen states require 50% or more of their energy supply to be delivered via renewable resources in the next ten to twenty years. Further, more than ten states have set requirements to achieve 100% clean energy supply by 2050.Certain facilities within the EDPR wind and solar portfolio, given their location, produce renewable energy credits ("REC"), certificates of clean energy ("CEL") and other environmental attributes which are typically sold, along with the energy, capacity, and ancillary services, from the plants under longterm contracts. These RECs generated via renewable production may also be sold separately from

the wind and solar generation, if not already included in the long-term contracts. The party owning the RECs is solely entitled to the benefits of the environmental attributes.

U.S. federal, state and local governments have established various incentives to support the development of renewable energy projects. Included in these incentives are the Investment Tax Credit ("ITC"), Production Tax Credit ("PTC"), cash grants, and tax equity financing. Pursuant to the U.S. federal Modified Accelerated Cost Recovery System, wind and solar projects are fully depreciated for tax purposes over a five-year period even though the useful life of such projects is generally much longer than five years.

Owners of utility-scale wind facilities are eligible to claim the ITC upon initially achieving commercial operation or PTCs for generation from qualifying facilities. The PTC is awarded based on the volume of electricity produced by the wind facility during the first ten years of commercial operation. This incentive was established by the U.S. Congress as part of the 1992 Energy Policy Act and has been extended several times, most recently as part of the \$1.4 trillion omnibus and COVID-19 relief package. The ITC and PTC levels for a given facility depend on that facility's start of construction date and commissioning date and remain fixed at this level for the first ten years of operation.

The COVID-19 crisis continued to create challenges for clean energy companies seeking to advance the development of wind and solar projects. Delays in equipment manufacturing, shipment deliveries, work stoppages, and labour force restrictions, among other things, caused project development and construction timelines to slip and created some risk of projects not meeting their safe harbor deadlines for placement into service.

The U.S. Department of the Treasury (Treasury) determines eligibility under the federal law

governing qualification for the wind energy production tax credit (PTC) and the solar energy

{331}------------------------------------------------

investment tax credit (ITC). Treasury has allowed projects a "safe harbor" with respect to

qualifying for the tax credit available in the year construction commenced, so long as the project subsequently was placed in service within a certain period of years.

Guidance from Treasury (issued 20 June 2020) continues to apply:

- Extends the placed-in-service safe harbor to six years for facilities that began construction in 2016, 2017, 2018 or 2019;
- Extends the placed-in-service safe harbor to five years for facilities that began construction in 2020; and,
- Provides that taxpayers not relying on the continuity safe harbor may demonstrate continuity by using the "continuous efforts" standard rather than the more restrictive "continuous construction" standard, regardless of whether the project started construction under the physical work pathway.
- Qualifying equipment procured in 2016 can now be deployed in 2022 and be eligible for the full PTC (previously it would have had to be deployed in 2021); and
- Qualifying equipment procured in 2017 can now be deployed in 2023 and be eligible for the 80% PTC (previously it would have had to be used in 2022).

In January 2022, the Biden Administration's first year came to a close. The key component of the Administration's domestic agenda, "Build Back Better," which would have extended existing renewables tax credits and expanded credit eligibility among other policies, was rejected by Senator Manchin (D-WV) in a statement published in December 2021. Without this 50th Senate vote, the omnibus did not pass. The tax credits are still being considered as part of the budget reconciliation process, though the scope of policies included is unclear – it may range from a simple production tax credit (PTC) and investment tax credit (ITC) extension to the introduction of a direct-pay provision –and economic concerns over rising inflation and gas prices have emerged as top political priorities. Despite these headwinds, several appointees are advancing energy transition goals. Secretary Haaland of the Department of the Interior announced the "Offshore Wind Path Forward" plan to organize as many as seven offshore wind lease auctions by 2025, including the February 2022 New York Bight lease sale.

In May 2022, President Biden also announced his intent to nominate FERC Chairman Richard Glick to a second five-year term. Glick's current agenda includes overhauling transmission planning and generation interconnection rules and better incorporating distributed energy resources in wholesale markets.

In June 2022 President Biden signed an Executive Order protecting southeast Asian solar PV panel imports for the next 2 years from any additional tariff resulting from the Department of Commerce's Anti-Dumping and Countervailing Duty (AD/CVD) tariff investigation, as well as authorizing use of the Defence Production Act (DPA) to increase domestic manufacturing of five clean energy technologies including solar PV panels.

In August 2022, President Biden signed into law the Inflation Reduction Act of 2022 (IRA2022). For renewable energy development, the IRA2022 supports expansion of the domestic supply change for clean energy technologies, especially solar panel production, as well as providing major extensions and improvements to the ITC and PTC while making these incentives available for a wider set of technologies. The Act also allows improved transferability of the tax credits.

Prior to the IRA2022, the maximum ITC was set at 30% of qualified solar project capex, with the declining according to a defined schedule depending on year when construction began and the ultimate date of commercial operation. The IRA2022 changes the rate structure making projects eligible for a base rate along with bonuses on top of that base rate that depend on certain criteria being satisfied related to the nature of labour and materials used in construction of the project along with location specific criteria. The base rate set the ITC at 6% of qualified costs. Labour requirements include the payment of prevailing wages during construction and during any repairs and the employment of a specified percentage of qualified apprentices. Meeting the labour requirements adds 24% additional ITC on top of the 6% base rate. Building with qualifying materials adds 10% to the project ITC rate if domestic content requirements are met. The location of the project can also add bonuses to the ITC rate with low income and energy communities being favoured with additional 10% ITC bonuses, respectively.

In addition, IRA2022 changes the structure of the PTC similarly. Prior to the Act, the maximum PTC was set at \$26 per MWh for wind project generation for the first ten years of project operation. The value of the PTC declined according to a defined schedule also dependent on the year construction started and the date of commercial operation. The IRA2022 changes this rate structure to set the PTC value to a base rate set at \$5 per MWh plus bonuses for contracted labour adding \$21 per MWh. Use of domestic materials adds \$3 per MWh while building in qualified energy communities adds an additional \$3 per MWh. Additionally, the PTC becomes technology neutral in 2025 such that solar could receive the PTC in lieu of the ITC.

#### **Regulatory framework for the activities in Spain**

The main piece regulating the Spanish electricity sector is Law 24/2013 that replaced Law 54/1997. This law is part of a comprehensive reform of the Spanish energy sector.

{332}------------------------------------------------

The main purposes of this law are to adapt the regulation to the evolution of the electricity sector

and to guarantee the sustainability of the system in the long term, removing existing deficiencies in the system operation. Specifically, the Law aims at correcting the structural tariff deficit. The law sets principles and provisions governing the electricity sector, with the objective to effectively guarantee the supply of electricity and to adapt it to the needs of consumers ensuring safety, quality, efficiency, objectivity, transparency and electricity at the minimum cost.

As a part or this Energy Reform, Royal Decree-Law 9/2013 was passed in July 2013. The purpose of this Royal Decree-Law was to adopt a series of measures to ensure the sustainability of the electricity system.

In particular, RDL 9/2013 introduced a new legal and economic regime for existing renewable, cogeneration and waste energy facilities. The RDL set the principles governing these facilities, and these principles were then developed by law 24/2013 and Royal Decree 413/2014. In accordance with this new framework, renewable facilities would receive during their operating lifetime, in addition to the remuneration for the sale of the energy valued at the market price, a specific remuneration composed by (i) an "investment premium" and (ii) "an operating remuneration premium" designed to cover the share of a facility's operating costs that could not be recovered by means of energy sales.

The calculation of the aforementioned remuneration shall be carried out on the basis of the standard costs and revenues (initial investment, operation and revenue from the sale of energy) corresponding to a "standard power plant, over the useful regulatory life and based on the business activity that would be carried out by and efficient and well-managed company".

Under this scheme, projects would receive a remuneration guaranteeing a "reasonable profitability" calculated, for the first six-year regulatory period, at "300 basis points above the yield on 10-year government bonds over the last ten years".

The Spanish Government published in June 2014, Order IET/1045/2014, which included the parameters to remunerate the renewable energy assets, under the new remuneration framework. RD 413/2014 confirmed that wind farms that started operations in 2003 (or before) would not receive any further incentive, while the rest of wind farms would receive an incentive calculated in order to reach a 7,398% return. This order describes more than 1,300 possible types of renewables installation, 23 of them corresponding to wind farms of more than 5 MW classified by the year of first operation (from 1994 to 2016).

In October 2015 the Government approved Royal Decree 947/2015 and a Ministerial Order aimed at allowing the installation of new renewable capacity through competitive tenders.

In January 2016, the firstrenewable auction was held. The auction was designed to provide a similar remuneration that the one applying to operating installations (RD 413/2014). Following this framework, tender participants were requested to bid discounts on the "initial investment" (CAPEX) parameter which would then, by being plugged in the formula set by RD 413/2014 determine the "Rinv" (investment premium) that would eventually be awarded.

Following the outcome of the first 2017 tender, the Spanish government decided to launch an additional tender for a maximum of 3 GW. This new tender was held in July, and was opened to wind and solar PV exclusively. Additionally, the royal decree ruling the tender (RD 650/2017) included the possibility to increase the allocated capacity to all capacity bidding the same discount, provided it would not create an overcost to the system. Following this clause, all projects offering the maximum allowed discount were successful (no tiebreaker rule was triggered).

In October 2018, the Spanish Ministry for Energy transition and environment introduced several measures aiming at limiting electricity cost for final consumers and serving as a first step towards the long-term energy transition. The implemented measures include the suspension of the 7% generation tax during a period of 6 months, the facilitation of self-consumption and the administrative extension until March 2020 of the connection rights for the renewable plants awarded in previous year´s auctions.

On 22 November 2019 Royal Decree Law 17/2019 was passed, introducing a series of measures aimed at guaranteeing a stable regulatory and economic framework to encourage the development of renewable energy generation in Spain. The RDL updates the "reasonable return" for renewable generation for the next regulatory period starting on 1 January 2020 at a level of 7.39% for assets before RDL 9/2013 and 7.09% for the new ones.

Another objective of the RDL was to adopt a new regulation governing access to the network in nodes affected by the closure of coal and nuclear power plants and concessions for the private use of water, where new renewable projects could offer an alternative. The grid access to renewable projects in areas affected by the closure of thermal facilities, is based on the technical and economic benefits, as well as the environmental and social ones, in particular job creation.

In January 2020, the CNMC's Circular 3/2020 was approved. The Circular sets the methodology to calculate access fee and removes the former 0.5€/MWh that generators had to pay. A new fee of 0.13741 €/MWh was introduced to remunerate the system operator.

On 28 February 2020 the final version of the Rinv (investment premium) adjustment was

published (as in 2019 ended the second semi-regulatory period of the RD 413/2014 framework).

{333}------------------------------------------------

Three main adjustments were introduced: (i) the estimation of pool prices using forward prices, (ii)

the adjustment of the OPEX to reflect the removal of the 0.5 €/MWh access fee and (iii) the inclusion of the system operator remuneration.

On 14 March 2020 Royal Decree 463/2020 entered into force, declaring the state of alarm for the management of the health crisis caused by the coronavirus (COVID 19). During extreme situations (among them, health crises) article 116 of the Spanish Constitution allows the executive to declare the state of alarm, a measure that enables it to prohibit the free movement of people throughout the country and to take all steps required to guarantee the supply of food to the nation's markets. It also allows the government to take over the means of production and requisition goods.

Initially the state of alarm was set to last until March 29 but the Congress extended it to June 21. Also, the government toughened the lockdown measures requiring the halt of all "non-essential" activities from March 30 to April 9, including wind farms' construction. Several subsequent Royal Decrees were published during the State of Alarm. These RD included economic and social measures to fight the pandemic effects. Despite the lockdown, several consultations were launched by the Energy Ministry (Hydrogen Strategy, Electric Energy Storage (EES), offshore strategy and FEDER auctions).

Due to the disruption caused by COVID-19, a 2-month extension (from the last day of the state of alarm) of the connection rights expiring on 31 March 2020, was decided. The final version of the Spanish NECP (National Energy and Climate Plan) for the period 2021-2030 was sent to the European Commission.

The Government approved Royal Decree Law 23/2020 of 23 June approving measures in the area of energy and other areas aimed at economic recovery. The objective of this Royal Decree Law is to guide energy policy for economic recovery, financial resource mobilisation and sustainable job creation. In particular, RD/2020 consists of a battery of measures intended to help the energy transition, remove barriers to the large-scale deployment of renewable energy sources and promote energy efficiency.

On 17 July 2020 the Ministerial Order TED/668/2020 was approved, setting the adjusted "Rinv" (investment premium) values for 2018 and 2019, accounting for the temporal suspension of the 7% levy on generation during Q4 2018 and Q1 2019.

The Ministry for the Ecological Transition and Demographic Challenge (MITECO) decided to allocate 316 million euros to support innovative projects that favour the integration of renewable energies in the systems. Different lines of action, drawn up in collaboration with the Autonomous Communities, are expected to contribute to the achievement of the objectives that Spain, in its NECP, has set in this area: doubling the consumption of renewable energy by 2030, and reaching climate neutrality in 2050. Specifically, the Official State Gazette (BOE) published on August 3 set the regulatory criteria to allocate 246 million euros in aid to renewable projects in a competitive competition regime. On 10 September 2020 several tenders were announced in Madrid, Andalucía, Extremadura, Asturias, Castilla La Mancha, Cataluña and Murcia regions. The announced competitive procedures will allocate 80 million euros to renewable projects.

On 4 November 2020, Royal Decree 960/2020 regulating the economic regime for renewable energies for electricity production facilities, was approved. The RD sets the framework for a new scheme for RES investment (including hybrid, energy storage projects and repowering) to be awarded in auctions. It defines some general characteristics of the scheme, although most aspects remain flexible and will need to be defined in lower level legislation. Additionally, it sets the obligation of publishing a 5-years auction calendar.

Regarding the auction mechanism, the RD establishes that the auction product may be power, energy or a combination of both and that auctions would be structured as pay-as-bid ones. A maximum price will be set although it may be confidential and a minimum price may also be introduced. The awarded price will be defined in €/MWh and will not be indexed.

The RD includes the possibility of defining so-called "symmetrical incentives" for market participation. In this case, the price received for the energy sold in each market (day-ahead/intraday) will be adjusted by a factor applied to the difference between (i) the price of the day-ahead market and (ii) the awarded price.

The tenure of the scheme is set as the sooner of achieving a maximum energy, or 10 to 15 years (exceptionally up to 20 years for technologies with high CAPEX or high technology risk which will need to be defined for each auction).

Following the approval of RD 960/2020, The Ministry for the Ecological Transition and Demographic Challenge (MITECO) approved Order TED/1161/2020 of December 4, 2020 in which it sets the auction mechanism for the first auction. The Order also includes the auction calendar for the next 5 years. Over the next 5 years, the Spanish Government plans to launch tenders for 20GW of renewable power (mainly wind: 8.5GW and solar PV: 10GW) in order to achieve the 60GW target set out in the Spanish National Energy and Climate Plan for 2021-2030.

On 29 December 2020, the Royal Decree on access and connection to the energy transmission and distribution networks (RD 1183/2020) was approved. This Royal Decree establishes the principles and criteria in relation to the application, processing and granting of permits for access

and connection to the electricity transmission and distribution networks. With the approval of this

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RD, the government aims at preparing the regulatory framework for the planned deployment of

renewables, while helping to eliminate inefficiencies and speculative behaviours to ensure the achievement of energy policy objectives.

The first auction under the new auction framework (set by RD 960/2020) was held on 26 January 2021. In total 3,034 MW were awarded: 2,036 MW of solar PV projects (at an average price of 24.47 €/MWh) and 998 MW of onshore wind's (at an average price of 25.31€/MWh). Winning bids were awarded 12-year power purchase agreements (PPAs).

In May 2021, the Spanish Parliament approved a law on climatechange and energy transition (Law 7/2021), which will bring the country into line with the EU's goal to become carbon neutral by 2050. As an intermediate target, the law targets to cut emissions 23% by 2030, compared with 1990 levels. Regarding the renewables' sector, the law foresees a reform of the electricity sector aimed at fostering: (i) the participation of consumers in the markets including aggregation and demand response and (ii) investment in variable and flexible renewables, distributed generation and energy storage among others. A fiscal reform Is also foreseen focused on green taxation.

In June 2021, the European Commission adopted a positive assessment of Spain's Recovery and Resilience Plan. The financing will amount to 69.5 b€ in grants and will support the implementation of the crucial investment and reform measures outlined in the Plan. The presented Plan devotes 40% of its total allocation to measures that support climate objectives (sustainable mobility, energy efficiency and deployment of renewable energies, among others).

In June 2021, the government released Royal Decree-Law 12/2021 which adopted urgent measures in the field of energy taxation and generation. The RDL approved the suspension of the 7% generating tax and a reduction of value added tax for electricity bills (from 21% to 10%) until the end of the year. The VAT reduction would be applied to consumers with contracted power <10 kV (if wholesale prices were more than 45€/MWh) and to vulnerable consumers (regardless market prices). These measures come after Spain changed its hourly bands for calculating power bills and amid soaring power prices.

On 16 September 2021, Royal Decree-Law 17/2021 (RDL 17/2021) on urgent measures to mitigate the impact of rising natural gas prices in the retail gas and electricity markets, came into force. In line with the previous Royal Decree-law, the new regulation introduced different measures to cushion the escalation of electricity prices and limit the amount of consumers' electricity bills.

- One ofthe measures consists in introducing a mechanism to reduce the over-remuneration that certain facilities receive, due to the marginal cost price setting of the energy market
- The RDL also introduced a new type of long-term power purchase auction to be held alongside the wholesale market. In these auctions, certain operators must offer their CO2-free, manageable inframarginal generation products (not included in the renewables auctions), with a settlement period equal to or greater than one year
- The regulation also includes tax measures. On the one hand, the rate of the Special Tax on Electricity, was reduced from 5.1% to 0.5% until 31 December 2021. On the other hand, it extended the temporary suspension of the tax on the Value of Electricity Production (the 7% levy) to the fourth quarter of 2021.
- In addition, the RDL sets a Minimum Vital Supply for vulnerable consumers by which the cut off of the electricity supply is prohibited to the beneficiaries of the Electric Social Bonus for six months in addition to the four already existing (thus, during 10 months in total).

On 26 October 2021 Royal Decree Law 23/2021 was approved, adopting urgent measures to protect energy consumers and bring transparency into the wholesale and retail electricity and natural gas markets. On the one hand, this RDL increases the discounts of the electricity social bond from 40% to 70% for severe vulnerable consumers and from 25% to 60% for vulnerable consumers until the end of March 2022. The minimum amount of the thermal social bonus for the year 2021 was also increased from 25 to 35 euros. On the other hand, the RDL limits the scope of application of the mechanism to reduce over-remuneration obtained by some generating facilities, regulated in RDL 17/2021. Finally, it contains some measures to strengthen transparency in the electricity and gas markets. The Spanish companies of the Group are therefore excluded from the scope of application of the mechanisms to reduce over-remuneration, since, according to the RDL 23/2021, the Group has derivatives and PPAs to hedge energy sales prices.

The second renewables auction of 2021 was held on October 19, awarding 2,258 MW capacity for onshore wind projects (at an average price of 36.68€/MW) and 866 MW solar PV (at an average of 31.65€/MWh) to the winners.

In January 2022, the High Court resolved on the 2016-2022 social bonus mechanism declaring that imposing the financing obligation exclusively on the retailing companies was against the European legislation. According to the resolution, the government has to give back the financed amounts (except the amounts that have been passed thought the costumers).

In March 2022, a new Royal Decree Law (RDL 06/2022) was published with a comprehensive set of measures to mitigate the effects ofthe Ukranian war, in particular the impact of rising fuel prices on electricity prices. The RDL mandates an extraordinary RECORE (specific remuneration regime for renewables cogeneration and waste) settlement dated 1st January 2022. The adjustment needs to take into account actual prices in 2020 and 2021, and a new price forecast for 2022,

resulting in lower payments. Within the RDL 06/2022, bilateral contracting of RECORE energy is

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fostered by removing the regulatory collar from 2023 onwards. However, the collar was later

rectified in RDL 10/2022: bands remain but from 2023 instead of using only the average dayahead and intraday prices, forward prices will also be taken into account. Therefore, in 2023, the price will take into account a weighted average of day-ahead market prices (75%), annual forwards (15%) and quarterly forwards (2,5% each). In the following years, the share of forwards will be risen. The RDL also extended the scope of the social bonus (the financing will be borne by generators) and reduced by 80% the access tolls for electro-intensive consumers. Regarding new generation projects, the permitting process for certain projects was streamlined while some provisions to facilitate the deployment of new technologies were introduced (storage, floating PV, hydrogen, and self-consumption projects). Finally, the RDL extended the gas clawback (approved by RDL 17/2021) until 30 June (and included the energy covered by instruments signed after 29th March with a tenure of one year or more and a price above 67€/MWh).

In June 2022, the Spanish government had decided to temporarily reduce the VAT applied in electricity to 10%. After that, Royal Decree-Law 06/2022, stipulated that the reduced VAT would be maintained as long as the price in the wholesale market was higher than 45€/MWh. The Royal Decree also stated that severe vulnerable consumers or at risk of exclusion (therefore, consumers eligible for the social bonus), would still be charged a reduced VAT, even if the price in the wholesale market was less than €45/MWh. In June 2022, the Spanish cabinet (RDL 11/2022) agreed to further reduce the VAT on electricity from 10% to 5%, to counteract the staggering rise in energy prices until 2022 year end. The remaining temporary measures on energy taxes would be also extended until 2022 year end: the rate of the Special Tax on Electricity (that had been reduced 5.1% to 0.5%) and the temporary suspension of the tax on the Value of Electricity Production (the 7% levy). Additionally, the gas price clawback mechanism (approved by RDL 17/2021) was extended until December 2022. This RDL established a rate for non-emitting carbon technologies based on the price of natural gas

In June, the European Commission approved a year-long cap on the price of gas used for power generation. The measure, which applies to both the Spanish and Portuguese markets, will run until May 31, 2023. During the first six months of the application of the measure, the actual price cap will be set at €40/MWh. As of the seventh month, the price cap will increase by €5/MWh per month, resulting in a price cap of €70/MWh in the 12th month. The measure will be financed by the "congestion income" obtained by the grid operator as result of cross-border electricity trade between France and Spain and a charge imposed by Spanish and Portugal on buyers benefiting from the measure.

In October 2022, a security of supply strategy (the so-called "Plan + Seguridad Energética") was released. Regarding renewables, the plan includes provisions regarding guarantees of origin for renewable gases, a new 2024-2029 transmission grid plan, a new regulatory framework to promote offshore wind and fiscal incentives for fuel switching to renewables.

In October 2022, the Royal Decree Law 18/2022 was approved, releasing a new set of measures applying to the energy sector, including the extension of the gas clawback scheme until 31 December 2023.

In December 2022, a new tax for energy operators was approved. This tax will apply in 2023 and 2024 (based on 2022 and 2023 turnover) to energy operators with a turnover over 1 billion Euros in 2019. Tax would be charged at a 1.2% rate on the net amount of last Fiscal Year's turnover (this will include the tax groups income derived from its activities carried out in Spain, excluding the income derived from regulated activities). The windfall tax would apply as from 1st January 2023 and 2024, and the payment would be due within the first 20 days of September, with an interim

assessment of 50% of the levy within the first 20 days of February.

In December 2022, was approved the Royal Decree-Law 20/2022 related to measures to respond to the economic and social consequences of the war in Ukraine and also certain fiscal measures were approved. On the one hand, the application of the 0.5% tax rate of the Special Tax on Electricity was extended until 2023 year end. On the other hand, the temporary suspension of the Tax on the Value of Electricity Production was also extended until 2023 year end. Regarding permitting, sets for the next 18 months the suspension of administrative procedures for projects that had requested grid access in nodes that have been later listed for network capacity tenders, except for requests related to hybridization of existing renewable plants.

The above RDL provides a new simplified procedure for the environmental assessment of renewable projects ("Determinación de Afección Ambiental") where deadlines are reduced with respect to the existing procedure ("Declaración de Impacto Ambiental") applicable to projects that request administrative authorization from 28 December 2021 up to 31 December 2024. In addition, a simplified procedure for the administrative authorization is developed for projects with approved environmental assessment.

In June 2023, Royal Decree-Law 5/2023 (RDL 5/2023) was published, with important amendments on citizen energy communities, incentives for electrification and the adaptation of administrative milestones, among others. In particular, the RDL includes a 6-month extension of the term for the accreditation of obtaining the authorization for the construction of electricity generation and storage facilities. This is relevant as in Spain there are around 43 GW of renewable projects that must obtain the construction authorization before July 25 or restart all the administrative process after obtaining access permits and connection to the grid again, in accordance with the milestone calendar established by RDL 23/2020.

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This RDL 5/2023 also introduces changes to the Rinv scheme, as it has updated the market price

forecasts to be used in the estimation of the Rinv in the 2023-25 semi-period.

In December 2023, the Council of Ministers approved Royal Decree-Law 8/2023 The main impacts are related to the VAT on electricity, which will be raised from 5% to 10% in 2024 and the IVPEE (Taxation on the Value of Production of Electrical Energy) which will be gradually raised up to is 7% level. Similarly, the Special Tax on Electricity, which was reduced to 0,5% will gradually come back to its 5,11% level.

#### **Regulatory framework for the activities in Portugal**

The principal pieces of legislation regulating the Portuguese electricity sector are Decree-Law 29/2006 of 15 February 2006 (amended by Decree-Law 215-A/2012) and Decree-Law 172/2006 of 23 August 2006 (amended by Decree-Law 215-B/2012).

The legislative framework for renewable energy is primarily contained in Ministerial Order 243/2013 of 2 August 2013, which sets out the terms, conditions and criteria for the licensing of electricity generation under special regime with guaranteed remuneration.

The Portuguese legal provisions applicable to electricity generation from renewable resources are currently established by Decree-Law 189/88 dated 27 May, as amended by Decree-Law 168/99 dated 18 May, Decree-Law 312/2001 dated 10 December, and Decree-Law 339-C/2001 dated 29 December. Also relevant is Decree-Law 33-A/2005, dated 16 February 2005 ("DL 33- A/2005"), which establishes the remuneration formula applicable to energy produced by renewable sources (this is, the formula to calculate the feed-in tariff).

In September 2012 and after months of negotiations, the Portuguese wind industry reached an agreement with the Portuguese government to extend the existing feed-in tariff regime in exchange of an upfront payment.

Following the agreement, the Portuguese Government published a decree articulating its terms, the Decree Law 35/2013. The Government proposed four alternative tariff schemes to be chosen by wind developers. EDPR and ENEOP chose a 7-year extension of the tariff defined as the average market price of previous twelve months, with a floor of 74€/MWh and a cap of 98€/MWh to be updated annually with inflation from 2021 onwards, in exchange of a payment of 5.800€/MW from 2013 to 2020.

The Environment and Energy Ministry published in July 2014, Decree Law 94/2014 that allowed wind operators to increase the capacity of their operating wind farms up to 20%. The additional production generated by the increased capacity is remunerated at 60 €/MWh, whilst the remaining production is remunerated following the feed-in tariff scheme.

The Portuguese government, in its 2019 Budget, included an extension of the special energy tax (so-called CESE) to renewables. However, renewable facilities with licenses granted through public tenders are exempted. In line with the 2019 Budget, the 2020 State Budget envisaged that small producers (up to 20 MW) would be exempted from paying the CESE. Also, passive subjects with more than 60 MW under tariff schemes would also be exempted from paying the tax.

On 31 January 2019 Portaria 43/2019 on over-equipment "sobrequipamientos" ("SE") was published. The new Portaria set a new remuneration scheme for SE of 45€/MWh (non-indexed values) for 15 years, period after which the SE would be under the ordinary regime not being entitled to be under the tariff extension scheme set by D-L 35/2013. The new scheme exempts developers from requesting ERSE authorization to the SE.

On 3 June 2019 the DL 76/2019 was published. This DL is a comprehensive review of the legal basis of the Portuguese electricity sector. Regarding new renewable capacity, the Decree changes the order in which grid capacity reservation and production license are obtained. New projects will need to obtain the title of grid capacity reservation prior to applying for the production license. The Decree also introduces three ways to obtain grid capacity reservation, being one of them through competitive tenders.

Portugal launched its first utility-scale renewable energy auction in July 2019, for 1.4 GW of solar PV capacity. Developers could present two kinds of offers: one with a fixed price below €45/MWh and another with a variable tariff which included a requirement to pay compensation to the electricity system, depending on spot market power prices. Both systems would have a 15-year length.

In December 2019, the DGEG (Direção-Geral de Energia e Geologia) released regulation of the Licensing Monitoring Committee (Comissão de Acompanhamento dos Processos de Licenciamento) of the solar PV plants resulting from the 2019's Auction. This Committee was set up with the aim of contributing to the fulfilment of the obligations arising from the tender procedure, in particular regarding the deadline for obtaining the licence

In Portugal, a GO(Guarantees of Origin) system was launched starting in March 2020. Registration shall be compulsory for renewable producers above 5 MW and high efficiency cogeneration. Until 2021YE, renewable plants <1 MW and self-consumption ones will be exempted.

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In order to prevent further spread of the Covid-19, the state of emergency was declared by

Presidential Decree no. 14-A/2020, of 18 March, as authorized by the Parliament's Resolution no. 15 A/2020, of 18 March 2020. DGEG suspended all deadlines linked to licensing procedures for all electrical projects after 16 March 2020. In particular, this suspension comprehends the deadlines for any administrative proceeding to be performed by solar promoters with projects awarded in the first solar auction (June 2019). The Emergency State was lifted on 2 May 2020 and replaced by the Calamity State.

On 27 March 2020 a new solar auction was announced by the Energy Secretary of State. Developers had to choose one of the following three remuneration schemes:

- A fixed guaranteed tariff structure, where the bids expressed a discount to a reference price, in €/MWh. Awarded projects would enter into an hourly two-side CfD with OMIP for 15 years. The CfD would be settled based on the actual price captured by the specific plant.
- A market scheme where the promoters bid for a contribution made to the National Electric System ("SEN") and where the promoters that bid the largest contributions would be awarded with the capacity title. Participants would then commit to pay this quantity for 15 years and their projects would get their revenues from participating in the electricity market on a merchant basis.
- A new system consisting of a market scheme for power plants incorporating a storage system, in which participants bid the value of the capacity payment that would like to receive in €/MW (MW of connection capacity). In exchange, they shall sign a "one-side" CfD contract ("available contract") with REN to protect the system against price spikes events.

On 31 March 2020 Law 3/2020 accompanying the State Budget was published setting the main policies and investments for the 2020-23 period. In terms of energy, the path to carbon neutrality in 2050 is set by confirming the 55% emission reduction target in 2030, promoting regional guidelines for carbon neutrality and envisaging the development of 5-year carbon budgets. Also, the main goals of the Portuguese National Energy and Climate Plan (NCEP) are also confirmed by the Law (preparation works for coal phase out, installations of 2 GW of solar PV in the next 2 years, reinforcement of existing onshore, promotion of hybrid and Energy storage, offshore wind, hydrogen, etc.).

Energy efficiency, e-mobility and economic incentives for decarbonization are also among the government priorities. On July 10 the Ministry Council officially approved the NCEP setting 2030 Renewable targets. The Plan commits to a 47% RES contribution that translates into 80% RES-E. According to the NCEP, Portugal expects to reach 9.3 GW of wind and 9 GW of solar PV by 2030.

Additionally, on 9 June 2020 the Council of Ministers approved the Supplementary Budget for 2020. The proposed law amends the State Budget law for 2020, allowing the materialization of the Economic and Social Stabilization Program.

On 10 July 2020 the Ministry Council officially approved the Portuguese National Energy and Climate Plan (NCEP) setting 2030 Renewable targets. The Plan commits to a 47% RES contribution that translates into 80% RES-E. According to the NECP, Portugal expects to reach 9.3 GW of wind and 9 GW of solar PV by 2030.

DL 35/2013 introduced the tariff extension regime for wind producers: in exchange of 5.8 k€/MW payment from 2013 to 2020, producers were entitled to enter a cap and floor regime of 74 and 90 €/MWh during seven years once the initial tariff is exhausted. Both payments and cap and floor values were subject to indexation:

- From 2023 to June 2020 based on the Kn factor, which envisages an annual adjustment for the difference between CPI and 2%
- After June 2021 with CPI, applied over the reference value

So far, ERSE has applied literally the indexation formulas, that is, individually on each year, without cumulation. Despacho n.º 6304/2021, published in June 2021, set that kn shall be applied on a cumulative basis, meaning that in 2020 the initial floor value of 74 €/MWh would change to 66 €/MWh. The Despacho mandated ERSE to regularize payments and to apply the new methodology in the next update to be applied already in July 2021.

The European Commission adopted in June 2021 a positive assessment of Portugal's Recovery and Resilience Plan. The Plan total 13.9 b€ of grants and 2.7b€ in loans and devotes 38% of its total allocation to measures that support climate objectives. This includes investments to finance a large-scale renovation programme to increase the energy efficiency of buildings or the promotion of energy efficiency and the use of alternative energy sources in industrial processes.

In January 2022, a new Decree Law governing the functioning of the SEN (National Energy System) was approved. The legislation had been under public consultation. The new DL has been structured into five fundamental axes, namely the administrative activity of control of the activities of the SEN, networks planning, the introduction of competitive mechanisms for the exercise of the SEN's activities, the active participation of consumers in generation activities and in markets, and, the legislative framework for the development of new realities (such as repowering, hybridization and storage). The DL also transposes into national law EU directive 2019/244 regarding internal electricity market rules and the Renewable Energy Directive.

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Regarding renewables, the DL keeps the three options to obtain grid connection (general,

agreement and auction) and includes a payment of 1,5k€/MW in the general case and an obligation to install self-consumption devices for the municipalities equivalent to 0.3% of the connection capacity (or a compensation of 1.5k€/MW). Also, the DL includes deadlines to obtain production licenses and set the obligation to generators to present a "decommissioning plan" for the facility. Repowering of power plants is allowed up to 20% or more, until the NECP targets are achieved (and the original remuneration scheme can be kept by the repowered assets).

In April, the first floating PV auction was held in Portugal. The auction intended to grant 263 MVA of connection capacity in 7 different lots with sizes ranging from 8 to 100 MVA. Under the auction, two modalities were possible: a contract-for-difference or a contribution to the SEN. EDP was awarded the Alqueva lot (70 MVA).

In April the Decree-Law 30-A/2022 was published, providing for exceptional measures to ensure the installation of renewable and storage capacity, hydrogen facilities and electricity transmission and distribution infrastructures. In line with the measures recommended by the European Commission (namely the REPowerEU Plan), the DL states that the Environmental Impact Assessment (IEA) of electricity generation projects, up until then, always mandatory, will only occur at the request of the licensing authority when there are indications that the project may cause significant impacts on the environment. The DL also aims to streamline administrative procedures for the issuing of opinions and authorisations within the IEA producer or in the analysis of environmental impacts. Regarding wind projects, the DL allows existing projects to inject all their production (without the limit of the administratively allocated injection capacity) as to guarantee the maximum possible production according to the installed power of each generation unit.

In June, the European Commission approved a year-long cap on the price of gas used for power generation. The measure, which applies to both the Spanish and Portuguese markets, will run until May 31, 2023. During the first six months of the application of the measure, the actual price cap will be set at €40/MWh. As of the seventh month, the price cap will increase by €5/MWh per month, resulting in a price cap of €70/MWh in the 12th month. The measure will be financed by the "congestion income" obtained by the grid operator as result of cross-border electricity trade between France and Spain and a charge imposed by Spanish and Portugal on buyers benefiting from the measure.

On 19th October 2022, a new Decree Law (DL 72/2022) was published, containing exceptional measures for the development of renewables and energy storage. The Decree Law (DL) amends DL 30-A/2022 (approved in April 2022), including additional measures. In terms of permitting, the DL focuses on the licensing of urban development operations (building process). Projects below 1 MW (or equal to 1 MW) will not need approvals (only a responsibility declaration will be required). Projects above 1 MW will need to be communicated and all the documentation will need to be shared with municipalities. Municipalities will have 8 days to reject the project (only a pre-defined list of reasons may apply) or ask for more information. In any case, the rule of tacit approval applies. In addition, this DL introduces a new compensation for municipalities (a compensation of 13.5k€/MVA of connection capacity will be granted and funds will be provided by the Environmental Fund). According to the DL, agreements between the TSO and developers for infrastructure reinforcement will prioritize projects that already have a positive or conditioned positive EIA. Also, the test period for projects of the 2019, 2020 and 2021 solar PV auctions will be increased by 12 months (from 12 to 24 months) in order to allow producers to benefit from a longer merchant exposure period (provided that producers respect their COD deadline). Finally, the regulation allows FITs and CfD strike prices awarded in auctions to be exceptionally indexed to CPI from the year of award to the actual COD.

On 7th December 2022, the Council of Ministers approved the decree-law that initiates the reform and simplification of licensing in environmental matters, through the elimination of redundant licenses, permits and procedures. Through the reduction of administrative burdens, the DL intends to simplify the permitting procedure, and boost investments, without prejudice to compliance with environmental protection rules. For instance, Portugal is to cease requiring environmental impact assessments (EIA) for some wind, solar and green hydrogen facilities, from March 2023. Hydrogen and PV installations that occupy surfaces of less than 100 hectares, as well as wind turbines that are separated by more than 2 kilometres, will not need environmental approval. This regulation is part of the first package of the so-called "Simplex" licenses, which is a package of measures to amend the environmental rules for the development of hydrogen and renewable energy projects.

During the first half of 2023 several amendments were approved related to the "Simplex" framework.

The Portuguese government unveiled in June 2023 the draft of the revised National Energy and Climate Plan (NECP), which is now subject to public consultation. The new plan raises the renewable target from 47% (in the previous version) to 49% by 2030. In the electricity sector, the target is raised to 85% (from the previous level of 80%), driven by a strong deployment of renewables and solar DG.

#### **Regulatory framework for the activities in France**

The electricity sector in France is primarily governed by Act 2000-108 passed on 10 February 2000, which constitutes the general legislative framework for the operation of generation facilities.

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Act 2000 allowed wind operators to enter into long-term agreements for the purchase and sale of

their energy with electricité de France (EDF), the national incumbent. The tariffs were initially set in 2006, then updated in the "Arrêté du 17 novembre 2008"at the following level: i) during the first ten years of the EDF Agreement, EDF would paid a fixed annual tariff, set at €82/MWh for wind farms that had made the application in 2008 (after 2008, this tariff was updated using an inflationrelated index); ii) During years 11 to 15 of the EDF Agreement, the initial tariff would be revised considering the load factors achieved by the facility iii) After year 16, no specific support scheme would be granted (wind farms would need to sell the energy in the market and would receive market prices).

In July 2015, the "Energy Transition Bill", whose aim was to build a long-term and comprehensive energy strategy, was passed. In 66 articles, the bill included ambitious emission reduction targets while it also targeted to reduce fossil fuels use (including nuclear). Regarding renewables, the Energy Transition Bill increased the renewable target up to 32% by 2030.

A new Contract-for-difference (CfD) was released in December 2016 in line with the European "Guidelines on State aid for environmental protection and energy 2014-2020". According to this new scheme, wind farms having requested a PPA in 2016 would receive a 15-years CfD, being the strike price (and the terms of the tariff) very similar to the previous feed-in tariff.

From 2017 onwards, wind farms of more than 6 wind turbines (and more than 3 MW per turbine) would need to participate in competitive tenders to obtain a 20-year CfD. The first tender was held in November 2017. However, smaller wind farms (with 6 turbines or less, and 3 MW per turbine or less) would be exempted from participating in tenders.

On 27 November 2017, the "Pluriannual Energy Planning" (PPE) was released. According to the PPE, 40% of the energy would be produced from renewable sources by 2030.The PPE included different targets for renewables: 35.6-44.5 GW of solar capacity, 34-35.6 GW of onshore wind and 4.7-5 GW of offshore wind, by 2028.

On 29 November 2017, the government approved the Décret 2018-1054 aimed at accelerating legal procedures following claims against the administrative authorization of wind farms. In particular, the Decree removes the two-level court system in the event of litigation.

The third offshore round took place in March 2019 with all major players participating (grouped in 10 consortiums).

The French Parliament approved on 26 September 2019 the so-called "Energy and Climate Law", committing the country to carbon-neutrality by 2050. The adoption of the Energy-Climate law constitutes a major step toward achieving the government's ambition to address climate change by becoming carbon neutral by 2050. This objective represents a reduction of France's greenhouse gas emissions by a factor of more than six compared to 1990's emission level. In order to achieve carbon neutrality by 2050, the Energy-Climate law provides for the reduction of fossil fuels consumption by 40% by 2030 (instead of the previous 30% target) and for the end of coalbased electricity generation by 2022. The law provides that the share of nuclear in the electricity mix should be reduced to 50% by 2035.

Regarding wind energy, the law redefines the authority responsible for permitting onshore wind projects. Concerning offshore wind, the law also includes a higher target of auctioning 1 GW of capacity until 2024 (doubling the volumes defined by France's initial energy plan published in January 2019).

A new version of the PPE (Programmation Plurianuelle de l´Énergie) was approved in 2020, in line with the final version of France's NECP (National Energy and Climate Plan). It increased offshore wind targets vs. the previous version whilst decreased solar PV's. In total, the PPE sets that France will need to achieve between 33.2 and 34.7 GW of onshore wind in 2028, 5.2-6.2 GW of offshore wind and 35,1-44 GW of solar PV. The PPE also includes a schedule of tenders to be held between 2020 and 2034.

The French Assemblée Nationale approved on 21 March 2020, a law introducing the "State of health emergency" during the coronavirus pandemic. The law includes measures limiting private liberties (such as lock-downs and requisitions) and contains provisions regarding postponing the second round of the French municipal elections, economic measures to support the economy and other measures impacting the French justice and labour law. Measures easing restrictions across the country were applied from May 11. Economic rescue packages could amount to up to 110 billion euros, and will include guarantees, loans, moratorium on debt repayments, among others. In the renewables sector, extensions of several deadlines have been envisaged to cope with delays and the sector has itself been declared "strategic". Test periods for CR16 and CR17 projects have been extended 3 months. Additionally, a 7-month extension of COD deadlines has been announced but will be restricted to wind and solar projects with (i) COD initially scheduled after March 12th, (ii) remuneration scheme granted before or during the period March 12 to June 23 and (iii) nominal capacity less than 200 MW.

On 8 September 2020 France published a hydrogen commitment, exceeding previous European national strategies, by pledging 6.5GW of electrolyser capacity by 2030. The plan came after the French government announced an economic recovery plan due to the coronavirus outbreak of €100bn, including €30bn entirely devoted to ecological transition. The newly hydrogen strategy

included a commitment of €7bn budget for low-carbon hydrogen between 2020-2030.

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The European Commission endorsed in June 2021 the French Recovery and Resilience Plan.

According to it, the EU will disburse 39.4 b€ in grants. The Plan devotes 46% of the total allocation to measures that support climate objectives. It features significant investments in R&D and innovation, in particular in the field of green technologies that should promote they deployment of renewable hydrogen.

In April 2021, the Energy Regulator (CRE) released the new set of rules ("Cahier des Charges") that will govern auctions (both technology-specific and neutral) from the second half of 2021 until 2026. According to the document, there will seven types of tenders for a total of 34 GW of new renewable capacity (including: (i) ground-mounted solar PV, ii) building-mounted solar PV, (iii) onshore wind, (iv) hydro, (v) innovative solar, (vi) self-consumption and (vii) technology neutral tenders). Winning projects will be supported by 20-year CfD. The European Commission gave green light to the Cahier des Charges in August 2021, under the EU State aid rules.

Law No. 2021-1104 on combating climate change and strengthening resilience ("The Climate and Resilience Law") was adopted on 24 August 2021. The law is regarded as a text aiming at supporting the ecological transition by helping France reach its 40% emission reduction targets by 2030. In particular, the law seeks to improve the air quality of large cities, support building renovation, promote electric mobility, among other objectives. Regarding solar PV, a cost reduction for the grid connection of small PV systems is included, and the solarization of new buildings. With regards to onshore wind, the law finally did not include a right for mayors to veto wind projects (they will be mandatorily consulted prior to any work but won´t have a right to veto). Finally, the law includes several provisions seeking to accelerate/streamline renewables development. For example, in order to ensure better implementation of renewable targets, specific targets will be set at a regional level, with local authorities having to implement specific territorial objectives.

In February 2022, the so-called "Law 3DS" was adopted. It allows municipalities to define specific zones for onshore wind deployment by modifying urbanism plans. However, such modifications shall be based on a public consultation and details will be detailed in an upcoming decree.

Two auctions under the 2021-2026 framework were held in the first half of 2022. On April 15th, the second onshore wind auction was held, in which 925 MW were offered in the auction, with a ceiling price of 70€/MWh. On May 20th, the second on-the-ground solar PV was held, offering 700 MW, with a ceiling price of 90€/MWh.

In April 2022, a decree revising eligibility conditions to benefit from the so-called "complement de remuneration" (CR17 scheme) was issued. According to the decree, a 137 meters tip height limit will be introduced, starting the 1st of July 2022 (except for projects from cooperatives or majorityowned by municipalities). Wind farms wishing to be included in the scheme, will need to prove they comply with the civil/military aeronautical restrictions as well. The new eligibility criteria are also extended to repowered assets and storage-collocated ones.

In May 2022, a decree defining the terms of the tender procedure for the development of electricity storage capacities was published. The decree stipulates that once the TSO has received guidelines from the Energy Ministry, it will draw up draft specifications for the call for tenders in compliance the specified conditions and organize then a consultation on the project.

Emergency measures aimed at improving the profitability of renewables were issued during the summer of 2022. These measures have been designed for both tender and CR17 frameworks:

- Regarding tender's: on 30th August, an amendment to previous tenders' specifications was published to allow secured projects (from previous rounds) to sell the energy on the market and extending by 18 additional months the window to start the CfD contract. Therefore, projects with COD up to 31st January 2024 and before the end of their window are allowed to access the market.
- Regarding CR17: on 31st December the revision decree was published and implemented the same measures for projects requested before 1st July 2022 and projects with COD between 1st September 2022 and 31st December 2024.

On 16th November 2022, the Cahier des Charges was once again updated, including new rules for upcoming tenders. As a first measure, ceiling prices applicable to the upcoming rounds will not be disclosed in order to prevent manipulative strategies. Also, the new "K" indexation will be included and applied between the application date and the COD, while the "L" indexation formula (to be applied on an annual basis from the start of operations) is also revised. For wind, the price score formula is revised in order to be the same than the one for PV projects (to reduce the weight on collaborative features). For solar PV projects: (i) all capacities are homogenized as being MWp, (ii) volumes reserved for agricultural projects are increased to 250 MWp and requisites are detailed, (iii) the competition clause is better formulated to cover all cases and (iv) a dismantling guaranteed for projects over 10 MWc is introduced (10k€/MWc).

On 31st December, the Finance Law for 2023 was officially published. In particular, article 54 transposes EU regulations addressing high energy prices through cap prices. These cap prices will apply from June 1st 2022 to June 30th 2023 with a 10% abatement, and from July 1st to December 31st 2023 with an abatement to be defined later by decree. Cap levels are defined by technology, with solar, wind and nuclear being subject to a 100€/MWh cap price. Exemptions are also settled by the legislative text, in particular FITs and CfDs are exempted, including extension periods going

merchant granted under emergency measures. Regarding PPAs, they will be subject to the cap

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and regulations include an anti-abuse clause to prevent sector agents to avoid the cap by lowering

prices during these periods. The previous measured has no impact in the EDPR portfolio in France.

In April 2023, a decree enabling wind farms with COD before October 2022 to request a temporary uprise of their output, was published. The request would be possible for up to 1 MW per wind turbine and only until 2023YE. The uprise is not to be achieved by replacing the wind turbine, but only when a higher nominal capacity of the wind turbine had been capped at 3 MW.

In December 2023, the 2024 Finance Law was approved. The Law defines (i) the extension of the clawback in 2024, revalued in line with inflation and with the rate of levy limited to 50% of income in excess of the tax threshold (ii) the creation of a green industry investment tax credits for the production of wind turbines, solar panels, batteries and heat pumps, and (iii) the total de-capping of CR17 contracts liquidations.

#### **Regulatory framework for the activities in Poland**

The legislation applicable to renewable energy in Poland was initially contained in the "Energy Act" passed on 10 April 1997, which was subsequently amended in 2002 and 2004.

The Energy Act introduced a Green Certificate scheme with mandatory quotas. According to the scheme, energy suppliers are required to: a) purchase GC and submit them to the Energy Regulator, or b) pay a substitution fee calculated in accordance with the Energy Act. If suppliers fail to meet their obligation (either the submission of GC or the payment of substitution fee), they must pay a fine, equal to 130% of the substitution fee in that year.

The Green Certificate scheme was replaced in 2015 by a new system, consisting in Contracts-for-Difference (CfD) granted through competitive tenders. However, the law guaranteed that the GC scheme would be maintained (with some adjustments) for operating plants. The law also introduced the possibility for operating plants to voluntary shift to the CfD system, through specific tenders for operating assets.

In June 2016, after a long approval process, the so-called "Wind Turbine Investment Act" was approved, including (i) new minimum distance for new wind farms and (ii) higher real estate tax burden.

In July 2017 a new methodology to calculate the substitution fee was approved. According to the new formula, the substitution fee would be calculated every year as 125% of the average CG market price of the previous year capped at 300PLN.

In October 2018, the Energy Regulatory Office published a call for the first auction in Poland in which wind onshore and solar PV with capacity above1MW could participate to get a 15- year CfD. The first auction was held in November 2018.

Poland's National Energy and Climate Plan (NECP) was sent to the European Commission in December 2019. The Plan targets a 23% share of renewable energy in 2030. In addition, the share of renewables in electricity generation will rise to 32% in 2030. Onshore wind installed capacity could increase up to 9,6 GW in 2030 while offshore wind to 3,8 GW in 2030 and 8 GW in 2040.

On 13 March 2020, the Minister of Health announced a state of epidemiological threat in Poland, which is a legal situation aimed at introducing measures to reduce the spread of COVID-19. Following the announcement, some restrictions were approved, including the prohibition on entering the territory of Poland for foreigners, the obligation of a 14-day home quarantine or the suspension of all international flight and railway connections, among others. The restrictive measures started to be lifted on April 20th. Several economic relief measures, the so-called government anti-crisis shields, were approved since the start of the state of epidemiological threat. In particular, the following ones apply to renewable producers:

- renewable projects awarded in the 2018 and 2019 auctions would benefit from COD extensions (up to 12 months), if some delays are proved (for example, (i) delays in the delivery of equipment that is part of the installation, (ii) in the construction or (iii) the grid connection, among others);
- also, power companies will be obliged to adjust in the grid connection agreements the date of the first delivery, considering the deadlines extensions.

In February 2021, the Polish Government announced the approval of the "Poland's energy policy until 2040", which is based on 3 pillars: a just transition, a zero-emission energy system and a good air quality. According to the document, in 2040, zero-emission sources will constitute more than half of the installed capacity, with special focus on offshore wind and nuclear power plants. Due to the adopted assumptions, the use of coal for electricity production is expected to drop to 37% in 2030 (being the current level 70%) and 28% in 2040.

After months of consultations, the offshore wind law was finally published in February 2021. The law set the regulatory framework for the development of offshore wind energy in the Baltic Sea. The regulation approved a new remuneration scheme for offshore wind, that will be introduced in two phases. In the first one, support will be granted by administrative decision (for a total of 5,9 GW). Then, in a second phase, support will be granted via competitive auctions, with the first auction taking place in 2025.

In May 2021 Poland submitted to the European Commission its National Recovery and Resilience Plan. Poland has requested a total of 23,9 b€ in grants and 12,1 b€ in loans. The Polish Plan is

structured around five pillars of resilience of the economy, including green energy. In particular, it

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includes measures improving air quality and the development of renewable energy sources. The

EU Commission will now assess the Polish plan within the next months and translate its contents into legally binding acts if all the criteria are met.

A new renewable auction was held in June 2021, awarding CfDs to 1,2 GW of solar PV and 0,3 GW of onshore wind.

In August 2021, new GC quotas for the year 2022 were announced: 18.5% for green certificates (below 19.5% in 2021) and 0.5% for the so-called "Blue certificates" (that confirm that the energy is produced from agricultural biogas).

The President of the Republic signed an Act amending the Renewable Energy Act on 17 September 2021. Key changes include extending the period of auctions for sale of energy from renewables until the end of 2027 (thus, extending CfD maximum delivery date to June 2047) and setting auction volumes for the period 2022-2027 in a single regulation of the Council of Ministers. The law also modifies the period of settling a negative and positive balance (the period is extended from 10 to 15 days) and provides for modified rules for settling positive balances. The Amendment also simplifies the way in which the Spatial Planning and Land Development Act applies to investors. In particular, the Amendment modifies the capacity limit for RES and allows freestanding photovoltaic devices with a capacity of up to 1 MW to be constructed on poor-quality agricultural lands or on rooftops (without capacity threshold), regardless of whether the municipality's study designates such areas as being potential locations of RES investments.

The European Commission approved, under EU State aid rules, these amendments of the Renewable Energy Law.

On 30th March 2022, following the Russian invasion of Ukraine, the polish government announced a plan to abandon the import of energy resources from Russia. According to this plan, renewables and nuclear are expected to become the pillar to achieve energy independence from Russia. As a first step, Poland stopped coal imports from Russia in April 2022. Later, in June 2022, the Polish Prime Minister confirmed that Poland would subsidize coal for domestic use, mainly heating, to control inflation derived from high energy prices. Oil imports would stop by the end of 2022 (although at the end of 2022 Poland kept importing oil from Russia, suggesting that oil ban could be delayed).

The final regulation to reduce green certificates quota from 18,5% to 12% in 2023 was released (OJ 2022 pos. 1566).

A new set of amendments to the RES act was published. It included: (i) the flexibilization of the use of substitution fee by suppliers: new wording allows to pay the substitution fee if the previous 3 month average is above previous year average (previously, if Green Certificates average prices of the previous 3 months and previous year, were below the substitution fee, Green Certificates had to be cancelled); (ii) extension of the deadlines to COD for solar PV plants awarded in auctions (33 months vs previous 24) and (iii) introduction of a new definition of hybrid power plant.

On 13th October 2022, the Council of Ministers adopted the Ordinance on the maximum quantities and values from Renewable Energy Sources that may be sold through auctions in subsequent years 2022-2027.

On 27th October 2022, an Act on Emergency measures was released. It sets a cap on electricity costs for certain consumers to be financed by a clawback mechanism on inframarginal technologies. This clawback is calculated as sum of the volume of electricity sold multiplied by the positive difference between the volume-weighted average market price of electricity sold and the volume-weighted average capped price of electricity sold - for a given day. The cap was originally set at 295 PLN/MWh for non-CfD wind assets and 355 PLN/MWh for PV, applying from December 2022. These caps were increased by 50 PLN/MWh in December 2022, setting new cap at 345 PLN/MWh and 405 PLN/MWh respectively. For assets with a CfD in place, the cap is set at the strike price. The scheme envisages that all revenues above the cap had to be reimbursed to a Fund. However, only PPAs with physical delivery or financial PPA with a final consumer and linked to physical delivery, were finally considered for the purpose.

Poland´s parliament approved an extension of current energy price freezers for households and other consumers until the middle of 2024. However, the regulation confirms that the clawback mechanism won´t continue in 2024.

#### **Regulatory framework for the activities in Romania**

A Green Certificate mechanism was introduced in Romania in 2005 to promote renewable energies and to comply with the European renewable targets. According to this scheme, electricity suppliers and industrial consumers are obliged to source a certain amount of GC every year (a fine is applicable if this annual quota is not met). On the other side, renewable generators receive GC by each MWh produced.

Law 220/2008 of November, introduced some changes in the initial GC system, improving the framework for renewable generators. In particular, it increased the amount of GC to be received by wind generators (from 1 GC/MWh to 2 GC/MWh until 2015 and 1 GC/MWh from 2016 onwards). The law also guaranteed that the trading value of GC would have a floor of 27€ and a cap of 55€.

Law 123/2012 of 19 July 2012 on Electricity and Natural Gas eliminated the provision of bilateral contracts not publicly negotiated as a mean to sale electricity. Thus, the trading of electricity could only be carried out on a centralized market.

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The Romanian Parliament approved Law of 17 December 2013, introducing several changes to the

GC scheme and in particular:For operating renewable plants: decision to postpone (or "freeze") part of the granted GC:

- wind generators would have 1 GC (out of 2 GC) postponed from trading from 1 July 2013 to 31 March 2017;
- solar generators would have 2 GCs (out of 6 GCs) postponed from trading from 1 July 2013 to 31 March 2017;
- postponed GC would be gradually recovered until 31 December 2020 (starting on 1 April 2017 for solar PV and 1 January 2018 for wind).
- For new renewable plants: decision to reduce the amount of granted GC:
	- wind facilities would receive 1.5 GC/MWh until 2017 and 0.75 GC/MWh from 2018 onwards;
	- solar facilities would only receive 3 GC from 1 January 2014 onwards;
	- these GC could be immediately traded.

On 24 March 2014, the President of Romania approved EGO 57/2013 with the following amendments: (i) Reduction of the GC validity from 16 months to 12 months; and (ii) the obligation for ANRE (Energy Regulator) to communicate in each year the GC quota for the following year. Other amendments were introduced in 2015 by Law 122/2015. Among other changes, the law included: (i) supplier's obligation to purchase GC on a quarterly basis (ii) the inclusion of imported electricity in the GC scheme, and (iii) the removal of the right to receive GC for the electricity sold at negative prices.

In March 2017, the government approved a new emergency ordinance (EGO 24/2017) to further amend the renewable law 220/2008. As expected, the GC scheme was extended until 2031 (GC will remain valid until March 2032). The Ordinance also confirmed the removal of the indexation of the GC parameters (GC floor would remain fixed at 29,4€ and GC cap would be fixed at 35€). Regarding wind energy, the ordinance approved the extension of the GC recovery period from 2018 to 2025, while solar PV's GC postponement was extended until the end of 2024 (the recovery will take place from 2025 to 2030).

The State of emergency was declared on 16 March 2020, through presidential Decree 195/2020. The Decree aimed at controlling the spread of COVID-19. Among others, the Decree included restrictions of certain rights (introducing for example compulsory quarantines). It also included the possibility of price controls for certain goods and/or services (for example, of electricity prices). The State of emergency was subsequently extended until May 16th. During the State of emergency period, the government released several economic relief measures such as extension of payment deadlines for local taxes, a tax debt restructuring program, a reduction of the monetary interest rate, among others.

ANRE published Order 61/2020 of 31 March 2020 stating that negative prices would be allowed from September 2020 in line with Order 236/2019.

Emergency Ordinance 74/2020, amending the Energy Law 123 was approved on 14 May 2020 allowing PPAs signed outside the centralized markets for new renewable projects operating from June 2020.

In June 2020, the Romanian Energy Ministry proposed a Memorandum with the basic characteristics of a potential CfD scheme, addressed at low carbon technologies (renewables,

#### CCS and ESS).

On 9 December 2020 Order no. 213/2020, approving the single imbalance price was finally published on the Official Gazette (in force since February 2021). The methodology introduces a single imbalance price except for those cases when the system is almost balanced when a double price is calculated. The implementation of the new imbalance price was coincident with the 15 minute settlement introduction, in line with EU regulation.

Romania submitted its Recovery and Resilience Plan in May 2021. In September 2021, the European Commission endorsed the Plan, and will disburse €14.2 billion in grants and €14.9 billion in loans under the Recovery and Resilience Facility (RRF). The EC's assessment finds that the plan devotes 41% of the total allocation on measures that support the green transition. It includes measures to phase out coal and lignite power production by 2032.

On 29 October 2021, the Romanian Parliament Endorsed Law 259/2021, which approved and put into action Government Emergency Ordinance 118/2021. The Ordinance immediately came into force on 1 November. It contains measures to alleviate the burden of the current rise in energy price such as direct financial support and a reduction of taxes paid by end-consumers. For example, the Law added a price cap mechanism until 31 March 2022 which applies to household customers and other selected customers (hospitals, NGOs, etc) to cap the final price for electricity to RON 1/kWh and natural gas at RON 0,37/kWh. The differences between the average prices and the capped prices will be reimbursed from the state budget, through a separate budgetary expense.

Also, the Law includes a windfall tax for electricity producers: until 31 March 2022, the additional income obtained by electricity producers and resulting from the difference between the average monthly selling price of electricity and the price of RON 450/MWh will be taxed at 80%. However,

this tax only applies to CO2-free generation facilities and will not apply to producers of electricity

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based on fossil fuels, including cogeneration.In October 2021, the Romanian Parliament endorsed

Law 259/2021, which approved and put into action the Emergency Ordinance 118/2021. The Ordinance immediately came into force on November 1st. It contained measures to alleviate the burden of the current rise in energy price providing direct financial support and a lowering the amount of taxes paid by end-consumers. For example, the regulation set a price cap mechanism until 31st of March 2022 applying to household customers and other selected customers (hospitals, NGOs, etc) to cap the final price for electricity to 1 RON/kWh and natural gas at 0.37 RON/kWh. The differences between the average prices and the capped prices would be reimbursed from the state budget, through a separate budgetary expense. The methodology of the calculation of this tax was clarified in March 2022, with the publication of the Emergency Ordinance 27 (EO 27), which added details and clarifications to the tax calculation methods, specifically including balancing costs and some financial costs. The Emergency Ordinance also extended the measures until March 2023.

In November 2021, Order 117-2021 established a new algorithm for the calculation of the estimated average impact on consumers of green certificates for the following year. The regulation sets that the maximum impact that the consumers would assume in order to support the Green Certificates scheme would be 14.5 €/MWh, but the algorithm uses the previous years' share of excess to slowly reduce the impact on consumers and make the reduction more progressive, with the final objective to allow the termination of the scheme in 2031.

On 31st March 2022, the Romanian Ministry of Energy launched a call for projects under a new scheme for supporting the development of new wind and solar PV plants. The support scheme was launched under Romania's recovery and resilience fund. Total budget amounts to 457M€, of which 382 M€ will be dedicated to wind and solar PV with over 1 MW of installed capacity and 75 M €for wind and solar projects with installed capacity between 0.2-1 MW. About 950 MW of renewable capacity could benefit from this support scheme. Applications to participate in the scheme were submitted between 31 March 2022 and 31 May 2022.

On 20th July 2022, the law 248 was approved. It established that electricity producers are obliged to trade, at least, 40% of the annual electricity production through contracts on the electricity markets, on markets others than PZU (DAM), PI (Intraday) and PE (Balancing Market). The law exempts generation facilities put into operation after 1st June 2020.

On 1st September, 2022, the EO 27/2022 was amended by the EO 119/2022, converting the tax into a Contribution to the Energy Transition fund and extending its application until August 2023. The tax was also increased to 100% and the new EO specified that financial costs and hedges would no longer be considered in the calculation of the tax.

On 23rd November, a new Law was passed in the Parliament to introduce some amendments to the EO 119/2022. The Law extended the application of the EO until 31st March 2025. It also amended the calculation method, including financial hedges in the computation and capping balancing costs at 5% of the realised price. It also provides that offtakers of financial hedges (foreign counterparties of financial hedges) are subject to the Contribution to the Energy Transition Fund, to be withheld by electricity producers, calculated monthly as the difference between the PPA variable price and the 450 lei/MWh cap. It is unclear, however, whether the PPA variable price is the underlying market price or the PPA strike price.

On 8th November, 2022, the Senate adopted the Law approving Emergency Ordinance 108/2022 on decarbonization of the power sector, setting out the coal phase out with closure of mines and generating plants by 2032. The Law sets out a calendar for the closure of coal and lignite mines and generation plants. It also foresees a technical reserve for the period of 2023-2030, with the possibility of postponing the closure of certain capacity under the request and the justification of the TSO. In the event of an energy crisis, the government is also allowed to postpone the closures or restart closed plants. Finally, the law also includes measures for the social and economic development of the local economy and affected regions.

On 11th November 2022, a new Emergency Ordinance was also published, establishing a centralized electricity purchasing mechanism from 1st January 2022 up to 31st March 2025. According to this mechanism, OPCOM would be the energy at 450 RON/MWh, to sell it at the same price to suppliers. This mechanism applies to non-Green Certified technologies (i.e., thermal, nuclear, hydro). ANRE published the list of companies affected by this obligation, but the volume of production and demand and purchased through this mechanism is still unclear. These amendments apply from 1st September 2022.

Emergency Ordinance 186/2022 introduced on 29th December 2022 a solidarity contribution to be paid by companies with a turnover coming mainly (≥75%) from crude oil, natural gas, coal and refineries for financial years 2022 and 2023. This contribution is calculated as 60% of the annual taxable profits of the year that exceed by more than 20% the average of taxable profits of years 2018-2021. The proceeds of the contribution are to be used for support final energy consumers, especially vulnerable households, and electro-intensive industries, as well as for projects aligned with REPowerEU objectives.

#### **Regulatory framework for the activities in Italy**

On 6 July 2012, the Government approved a new renewable framework by means of the Decree on Renewables (DM FER) introducing a feed-in-tariff support scheme. The key aspects of this

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regulation provided by the DM FER were the following: (i) wind farms over 5 MW would be

remunerated under a feed-in tariff scheme defined by tenders; (ii) capacity to be tendered would be determined in line with the agreed technologies' capacity paths; (iii) the reference tariff for 2013 was 127 €/MWh for onshore wind and tender participants would bid offering discounts on this reference tariff (in %); (iv) The reference tariff would decrease 2% per year and (v) tariffs would be granted for 20 years.

The new system replaced the previous one based on GCs. Under the previous system, producers obtained their revenues from the sale of the electricity in the electricity market and from the sale of GCs. Wind farms built until December 2012 continued to operate under the previous system until 2015 (from 2015 onwards, the GC system was transformed into a feed-in-premium in which, for the remaining duration of the original incentive period, the value was set at 78% of the difference between €180 and the electricity price).

Spalma Incentivi Decree, published in November 2014, stipulated that wind farms under the GCs scheme could voluntarily adhere to an extension of the support period of 7 years in exchange of a permanent reduction of the premium/GCs received, being the coefficient of reduction calculated individually for each wind farm depending on their remaining regulatory life. As the option was voluntary, wind farms that refused to accept this change remained under previous GCs scheme.

On 10 November 2017, The Strategia Energetica Nazionale (National Energy Strategy), known by the acronym SEN, was presented after several months of public consultation. One of the main features of the SEN is that it included the complete phase-out of coal power generation by 2025, five years ahead of schedule. The SEN also highlighted the role of renewables and targeted that renewable energy would increase to 28% of energy consumption in 2030. According to the SEN, the RES-E (renewables in electricity production) would increase up to 55% in 2030.

The Italian Ministry of Economic Development signed in July 2019 a decree implementing a new set of auctions to be held between 2019 and 2021, seeking to allocate around 5,5 GW of wind and solar PV.

On 9 March 2020, a national quarantine, restricting the movement of the population was approved, in response to the growing pandemic COVID-19 . A gradual ease of restrictions started on May 4. Regarding the electricity sector, several measures were introduced, including a suspension of all bureaucratic terms for renewables since March 13, a relief of several reporting obligations, the implementation of transitory measures between 10 March and 30 June 2020 to limit the burden of imbalance costs and an extension of all permits expired during the emergency state of 90 days, among others.

On 27 April 2020, Italy presented its National Recovery and Resilience Plan (NRRP) which will support the implementation of the crucial investment and reform measures following the COVID-19 pandemic. The European Commission adopted a positive assessment of the Plan in June 2021. The Plan will provide € 68,9 b in grants and € 122,6 b in loans. The share of climate projects is 37% of the total and, to achieve a progressive decarbonization, interventions are planned to significantly increase the use of renewables.

The Italian government released the so-called "Decreto Semplificazione" in May 2021 and was officially converted into law in July. The Decree seeks to simplify administrative procedures (in particular, regarding public procurement and concessions). It defines the regulatory framework aimed at simplifying and facilitating implementation of the goals and objectives established in its "National Recovery and Resilience Plan" and in its "National Energy and Climate Plan". It also rationalizes the role of the Minister of Culture, whose opinion won´t be binding in locations outside protected areas, and it provides a series of measures aimed at streamlining the obtention of the VIA (environmental authorization).

In December 2021, the GSE announced the 8th auction under DM FER 19. The auction was held in February 2022. Out of the 2,346 MW available for "Bloc A" projects (onshore wind and solar PV, utility scale), only 306,5 MW (of which 40 MW of onshore wind) were selected in the auction, which was highly undersubscribed. The average price was 65.05 €/MWh, close to the ceiling price of 65.15 €/MWh. The remaining 2 GW (capacity not awarded in previous rounds) was auctioned in June 2022.

A new decree was published in the Italian Official Gazette no. 21 of 27 January 2022, setting "urgent measures to support businesses and economic operators as well as to limit the effects of price increases in the electricity sector". It was repealed and replaced the 25th February by DL nº 23, slightly modifying Article 16, in which the clawback measures are defined. Under new wording, clawback affects certain RES with a COD previous to 1st January 2010:

- Solar plants (>20kW) with fixed premium schemes and non-incentivized plant (>20kW)
- The measure excludes PPA's when the contract does not exceed by more than 10% the reference price
- The clawback measure, applying from 1st February to 31st December, introduces a 2 ways CfD scheme at what is
- considered as the reasonable price for the mechanism (ca. 60 €/MWh). Revenues over this value are reimbursed.

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In March the government approved "DL Tagliaprezi" a potential clawback through a 10% one-off

levy on producers and sellers of electricity, natural gas and petrol products. The measure needs to be approved in 60 days

The measure applies to profit margins which rose by more than 5 million euros during the Oct. 2021 - March 2022 period compared to a year earlier, excluding cases where the profit margin rose by less than 10%.

In March 2022, the Minister of Ecological Transition announced a plan to replace Russian gas imports in the next 3 years.

In May 2022, the so-called "DL Aiuti" (Decree-Law no. 50 of 17 May 2022) aimed to counteract the high energy prices effects on consumers, was approved. The Decree increased the one-off levy on producers and sellers on electricity, natural gas and petrol products from the initial 10% (previously approved in March 2022) to 25% and extended the period one extra month (up to April 2022). The Decree also introduced significant permitting simplifications, aimed at facilitating the development of new renewable plants.

On 21st September 2022, the so-called "DL Aiuti Bis" was approved. It extended the clawback tax introduced by Sostegni TER from 11 to 17 months (from 1st February 2022 to 30th June 2023). This levy introduces a 2-way CfD scheme at what is considered to be a "reasonable price" for the mechanism (around 60€/MWh). Revenues over this value are reimbursed. The scheme only applies to some renewable projects with a COD before 1st January 2010 (it doesn´t apply to any EDPR project).

On 21 November 2022, the Council of Ministers approved a new Budget Law, which was then ratified by the Parliament on 29th December. The new budget will be financed, among others, by a retroactive increase of the windfall tax to 50% (previously set at 25%) that applied in 2022 to producers and sellers of electricity, natural gas and petrol products. This model replaces former VAT declaration-based model, which was implemented until middle 2022. The taxable base is defined as the portion of total income determined for corporate income tax purposes that exceeds by, at least, 10% of the average total income determined for corporate income tax purposes earned in the 2018-2021 period. The amount of the extraordinary contribution shall not exceed 25% of the equity value of the assets at the end of 2021. The contribution is to be paid by June 2023.

Also, in line with EU regulation, from 1st December 2022, to 30th June 2023, a price cap (of 180€/MWh for wind and solar) shall be applied to market revenues of inframarginal technologies through a one-way compensation mechanism. The settlement is to be done on a monthly basis, with the average captured price. In case of plants under one-way incentives schemes, the reference price will be equal to the maximum value between 180€/MWh and the tariff.

On November, 2023 "Decreto Sicurezza Energetica" was approved, introducing the promotion of use of renewable energy sources and to support energy-intensive businesses. Regarding the promotion of renewable energy sources, the DL foresees new incentives for energy intensive companies to install renewable energy sources. Also. It introduces measures for the development of the floating offshore wind energy sector in Southern Italy.

#### **Regulatory framework for the activities in Greece**

Renewables projects in Greece are supported by 20-year feed-in premiums (Contracts-for-Difference) awarded through auctions. The first full-scale renewables auction was held on 2 July 2018, with 277 MW of capacity awarded.

On 15 April 2019, the first technology-neutral renewable auction (for onshore wind and solar PV) was held.

In December 2019, Law 4643/2019 on the liberalization of the Greek energy market, the modernization of the Public Power Corporation (PPC), the privatization of the Public Natural Gas Company (DEPA) and the support of the renewable energy sector, was passed. The law introduced significant changes to the electricity market. Regarding renewables, the law set out the possibility to renewable plants with a capacity exceeding 250 MW (or aggregated capacity at the same connection point exceeding 250 MW) to directly agree with the Ministry of Environment and Energy a selling price (provided the EU Commission gives the green light). The law also stated that renewable generators under the fixed-tariff scheme had to be balancing responsible (although it is only applicable to renewable projects in operation after July 2019).

Greece, as all EU Members, submitted its National Energy and Climate Plan (NECP) in December 2019. It includes ambitious renewable targets (35% RES target by 2030) and the complete phaseout of coal facilities by 2028.

The government announced a total lockdown in the country starting on 23 March 2020, in an attempt to reduce new coronavirus cases. However, measures progressively started to ease on May 4.

The Greek government approved extensions of power facilities deadlines due to the COVID-19 crisis (legislative Act OG A'75/30.3.2030). The Act stated that installation licenses and binding grid connection offers which were about to expire would be extended 4 or 6 months (depending on

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bexpiring date). Also, deadlines for connecting projects which had been selected through

auctions, would also be extended 4 or 6 months (also depending on the deadline).

The European Commission favourably reviewed Greece's electricity market in a 7th post-bailout report on the country's economy. It issued however a warning on the RES special account deficit, although it attributed the deficit to the pandemic. In November 2020 Greece launched into operation the "EU electricity Target Model", which is the basis for the development of the Single market in Europe. It includes a day-ahead, and intra-day and balancing market (the future market was already operating). Thus, the EU harmonization of the Greek electricity market is now effective. In addition, the Greek day-ahead market was coupled with the Italian one in December 2020 and with the Bulgarian one in May 2021.

On 9 December 2020, Law 4759/2020 introduced several measures to reduce the RES Account Deficit, which is the Fund that supports renewable projects. These measures were (i) a "one-time extraordinary contribution" of 6% on the turnover of 2020 for old renewable projects (projects that started operations before 31 December 2015) (ii) A "one-time emergency charge" on suppliers equal to 2€/MWh during 2021, (iii) an increased percentage of emissions allowances sales at 78% (vs. 65% previously), (iv) a green tax on diesel consumption of 0.03€/liter and (v) Re-orientation of revenues from the Special Fee for issuance of Certificate of Electricity Producer from RES currently paid to regulator.

On 23 August 2021, the government announced that the RES special account would be split into two, to protect producers' revenues. As a result, a new RES special account for projects operating since January 2021 will be created. This new account will be supported by the "Dynamic Renewable Charge", that will be paid by electricity suppliers and then passed on to their customers.

The European Commission adopted a positive assessment of Greece's Recovery and Resilience Plan in June 2021. Greece had requested 17.8 b€ in grants and 12.7 b€ in loans under the Plan. The Plan devotes 38% of Greece's total allocation to measures that support climate objectives, including upgrading the electricity network and strengthening the support scheme for producers of renewable energy sources, among others.

The European Commission approved in November 2021, under EU State aid rules, a €2.27 billion Greek scheme for the production of electricity from renewable sources and high efficiency combined heat and power (CHP). This approval came after Greece notified the Commission of its intention to approve a new scheme to support electricity for renewable sources. For both onshore wind and solar installations, support will be awarded through a joint competitive tendering procedure (although separate auctions are also envisaged in case targets are not met). Winning projects will be awarded two-way contract-for-difference contracts. The scheme is expected to start in March 2022 and will be opened until 2025.

In December 2021, the minister of energy published in the Official Gazette B 6250 the decision 123726/5096, defining technologies and categories of electricity generation units from renewables and Combined Heat and Power plants (CHP) eligible to apply for operational support. The listed categories and estimated timings are the following:

- Technology-specific competitive bidding procedures for PV above 0.5 MW and below 1MW until December 2022, and for solar PV below 1MW, wind above 0. 06 MW and below 6 MW, from January 2023 to December 2025.
- Competitive tendering procedures by region, to cover power margin for the interconnection Nea

Makri – Polypotamos with Evia, the Cyclades and the second phase of Attica with Crete.

- Joint competitive processes until December 2025 for wind above 0.06 MW and solar PV above 1 MW (units from the technology-specific process are also eligible from January 2023).
- Additionally, specific joint competitive processes for renewables with storage are included until December 2025, for wind and solar power plants above 10 MW with integrated electricity storage of guaranteed (useful) storage capacity of at least equal to 20% of the maximum hourly energy produced

Under this plan, a total of 3 GW of renewables are expected to be auctioned during the period 2022-2025, although there is no visibility on the expected volumes and timings for each year.

in July 2022 Greece implemented its own technology specific cap at 85 €/MWh for RES, differing from the one proposed at European level. The cap is implemented at the level of the day-ahead market hourly prices for one year but could be extended. It is also applicable to PPAs, both physical and financial. However, an exception for physical PPAs could be announced.

In August 2022Law 4951/2022 on permitting and EES was published. The Law defines several key measures aimed at accelerating the RES licensing process (it aims to shorten the overall RES licensing process from 5 years to 14 months). It also targets to increase connections to the grid throughout operational restrictions although it opens the door to output curtailment (up to 5% of the annual generation). It also includes an integrated framework for the development of storage projects.

In September 2022, the ministers of Finance and Environment and Energy issued a joint Ministerial Decree by which a windfall tax of 90% would be imposed to vertically integrated energy

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companies. According to it, monthly positive gross profit margins from October 2021 to June

2022, would be taxed at the announced rate.

In March, law 5037/2023 was published and introduced new provisions regarding RES State Aid contracts. Given the financial difficulties that projects could find, if a project is commissioned and has started its contract for less than 4 years, then the contract could be terminated without losing any guarantees. In addition, projects that have a CfD signed before 31/12/2023 would have the right to go merchant for up to 2 years after the issuance of the operation license, without losing their CfD contract and maintaining its tenure.

In May 2023, new renewables injection restriction rules were officially published via Ministerial Decision published in the state journal. According to former rule (included in Law 4957/2022), in case of high grid congestion, injection restrictions could be applied to renewable plants. However, these restrictions could not amount to more than 5% of the annual energy generated by the renewable facility. New rules published in 2023 will apply to all renewable plants under development (including storage) with connection offers and to renewable plants with connection requests already submitted either to DEDDIE/HEDNO or IPTO. According to these new rules, solar PV plants will be subject to injection restrictions, and the maximum power of injection will be capped at 72%. Wind and BESS will also be subject to restrictions (for wind, maximum power of injection will range between 65-80%), but only during the day (in solar hours). In any case, these restrictions will be applied with the limitation of the maximum 5% of annual generation maximum cut, that will still apply.

In August 2023, the Ministry of Environment and Energy decided to extend until the end of 2023 the clawback mechanism. No further extension has been decided.

#### **Regulatory frameworks for the activities in UK**

A Energy Bill, that received royal assent on 18 December 2013, became law making the Contract for Difference (CfD) regime official in the UK. The UK Government also released the Electricity Market Reform (EMR) Delivery Plan on 19 December 2013.

In the new system, CfDs have a 15-year length for renewables (except for biomass conversions) and are granted through tenders. The "established technologies", which include onshore wind and solar PV, compete for budgets in different allocation rounds. Less mature technologies, such as offshore wind, compete in a separate "pot".

CfDs are based on a strike price for each technology. When the pool price falls below the strike price, generators receive a top-up payment. However, if it increases above the strike price, generators have to pay this difference back.

In June 2019, a new legally binding net-zero emissions target by 2050 was passed into law, amending Great Britain's existing 2008 Climate Change Act. The target will require the UK to bring all greenhouse gas emissions to net zero by 2050, compared with the previous target of "at least" 80% reduction from 1990 levels. In order to achieve the target, several measures are proposed, including the support to new renewables facilities through CfD awarded through tenders.

The UK officially left the EU on 31 January 2020, following the signature of the "Withdrawal Agreement" with the EU. The UK officially completed its economic separation from the European Union on 31 December 2020, after the end of the transition period in which the UK kept the same rules as the remaining 27 countries while it tried to negotiate a post-Brexit trade deal with the EU. After months of intensive negotiations, the UK and the EU announced a free trade deal on December 24. The agreement provides for zero tariffs and zero quotas on all goods that comply with the appropriate rules of origin. Regarding the energy field, the agreement provides a new model for trading and interconnectivity although the final day-ahead power market coupling rules between the EU and the UK are not expected to be in place until early 2022. In the meantime, interim arrangements will apply. The EU commission has also announced that there will be "ambitious" cooperation over renewable energy and climate action.

The Government announced on 30 June 2021 that the coal phase-out would be brought forward by a year, so that from 1st October 2024, no coal facilities could be producing electricity in the country.

In December 2021, the energy regulator (Ofgem) rose the energy price cap (the energy price cap limits the rates a supplier can charge for their default tariffs) and announced that updates would become more frequent (up until now, the price cap was updated on a 6-month basis). Accordingly, a new price cap of 1,971£ (vs. previous 1,277£) was set starting on April 1st to September 20th, 2022.

The Fourth Allocation Round ("AR4") bid window was opened from May 24th to June 15th, and results are expected in July, with more than 12 GW of renewables expected to be granted a 15-year contract-for-difference. The participating technologies were divided in 3 "pots", meaning that projects only compete with other projects on their same pot. All pots are subject, however, to a budget limit. Pot 2 (which includes wind onshore and solar PV, among other technologies) was the only one that was also constrained to a maximum capacity of 5 GW, with both onshore wind and solar PV having each a capacity cap of 3.5 GW.

In February 2022, the government announced that upcoming CfD allocation rounds will be held

annually. In March 2023, AR5 will be opened to applications.

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In April 2022, the Energy Security Strategy was published. The key aim of the strategy is for the UK

to achieve long-term independence from foreign energy sources and decarbonise the nation's power supply. The document announced new targets across the different sectors, including:

- Oil and gas: a new licensing round for new North Sea oil and gas projects expected to be launched in 2022, with the final aim to reduce gas imports
- Wind: new ambition to deliver up to 50 GW of offshore wind, a tenth of which would come from floating facilities
- Solar PV: ambition to deliver 70 GW by 2035
- Nuclear: total capacity expected to triple up to 24 GW by 2050, supplying around 25% of total electricity demand
- Hydrogen: the government has doubled its ambition to increase hydrogen production, with a new target of 10 GW by 2030, with at least half of this being electrolytic hydrogen

In April 2022, Ofgem announced the removal of Balancing Services Use of System (BSUoS) charges from generation. BSUoS charges are the means by which the Electricity System Operator recovers costs associated with balancing the electricity transmission system. Starting in April 2023, these charges will only be collected from final demand (electricity consumers, excluding generators and electricity exports).

On 19th July 2022, National Grid published the Capacity Market Operational Plan for 2022/2023. The government has set a target of 5,8 GW for the 2023-2024 year ahead (T-1) and 42.4 GW for the 2026-27 four-year ahead (T-4) capacity auctions, to be held in February 2023.

On 27thSeptember 2022, the UK government launched the "Growth Plan 2022" aimed at reducing inflation and supporting growth in the short term. To this end, it includes a wide range of measures, being some of them aimed at speeding up renewables' deployment (increasing renewables capacity by 15% in 2023). The Plan mainly focuses on onshore and offshore wind, hydrogen and carbon capture projects. It also contains measures to accelerate infrastructure delivery, in particular to accelerate onshore wind deployment. A "New Energy Supply Task Force" is also created, aimed at reshaping the electricity market to reduce gas dependency and eventually, reduce electricity prices. The Plan also announced the creation of the "Energy Market Financing Scheme", which will help energy companies facing high and volatile energy prices to address liquidity issues.

On 17th November, the British government announced a windfall tax on energy companies that were making extraordinary profits due to the spike in energy commodity prices. The so-called "Electricity Generator Levy" replaces the "Cost Plus Revenue Limit" announced during the Truss Interlude. The Levy will apply to nuclear and renewable generators, excluding those with CfD contracts. The windall tax will be calculated on an annual basis and is to be collected by HM Revenue & Customs (HMRC) in the same way that as a corporate tax and similar to the EU revenue cap. It will only apply to "excess" profits above 75 GBP/MWh. The Levy will apply from 1st January 2023 until 31st March 2028, but if market prices return to "normal" levels, the windfall tax would decrease accordingly. This measure had not impact to EDPR portfolio in UK.

In November 2023, the Government published the core parameters for Allocation Round 6 (AR6) of the Contracts for Difference (CfD) scheme. The Government decided to raise administrative strike prices for all technologies, including a 66% increase in the offshore wind's administrative strike price. The core parameters also confirm that AR6 will feature a three-pot structure, with offshore wind having its own pot.

#### **Regulatory frameworks for the activities in Brazil**

The Electricity Sector in Brazil is regulated by Federal Law nr 8,987 of 13 February 1995, which generally rules the concession and permission regime of public services; Law nr 9,074 of 7 July 1995, which rules the grant and extension of public services concession or permission contracts; Federal Law nr 10,438 of 26 April 2002, which governs the increase in Emergency Electric Power Supply and creates the 3,300 MW Program of Incentives for Alternative Electricity Sources (PROINFA); Federal Law nr 10,762 of 11 November 2003 and Law nr 10,848 of 15 March 2004, concerning commercial rules for the trade of Electric Power; and, subsequent amendments to the legislation.

The institutions that ensure a proper development and functioning of Electricity Sector in Brazil are:

- a. the Energy Research Company ("EPE"), responsible for long term planning in the electric sector;
- b. the Electric Sector Monitoring Committee ("CMSE"), responsible to continuously assess the security of electricity supply,
- c. the Chamber for the Commercialization of Electric Energy ("CCEE"), an institution dealing with commercialization of electricity in Interconnected System,
- d. National Electricity Regulatory Agency ("ANEEL"), responsible for regulating and inspecting the electricity sector, as well as establishing the tariff for the consuming public and promote energy auctions together with MME, EPE and CCEE;
- e. Ministry ofMines and Energy (MME) responsible for the creation and implementation of policies, acting as the Conceding Authority;

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f. the National Electric System Operator (ONS), which is responsible for the coordination of real

time operation and supervision of the energy generation and transmission grid.

Federal Law nº 9,427 of 26 December 1996 establishes the possibility of Renewable Energy producers to sell directly to the final consumer(s) (aggregated demand > 500kW), at any voltage level. As part of the regulatory incentive framework, Renewable Energy producers (small hydro, biomass, wind and solar) are granted a reduction of, at least, 50% in the Distribution and Transmission System Use Tariff (TUSD and TUST) provided that pre-defined rules are met. The Law nº 13,203 of 8 December 2015 extended the subsidy for larger solar, wind and biomass plants.

Renewable energy production from plants which receive the above-mentioned subsidy is defined as "incentivized energy", while the electricity production from no-incentivized sources is defined as "conventional energy". Special Consumers, the ones which consumption demand is above 500 kW and under 3 MW, are allowed to purchase electricity only from incentivized sources. Since July 2019, the minimum demand is gradually reducing, so that, as of January 2023 those Special Consumers will be allowed to purchase incentivized or conventional energy by their own free choice.

The Decree nr 5,025 of 30 March 2004, regulates the Federal Law nr 10,438 and states the "Alternative Energy Sources" economical and legal framework. PROINFA participants have granted a PPA with ELETROBRÁS, and are subject to the regulator (ANEEL) authority.

The Decree nº5,163 of 30 July 2004 regulates the Federal Law nº 10,848, establishing two trading environments for sale and purchase energy: the Regulated Contracting Environment ("ACR"), with the participation of energy producers, traders and distribution agents, and the Free Contracting Environment ("ACL"), in which Producers, Traders, Importers & Exporters and Free Consumers participate.

In the ACR, distribution companies are allowed to buy "distributed energy" (local generation), by observing a limit of 10% of the total demand of each distribution agent. In terms of tariff moderation for Captive Consumers (consumption demand < 500 kW), Brazilian Energy Sector provides for the purchase of electricity by distributors through regulated auctions, subject to the lowest cost criteria, aiming to reduce the cost of acquisition of electric energy that is re-passed to captive customer tariffs. These auctions seek to provide the lowest possible price of electricity to be repassed to the consuming public.

During the fourth quarter of 2019, Ministry of Mines and Energy set strategic lines of activities to be developed towards the modernization of the Brazilian electricity sector. One of the first measures taken relates to the PLD (short-term price), currently calculated on a weekly basis. Hourly PLD has been calculated on a test basis ("shadow operation") since 2018, aiming to become economically effective as of 1 January 2021. It aims to improve efficiency between electricity production and consumption based on an efficient management of price formation and real-time operation.

The government has taken measures in response to Covid-19 impacts in main areas as the energy sector, by means of Decrees, Provisional Measures and changes in existing regulation. By the end of March, to ensure uninterrupted supply of energy to consumers, Decree nº 10.282/2020 reinforced electricity generation, transmission and distribution as essential activities. This included the equipment supply needed for operation and maintenance. By the end of April 2020, the range was extended to include construction works.

Through Normative Resolution nº 878/2020, the Brazilian Electricity Regulatory Agency (ANEEL) suspended energy supply cuts regardless of the consumers' capacity of payment for 90 days as of 23 March 2020. In addition, the low-income population registered for lower tariffs (the Social Tariff program) will not undergo periodic checks over the next three months, and therefore will not be subject to the loss of the benefit.

Measures have also been taken to prevent distributors (DSO)´ s financial losses due to a potential high default rate, and consequently affect their stakeholders. In order to add liquidity, ANEEL authorized the transfer of resources from sector funds to distributors and consumers, totalizing R\$2,43 billion so far.

Provisional Measure nº 950/2020 propose temporary use of resources from National Treasury, other sector funds and bank loans for DSO to be paid for all consumers, as well as new measures to subsidize low-income consumers, providing a 90-day exemption from paying the electricity bills.

ANEEL also released a first assessment of Covid-19 impacts to the energy sector, through which reinforced the need of maintenance of the economic and financial balance of contracts, preservation of contracts and the participation of all segments (generators, TSO, DSO, consumers) towards the best solutions.

On 23 June 2020, ANEEL enacted the Normative Resolution nº 885/2020 establishing the loan conditions to support the DSO in reducing the impacts of Covid, without resources from National treasury. A total of 19 banks led by BNDES will inject up to R\$ 16,25 billion to "Conta Covid" and will be paid by consumers in 60 months. To benefit from the resources, the DSOs may declare they have the right to question any of the conditions in court, preserve the PPAs and limit the distribution of dividends in the case of a default.

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In March 2020, the Chamber of Electric Energy Commercialization (CCEE) and the National

Power System Operator (ONS) estimated a 0,9% decrease in total consumption for 2020 compared with last year, based on a "close to zero" variation of GDP due to the impacts of COVID-19 on economic activity. On May 1st, Ministry of Economy made a significant downward revision of GDP forecast, from 0 to 5% decline for the worst-case scenario of Brazilian economy. By the end of June 2020, Central Bank of Brazil updated the GDP projection for 2020 reducing it from -5% to -6.5%. Under this circumstance, demand for electricity is expected to further diminish.

Due to the uncertainties on future demand for electricity, the regulated auctions scheduled for 2020 are postponed. According to CCEE and ONS, it´s also an opportunity to revisit guidelines in order to introduce cheaper and more efficient power plants. One strategy proposed is to restrict the participation in regulated auctions to thermal plants which unit variable cost (CVU) are less than R\$300/MWh, allowing for lower spot market prices (PLD).

The National Development Bank (BNDES), main financing institution announced several measures to support sectors of oil and gas, airports, ports, energy, transportation, urban mobility, health, industry and commerce and services.

Other measures regarding public health, tax and employment rules were announced in response to COVID-19.

On 1 September 2020, the Brazilian government issued the Provisional Measure ("MP") nº 988/2020 with the main purpose of reducing the electricity bills for consumers. The Brazilian Congress has a 120-day period to approve the MP and convert it into Law, otherwise it will become ineffective.

For renewable generators, the main impact is due to the cut in subsidies in the rates of the transmission and distribution system tariff within a 12-month deadline as of the MP enactment. Power plants authorized during this period and which requires an increase of power capacity will still be granted with the benefit and shall start commercial operation within a 48-month period after the published authorization. All those power plants already granted by the benefit before the MP are not affected. The end of subsidies must be compensated by the development of mechanisms based on the environmental benefits due to renewable energy sources related to low-carbon emission.

On 8 September 2020, the Law 14,052/2020 was finally enacted and establishes the conditions for hydro generators to renegotiate debts due to the hydrological risks, which caused a low Generation Scaling Factor ("GSF") during a prolonged drought, intensified by measures taken by the government to secure the national grid operation. The debt has been impacting the short-term market settlement, which currently involves more than R\$ 9 billion. ANEEL has a 90-day period to propose a regulation, which must be, at first, submitted to a public hearing.

On 8 December 2020, MME announced a regulated auction schedule for the next three years (2021- 2023). Three kinds of auctions are expected aiming at contracting energy from new and existing power plants and the expansion of the transmission system. New energy auctions A-3/A-4 and A-5/A-6 for 2021 are scheduled to take place on June and September, respectively.

As of 1 January 2021, the short-term price (PLD) comes into effect in an hourly basis, after two years of shadow operation. Although, since the last year, the ONS has been operating based on the new dispatch model results, just now the hourly PLD became effective for the purpose of commercialization.

On 23 March 2021, ANEEL published the rules to compensate the lack of wind generation due to grid curtailments caused by systemic electrical limitations. The regulation for solar plants is expected for 2022.

On 6 December 2021, ANEEL published the normative resolution for the implementation of hybrid power plants, allowing potential synergies in terms of grid costs and energy production. In the same month, MME announced the regulated auctions scheduled for the next three years by means of Portaria MME nº 32/2021. A A-4 new energy auction will take place in 27 May 2022 starting supply as of 1 January 2026.

On 7 January 2022, Law 14.300/2022 was enacted establishing the regulatory framework for consumers to generate energy by means of micro (up to 75 kW) and micro (between 75kW and 5MW) distributed generation.

In July 2023, in an attempt to partially settle the imbalance between generation offer and grid capacity, ANEEL approved an extraordinary mechanism allowing generators, on their own will, to revoke their grants and terminate the connection contracts without any penalties. More than 11 GW is expected to be free-up, which shall be confirmed by Sep/2023.The increasing participation of renewables, especially the intermittent wind/solar, has been driving ANEEL to promote enhancements in existing regulations as the recent changes in Normative Resolution 1.030/2022, which establishes the rules for ancillary services in the National Interconnected System (SIN), including renewables to be compensated for reactive power support.

The increasing participation of renewables, especially wind/solar, has been driving ANEEL to promote enhancements in existing regulations as the recent changes in Normative Resolution

1.030/2022, which establishes the rules for ancillary services in the National Interconnected

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System (SIN), including renewables to be compensated for reactive power support. Nonetheless,

the remuneration scheme must be reviewed so that it becomes attractive for new investments. Public consultations have been held by ANEEL in order to improve the regulation.

With regards to the free market expansion, since Jan 1st 2024, all consumers connected to high voltage (> 2,3 kV) grid system (categorized as group A), regardless their consumption demand, are now able to negotiate energy contracts with suppliers of their own choice.

#### **Regulatory frameworks for the activities in Vietnam**

The Vietnamese Ministry of Industry and Trade (MOIT) introduced a wind feed-in tariff (FIT) in 2011 to encourage investment in the sector. Projects were granted a 20-year power purchase agreement (PPA) with EVN, the state utility. However, this first remuneration framework failed to spur wind deployment as investors considered that revenues under this scheme didn´t provide appropriate returns. In September 2019, the government released a new FIT scheme of around 85€/MWh for onshore projects and 98€/MWh for offshore wind projects, provided that projects were commissioned before 1 November 2021. Government officials are now evaluating the introduction of competitive auctions, but no regulation has been adopted yet.

Based on the Decision 13/2020/QD-TTg, effective from 22 May 2020 and related to solar PV, a first solar FIT was released in April 2017 but the scheme expired on 30 June 2019. A second solar FiT (the so-called FIT2) scheme was then announced in April 2020. Under the FIT2, solar PV projects were eligible for a 20-year PPA with EVN, and different prices were set depending on the size/type of solar facility. Solar projects were required to receive investment approval by 23 November 2019 and start operations before 31 December 2020 to be eligible for the FIT2. The government is now planning to implement a pilot auction program for solar power and a draft decision of the prime minister guiding the future auction system was released in February 2021. However, the scheme has still not been officially approved.

Vietnam Electricity Law (Law No. 28/2004/QH11 on Electricity, as amended by Law No. 24/2012/QH13) requires "national power development master plans" to be established for a 10 year period. The master plan serves as a basis for future power development in the country, applicable to all investment in the sector. The Government set the plan for the period 2011-2020 in the "Power Development Plant VII" in 2011. However, in 2016, the Plan was adjusted in order to increase renewable targets and to provide a vision to 2030. A new master plan is now due and MOIT released a first draft of a new Plan for the period 2021-2030, with a vision to 2045.

In October 2022 Circular 15/2022 was released. It stated that projects that should have signed a PPA with EVN (Vietnam's state utility) but had failed to meet the conditions for applying the FIT prices, would receive prices set in this regulation. In particular, it set a price bracket formulation methodology for standard power plants, based on different paraments. These parameters are economic life of the facility, CAPEX, capital ratios (debt and equity) and financial discount rate. When negotiating the price for a specific project, calculations should be done with specific project data, and presented to EVN. Additionally, Decision 21/QD-BCT published on January 7th, 2023, set a ceiling price for each technology. If price resulting from the methodology set in Circular 15/2022 is higher than the ceiling price (Decision 21/QD-BCT), then the ceiling price should prevail.

Vietnam's eighth national power development plan ("PDP8") was approved by Vietnam's Deputy Primer Minster under Decision 500/QD-TTg. The roadmap, with a vision to 2030, aims to boost wind and gas production while reducing reliance on coal. Wind solar and other renewable sources are expected to cover at least 31% of the country's energy needs by 2030. Regarding solar PV, the total installed capacity of solar facilities connected to the grid 2030 is expected to reach nearly 13 GW (8,5% of total installed capacity) by 2030.

Vietnam's Ministry of Industry and Trade (MOIT) issued in December 2023 new rules (Circular 19/2023/TT-BCT, effective from 19 December 2023) for determining feed-in tariffs (FIT) for new wind and solar projects. The FITs under this new system will apply to the following technologies: ground-mounted solar PV, floating solar PV and onshore and offshore wind. The new calculation will only apply to solar projects that started operations after January 1, 2021 and wind projects that started operations after November 1, 2021.

#### **Regulatory framework for the activities in Singapore**

Singapore aims to halve its CO2 emissions by 2050, according to its commitments raised in the latest National Energy and Climate Plan.

The country also aspires to achieve net-zero emissions as soon as viable in the second half of the century but has not committed to a firm net-zero target yet. To this end, the country launched the "Singapore Green Plan 2030", which is a roadmap to advance its sustainability agenda toward its long-term net-zero aspiration.

Singapore also aims at decarbonizing its power sector through four levers, being solar PV one of them. Due to the lack of natural resources and the high population density, solar PV is regarded as the most viable renewable energy option. Specifically, the country targets 2 GW of solar PV capacity by 2030 (and 1.5 GWp by 2025). Most of this capacity is expected to be constrained to rooftops (and floating solar) as land resources are scarce.

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From the regulatory point of view, no support is given to large-scale renewable energy, as the

government seeks to facilitate renewable energy's access to the power market. The only specific support system is the net metering scheme which allows electricity consumers to sell excess electricity from their rooftop PV systems to the grid. Payment varies according to the type of consumer and the capacity of the PV system. Both residential and commercial consumers can sell excess power from rooftop PV to the grid. On the one hand, non-contestable customers (usually residential consumers) are paid the regulated tariff minus the grid charges (being the regulated tariffs reviewed every quarter by Singapore Power, the State-owned utility). On the other hand, non-residential consumers (with a monthly consumption equal or above 2,000 kWh and systems with a size equal or above 1 MW (regardless their monthly consumption) are paid the nodal price.

In addition to this, solar PV development has also been accelerated thanks to the SolarNova programme, launched in 2014, which aggregates demand for solar PV across government agencies to achieve economies of scale. Since 2014, six SolarNova tenders have been launched, granting 366 MW. Awarded companies are given a 20-years floating or fixed PPA with Housing & Development Board (HDB), which is Singapore's public housing authority.

Other government-led initiatives have been launched in order to use new spaces to deploy solar capacity, in particular, floating solar PV. For example, the Public Utilities Board launched a 60 MW floating solar PV tender at the Tengeh Reservoir. The tender had 2 components: first was the solar power to be sold into the wholesale market and a 25-year retail contract for the reservoir owner.

In June 2023, Singapore's Energy Markets Authority (EMA) will impose a temporary wholesale power price cap from 1 July 2023, according to a document published on its website. The objective is to protect electricity retailers (and final consumers) from high and volatile LNG prices. The cap price will be calculated according to a formula that takes into account natural gas and generation costs, but the formula has not been disclosed.

#### **Regulatory framework for the activities in Taiwan**

Taiwan's energy policy is driven by the need to increase energy security, reduce its dependency on nuclear power and cut greenhouse gas emissions.

The Renewable Energy Development Act ("REDA"), approved in 2009 is the main law governing renewables. This regulation introduced the Feed-in Tariff program, that applies to solar PV, onshore and offshore wind, biomass and hydro. Since then, FITs are the main support scheme for renewables in Taiwan. FITs have a 20-year term, and their values are reviewed once or twice per year (new FITs only apply to new projects).

In the latest version of the Act (published in May 2020), the country has targeted 30 GW of RES by 2025 (20% of total electricity consumption). Solar PV and offshore wind are regarded as the leading technologies, being the 2025 targets, respectively, 20 and 5,7 GW.

For a long time, the power market has been dominated by the state-owned utility "Taipower". However, in January 2017, the government passed the revision to the Electricity Act to ensure: (i) open competition in supply, (ii) a fair access to the electricity grid and (iii) free power purchasing choices for customers.

Since 2019, renewable generators may choose whether to sell electricity via direct supply, wheeling or wholesale to Taipower. According to it, corporate purchasers may acquire renewable energy on an "off-site basis". In addition, renewable generators that have signed a corporate PPA are still able to subsequently switch and sell the electricity to Taipower at the agreed FIT calculated based on the date of the initial grid connection.

#### 02. Accounting policies

A) Basis of preparation

The accompanying consolidated annual accounts (financial statements hereinafter) reflect the results of EDP Renováveis, S.A. and its subsidiaries (EDPR Group or Group) and the Group's interest in its joint ventures and associated companies. The consolidated financial statements for 2023 have been prepared to present fairly the consolidated equity and consolidated financial position of EDP Renováveis, S.A. and subsidiaries at 31 December 2023, the consolidated results of operations, consolidated statement of comprehensive income, consolidated cash flows and changes in consolidated equity for the year then ended.

In accordance with Regulation (EC) no. 1606/2002 of 19 July 2002, of the European Council and Parliament, the Group's consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), as endorsed by the European Union (EU). IFRS comprise accounting standards issued by the International Accounting Standards Board (IASB) and its predecessor body as well as interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) and their predecessor bodies.

Accounting policies have been applied consistently by all Group companies and in all periods presented in the consolidated financial statements. The new standards and interpretations

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recently issued but not yet effective and that the Group has not yet applied on its consolidated

financial statements, are detailed in note 3.

Taking into account the amendments to IAS 1, effective on 1 January 2023, regarding the disclosure of accounting policies, the Group reviewed the information disclosed in this note and made the changes deemed relevant.

The Board of Directors approved these consolidated annual accounts on 27 February 2024. The annual accounts are presented in thousand Euros, rounded to the nearest thousand.

The financial statements have been prepared on a going concern basis under the historical cost convention, modified by the application of fair value accounting to derivative financial instruments, financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, except those for which a reliable measure of fair value is not available. Assets and liabilities that are hedged under hedge accounting are stated at fair value in respect of the hedged risk. Non-current assets and disposal groups held for sale are stated at the lower of carrying amount and fair value less costs to sell. Liabilities for defined benefit plans are recognised at the present value of the obligation net of plan assets fair value.

The preparation of financial statements in accordance with IFRS-EU requires the Board of Directors to make judgments, estimates and assumptions that affect the application of the accounting policies and of the reported amounts of assets, liabilities, income and expenses. The estimates and related assumptions are based on historical experience and other factors considered reasonable in accordance with the circumstances, the results of which form the basis for making judgments regarding the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The areas involving the highest degree of judgment or complexity, or for which the assumptions and estimates are considered significant, are disclosed in note 4 - Critical accounting estimates and judgments in applying accounting policies.

#### (\*) Updating the fair value of identifiable assets and liabilities - Acquisition of Kronos Group

In accordance with IFRS 3 - Business Combinations, when the initial purchase price allocation of assets, liabilities, and contingent liabilities acquired is identified as provisional, the legal acquirer should make the final allocation of the purchase price related to the fair value of the assets, liabilities, and contingent liabilities acquired within the subsequent 12 months after the business combination transaction. These adjustments, which impact the amount of goodwill determined and booked in previous periods, lead to a restatement of the comparative information on the statement of financial position from the date of the business combination transaction.

In the fourth quarter of 2022, EDPR completed the acquisition of Kronos Group, framed within the scope of IFRS 3. With reference to the acquisition date, EDPR, based on an assessment carried out by an independent external entity, proceeded to provisional determination of the fair value of the options signed within the business combination transaction as part of the total consideration for the acquisitions of shares.

In the fourth quarter of 2023, a more detailed assessment by the independent external entity resulted in a definitive update of the fair value, leading to the following restatement of comparative data in the financial position statement as of acquisition date:

| ASSETS – Non Current                 | 31 DEC 2022 | FAIR VALUE ADJUSMENT | 31 DEC 2022 (MODIFIED) |
|--------------------------------------|-------------|----------------------|------------------------|
| Goodwill                             | 2.329.964   | -40.052              | 2.289.912              |
| Liabilities – Non Current            |             |                      |                        |
| Other liabilities and other payables | -2.844.344  | 40.052               | -2.804.292             |
|                                      |             | -                    |                        |

B) Basis of consolidation

The accompanying consolidated financial statements reflect the assets, liabilities and results of EDP Renováveis, S.A. and its controlled subsidiaries and the equity and results attributable to the Group, through the investments in associates and jointly controlled entities.

EDPR Group applies prospectively as from 1 January 2010, IFRS 3 (revised) for the accounting of business combinations.

Accumulated losses in controlled subsidiaries are attributed to non-controlling interests in the corresponding proportions held, implying that the Group can recognise negative non-controlling interests.

On a step acquisition process resulting in the acquisition of control the revaluation of any interest previously held is booked against the income statement. On a partial disposal resulting in loss of control over a subsidiary, any participation retained is revalued at market value on the sale date and the gain or loss resulting from this revaluation is booked against the income statement, as well as any gain or loss resulting from the disposal.

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**Jointly controlled entities**

The Group classifies an arrangement as a joint arrangement when the jointly control is contractually established. Joint control exists only when decisions about the relevant activities require the unanimous consent of the parties that collectively control the arrangement. After determining the existence of joint control, the Group classifies joint arrangements into two types joint operations or joint ventures.

A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement, so the assets and liabilities (and related revenues and expenses) in relation to its interest in the arrangement are recognised and measured in accordance with relevant IFRSs applicable.

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement, so this investment shall be included in the consolidated financial statements under the equity method.

The consolidated financial statements include the Group's attributable share of total reserves and profits or losses of entities where the Group exercises joint control with other partners (joint ventures) and entities where the Group exercises significant influence (associates), included in the consolidated financial statements under the equity method. When the Group's share of losses exceeds its interest in a jointly controlled entity, the Group's carrying amount is reduced to zero and recognition of further losses is discontinued, except to the extent that the Group has a legal or contractual obligation to cover such losses on behalf of that entity.

#### **Accounting for investments in subsidiaries, joint ventures and associates in the company's financial statements**

Investments in subsidiaries, joint ventures and associates not classified as held for sale or not included in a disposal group which is classified as held for sale are accounted for at cost in the company's financial statements, and are subject to periodic impairment tests, whenever indication exists that certain financial investment may be impaired.

#### **Business combination**

Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting rights that currently are exercisable.

The Group measures goodwill at the acquisition date as:

- The fair value of the consideration transferred; plus
- The recognised amount of any non-controlling interests in the acquiree; plus
- If the business combination is achieved in stages, the fair value of the existing equity interest in the acquiree; less
- The net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.

||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||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When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.

The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in profit or loss.

Costs related to the acquisition, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred.

Any contingent consideration payable is recognised at fair value at the acquisition date. If the contingent consideration is classified as equity, it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes to the fair value of the contingent consideration are recognised in profit or loss.

If the initial purchase price allocation of assets, liabilities and contingent liabilities acquired is identified as provisional, in the subsequent 12 months after the business combination transaction, the legal acquirer should make the final allocation of the purchase price related to the fair value of the assets, liabilities and contingent liabilities acquired.

After that period, adjustments to initial measurement are only made to correct an error.

#### **Purchases of non-controlling interests and dilution**

In acquisitions (dilutions not resulting in a loss of control of non-controlling interests), the difference between the fair value of the non-controlling interests acquired and the consideration paid, is accounted against reserves. The acquisitions of non-controlling interests through written put

options related with investments in subsidiaries held by non-controlling interests, are recorded as

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a liability for the fair value of the amount payable, against non-controlling interests. The fair value

of the liability is determined based on the contractual price which may be fixed or variable. In case of a variable price, the changes in the liability are recognised against the income statement as well as the effect of the financial discount of the liability (unwinding).

#### **Business combinations achieved in stages**

In a business combination achieved in stages, on the date of obtaining control, the excess of the aggregate of (i) the consideration transferred, (ii) the amount of any non-controlling interest recognised in the acquiree and (iii) the fair value of the previously held equity interest in the acquired business; over the net of amounts of the identifiable assets acquired and liabilities assumed, is recognised as goodwill.

If applicable, the negative difference, after evaluating the consideration transferred, of the amount of any non-controlling interest recognised in the acquiree and the fair value of the previously held equity interest in the acquired business; over the net value of the identifiable assets acquired and liabilities assumed, is recognised in the income statement. The Group recognises the difference between the fair value of the previously held equity interest in the acquired business and the carrying value in consolidated results in Other income. Additionally, the Group reclassifies the deferred amounts in other comprehensive income relating to the previously held equity interest to the income statement or consolidated reserves, according to their nature.

#### **Acquisition of assets out of the scope of IFRS 3**

In order to assess whether an acquisition of an asset or a group of assets is a business, EDPR identifies the elements in the acquired entity (inputs, processes and outputs), assesses the capability to create outputs (it should have at a minimum, an input and a substantive process to be assessed as a business) and, finally, assesses the capability of market participants to continuing to create outputs (conducting the activities as a business).

In the case of an integrated set of activities that is in an early-stage of development and has not started to generate outputs, EDPR considers other factors to determine whether it constitutes a business, such as if: (i) planned principal activities have begun; (ii) employees, intellectual property, and other inputs and processes are present; (iii) a plan to produce outputs is being pursued; and/or (iv) access to customers who will purchase the outputs can be obtained. Generally, an early-stage entity that has employees capable of developing an output will be considered a business.

Therefore, in application of the above, EDPR concludes that IFRS 3 is not applicable when there are no outputs at the acquisition date due to an early-stage of development, and the acquired process(es) cannot be considered substantive. Thus, the acquisition of an asset or a group of assets that does not fulfil the conditions to be considered a business is classified as an acquisition of a company out of scope of IFRS 3.

#### **Investments in foreign operations**

The financial statements of the foreign subsidiaries and associates of the Group are prepared using their functional currency, defined as the currency of the primary economic environment in which they operate. In the consolidation process, the assets and liabilities of foreign subsidiaries are translated into Euros at the official exchange rate at the balance sheet date.

Regarding the investments in foreign operations that are consolidated using the full consolidation method and equity method, the exchange differences between the amount of equity expressed in Euros at the beginning of the period and the amount translated at the official exchange rates at the end of the period, on a consolidated basis, are booked against reserves.

Foreign currency goodwill arising on the acquisition of these investments is remeasured at the official exchange rate at the balance sheet date directly against reserves. The income and expenses of foreign subsidiaries are translated into Euros at the approximate exchange rates at the dates of the transactions. Exchange differences from the translation into Euros of the net profit for the period, arising from the differences between the rates used in the income statement and those prevailing at the balance sheet date are recognised in reserves.

On disposal of a foreign subsidiary, the related exchange differences previously recognised in reserves, are accounted for in the income statement.

#### **Balances and transactions eliminated on consolidation**

Inter-company balances and transactions, including any unrealised gains and losses on transactions between group companies, are eliminated in preparing the consolidated financial statements. Unrealised gains and losses arising from transactions with associates and joint ventures are eliminated to the extent of the Group's interest in those entities.

#### **Common control transactions**

The accounting for transactions among entities under common control is excluded from IFRS 3. Consequently, in the absence of specific guidance, within IFRSs, the EDP Renováveis Group has developed an accounting policy for such transactions, as considered appropriate. According to

the Group's policy, business combinations among entities under common control are accounted

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for in the consolidated financial statements using the EDP consolidated book values of the

acquired company (subgroup). The difference between the carrying amount of the net assets received and the consideration paid, is recognised in equity.

#### **Put options related to non-controlling interests**

The Group applies IAS 32 to put options related to non-controlling interests.

EDPR records written put options at the date of acquisition of a business combination or at a subsequent date as an advance acquisition of these interests, recording a financial liability for the present value of the best estimate of the amount payable, irrespective of the estimated probability that the options will be exercised. The difference between this amount and the amount corresponding to the percentage of the interests held in the identifiable net assets acquired is recorded as goodwill. Subsequent changes in the carrying amount of the put liability are recognized in profit or loss.

#### **Disposal of subsidiaries**

When the Group ceases to have control, any retained interest in the entity is re-measured to its fair value at the date when control is lost, with the change in carrying amount of the investment recognised in profit or loss. Fair value is the initial carrying amount for the purposes of the subsequent recording of the interest retained in the associate, joint venture or financial asset. In addition to that, any amount previously recorded in other comprehensive income in relation to that entity is recorded as if the Group had directly sold all the related assets and liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.

If the ownership of a holding in an associate is reduced but significant influence is retained, only the proportional part of the amounts previously recognised in other comprehensive income will be reclassified to the income statement.

#### C)Foreign currency transactions

Foreign currency transactions are translated at the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currency are translated into Euros at the exchange rates at the balance sheet date. These exchange differences arising on translation are recognised in the income statement as financial results.

Foreign currency non-monetary assets and liabilities accounted for at historical cost are translated using the exchange rates at the dates of the transactions. Foreign currency nonmonetary assets and liabilities stated at fair value are translated into Euros at the exchange rates at the dates the fair value was determined.

#### D) Derivative financial instruments and hedge accounting

Derivative financial instruments are recognised on the trade date at fair value. Subsequently, the fair value of derivative financial instruments is re-measured on a regular basis, being the gains or losses on re-measurement recognised directly in the income statement, except for derivatives designated as hedging instruments. The recognition of the resulting gains or losses on remeasurement of the derivatives designated as hedging instruments depends on the nature of the risk being hedged and of the hedge model used.

The fair value of derivative financial instruments corresponds to their market value, if available, or to quotes indicated by external entities through the use of valuation techniques, which are compared in each date of report to fair values available in common financial information platforms.

#### **Hedge accounting**

The Group uses financial instruments to hedge interest rate risk, exchange rate risk and price risk resulting from its operational and financing activities. Derivatives not qualified for hedge accounting under IFRS 9 are accounted for as trading instruments.

Hedging derivatives are recorded at fair value, being the gains and losses recognised in accordance with the hedge accounting model applied by the Group. Hedge relationship exists when:

- The hedging relationship consists only in hedging instruments and hedged items that are eligible as per determined in IFRS 9;
- At the inception of the hedge there is formal documentation of the hedging relationship and the Group's risk management objective and strategy for the hedge;
- There is an economic relationship between the hedged item and the hedging instrument;
- The effect of credit risk does not dominate the value changes that result from that economic relationship;
- The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the entity actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of hedged item.

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**Fair value hedge**

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together with any changes in the fair value of the hedged assets and liabilities or group of hedged assets and liabilities that are attributable to the hedged risk. When the hedging relationship ceases to comply with the requirements for hedge accounting, the accumulated gains or losses concerning the fair value of the risk being hedged are amortised over the residual period to maturity of the hedged item.

#### **Cash flow hedge**

Changes in the fair value of derivatives qualified as cash flow hedges are recognised in reserves.

The cumulative gains or losses recognised in reserves are reclassified to the income statement when the hedged item affects the income statement.

When a hedging relation of a future transaction is discontinued, the changes in the fair value of derivative recognised in reserves remain recognised in reserves until the future hedged transaction occurs. When the future transaction is no longer expected to occur, the cumulative gains or losses recognized in reserves are recorded immediately in the income statement.

#### **Net investment hedge**

The net investment hedge model is applied on a consolidated basis to investments in subsidiaries in foreign currencies. This model allows that the exchange differences recognised in the currency translation reserve to be offset by the foreign exchange differences in foreign currency loans or currency derivatives contracted, recognised in Currency translation reserve - Net investment hedge. For cross currency interest rate swaps, the cross-currency basis spread and forward points are not designated into the hedge relationship, but deferred as a hedging cost in other comprehensive income, in Currency translation reserve - Net investment hedge - Cost of hedging, and recognized in profit or loss over the period of the hedge. The ineffective portion of the hedging relationship is recognised in the income statement.

The accumulated foreign exchange gains and losses regarding the net investment and the related hedging instrument recognised in equity are transferred to the income statement when the foreign currency subsidiary is sold, as part of the gain or loss resulting from the disposal.

#### **Effectiveness**

The Group performs prospective tests at the inception date and at each balance sheet date, in order to demonstrate its effectiveness, showing that any adjustments to the fair value of the hedged item attributable to the risk being hedged are offset by adjustments to the fair value of the hedging instrument. Any ineffectiveness is recognised in the income statement when it occurs.

#### E) Debtors and other financial assets

Group classifies its financial assets, at the initial recognition based on the business model for managing the financial assets ("business model test") and their contractual cash flow characteristics ("SPPI test").

#### **Financial assets at amortised cost**

Financial assets included within this category are initially recognised at fair value and subsequently measured at amortised cost. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as separate line item in the statement of profit or loss.

Loans and trade receivables are generally held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest, thus they meet the criteria for amortised cost measurement.

#### **Financial assets measured at fair value through other comprehensive income (FVOCI)**

Financial assets included within this category are initially recognised and subsequently measured at fair value, with the changes in the carrying amount booked in other comprehensive income, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses, which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified to profit or loss.

#### **Financial assets at fair value through profit or loss (FVTPL)**

Financial assets that do not meet the criteria to be classified as financial assets at fair value through other comprehensive income (FVOCI) or at amortised cost, are classified at fair value through profit or loss.

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Regardless of the business model assessment, EDPR Group can elect to classify a financial asset

at fair value through profit or loss if doing so reduces or eliminates a measurement or recognition inconsistency ("accounting mismatch").

#### *Changes in the business model assessment over time*

Financial assets are not reclassified subsequent to their initial recognition. However, if the Company changes its business model for managing financial assets, it will classify newly originated or newly purchased financial assets under the new business model but will keep the classification of existing assets under the previous business model.

#### *Recognition and derecognition of financial assets*

Purchases and sales of financial assets are recognised on the trade date, which is the date on which the Company commits to purchase or sell these financial assets.

Financial assets are derecognised when: (i) the contractual rights to receive their future cash flows have expired, (ii) the Company has transferred substantially the risks and rewards of ownership, or (iii) although retaining some, but not substantially all the risks and rewards of ownership, the Company has transferred control over the assets.

#### *Impairment*

EDPR Group recognise an impairment loss based on the Expected Credit Loss (ECL) model, before the objective evidence of a loss event from past actions. This model is the basis for the recognition of impairment losses on held financial assets that are measured at amortised cost or at fair value through other comprehensive income (which includes cash and cash equivalents, trade receivables, loans and debt securities).

The impairment methodology applied depends on whether there has been a significant increase in credit risk. If the credit risk on a financial asset does not increase significantly since its initial recognition, EDPR Group measures the loss allowance for that financial asset at an amount equal to 12-month expected credit losses. If the credit risk increases significantly since its initial recognition, EDPR Group measures the loss allowance for that financial asset at an amount equal to lifetime expected credit losses.

Regardless of the above, a significant increase in credit risk is presumed if there is an objective evidence that the financial asset is impaired, including if there is observable data that comes to the attention of the holder of the asset about the following loss events, among others: significant financial difficulty of the issuer or obligor; restructuring of an amount due to the Company in terms that it would not consider otherwise; a breach of contract, such as a default or delinquency in interest or principal payments; or it becoming probable that the borrower will enter bankruptcy or other financial reorganization.

As soon as the loss event occurs the impairment allowance would be allocated directly to financial asset affected, that is, the asset's carrying amount is reduced and the amount of the loss is recognised in profit or loss. If, in a subsequent period, the amount of the impairment loss decreases, the previously recognised impairment loss is reversed in profit or loss, if the decrease can berelated objectively to an event occurring after the impairment loss was recognised.

#### **Trade receivables and loans**

EDPR Group applies the simplified approach and record lifetime expected losses on all trade receivables including those with a significant financing component. The estimated ECL are calculated based on actual credit loss experience over a period that, per business and type of customers, is considered statistically relevant and representative of the specific characteristics of the underlying credit risk.

Considering the particularities of each business, exposures are segmented based on common credit risk characteristics such as credit risk grade, geographic region and/or industry. Actual credit loss experience is adjusted by scalar factors to reflect differences between economic conditions during the period over which historical data was collect, current conditions and EDPR Group's view of economic conditions over the expected lives of the receivables.

For loans carried at amortised cost and FVOCI, EDPR Group performs an analysis based on the general approach. On making its assessment, the company has to make assumptions about risk of default and expected loss rates, which requires judgement. The inputs used for risk assessment and for calculation of the loss allowances for financial assets includes: (i) credit ratings (as far as available) from external credit rating companies such as Standard and Poor, Moody's and Fitch.; (ii) significant changes in the expected performance and behavior of the borrower, including changes in the payment status of borrowers in the Group and changes in the operating results of the borrower; (iii) Public market data, namely on probabilities of default and loss given default expectations; and (iv) macroeconomic information (such as market interest rates or growth rates).

#### **Leases – Lessor perspective**

At the commencement date, EDPR Group, as a lessor, classifies each of its lease as either an op-

erating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially

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all the risks and rewards incidental to ownership of an underlying asset. Otherwise, the lease is classified as an operating lease. Therefore, at the commencement date, the Group recognizes:

i) assets held under a finance lease in its statement of financial position and present them as a receivable at an amount equal to the net investment in the lease.

ii) lease payments from operating leases as income on either a straight‐line basis or another systematic basis (if that basis is more representative of the pattern in which benefit from the use of the underlying asset is diminished). The assets subject to operating leases are presented in its statement of financial position according to the nature of the underlying asset.

#### F) Trade payables and other financial liabilities

An instrument is classified as a financial liability when there is a contractual obligation for the issuer to liquidate capital and/or interests, through delivering cash or other financial asset, regardless of its legal form. Financial liabilities are recognised at the issuance date (trade date): (i) initially at fair value less transaction costs; and (ii) subsequently at amortised cost, using the effective interest method. All financial liabilities are booked at amortised cost, with the exception of the financial liabilities hedged at fair value hedge, which are stated at fair value on risk component that is being hedged.

#### **Lease liabilities (rents due from lease contracts)**

EDPR Group measures the lease liability (rents due from lease contracts) on the commencement date based on the present value of the future payments of that lease contracts, discounted using EDPR Group's incremental borrowing rate for each portfolio of leases identified. The variable lease payments that do not depend in an index or a rate are not included in the measurement of the liability regarding the rents due from lease contracts, nor the right-of-use asset. Those payments are recognised as cost in the period in which the event or condition that gives rise to the payments occurs. EDPR Group determines the lease term as the non‐cancellable period of a lease, together with both: (i) periods covered by an option to extend the lease, if the lessee is reasonably certain to exercise that option; and (ii) periods covered by an option to terminate the lease, if the lessee is reasonably certain not to exercise that option.

EDPR Group applies the recognition exemption provided by IFRS 16 for the leases which lease term is 12 months or less, or that are for a low-value asset.

After the commencement date, the lease liability (rents due from lease contracts) are increased to reflect interest on the liability and reduced to reflect the lease payments made.

EDPR Group remeasure the lease liability (rents due from lease contracts), and adjusts the corresponding right-of-use assets, by discounting the revised lease payments, using an unchanged discount rate, if either:

- There is a change in future lease payments resulting from a change in an index or a rate used to determine those payments; or
- There is a change in the amounts expected to be payable under a residual value guarantee.

If there is a lease modification that do not qualifies to be accounted as a separate lease, EDPR Group remeasures the lease liability (rents due from lease contracts) and adjusts the corresponding right-of-use assets by discounting the revised lease payments, using a revised discount rate at the effective date of the modification.

#### **Derecognition of financial liabilities**

EDPR Group derecognises a financial liability (or a part of a financial liability) from its statement of financial position when, and only when, the obligation specified in the contract is discharged or cancelled or expires. An exchange between an existing borrower and lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability, or a part of it, is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.

The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

G)Equity instruments

Costs directly attributable to the issuance of equity instruments are recognised in equity, as a deduction to the amount issued. Amounts paid or received relating to sales or acquisitions of equity instruments are recognised in equity, net of transaction costs.

Distributions related to equity instruments are deducted from equity, as dividends, when declared.

#### **Equity instruments at fair value**

EDPR Group classifies the equity instruments that are held for trading at fair value to profit or loss.

For all other equity instruments, management has the ability to make an irrevocable election on

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initial recognition, on an instrument-by-instrument basis, to present changes in fair value in other

comprehensive income.

If this election is made, all fair value changes, excluding dividends that are a return on investment, will be included in other comprehensive income. There is no recycling of amounts from other comprehensive income to profit and loss (for example, on sale of an equity investment) being, at that time, transferred to retained earnings.

#### H) Capitalisation of borrowing costs

Borrowing costs that are directly attributable to the acquisition or construction of assets are capitalised as part of the cost of the assets. The amount of borrowing costs eligible for capitalisation are determined by applying a capitalisation rate to the expenditures on these assets.

The capitalisation rate corresponds to the weighted average of the borrowing costs applicable to the outstanding borrowings during the period. The amount of borrowing costs capitalised during a period does not exceed the amount of borrowing costs incurred during the period.

The capitalisation of borrowing costs commences when expenditures for the asset are being incurred, borrowing costs have been incurred and activities necessary to prepare all or part of the assets for their intended use or sale are in progress. Capitalisation ceases when substantially all the activities necessary to prepare the assets for their intended use or sale are completed.

#### I) Property, plant and equipment

Property, plant and equipment are stated at acquisition cost less accumulated depreciation and impairment losses.

Cost includes expenditure that is directly attributable to the acquisition of the asset. In case of projects in a development stage, costs are only capitalized when it is probable that the project will be finally built. If due to changes in regulation or other circumstances costs capitalized are derecognized from property plant and equipment, they are recognized in the profit and loss caption of "Other expenses". Replacements or renewals of complete items are recognized as increases in the value of property, plant and equipment and the items replaced or renewed are derecognized and recognized in the "Other expenses" caption.

The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. Cost also may include transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

The cost of acquisition includes interest on external financing and personnel costs and other internal expenses directly or indirectly related to work in progress accrued solely during the period of construction. The cost of production is capitalised by charging costs attributable to the asset as own work capitalised under financial expenses and personnel costs and employee benefit expense in the consolidated income statement.

Subsequent costs are recognised as separate assets only when it is probable that future economic benefits associated with the item will flow to the Group. Repair and maintenance costs are charged

to the income statement during the financial period in which they are incurred.

The Group carries out impairment tests whenever events or circumstances may indicate that the book value of an asset exceeds its recoverable amount and, at least, annually, being the impairment recognised in the income statement.

Land is not depreciated. Depreciation on the other assets is calculated using the straight-line method, less the residual value, over their estimated useful lives, as follows:

|                                   | NUMBER OF YEARS |
|-----------------------------------|-----------------|
| Buildings and other constructions | 8 to 40         |
| Plant and machinery:              |                 |
| - Renewable assets                | 20 to 35        |
| - Other plant and machinery       | 4 to 12         |
| Transport equipment               | 3 to 5          |
| Office equipment and tools        | 2 to 10         |
| Other tangible fixed assets       | 3 to 10         |

The Group reviews the estimate of the useful life of assets whenever a change in the expected economic benefits flowing from the assets occurs as well as when the technical use planned for the assets differs from previous estimates. Changes occurring in the depreciation charge for the year are accounted prospectively.

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Residual value is the amount determined by the Group related to the scrap to be obtained from

dismantled wind farms and solar plants and is calculated based on the technology of each project and the estimated prices of steel, copper and aluminium (this last one in the case of solar plants or distributed generation assets).

#### J) Intangible assets

The Group's intangible assets are booked at acquisition cost less accumulated amortisation and impairment losses.

The Group performs impairment tests, whenever events or circumstances may indicate that the book value of the asset exceeds its recoverable amount, being any impairment recognised in the income statement.

#### **Acquisition and development of software**

Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortised on the basis of their expected useful lives, and typically in 5 years.

Costs incurred by the Group directly related to the development of software, that are expected to generate economic benefits beyond one year, are recognised as intangible assets. Such costs include employee costs directly associated to the project and are amortised on a straight-line basis over its estimated useful life.

Maintenance costs of software are charged to the income statement when incurred.

#### **Industrial property and other rights**

Industrial property and other rights are amortised on a straight-line basis over the estimated useful life of the assets, which does not exceed 6 years.

K) Leases/ Right-of-use assets

EDPR Group presents the information related to lease contracts in the caption Right-of-use assets, creating a separate line in the Consolidated Statement of Financial Position. These assets are accounted for at cost less accumulated depreciation and impairment losses. The cost of these assets comprises the initial costs and the initial measurement of the liabilities regarding the rents due from lease contracts, deducted from the prepaid amounts and any incentives received.

Depreciation of right-of-use assets is calculated on a straight-line basis over their estimated useful lives, considering the lease contract terms.

If EDPR Group remeasures the lease liability (rents due from lease contracts) (see 2F), the corresponding right-of-use assets shall be adjusted accordingly.

L) Non-current assets held for sale and discontinued operations

Non-current assets or groups of non-current assets held for sale (groups of assets and related liabilities that include at least one noncurrent asset) are classified as held for sale when their carrying amounts will be recovered mainly through sale, the assets or groups of assets are available for immediate sale and the sale is highly probable. Prior to their classification as held for sale, the measurement of all non-current assets and all assets and liabilities included in a disposal group, is adjusted in accordance with the applicable IFRS standards. Subsequently, these assets or disposal groups are measured at the lowest between their carrying amount and fair value less costs to sell.

M)Impairment of non-financial assets

The carrying amounts of the Group's non-financial assets, other than inventories and deferred tax assets, are reviewed to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is then estimated.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the cashgenerating unit). The goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to cash-generating units which are expected to benefit from the synergies of the combination.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of

the other assets in the unit (group of units) on a pro-rata basis.

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An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment

losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in circumstances that caused the impairment. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

#### N) Inventories

Inventories are measured at the lower of the acquisition cost and net realisable value. The cost of inventories includes purchases, conversion and other costs incurred in bringing the inventories to their present location and condition. The net realisable value is the estimated selling price in the ordinary course of business less the estimated selling costs.

The cost of inventories is assigned by using the weighted average cost method.

#### **Green Certificates and Renewable Energy Credits (RECs)**

In some jurisdictions, on top of the market price, generators receive certificates for their performance, which are sold to the off-takers obliged to fulfil a quota obligation (a share of energy that must be sourced from renewable sources). Being these certificates considered subsidies under IAS 20, they are recognised when generated as inventory, at fair market value, mainly determined by active markets or public market operators. Green Certificates registered as Inventories are discharged at the time of their effective sale and any difference between the selling price and the fair value of the certificates is registered in the profit and loss account.

O)Classification of assets and liabilities as current and non-current

The Group classifies assets and liabilities in the consolidated statement of financial position as current and non-current. Current assets and liabilities are determined as follows:

Assets are classified as current when they are expected to be realised or are intended for sale or consumption in the Group's normal operating cycle, they are held primarily for the purpose of trading, they are expected to be realised within twelve months of the balance sheet date or are cash or a cash equivalent, unless the assets may not be exchanged or used to settle a liability for at least twelve months from the balance sheet date.

Liabilities are classified as current when they are expected to be settled in the Group's normal operating cycle, they are held primarily for the purpose of trading, they are due to be settled within twelve months of the balance sheet date or the Group does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period.

Financial liabilities are classified as current when they are due to be settled within twelve months after the reporting period, even if the original term was for a period longer than twelve months, and an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the consolidated financial statements are authorised for issue.

#### P) Provisions

Provisions are recognised when: (i) the Group has a present legal or constructive obligation, (ii) it is probable that settlement will be required in the future and (iii) a reliable estimate of the obligation can be made.

#### **Dismantling and decommissioning provisions**

The Group accounts for provisions for dismantling and decommissioning of assets at the end of the assets' useful life when there is a legal, contractual or constructive obligation. Therefore, such provisions have been booked for the electric power plants to cover the cost of restoring the location and land to their original condition. The provisions are calculated at the present amount of the expected future liability and are accounted for as part of the cost of the related property, plant and equipment being depreciated on a straight-line basis over the useful life of those assets.

Discounting and inflation rates used for 2023 are:

|                | EUROPE          | NORTH AMERICA    | LATAM             | APAC            |
|----------------|-----------------|------------------|-------------------|-----------------|
| Discount Rate  | [3.09% - 7.09%] | [3.85% - 11.34%] | [11.73% - 11.83%] | [1.43% - 5.12%] |
| Inflation Rate | [1.96% - 6.07%] | [2.01% - 3.95%]  | [3.62% - 4.50%]   | [1.31% - 3.68%] |

Discounting and inflation rates used for 2022 were:

|                | EUROPE          | NORTH AMERICA   | LATAM             | APAC            |
|----------------|-----------------|-----------------|-------------------|-----------------|
| Discount Rate  | [2.24% - 8.75%] | [4.02% - 4.42%] | [12.40% - 12.50%] | [3.50% - 7.67%] |
| Inflation Rate | [1.90% - 3.88%] | [2.07% - 3.51%] | [3.45% – 3.59%]   | [1.40% - 3.90%] |

Decommissioning and dismantling provisions are remeasured on an annual basis based on the

best estimate of the settlement amount. As of 31 December 2023 and 2022 the dismantling

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average cost per megawattand salvage value have been updated (see note 32). EDPR's technical

department has performed an in-depth analysis taking into account the reality of the EDPR's fleet. This analysis has led to the conclusion that the average cost per megawatt and salvage value of the renewable assets requires to be updated with effect December 2023 (see note 32).

The unwinding of the discount at each balance sheet date is charged to the income statement.

#### **Tax liabilities**

Liabilities for payment of taxes or levies related to an activity of the Group are recognized as the activity which triggers the payment is carried out, according to the laws regulating such taxes or levies. However, in the cases of taxes or levies with right of reimbursement of the amount already paid proportionally to the period of time in which there is no activity or the asset which triggers the payment is no longer owned, liabilities are recognized on a proportional basis.

Q)Recognition of revenue from contracts with customers

EDPR Group recognises revenue in accordance with the core principle introduced by IFRS 15. Thus, the Group recognises revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services, as provided in the 5 steps methodology, namely: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to performance obligations; and (v) recognise revenue when (or as) the entity satisfies a performance obligation.

Costs and revenues are recorded in the year to which they refer regardless of when paid or received, in accordance with the accrual basis. Differences between amounts received and paid and the corresponding revenue and cost are recorded under Other assets and Other liabilities.

Revenue in EDPR Group arises essentially from electricity generation and green certificate sales. For electricity generation, the transfer of control occurs when the energy is generated and injected into the transport/distribution grids. The electricity generated is sold under free market conditions or through the establishment of medium/long term power purchase agreements.

In the sale of green certificates, the performance obligation becomes effective when they are made available to the client, that is, when control of the certificate is transferred to the client.

For contracts that include sale of electricity and green certificates, there is only one performance obligation that becomes effective when the electricity is made available to the customer. At that moment, the energy is made available to the client at the point of delivery and, at the same time, the control of the green certificate is transferred to the client. These contracts have a unique price that includes both concepts under the same performance obligation, which is the delivery of electricity and green certificates at the same time.

EDPR Group recognises the revenue related with services rendered over time given that the customer simultaneously receives and consumes the benefits provided by the Group.

In what concerns variable transaction prices, EDPR Group only recognises revenue when it is highly probable that there will not be any significant reversal of the recognised revenue, when it becomes certain. IFRS 15 requires that this estimate of variable transaction prices is determined using either (i) the expected value method – based on probability-weighted amounts, or (ii) the most likely outcome method. EDPR Group considers the facts and circumstances when analyzing the terms of each contract with customers, applying the requirements that determine the recognition and measurement of revenue in a harmonized manner, when considering contracts with the same characteristics and in similar circumstances.

#### **Value of adjustments for deviations in the market price in accordance with article 22 of Royal Decree 413/2014**

On 22 October 2021, the CNMV issued a statement establishing the criteria for accounting for the value of the adjustments for deviations in the market price in accordance with article 22 of Royal Decree 413/2014, of 6 June, which regulates the activity of electricity production from renewable energy sources, cogeneration and waste (RD 413/2014). The value of the adjustments for deviations in the market price includes the differences, which occur in each year, between the income from the sale of energy at the price estimated by the regulator at the beginning of each regulatory semi-period and the real average market price in said year.

EDPR had already been applying the criteria established by the CNMV, so that, each of the positive and negative market deviations arising under RD 413/2014 are typically recognized as assets and liabilities in the consolidated statement of financial position. However, if throughout the residual regulatory life of the renewable facilities, according to EDPR's best estimate of the future evolution of energy market prices, it would be highly probable that market returns would be higher than those established in the RD 413/2014 and, therefore, abandoning the remuneration regime would not have significantly more adverse economic consequences than remaining in said regime, it is considered that in this situation, only the asset is recognized. As at 31 December 2023, none of the renewable facilities have abandoned the remuneration regime.

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R) Financial results

Financial results include interest costs on borrowings, interest income on funds invested, the financial expenses (unwinding) related to the discount of institutional partnership in North America, provisions, lease liabilities, dividend income, foreign exchange gains and losses, realised gains and losses, changes in fair value of derivative financial instruments related to financing activity classified by the Group, within IFRS 9, as held for trading and consequently measured at fair value through profit or loss and changes in the fair value of hedged risks, when applicable.

Interest is recognised in the income statement on an accrual basis. Dividend income is recognised on the date the right to receive is established.

#### S) Income tax

Income tax recognised in the income statement includes current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is also recognised in equity.

Deferred taxes arising from the revaluation of assets measured at fair value through other comprehensive income and cash flow hedge derivatives recognised in equity are recognised in the income statement in the period the results that originated the deferred taxes are recognised.

Current tax is the tax expected to be paid on the taxable income for the period, using tax rates enacted at the statement of financial position date and any adjustment to tax payable in respect of previous years.

Deferred taxes are calculated in accordance with the balance sheet liability method, considering temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax basis, using the tax rates enacted or substantively enacted at the balance sheet date for each jurisdiction and that are expected to be applied when the temporary differences are reversed.

Deferred tax liabilities are recognised for all taxable temporary differences except for goodwill not deductible for tax purposes, differences arising on initial recognition of assets and liabilities that affect neither accounting nor taxable profit and differences relating to investments in subsidiaries, to the extent that these will probably not be reversed in the future. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available to absorb deductible temporary differences for taxation purposes.

Following the amendments made to IAS 12 - Deferred tax related to assets and liabilities arising from a Single Transaction, effective on 1 January 2023, the EDPR Group proceeded with the breakdown of deferred tax assets and deferred tax liabilities related with: i) assets under right of use and lease liabilities; and ii) provisions for dismantling and decommissioning and corresponding tangible fixed assets, where and whenever these amounts are not deductible until the payment date.

The Group offsets the deferred tax assets and liabilities if, and only if:

- the entity has a legally enforceable right to offset current tax assets against current tax liabilities; and
- the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same

taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in future periods in which deferred tax liabilities or assets are expected to be settled or recovered.

When accounting for interest and penalties related to income taxes, EDPR Group considers whether a particular amount payable or receivable is, in its nature, a taxable income and, if so, applies IAS 12 to this amount. Otherwise, IAS 37 is applied.

Regarding the IFRIC 23 related to IAS 12 – Income tax, when there is uncertainty over income tax treatments, EDPR Group measures its current or deferred tax asset or liability applying the requirements in IAS 12. Additionally, the Group analyses all the pending litigations or disputes with tax authorities regarding income tax and records the best estimation related to contingencies and litigations whenever necessary.

T) Earnings per share

Basic earnings per share are calculated by dividing the consolidated net profit attributable to equity holders of EDP Renováveis S.A. by the weighted average number of ordinary shares outstanding during the year, excluding the average number of ordinary shares purchased by the Group and held as treasury stock.

For the diluted earnings per share calculation, the weighted average number of ordinary shares outstanding is adjusted to consider conversion of all dilutive potential ordinary shares, such as convertible debt and stock options granted to employees. The dilution effect corresponds to a decrease in earnings per share resulting from the assumption that the convertible instruments are

converted or the options granted are exercised.

{366}------------------------------------------------

U) Cash and cash equivalents

Cash and cash equivalents include balances with maturity of less than three months from the date of acquisition, including cash and deposits in banks. This caption also includes other short-term, highly liquid investments that are readily convertible to known amounts of cash and specific demand deposits in relation to institutional partnerships that are funds required to be held in escrow sufficient to pay the remaining construction related costs of projects in institutional equity partnerships in U.S.A., in the next twelve months.

The Group classifies as cash and cash equivalents the debit balance of the current accounts with EDP Group formalized under cash-pooling agreements.

#### V) Government grants

Government grants are recognised initially as deferred income under non-current liabilities when there is reasonable assurance that they will be received and that the Group will comply with the conditions associated with the grant. Grants that compensate the Group for expenses incurred are recognised in profit or loss on a systematic basis in the same periods in which the expenses are recognised.

#### W)Environmental issues

The Group takes measures to prevent, reduce or repair the damage caused to the environment by its activities.

Expenses derived from environmental activities are recognised as other operating expenses in the period in which they are incurred.

#### X) Institutional partnerships in North America

The Group has entered in several partnerships with institutional investors in the United States, through limited liability Company operating agreements that apportion the cash flows generated by the wind farms between the investors and the Company and allocates the tax benefits, which include Production Tax Credits (PTCs), Investment Tax Credits (ITCs) and accelerated depreciation, largely to the investor.

The institutional investors purchase their minority partnership interests for an upfront cash payment with an agreed targeted internal rate of return over the period that the tax credits are generated. This anticipated return is computed based on the total anticipated benefit that the institutional investors will receive and includes the value of PTCs / ITCs, allocated taxable income or loss and cash distributions received.

The control and management of these wind farms are a responsibility of EDPR Group and they are fully consolidated in these financial statements.

The financial instruments held by the institutional investors issued by the partnerships represent compound financial instruments as they contain characteristics of both financial liabilities and equity. The Group has determined that at the funding dates, the fair values of the original proceeds is equal to the fair values of the liabilities at that time and no value was assigned to the equity component. Subsequently, these liabilities are measured at amortized cost.

This liability is reduced by the value of tax benefits provided and cash distributions made to the institutional investors during the contracted period. The value of the tax benefits delivered, primarily accelerated depreciation and ITC are recognized as Income from institutional partnerships over the 30-35 year useful life of the assets and over the 5-year recapture period, respectively. The value of the PTCs delivered are recorded as generated. This liability is increased by an interest accrual that is based on the outstanding liability balance and the targeted internal rate of return agreed.

After the Flip Date (date on which institutional investors reach their specified return as indicated in the corresponding agreements), the institutional investor retains a non-significant interest for the duration of the structure. This non-controlling interest is entitled to distributions ranging from 2.5% to 10% and taxable income allocations ranging from 5% to 10%. EDPR NA has an option to purchase the institutional investor's residual interest at fair market value during a defined period following the flip date. Such fair value is calculated according to the future cashflows of the wind or solar projects or by an external party. This amount is reclassified from the total equity attributable to the Parent to non-controlling interests caption in the period in which the flip date takes place (see note 30).

Deferred tax liabilities arise since related project's assets are consolidated and corresponding accounting depreciation is registered, while a very large allocation of the tax depreciation is absorbed by the institutional investor.

#### Y) Statement of Cash Flow

The Statement of Cash Flow is presented under the direct method, by which gross cash flows from operating, financing and investing activities are disclosed. The Group classifies cash flows related

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to interest and dividends paid as financing activities and interest and dividends received as

investing activities.

## 03. Recent accounting standards and interpretations issued

#### **Standards, amendments and interpretations issued effective for the Group**

The amendments that have been issued and that are already effective and that the Group has applied on its financial statements, can be analysed as follow:

#### • IAS 12 (Amended) - Deferred tax related to assets and liabilities arising from a Single Transaction

The IASB amended IAS 12, "Income taxes", in order to clarify the recognition of deferred tax on particular transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences.

The amendments target the recognition of deferred tax in respect of:

- -Right-of-use assets and lease liabilities; and
- -Provision for dismantling, decommissioning and the corresponding tangible fixed assets.

As part of the adoption of these amendments, effective on 1 January 2023, the EDPR Group proceeded with the breakdown of deferred tax assets and deferred tax liabilities related with: i) assets under right of use and lease liabilities; and ii) provisions for dismantling and decommissioning and corresponding tangible fixed assets, where and whenever these amounts are not deductible until the payment date.

Thus, on 31 December 2023, the impacts of this amendment are disclosed in note 21.

The amendments that have been issued and that are already effective and that the Group has applied on its financial statements, with no significant impacts are the following:

- IAS 1 (Amended) Disclosure of Accounting Policies;
- IAS 8 (Amended) Definition of Accounting Estimates;
- IFRS 17 Insurance Contracts and
- IAS 12 (Amended) International Tax Reform: Pillar Two Model Rules (see note 15).

#### **Standards, amendments and interpretations issued but not yet effective for the Group**

The standards, amendments and interpretations issued but not yet effective for the Group (whose effective application date has not yet occurred or, despite their effective dates of application, they have not yet been endorsed by the UE) for which no significant impact is expected, are the following:

- IAS 1 (Amended) Classification of Liabilities as Current or Non-current;
- IAS 1 (Amended) Non-current Liabilities with Covenants;
- IFRS 16 (Amended) Lease liability in a sale and leaseback;
- IAS 21 (Amended) The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability; and
- IAS 7 and IFRS 7 (Amended) Supplier Finance Arrangements.

# 04. Critical accounting estimates and judgments in applying accounting policies

The IFRS set forth a range of accounting treatments and require the Board of Directors to apply judgment and make estimates in deciding which treatment is most appropriate.

The main accounting estimates and judgements used in applying the accounting policies are discussed in this note in order to improve the understanding of how their application affects the Group's reported results and disclosures. A broader description of the material accounting policies employed by the Group is disclosed in note 2 to the Consolidated Financial Statements.

Although estimates are calculated by the Board of Directors based on the best information available at 31 December 2023 and 2022, future events may require changes to these estimates in subsequent years. Any effect on the financial statements of adjustments to be made in subsequent years would be recognised prospectively.

Considering that in many cases there are alternatives to the accounting treatment adopted by EDP Renováveis, the Group's reported results could differ if a different treatment was chosen. EDP Renováveis believes that the choices made are appropriate and that the financial statements are presented fairly, in all material respects, the Group's financial position and results. The alternative outcomes discussed below are presented solely to assist the reader in understanding the financial statements and are not intended to suggest that other alternatives or estimates would be more appropriate.

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**Measurement of the fair value of financial instruments**

Fair values are based on listed market prices, if available. Otherwise, fair value is determined either by the price of similar recent transactions under market conditions, or determined by external entities, or based on valuation methodologies, supported by discounting future cash flows techniques, considering market conditions, time value, yield curves and volatility factors. These methodologies may require the use of assumptions or judgements in determining fair values.

Consequently, the use of different methodologies and different assumptions or judgements in applying a particular model, could generate different financial results from those reported.

Additionally, financial instruments' classification as debt or equity requires judgement in the interpretation of contractual clauses and in the evaluation of the existence of a contractual obligation to deliver cash or other financial assets.

#### **Review of the useful life of the assets**

The Group reviews periodically the reasonableness of the assets' useful lives that are used to determine the depreciation rates of assets assigned to the activity, and prospectively changes the depreciation charge of the year based on such review.

#### **Lease Liabilities (Rents due from lease contracts)**

With the adoption of IFRS 16, the Group recognises right-of-use assets (ROU assets) and lease liabilities (rents due from lease contracts), if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether: i) the contract involves the use of an identified asset; ii) it has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use; and iii) it has the right to direct the use of the asset. EDPR Group uses judgement on its assessment, namely concerning the termination and extension contract options and the determination of the incremental borrowing rate to be applied for each portfolio of leases identified.

#### **Impairment**

Impairment of long-term assets and Goodwill

Impairment tests are performed whenever there is an indication that the recoverable amount of property, plant and equipment, right of use assets, intangible assets and investments in joint ventures and associates is less than the corresponding net book value of assets.

On an annual basis, the Group reviews the assumptions used to assess the existence of impairment in goodwill resulting from acquisitions of shares in subsidiaries. The assumptions used are sensitive to changes in macroeconomic indicators and business assumptions used by management. The net interest in associates is reviewed when circumstances indicate the existence of impairment.

Considering the uncertainties regarding the recoverable amount of property, plant and equipment, right of use assets, intangible assets and investments in joint ventures, associates and goodwill as they are based on the best information available, changes in the assumptions could result in changes on the determination of the amount of impairment and, consequently, in results.

#### **Income taxes**

The Group is subject to income taxes in numerous jurisdictions. Certain interpretations and estimates are required in determining the global amount for income taxes.

There are several transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. Different interpretations and estimates would result in a different level of income taxes, current and deferred, recognized in the period.

Tax Authorities are entitled to review EDP Renováveis, and its subsidiaries' determination of its annual taxable earnings, for a determined period that may be extended in case there are tax losses carried forward. Therefore, it is possible that some additional taxes may be assessed, mainly as a result of differences in interpretation of the tax law. However, the EDP Renováveis and its subsidiaries, do not anticipate any significant changes to the income tax booked in the financial statements.

EDPR evaluates the recoverability of deferred tax assets based on estimations of future taxable income in the period in which such deferred taxes are deductible.

Deferred tax assets are yearly evaluated to ensure there are no indications of impairment. In these analyses, which are based on assumptions considered in the impairment test indicated in note 19, the Group verifies that such deferred tax assets are still recoverable in the future.

{369}------------------------------------------------

**Dismantling and decommissioning provisions**

The Board of Directors considers that Group has contractual obligations with the dismantling and decommissioning of property, plant and equipment related to wind and solar electricity generation. For these responsibilities the Group has recorded provisions for the expected cost of restoring sites and land to its original condition. The provisions correspond to the present value of the expenditure expected to be required to settle the obligation.

In 2023 EDPR's technical department has performed an in-depth analysis taking into account the reality of the EDPR's fleet. This analysis has led to the conclusion that the average cost per megawatt and salvage value of the renewable assets require to be updated with effect December 2023 (see note 2.P and 32).

The use of different assumptions in estimates and judgments referred may have produced different results from those that have been considered.

#### **Entities included in the consolidation perimeter**

In order to determine which entities must be included in the consolidation perimeter, the Group evaluates whether it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

This evaluation requires judgement, assumptions and estimates in order to conclude whether the Group is in fact exposed to variable returns and has the ability to affect those returns through its power over the investee. Other assumptions and judgments could lead to a different consolidation perimeter of the Group, with direct impact in the consolidated financial statements.

#### **Business combinations**

Under IFRS 3 (Business Combination) in a business combination, the acquirer shall recognize and measure in the consolidated financial statements the assets acquired and liabilities assumed at fair value at the acquisition date. The difference between the purchase price and the fair value of the assets and liabilities acquired leads to the recognition of goodwill or a gain from a purchase at a low price (bargain purchase).

The fair value determination of the assets acquired and liabilities assumed is carried out internally or by independent external evaluators, using the discounted cash flows method, using the replacement cost or other fair value determination techniques, which rely on the use of assumptions including macroeconomic indicators such as inflation rates, interest rates, exchange rates, discount rates, sale and purchase prices of energy, cost of raw materials, production estimates, useful life and business projections. Consequently, the determination of the fair value and goodwill or gain from a purchase at a low price is subject to numerous assumptions and judgments and therefore changes could result in different impacts on results.

#### **Fair value measurement of contingent consideration and variable prices**

Contingent consideration from a business combination or variable prices for a sale of assets or businesses are measured at fair value at the acquisition date as part of the business combination or at the date of the sale in the event of a sale of a assets or businesses. This contingent consideration or variable price are subsequently remeasured at fair value at each report date. Fair value is based on discounted cash flows. The main assumptions consider the probability of achieving each objective and the discount factor, corresponding to the best estimates of management at each report date. Changes in assumptions could have significant impact on the values of variable prices for the assets and contingent liabilities recognised in the financial statement.

## 05. Financial risk management policies

The businesses of EDP Renováveis Group are exposed to a variety of risks, including the effects of changes in electricity market prices, foreign exchange and interest rates. The main financial risks arise from interest-rate and the exchange-rate exposures. The volatility of financial markets is analysed on an on-going basis in accordance with EDPR's risk management policies. Financial instruments are used to mitigate potential adverse effects on EDP Renováveis financial performance resulting from interest rates and foreign exchange rates changes.

The Board of Directors of EDP Renováveis is responsible for the definition of general riskmanagement policies and the establishment of exposure limits. Recommendations to manage financial risks of EDP Renováveis Group are proposed by EDPR's Finance and Global Risk Departments and discussed in the Financial Risk Committee of EDP Renováveis, which is held quarterly. The pre-agreed strategy is shared with the Finance Department of EDP - Energias de Portugal, S.A., to verify the accordance with the policies approved by the Board of Directors of EDP. The evaluation of appropriate hedging mechanisms and the execution is done by EDPR but may also be outsourced to the Finance Department of EDP.

All transactions undertaken using derivative financial instruments require the prior approval of the Board of Directors or the Management Team, which defines the parameters of each transaction

and approves the formal documents describing their objectives.

{370}------------------------------------------------

**Exchange-rate risk management** 

EDPR and EDP Group's Financial Departmentsare responsible for managing the foreign exchange exposure of the Group, seeking to mitigate the impact of exchange rate fluctuations on the net assets and net profits of the Group. Instruments used for hedging are foreign exchange derivatives, foreign exchange debt and other hedging structures with offsetting exposure versus the item to be hedged. The effectiveness of these hedges is reassessed and monitored throughout their lives.

EDPR operates internationally and is exposed to the exchange-rate risk resulting from investments in foreign subsidiaries. With the objective of minimizing the impact of exchange rates fluctuations, EDP Renováveis general policy is to fund each project in the currency of the operating cash flows generated by the project.

Currently, the main currenciesexposure are the U.S. Dollar, resulting from the shareholding in EDPR NA and Singaporean Dollar resulting from the shareholding in EDPR APAC companies. EDPR is also exposed to Polish Zloty, Romanian Leu, Brazilian Real, British Pound, Canadian Dollar, Colombian Peso, Hungarian Forint, Chinese renminbi, Taiwanese Dollar and a marginal fiscal exposure to MXN due to Mexican assets and relatively small exposure to other southeast Asian currencies.

To hedge the risk originated with net investment in EDPR NA, EDP Renováveis uses financial debt expressed in USD and also entered into cross currency interest rate swaps (CIRS) USD/EUR with EDP - Energias de Portugal, S.A. Following the same strategy adopted to hedge the net investments in USA, EDP Renováveis has also entered into CIRS in BRL/EUR, GBP/EUR, CAD/EUR and in PLN/EUR to hedge the investments in Brazil, United Kingdom, Canada and Poland, respectively, where exposures are sizable for hedging (see note 37).

#### **Sensitivity analysis - Foreign exchange rate**

As a consequence, a depreciation/appreciation of 10% in the most significant foreign currency exchange rate, with reference to 31 December 2023 and 2022, would originate an increase/(decrease) in EDP Renováveis Group income statement and equity before taxes, as follows:

|                |        |                |          | 31 DEC 2023 |
|----------------|--------|----------------|----------|-------------|
| THOUSAND EUROS |        | PROFIT OR LOSS | EQUITY   |             |
|                | +10%   | -10%           | +10%     | -10%        |
| USD/EUR        | 20,195 | -24,683        | -130,360 | 159,328     |
| BRL/EUR        | 1,143  | -1,397         | -66,391  | 81,145      |
| SGD/EUR        | 2,083  | -2,546         | -39,882  | 48,745      |
|                | 26,656 | -32,580        | -236,633 | 289,218     |

|                |        |                | 31 DEC 2022 |         |  |
|----------------|--------|----------------|-------------|---------|--|
| THOUSAND EUROS |        | PROFIT OR LOSS |             | EQUITY  |  |
|                | +10%   | -10%           | +10%        | -10%    |  |
| USD/EUR        | 14,500 | -17,722        | -119,873    | 146,511 |  |
| BRL/EUR        | 35     | -43            | -20,069     | 24,528  |  |
| SGD/EUR        | 302    | -369           | -65,001     | 79,446  |  |
|                | 14,837 | -18,314        | -204,943    | 250,485 |  |

This analysis assumes that all other variables, namely interest rates, remain unchanged.

#### **Interest rate risk management**

The Group's operating cash flows are substantially independent from the fluctuation in interestrate markets.

The purpose of the interest-rate risk management strategy is to reduce the exposure of debt cash flows to market fluctuations. As such, whenever considered necessary and in accordance to the Group's policy, interest-rate financial instruments are contracted to hedge interest rate risks. These financial instruments hedge cash flows associated with future interest payments, converting floating rate loans into fixed rate loans.

All these hedges are undertaken on liabilities in the Group's debt portfolio and are mainly perfect hedges with a high correlation between changes in fair value of the hedging instrument and changes in fair value of the interest-rate risk or upcoming cash flows.

The EDP Renováveis Group has a portfolio of interest-rate derivatives with maturities up to 17 years. The Financial Department of EDP Group undertakes sensitivity analyses of the fair value of financial instruments to interest-rate fluctuations or upcoming cash flows.

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About 92% of EDP Renováveis Group financial debt bear interest at fixed rates, considering

operations of hedge accounting with financial instruments.

Additionally, during the fiscal year 2023, EDPR unwound the pre-hedges performed in 2022, both for EUR and USD refinanced debt, obtaining a gain and a reduction of volatility for the new bullets debt.

#### **Sensitivity analysis - Interest rates**

EDPR/EDP Group's Financial Departments are responsible for managing the interest rate risk associated to activities developed by the Group, contracting derivative financial instruments to mitigate this risk.

Based on the EDPR Group debt portfolio and the related derivative financial instruments used to hedge associated interest rate risk, as well as on the shareholder loans received by EDP Renováveis, a change of 100 basis points in the interest rates with reference to 31 December 2023 and 2022 would increase/(decrease) in EDP Renováveis Group income statement and equity before taxes, as follows:

| 31 DEC 2023                             |                |          |          |          |
|-----------------------------------------|----------------|----------|----------|----------|
|                                         | PROFIT OR LOSS | EQUITY   |          |          |
| THOUSAND EUROS                          | +100 BPS       | -100 BPS | +100 BPS | -100 BPS |
| Cash flow hedge derivatives             | -              | -        | 26,469   | -3,204   |
| Unhedged debt (variable interest rates) | -51,137        | 51,137   | -        | -        |
|                                         | -51,137        | 51,137   | 26,469   | -3,204   |

| 31 DEC 2022                             |          |                |          |          |  |
|-----------------------------------------|----------|----------------|----------|----------|--|
|                                         |          | PROFIT OR LOSS |          | EQUITY   |  |
| THOUSAND EUROS                          | +100 BPS | -100 BPS       | +100 BPS | -100 BPS |  |
| Cash flow hedge derivatives             | -        | -              | 35,830   | -7,560   |  |
| Unhedged debt (variable interest rates) | -9,580   | 9,580          | -        | -        |  |
|                                         | -9,580   | 9,580          | 35,830   | -7,560   |  |

This analysis assumes that all other variables, namely foreign exchange rates, remain unchanged.

#### **Counterparty credit-rate risk management in financial transactions**

The EDP Renováveis Group counterparty risk exposure in financial and non-financial transactions is managed by an analysis of technical capacity, competitiveness and probability of default to the counterparty. EDP Renováveis has defined a counterparty risk policy inspired in Basel III, which is implemented across all departments in all EDP Renováveis geographies. EDP Renováveis Group is exposed to counterparty risk in financial derivatives transactions in energy sales (electricity, GC and RECs) and in supply contracts.

Counterparties in derivatives and financial transactions are restricted to high-quality credit institutions or to the EDP Group.

Most relevant counterparties in derivatives and financial transactions are companies within EDP Group. Financial instruments contracted outside EDP Group are generally engaged under ISDA Master Agreements and credit quality of external counterparties is analysed and collaterals required when needed.

In the process of selling the energy (electricity, GCs and RECs produced), counterparty exposure arises from trade receivables, but also from mark-to-market of long-term contracts:

- In the specific case of the energy sales of EDPR EU & Latam platform, the Group's main customers are utilities and regulated entities in the different countries (EDP and CNMC in the case of the Spanish market). Credit risk from trade receivables is not significant due to the limited average collection period for customer balances and the quality of its debtors. Additional counterparty risk comes from the countries with renewables incentives, which it is usually treated as regulatory risk;
- In the specific case of EDPR NA platform, the Group's main customers are regulated utility companies and regional market agents in the US. As it occurs in Europe, credit risk from trade receivables is not significant due to the limited average collection period for customer balances and the quality of the debtors. However, the exposure due to the mark-to-market of long-term contracts may be significant.

With the acquisition of Sunseap, in the specific case of EDPR APAC, the Group's main customers are Distributed Generation off-takers and regulated entities in the different markets, namely in Singapore and Vietnam. As it occurs in the other platforms, credit risk from trade receivables is not significant due to same reasons. However, counterparty risk comes from countries with renewables incentives through regulated tariffs, which it is usually treated as regulatory risk.

{372}------------------------------------------------

Exposure in all markets is managed by a detailed assessment of the counterparty before signing

any long term agreement and by a requirement of collaterals when financial soundness of the counterparty deteriorates.

Regarding Trade receivables and other debtors, they are recognized net of the impairment losses. The Group believes that the credit quality of these receivables is adequate and that no significant impaired credits exist that have not been recognised as such and provided for.

Counterparty exposure to suppliers arises mainly from pre-paid contracts with equipment manufacturers and civil engineering contractors. Counter-party analyses are performed for each new contract. If needed, either parent company guarantees or bank guarantees are requested to comply with the limits of exposure established by EDP Renováveis counter-party risk policy.

The maximum exposure to customer credit risk by counterparty type is detailed as follows:

| THOUSAND EUROS                                        | DEC 2023 | DEC 2022 |
|-------------------------------------------------------|----------|----------|
| CORPORATE SECTORS AND INDIVIDUALS                     |          |          |
| Supply companies                                      | 68,167   | 73,275   |
| Business to business                                  | 12,670   | 31,387   |
| Other                                                 | 40,521   | 18,306   |
| Total Corporate sectors and individuals               | 121,358  | 122,968  |
| Public sector                                         | 448      | 452      |
| Total Public sector and Corporate sectors/individuals | 121,806  | 123,420  |

Trade receivables by geographical market for the Group EDPR, is as follows:

| THOUSAND EUROS                    |        |                  |        |        |       | DEC<br>2023 |
|-----------------------------------|--------|------------------|--------|--------|-------|-------------|
|                                   | EUROPE | NORTH<br>AMERICA | LATAM  | APAC   | OTHER | TOTAL       |
| Corporate sectors and individuals | 48,552 | 32,805           | 15,152 | 24,746 | 103   | 121,358     |
| Public sector                     | -      | 448              | -      | -      | -     | 448         |
| Total                             | 48,552 | 33,253           | 15,152 | 24,746 | 103   | 121,806     |

| THOUSAND EUROS                    |        |                  |        |        |       | DEC<br>2022 |
|-----------------------------------|--------|------------------|--------|--------|-------|-------------|
|                                   | EUROPE | NORTH<br>AMERICA | LATAM  | APAC   | OTHER | TOTAL       |
| Corporate sectors and individuals | 55,033 | 28,542           | 14,223 | 25,074 | 96    | 122,968     |
| Public sector                     | -      | 452              | -      | -      | -     | 452         |
| Total                             | 55,033 | 28,994           | 14,223 | 25,074 | 96    | 123,420     |

In accordance with accounting policies, impairment losses are determined using the simplified approach precluded in IFRS 9, based on life time expected losses.

#### **Liquidity risk**

Liquidity risk is the possibility that the Group will not be able to meet its financial obligations as they fall due. The Group strategy to manage liquidity is to ensure, as far as possible, that it will always have significant liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation.

The liquidity policy followed ensures compliance with payment obligations acquired, through maintaining sufficient credit facilities and having access to the EDP Group facilities who manages the Group liquidity risk through the engagement and maintenance of credit lines and financing facilities with a firm underwriting commitment with international reliable financial institutions as well as term deposits, allowing immediate access to funds. These credit lines are used to complement and backup national and international commercial paper programs, allowing the EDP Group's short-term financing sources to be diversified.

The Directors have estimated cash flows that show that the Group will meet the commitments existing at the close as at 31 December 2023.

{373}------------------------------------------------

The maturity analysis for financial debt (see note 31), including expected future interests, is as

follows:

| THOUSAND EUROS                   | DEC<br>2024 | DEC<br>2025 | DEC<br>2026 | DEC<br>2027 | DEC<br>2028 | FOLLO<br>WING<br>YEARS | TOTAL     |
|----------------------------------|-------------|-------------|-------------|-------------|-------------|------------------------|-----------|
| Bank loans                       | 301,376     | 115,439     | 76,170      | 130,885     | 112,250     | 588,427                | 1,324,547 |
| Loans received from EDP<br>Group | 886,341     | 225,241     | 478,054     | 452,489     | 1,185,354   | 2,687,329              | 5,914,808 |
| Other loans                      | 2,838       | -           | -           | 358         | -           | 7,472                  | 10,668    |
| Expected future interests        | 303,002     | 291,202     | 279,690     | 272,248     | 243,672     | 419,686                | 1,809,500 |
| 1,493,557                        | 631,882     | 833,914     | 855,980     | 1,541,276   | 3,702,914   | 9,059,523              |           |

EDPR has developed and presented to the markets a very ambitious Multi-Year Growth Plan, aimed at creating value for its shareholders, which entails a significant annual investment volume. EDPR defines itself as a listed company with a low risk profile and as such has defined a financing plan that ensures a balanced financial position structure, preserving its credit quality and, at the same time, guaranteeing the necessary flexibility to accommodate any temporary deviation that may occur throughout the implementation period of its growth plan.

In the base case, the financing of the investment volume is ensured based on 5 major sources of financing:

- The cash flow generated by the assets in operation and retained in the Group;
- The program for selling assets in operation (sell down/Asset Rotation), as a way to anticipate and crystallize value/cash flow;
- The Tax Equity Investment (the entry of institutional investors in projects developed in the US that materializes just before the entry into operation of the assets);
- The capital increase in EDP Renováveis S.A.
- Complemented by medium and long-term external financing, and namely:
	- Via Corporate Finance, as the most relevant solution; and
	- Project Finance, particularly in markets where the functional currency is different from EUR/USD and it is important to manage equity exposure to the market.

Flexibility, in order to manage temporary differences or adjustments in the proportions of the components identified above, is given by the following variables:

- EDPR has Current Accounts in EUR and USD with EDP Group that uses to manage daily/weekly/monthly its net liquidity needs;
- EDPR has a formal agreement with its parent company (EDP Group) whereby EDP has agreed to provide the necessary financing for the execution of EDPR's Growth Plan;
- Current Accounts and Overdrafts negotiated with commercial banks (as backup).

#### **Electricity market price risk**

As of 31 December 2023, electricity market price risk affecting the EDP Renováveis Group is not significant. In the case of EDPR NA, the great majority of the plants are under power purchase

agreements or long-term financial contracts, with fixed or escalating prices. In the case of EDPR EU, the electricity is sold in Spain, France, Italy, Portugal and Poland through regulated tariffs or financial PPAs. In Romania the green certificates have a floor.

For the smaller share of energy with merchant exposure after tariff regimes, PPAs or long-term financial contracts (electricity, green certificates and RECs), market risk is managed through the execution of electricity, green certificate and REC forward contracts. For this exposure EDPR EU and EDPR NA have electricity, green certificates and REC financial swaps that qualify for hedge accounting (cash flow hedge) that are related to sales for the years 2024 to 2026 (see note 37). The purpose of EDP Renováveis Group is to hedge in advance a significant volume of the merchant exposure to reduce the volatility of energy prices in each reporting year.

For 2023, the Group's total generation was 33.6 TWh, of which 71% was subject to both regulated remuneration and long-term contracts and the remaining 29% was remunerated at market price. Anyway, as commented above, this portion of generation remunerated at market price is practically fully hedged, increasing overall hedged position in the year to ca. 88%.

During 2023, market prices have experienced a generalized decreasing trend, however, they are still above historical averages in nearly all regions. For EDPR EU and EDPR NA, the potential loss from the decrease in electricity prices was very limited, since, as indicated above, EDPR´s merchant exposure for the year 2023 was already hedged before the start of this trend.

Considering recent spike in market prices and volatility, EDPR is closely managing and monitoring its exposure to market prices variations, despite it being limited with current hedges in place. For 2024, EDPR´s exposure to a potential decrease of 30% in market prices would be approximately

of 50 million Euros.

{374}------------------------------------------------

**Capital management**

The Group's goal in managing equity, in accordance with the policies established by its main shareholder, is to safeguard the Group's capacity to continue operating as a going concern, grow steadily to meet established growth targets and maintain an optimum equity structure to reduce equity cost.

In conformity with other sector groups, the Group controls its financing structure based on the leverage ratio. This ratio is calculated as net financial borrowings divided by total equity and net borrowings. Net financial borrowings are determined as the sum of financial debt, institutional equity liabilities corrected for non-current deferred revenues, less cash and cash equivalents.

#### **Climate-related risk**

The Earth's climate has changed throughout history. Scientists attribute the current global warming trend observed since the mid-20th century to the human expansion of the "greenhouse effect" –warming that results when the atmosphere traps heat radiating from Earth toward space. Over the last century, the burning of fossil fuels like coal and oil has increased the concentration of atmospheric carbon dioxide (CO2).

EDPR is a clear example of how fighting against climate change creates business opportunities. The Company's core business, to deliver clean energy by developing, building and operating top quality wind farms and solar plants, inherently implies the reduction of greenhouse gas emissions, contributing to the world's fight against climate change and its impacts.

Since its inception, EDPR has been performing a strategy focused on selective growth, by investing in quality projects with predictable future cash-flows, and seamless execution, supported by core competences that yield superior profitability, all embedded within a distinctive and self-funding model designed to accelerate value creation. As a result of undertaking such strategy, at the same time flexible enough to accommodate changing business and economic environments, EDPR remains today a leading company in the renewable energy industry. As presented in its 2023- 2026 Business Plan, EDPR plans to add 17.1 GW in the 2023-2026, of which 9.7 GW is already secured. EDPR will diversify its portfolio geographically and technologically even more, developing more wind onshore, solar, wind offshore, green hydrogen and storage technology along with the entrance in new markets.

During 2023, EDPR added 2.5 GW and finished the year managing a global portfolio of 16.6 GW. Benefiting from a diversified portfolio, the Company generated 34.6 TWh of renewable energy, avoiding the emissions of 20 (19,783,219 tCO2) million tons of CO2. Capital expenditures and financial investments with capacity additions, ongoing construction and development works during the year totaled 2,951 million of Euros.

However, EDPR faces climate change not only as a business opportunity, but also as an opportunity to innovate. EDPR's commitment to innovation and new technologies has made it a leader in the renewable energy sector. Currently, the Company continues to take advantage of all expertise obtained since the start of its inception to ensure more efficient solutions, more attractive returns and a more sustainable future. As a result, EDPR engages in projects that cover wind energy, solar energy, energy storage plants, floating offshore wind farms, green hydrogen and hybrid power plants.

Nevertheless, on the risk side, meteorological changes may pose a risk for EDPR's activities and results since they are carried out in areas of the planet that are being affected by climate change. In addition, future estimations of wind and solar production are based on analysis of historical measurements for more than 20 years and they are considered to be representative of the future. However, relevant unexpected meteorological changes could lead to a lower production than the one expected from historical data. Thus, when evaluating a new investment, EDPR considers potential changes in the production forecasted but, even so, the size of the potential deviation in the case of relevant meteorological changes is uncertain.

Moreover, renewable plants in construction and in operation are exposed to weather hazards, natural disasters, etc. These risks depend on the location of the assets. At EDPR, all plants are insured from the physical damage during construction and operation. During operation, any natural disaster, weather hazard or accident will also be partially insured to cover revenue losses due to the event. Thus, no material impacts are identified in the EDPR's consolidated financial statements as a consequence of climate change.

As a sector leader, EDPR is aware of the urgency to fight climate change and even though its business inherently implies a positive impact on the environment, the Company continues to work on a daily basis to hold itself to a higher standard and to incorporate innovation in its value chain in order to further contribute to the protection of the climate.

{375}------------------------------------------------

06. Consolidation perimeter

During the year ended in 31 December 2023, the changes in the consolidation perimeter of the EDP Renováveis Group were:

#### **Companies acquired:**

The following acquisitions were classified as asset purchases, out of scope of IFRS 3 – Business Combinations, due to the substance of these transactions, the type of assets acquired and the very early stage of the projects:

- EDP Renewables Europe, S.L.U. acquired 100% of the British companies Harrington Franklin Limited and Balnacraig Battery Storage Limited;
- EDP Renovables España, S.L.U. acquired 100% of the company Global Pracima, S.L. and its subsidiaries Jul Solar, S.L., Agos Fotovoltaicas, S.L. and Corona Fotovoltaicas, S.L., Energia Geoide VIII, S.L. and 67,73% of the company ICE Tudela S.L.;
- EDPR PT Promoção e Operação, S.A. acquired 100% of the company SPEE Sociedade Produção Energia Eólica, S.A.;
- EDPR France Holding, S.A.S. acquired 100% of the companies Saussignac Solaire, S.A.S., Oxavi 1, S.A.S. and Oxavi 2, S.A.S.;
- EDP Renewables Italia Holding, S.r.l. acquired 100% of the companies Solar Italy XXIII, S.r.l., Wind Energy Castelluccio, S.r.l., the 60% of the company Winderg Valleverde, S.r.l. and the 51% of the company Wind Energy Monte Cavallo, S.r.l.;
- EDP Renewables Polska, Sp. Z o.o. acquired 100% of the companies Farma Fotowoltaiczna Pakosław, Sp. z o.o., Farma Fotowoltaiczna Iłża, Sp. z o.o., CSH Renewables III, Sp. z o.o., Maella, Sp. z o.o., Wind Farm Debrzno, Sp. z o.o., Wind Farm Gniewkowo, Sp. z o.o., EDPR Polska Wind, Sp. z o.o., EDPR Polska Solar 2, Sp. z o.o., EDPR Polska Storage, Sp. z o.o. and Ekoenergia Solar 3, Sp. z o.o.;
- EDP Renewables North America LLC acquired 100%of the companies Cheboygan Solar Farm LLC and Three Lakes Solar LLC;
- EDPR NA Distributed Generation LLC, thought its subsidiaries, acquired the 100% of the companies CF OH Solar St RT 118, Ansonia LLC, CF OH Solar St RT 118, Rossburg LLC, CF OH Solar SR 309, Kenton LLC, CF OH Solar County Hwy 58, Upper Sandusky LLC, CF OH Solar Lincoln Hwy, Bucyrus1 LLC, CF OH Solar Rd N, Pandora LLC and CF OH Solar SR 81 Ada LLC, Generate USF Livermore LLC, and CF OH Solar N Dixie Hwy Lima LLC;
- EDPR Sunseap Pte. Ltd. through its subsidiaries acquired 100% of the Chinese companies Chuzhou Huitai Photovoltaic Power Generation Co., Fangxian Tianhang New Energy Co., Ltd.,Siping Lvsheng Energy Technology Co., Ltd., Jiaxing Luken Energy Technology Co., Ltd, Harbin Panshuo Energy Technology Co., Ltd., Jingmen Zhongbei New Energy Co., Ltd., Tianjin Pengling Funeng New Energy Technology Co., Anhui Jinyang New Energy Co., Ltd., Ltd.,the 40% of the Ningbo Jiangbei Baoyi Enterprise Management Consulting Partnership LP; 100% of the Japanese company Godo Kaisha NW-3, 100% of the Vietnamese companies Millennium Energy Investment Co., Ltd., HTD Vietnam Investment Development Co., Ltd. and HTT Bin h Duong Investment Development Co., Ltd.,Lam Gia Luat Co., Ltd. and Dai Linh Phat Co., Ltd,100% of the South Korean companyAngang Wind Power Corporation.

Additionally, the following companies were acquired:

• During 2023, EDPR NA Distributed Generation LLC acquired the 100% stake in a distributed solar generation portfolio, Longroad Solar Portfolio III LLC and SunE Solar V LLC, located in North America for a total of 44MW solar operational projects. The total amount paid for these transactions has been 17,294 thousand Euros. These transactions were framed within the scope of IFRS 3 – Business combinations that has implied the recognition of a provisional goodwill in the amount of 14,511 thousand Euros (see note 19 and 42); • During 2023, EDP Renovables España, S.L.U. has acquired the remaining 53% of the share capital of San Juan de Bargas Eólica, S.L.As a consequence, as at 31December, 2023, EDPR has the 100% of the shares capital in this company.The total amount paid for this transaction has been 13,898 thousand Euros. This transaction was framed within the scope of IFRS 3 – Business combinations achieved in stage. that has implied the recognition of a badwill in the amount of 8,723 thousand Euros (see note 19 and 42); • During 2023 Sunseap Group Pte. Ltd., through its subsidiaries, has acquired the 100% stake in a solar PV portfolio, which holding company is ITP Development Pty. Ltd. and located in Australia for a total of 730MW. These solar projects are in a different development stages. The total amount paid for this transaction has been 13,648 thousand Euros. This transaction was framed within the scope of IFRS 3 – Business combinations that has implied the recognition of a provisional goodwill in the amount of 16,983thousand Euros (see note 19 and 42).

#### **Companies sold and liquidated:**

• In the fourth quarter of 2023, EDPR Group, through its fully owned subsidiary EDP Renováveis Brasil, S.A., sold to Statkraft AS the EDPR's entire stake in the Brazilian companies Central Eólica Boqueirão I, S.A., Central Eólica Boqueirão II, S.A., Jerusalém Holding, S.A. and Central Eólica Jerusalém from I to VI. Total shares proceeds for the transaction amount to 188,940 thousand Euros. This transaction has generated a gain, net of transaction costs, amounting to 67,805 thousand Euros, which has been registered within the "Other income"

caption of the consolidated income statement (see note 9).

{376}------------------------------------------------

• In the third quarter of 2023, EDPR Group, through its fully owned subsidiary EDP Renewa-

bles Europe, S.L.U., sold to Verbund AG the EDPR's entire stake in the Spanish companies Viesgo Europa, S.L.U. and Viesgo Renovables, S.L.U. Total shares proceeds for the transaction amount to 482,681 thousand Euros. This transaction has generated a gain, net of transaction costs, amounting to 184,478 thousand Euros, which has been registered within the "Other income" caption of the consolidated income statement (see note 9).

- In the third quarter of 2023, EDPR Group, through its fully owned subsidiary EDP Renewables Polska, Sp. Z o.o., sold to Orlen S.A. the EDPR's entire stake in the Polish companies EW Dobrzyca, sp. z o.o., Ujazd, Sp. z o.o. andWind Field Wielkopolska, Sp. z o.o. Total shares proceeds for the transaction amount to 346,866 thousand Euros. This transaction has generated a gain, net of transaction costs, amounting to 249,898 thousand Euros, which has been registered within the "Other income" caption of the consolidated income statement (see note 9). In addition the Group has reclassified to the consolidated income statement the accumulated OCI related to the commodities hedges derivatives associated to these companies (-43,052 thousand Euros).
- In the third quarter of 2023, Sunseap Group Pte. Ltd. through its fully subsidiaries sold the EDPR's entire stake in Sunseap Solutions Taiwan Ltd. and Charge+ Pte. Ltd. (49% and 26,25% respectively). Total shares proceeds for the transaction amount to 4,076 thousand Euros. This transaction has generated a gain, net of transaction costs, amounting to 3,198 thousand Euros, which has been registered within the "Joint ventures and associates" caption of the consolidated income statement (see note 20).
- EDPR France Holding, S.A.S. sold the company Eoles Montjean, S.A.S. with no significant impacts in the consolidated financial statements.
- EDP Renewables Europe, S.L.U. sold the company EDPR Investment Hungary, Kft. with no significant impacts in the consolidated financial statements.
- Viesgo Renovables, S.L.U. liquidated the company Viesgo Mantenimiento, S.L.U. with no significant impacts in the consolidated financial statements.
- EDP Renewables Canada Ltd. sold the 50% of the stake in the Canadian company Edgeware BESS Project LP without loss of control and with no significant impacts in the consolidated financial statements.
- Sunseap Group Pte. Ltd. liquidated fully owned companies Jinan Xingsheng Energy Co., Ltd. and Yuzhou Yixing Energy Technology Co., Ltd. with no significant impacts in the consolidated financial statements.
- EDP Renewables Canada Ltd. liquidated the companies fully owned EDP Renewables SASK SE GP Ltd., EDP Renewables SASK SE Limited Partnership, Kennedy Wind Farm GP Ltd. and Kennedy Wind Farm Limited Partnership with no significant impacts in the consolidated financial statements.
- EDP Renewables North America LLC liquidated the companies fully owned Nine Kings Transco LLC, C2 CA WMS Redlands #1693 LLC, C2 IL WMS Bloomington #3459 LLC, C2 IL WMS Skokie #1998 LLC, DC-JD Portfolio - Barrel Roof, DC-JD Portfolio - Flat Roof, DC-JD Portfolio - Green Roof, DC- JD Portfolio - Parking Deck, VA- Green Acres, 2021 DG Agora Sol I LLC, 2021 DG CA Agora Sol I LLC, EDPR Wind Ventures X LLC, 2011 Vento X LLC, McLean Solar 1 LLC, Amsterdam 3 Solar LLC, C2 OH Otsego I LLC, RI Stainless LLC, C2 WM California 2039 LLC, C2 WM California 5884 LLC, New Scotland 5 Solar LLC, SC Heathwood Hall Solar LLC, DC Green Solar LLC, DC PD Solar LLC, NY Gomer SAS LLC, NY Broadway SAS LLC, NY Highland SAS LLC and the joint venture company Nine Kings Wind Farm LLC . with no significant impacts in the consolidated financial statements.

#### **Companies Incorporated:**

• Fengcheng Xingtai New Energy Technology Co., Ltd. • Desarrollos Renovables de Alfajarin, S.L.U. • KS SPV from 81 to 85 Limited • Fransol from 51 to 70, S.A.S. • EDPRNA DG Ridgefield BOE LLC (\*) • Pueblo Norte Solar Park LLC (\*) • Carpenter Wind Farm LLC (\*) • NDIW California RE LLC (\*) • Eighty South Solar Park LLC (\*) • Hobolochitto Solar Park LLC (\*) • Poplarville Solar Park LLC (\*) • Stone North Solar Park LLC (\*) • Twenty North Solar Park LLC (\*) • EDPR Wind Ventures XXIV LLC (\*) • 2023 Vento XXIV LLC (\*) • Central Eólica Itaúna III, S.A. • Central Eólica São Domingos IV, S.A. • Central Eólica São Domingos V, S.A. • Renewables Energy Colombia, S.A.S. • KSD from 41 to 60 UG • EDPR Sicilia Quattro, S.r.l. • Miyagi Motoyoshi Solar GK • Gumisan Wind Power Co., Ltd. • Winding Canyon Wind LLC (\*)

• EDPRNA DG PR Aguadilla LLC (\*)

- Duff Storage LLC (\*)
- Buffalo Lick Solar Park LLC (\*)
- EDPRNA DG Kentucky Development LLC (\*)
- EDPRNA DG Bristol Solar LLC (\*)
- EDPRNA DG Livermore Solar LLC (\*)
- Vientos de Taltal, SpA
- Jiangsu Xingsheng New Energy Technology Co., Ltd.
- Changchun Xingsheng Jinhu Photovoltaic New Energy Co., Ltd.
- Wuhu Xingsheng New Energy Co., Ltd.
- Putian Xingsheng New Energy Co., Ltd.
- Jingmen Xingsheng New Energy Co., Ltd.
- EDPR Bora, Kft.
- EDPR Mistral, Kft.
- EDPR Sirocco, Kft.
- EDPR Siesta, Kft.
- EDPR Pampero, Kft.
- EDPR Zephyr, Kft.
- EDPR Terra, Kft.
- EDPR Silvanus, Kft.
- Serracapriola, S.r.l. • KS SPV 00 Limited

• Trailing Springs Storage LLC (\*)

{377}------------------------------------------------

• Sandrini BESS Storage LLC (\*)

• OH FP Commerce Center LLC

- Longleaf Storage LLC (\*)
- Jericho Solar Park LLC (\*)
- Flatland Storage LLC (\*)
- EDPRNA DG RT Chicago LLC
- EDPRNA DG RT Bedford Park LLC
- EDPRNA DG RT Addison LLC
- EDPRNA DG LS Rancho Cucamonga LLC
- EDPR Solar Ventures VIII LLC
- EDPR Solar Ventures IX LLC
- EDPR Magnolia Holdings LLC (\*)
- EDPR Magnolia DevCo LLC (\*)
- EDPR Dahlia Holdings LLC (\*)
- EDPR Dahlia DevCo LLC (\*)
- Daffodil Grove Storage LLC (\*)
- Crooked Lake Solar III LLC (\*)
- Black River Solar Park LLC (\*)

• 2023 SOL VIII LLC

• 2023 SOL IX LLC

- EDPRNA DG CA Mbusa LLC
- EDPRNA DG CA CLNS Fairfield LLC
- EDPRNA DG Manning Solar LLC
- EDPRNA DG Eaton Solar LLC
- EDPRNA DG Washington Solar LLC
- EDPRNA DG Morton Solar LLC
- EDPRNA DG OH Massie Solar LLC
- EDPRNA DG OH Continental Solar LLC
- Lumberjack Storage LLC (\*)
- South Branch BESS Project GP Ltd. (\*)
- South Branch BESS Project Limited Partnership (\*)
- South Branch BESS Project Limited Partnership (\*)

\* EDPR Group holds, through its subsidiary EDPR NA and EDP Renewables Canada, a set of subsidiaries legally established in the United States and Canada without share capital and that, as at 31 December 2023, do not have any assets, liabilities, or any operating activity.

#### **Others:**

- As a consequence of the legal entity restructuring in Singapore, the following entities have been merged with other EDPR companies in the country: Sunseap Leasing Beta Pte. Ltd., Sunseap Solutions Pte. Ltd., Sunseap Vpower Pte. Ltd., Uper Renewable Energy (Singapore) Pte. Ltd., Sunseap Solarnova Pte. Ltd., Sunseap Commercial Holdings Pte. Ltd., Sunseap Leasing Alpha Pte. Ltd., Sunseap Vietnam Pte. Ltd., Sunseap Commercial & Industrial Assets (S.E.A.) Holdings Pte. Ltd., Sunseap Vietnam Beta Pte. Ltd., Sunseap Vietnam Gamma Pte. Ltd., Sunseap Philippines Solar Holdings Pte. Ltd., Sunseap SolarNova 4 Beta Holdings Pte. Ltd., Solarland Alpha Holdings Pte. Ltd. and Solar PV Exchange Pte. Ltd.
- Merger of the company EDPR PT -. Promoção e Operação, S.A. into the company EDP Renewables SGPS, S.A. with no impacts in the consolidated financial statements.
- During the second quarter, Viesgo Renovables, S.L.U sold the 36.23% of the interest in the share capital that hold of Geólica Magallón, S.L. As a consequence of this transaction, EDPR has registered a loss amounted to 10,566 thousand Euros in the caption Joint ventures and associates in theconsolidated income statements (see note 20).
- Sale of the 49% of the stake hold by EDPR in Todae Solar Pty. Ltd. with no impacts in the consolidated financial statements.

{378}------------------------------------------------

07. Revenues

Revenues are analysed as follows:

| THOUSAND EUROS                                                       | 31 DEC 2023 | 31 DEC 2022 |
|----------------------------------------------------------------------|-------------|-------------|
| REVENUES BY BUSINESS AND GEOGRAPHY                                   |             |             |
| Electricity in Europe                                                | 1,013,520   | 1,269,806   |
| Electricity in North America                                         | 699,330     | 685,211     |
| Electricity in LATAM                                                 | 77,570      | 52,793      |
| Electricity in APAC                                                  | 114,111     | 79,424      |
|                                                                      | 1,904,531   | 2,087,235   |
| Other revenues                                                       | 54,640      | 2,425       |
|                                                                      | 1,959,171   | 2,089,660   |
| Services rendered                                                    | 57,081      | 55,227      |
| Changes in inventories and cost of raw material and consumables used |             |             |
| Cost of consumables used and changes in inventories                  | -8,463      | -6,906      |
| Total Revenues                                                       | 2,007,789   | 2,137,981   |

The breakdown of revenues by segment is presented in the segmental reporting (see annex I).

Decrease in electricity revenues is, mainly, explained by the stabilisation of energy prices after the high volatility in 2022 as a consequence of the conflict in Eastern Europe which affected the world economic situation.

Other revenues include mainly settlements of energy trading derivative and hedge which have been affected as well by the decrease of energy prices.

#### 08. Income from institutional partnerships in North America

Income from institutional partnership in North America in the amount of 231,055 thousand Euros (31 December 2022: 233,505 thousand Euros), includes revenue recognition related to production tax credits (PTC), investments tax credits (ITC) and other tax benefits, mostly from accelerated tax depreciation related to projects Sol I, II and V, Vento I to V, Vento IX, Vento XI to XVI, Vento XVIII and Vento XXI to XXIII (see note 33).

#### 09. Other income

Other income is analysed as follows:

| THOUSAND EUROS                                                       | 31 DEC 2023 | 31 DEC 2022 |
|----------------------------------------------------------------------|-------------|-------------|
| Amortisation of deferred income related to power purchase agreements | 807         | 1,041       |
| Contract and insurance compensations                                 | 31,289      | 60,789      |
| Gains on business combination                                        | 8,807       | 578         |
| Gains on disposals                                                   | 511,107     | 411,372     |
| Other income                                                         | 31,193      | 52,246      |
|                                                                      | 583,203     | 526,026     |

As at 31 December 2023, the caption Gain on business combination mainly includes the impact of the business combination achieved in stages of the company San Juan de Bargas Eólica, S.L. (see note 42).

As at 31 December 2023, the caption Gains on disposals essentially includes:

- Gain amounting to 67,805 thousand Euros resulting from the sale of the entire stake in the Brazilian companies Central Eólica Boqueirão I, S.A., Central Eólica Boqueirão II, S.A., Jerusalém Holding, S.A. and Central Eólica Jerusalém from I to VI (see note 6).
- Gain amounting to 184,478 thousand Euros resulting from the sale of the entire stake in the Spanish companies Viesgo Europa, S.L.U. and Viesgo Renovables, S.L.U. (see note 6).
- Gain amounting to 249,898 thousand Euros resulting from the sale of the entire stake in the Polish companies EW Dobrzyca, sp. z o.o., Ujazd, Sp. z o.o., Wind Field Wielkopolska, Sp. z o.o. (see note 6).

As at 31 December 2022, the caption Gains on disposals essentially included:

• Gain amounting to 51,795 thousand Euros resulting from the sale of the entire stake in the Polish companies Winfan, Sp. z o.o., Lichnowy Windfarm, Sp. z o.o., Kowalewo Wind, Sp. z o.o., EWP European Wind Power Krasin, Sp. z o.o., Nowa Energia 1, Sp. z o.o. and Farma Wiatrowa Bogoria, Sp. z o.o. (see note 6).

{379}------------------------------------------------

• Gain amounting to 42,596 thousand Euros resulting from the sale of the entire stake in the

Spanish companies Eólica La Janda, S.L. y Parc Eòlic Serra Voltorera, S.L. (see note 6).

- Gain amounting to 168,568 thousand Euros resulting from the sale of the entire stake in the Italian companies WinCap, S.r.l. TACA Wind, S.r.l., San Mauro, S.r.l., Conza Energia, S.r.l., Lucus Power, S.r.l, Breva Wind, S.r.l. and Aria del Vento S.R.L. (see note 6).
- Gain amounting to 119,085 thousand Euros resulting from the sale of the entire stake in the Brazilian companies Aventura Holding, S.A. and its subsidiaries (Central Eólica Aventura II, S.A., Central Eólica Aventura III, S.A., Central Eólica Aventura IV, S.A., Central Eólica Aventura V, S.A.) and SRMN Holding, S.A. and its subsidiaries ( Central Eólica SRMN I, S.A., Central Eólica SRMN II, S.A, Central Eólica SRMN III, S.A., Central Eólica SRMN IV, S.A., Central Eólica SRMN V, S.A. (see note 6).
- Gain amounting to 15,791 thousand Euros resulting from the sale of the entire stake in the North American company Meadow Lake Solar Park LLC (see note 6).
- Income amounting to 12,492 thousand Euros resulting from the lower cost to pay related to the project Indiana Crossroads Wind Farm LLC (see note 35).

As at 31 December 2022, the caption other income mainly included:

- An amount of 739 thousand Euros which refers to changes in the fair value of the variable price related to the sale in 2018 to Sumitomo Corporation and in 2020 to OW Offshore SL of shares in the companies Éoliennes en Mer Dieppe -Le Tréport, SAS and Éoliennes en Mer Îles d'Yeu et de Noirmoutier, SAS (see note 24);
- An amount of 748 thousand Euros which refers to changes in the fair value of the variable price, related to the sale in 2020 to OW Offshore S.L. of Mayflower Wind Energy LLC;
- An amount of 8,678 thousand Euros which refers to the success fee received from OW related to the stake of Moray West Holdings Limited sold in 2019;
- Price adjustment amounting to 12,428 thousand Euros according to the corresponding agreements in the transaction of selling 49% of EDPR Portugal portfolio of companies to CTG that took place in 2013;
- Price adjustment amounting to 5,633 thousand Euros according to the corresponding agreements in the transaction of selling 49% of EDP Renewables Polska SP.Zo.o portfolio of companies to CTG that took place in 2016;
- Management and cost reinvoiced to equity accounted projects in the amount of 5,403 thousand Euros;

As at 31 December 2023 and 2022 the caption contract and insurance compensations includes, mainly, the liquidity damage compensation for certain projects under construction in North America.

# 10. Supplies and services

This caption is analysed as follows:

| THOUSAND EUROS                         | 31 DEC 2023 | 31 DEC 2022 |
|----------------------------------------|-------------|-------------|
| Rents and leases                       | 33,661      | 38,472      |
| Maintenance and repairs                | 247,623     | 225,819     |
| SPECIALISED WORKS:                     |             |             |
| - IT Services, legal and advisory fees | 15,605      | 18,225      |
| - Shared services                      | 20,772      | 22,854      |
| - Other services                       | 76,827      | 71,302      |
| Other supplies and services            | 80,037      | 62,302      |
|                                        | 474,525     | 438,974     |

The caption Rents and leases mainly includes costs for variable lease payments and rental costs for short-term leases.

The caption Other supplies and services mainly includes in the years ended 31 December 2023 and 2022, insurances, travels and accommodations, advertising and other outsourced services.

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11. Personnel costs and employee benefits

Personnel costs and employee benefits is analysed as follows:

| THOUSAND EUROS                                   | 31 DEC 2023 | 31 DEC 2022 |
|--------------------------------------------------|-------------|-------------|
| PERSONNEL COSTS                                  |             |             |
| Board remuneration (see note 39)                 | 785         | 838         |
| Remunerations                                    | 223,841     | 194,855     |
| Social charges on remunerations                  | 35,462      | 30,978      |
| Employee's variable remuneration                 | 45,431      | 52,985      |
| Other costs                                      | 7,268       | 7,255       |
| Own work capitalised (see note 16)               | -97,445     | -72,666     |
|                                                  | 215,342     | 214,245     |
| EMPLOYEE BENEFITS                                |             |             |
| Costs with pension plans                         | 9,369       | 8,985       |
| Costs with medical care plans and other benefits | 19,355      | 17,381      |
|                                                  | 28,724      | 26,366      |
|                                                  | 244,066     | 240,611     |

As at 31 December 2023, Costs with pension plans relates essentially to defined contribution plans in the amount of 9,212 thousand Euros (31 December 2022: 8,848 thousand Euros) and defined benefits plans amounting to 10 thousand Euros (31 December 2022: 61 thousand Euros).

The average breakdown by management positions and professional category of the permanent staff during 2023 and 2022 is as follows:

|                 | 2023  | 2022  |
|-----------------|-------|-------|
| Senior Managers | 150   | 350   |
| Managers        | 456   | 271   |
| Specialists     | 1,952 | 1,661 |
| Technicians     | 518   | 450   |
|                 | 3,076 | 2,732 |

During 2023, EDPR has adjusted the methodology for classifying the employees within categories, identifying categories throughout all the segments in order to unify the criteria on a group level. The breakdown by gender of the permanent staff during 2023and 2022 with the new system is as follows:

|                 | 31 DEC 2023 |        | 31 DEC 2022 |        |
|-----------------|-------------|--------|-------------|--------|
|                 | MALE        | FEMALE | MALE        | FEMALE |
| Senior Managers | 114         | 37     | 117         | 38     |
| Managers        | 283         | 115    | 386         | 155    |
| Specialists     | 1,228       | 803    | 1,103       | 719    |
| Technicians     | 369         | 92     | 473         | 95     |
|                 | 1,994       | 1,047  | 2,079       | 1,007  |

The breakdown by gender of the permanent staff during 2022 with the previous methodology is as follows:

|                 | MALE  | FEMALE | 31 DEC 2022 |
|-----------------|-------|--------|-------------|
|                 | MALE  | FEMALE |             |
| Senior Managers | 287   | 94     |             |
| Managers        | 209   | 105    |             |
| Specialists     | 1,155 | 709    |             |
| Technicians     | 428   | 99     |             |
|                 | 2,079 | 1,007  |             |

The increase in the average number of employees mainly is a consequence of the growth within the platforms acquired in 2022, the Sunseap Group and Kronos Group.

In the companies in Spain where there is a legal obligation to have people with disabilities in the workforce to comply with the LISMI due to the number of employees, EDPR has opted for the exceptionality measures provided by the Law. The Company is able to comply with the quota that

{381}------------------------------------------------

legally applies to it through contracts of goods or services with companies that promote the hiring

of disabled people and also through donations.

EDPR's companies under this obligation are covered with the exceptionality measures since March 2021 until 2023. For the rest of EDPR countries, the approach is the same. In 2020, as part of EDPR's global strategy, a Diversity and Equality Committee was set up with the participation of the Management Team, whose objective is to integrate the commitment to this issue within the company. One of the objectives of this Committee is focused on the group of people with disabilities as one of the most important topics to be developed.

#### 12. Other expenses

Other expenses are analysed as follows:

| THOUSAND EUROS         | 31 DEC 2023 | 31 DEC 2022 |
|------------------------|-------------|-------------|
| Taxes                  | 152,117     | 142,058     |
| Losses on fixed assets | 24,421      | 19,895      |
| Other costs and losses | 105,852     | 75,816      |
|                        | 282,390     | 237,769     |

The caption Taxes, as at 31 December 2023 includes other direct and indirect taxes. The impact of extraordinary taxes on profit incurred in geographies such as Romania or Italy during 2022 has have no significant impact due to the stabilisation of energy prices. This effect has been compensated by the new Regulatory Framework established in Poland for which in October 2022, an Act on Emergency measures was released aimed to counteract the effects on consumers of high energy prices by introducing a clawback mechanism.

In December 2022, a new tax for energy operators was approved in Spain. This tax will apply in 2023 and 2024 (based on 2022 and 2023 turnover) to energy operators with a turnover over 1 billion Euros in 2019. Tax would be charged at a 1.2% rate on the net amount of last Fiscal Year's turnover (this will include the tax groups income derived from its activities carried out in Spain, excluding the income derived from regulated activities). The impact for the period ended 31 December 2023 is 1,458 thousand Euros.

Losses on fixed assets as at 31 December 2023 and 2022 mainly refers to abandonment of projects in Europe and North America.

Other costs and losses include as at 31 December 2023 and 2022, mainly, operating costs associated with compensations and availability bonus to O&M suppliers.

#### 13. Amortisation and impairment

This caption is analysed as follows:

| THOUSAND EUROS                                          | 31 DEC 2023 | 31 DEC 2022 |
|---------------------------------------------------------|-------------|-------------|
| PROPERTY, PLANT AND EQUIPMENT                           |             |             |
| Buildings and other constructions                       | 476         | 497         |
| Plant and machinery                                     | 670,278     | 641,234     |
| Other                                                   | 9,403       | 6,614       |
| Impairment loss (see note 16 and 19)                    | 146,917     | 54,432      |
| Impairment loss from assets held for sale (see note 27) | 39,866      | -           |
|                                                         | 866,940     | 702,777     |
| RIGHT-OF-USE ASSETS                                     |             |             |
| Right-of-use assets                                     | 51,314      | 44,067      |
| Intangible assets                                       |             |             |
| Industrial property, other rights and other intangibles | 43,107      | 23,900      |
|                                                         | 961,361     | 770,744     |
| Impairment of goodwill                                  | -           | -           |
|                                                         | -           | -           |
|                                                         | -           |             |
| Amortisation of deferred income (Government grants)     | -17,700     | -19,433     |

Right of use assets includes depreciation of IFRS 16 related assets.

Amortisation of deferred income (Government grants) refers to grants for fixed assets received by EDPR NA subgroup under the American Recovery and Reinvestment Act promoted by the United States that are amortised through the recognition of revenue in the income statement over the

useful life of the related assets (see note 34).

{382}------------------------------------------------

14. Financial income and financial expenses

Financial income and financial expenses are analysed as follows:

| THOUSAND EUROS                    | 31 DEC 2023 | 31 DEC 2022 |
|-----------------------------------|-------------|-------------|
| FINANCIAL INCOME                  |             |             |
| Interest income                   | 64,148      | 37,352      |
| Derivative financial instruments: |             |             |
| Interest                          | 42,316      | 16,893      |
| Fair value                        | 233,061     | 340,608     |
| Foreign exchange gains            | 338,925     | 284,643     |
| Other financial income            | -           | 1,136       |
|                                   | 678,450     | 680,632     |
| FINANCIAL EXPENSES                |             |             |
| Interest expense                  | 307,048     | 225,201     |
| Derivative financial instruments: |             |             |
| Interest                          | 103,063     | 84,342      |
| Fair value                        | 392,857     | 265,177     |
| Foreign exchange losses           | 171,246     | 434,499     |
| Own work capitalised              | -131,711    | -41,342     |
| Unwinding                         | 127,049     | 136,296     |
| Other financial expenses          | 22,110      | 25,561      |
|                                   | 991,662     | 1,129,734   |
| Net financial income / (expenses) | -313,212    | -449 102    |

Derivative financial instruments include interest liquidations on the derivative financial instrument established between EDPR and EDP - Energias de Portugal, S.A. (see notes 24, 35 and 37). The variation in the captions fair value is mainly due to the stabilisation of the exchange rates after the effects suffered last year in relation to the conflict in Eastern Europe which affected the world economic situation.

The increase of interest income is related to interest from interest from loans granted to Joint Ventures and Associates as well as from deposits formalized in Brazil.

The variation in foreign exchange gains and loses is related to the financing in foreign currency, mainly in US Dollars, Singaporean Dolars and Colombian pesos.

In accordance with the corresponding accounting policy, the borrowing costs (interest) capitalised in tangible fixed assets in progress as at 31 December 2023 amounted to 131,711 thousand Euros (at 31 December 2022 amounted to 41,342 thousand Euros) (see note 16), which are included under Own work capitalised (financial interest). The interest rates used for this capitalisation vary in accordance with the related loans.

Interest expense refers to interest on loans bearing interest at contracted and market rates.

Unwinding expenses refers essentially to: (i) the implied return in institutional partnerships in North America amounting to 81,058 thousand Euros (31 December 2022: 96,955 thousand Euros) (see note 33); (ii) financial update of lease liabilities related to IFRS 16 in the amount of 34,706thousand Euros (31 December 2022: 33,612 thousand Euros) (see note 35) (iii) financial update of provisions for dismantling and decommissioning of wind and solar farms in the amount of 11,270 thousand Euros (31 December 2022: 5,729 thousand Euros) (see note 32); and (iv) others for an amount of 15 thousand Euros

## 15. Income tax expense and Extraordinary Contribution to the Energy Sector (CESE)

The following note includes an analysis on the reconciliation between the theoretical and the effective income tax rate applicable at the level of the EDPR Group, on a consolidated basis. In general terms, the analysis on the reconciliation between the theoretical and the effective income tax rate aims at quantifying the impact of the income tax, recognised in the income statement, which includes both current and deferred tax. The note also includes an analysis on the extraordinary contribution to the energy sector (CESE).

As the EDPR Group prepares and discloses its financial statements in accordance with IFRS, an alignment between the accounting of income tax expense or income and the corresponding cash flow is not mandatory. Accordingly, this analysis does not represent the income tax paid or received by the EDPR Group for the corresponding reporting period.

{383}------------------------------------------------

Notwithstanding the above, the income tax paid by the EDPR Group on a country-by-country

basis is disclosed in the Annual Report, which is available on EDPR's website (www.edpr.com). This website also includes the details on the general principles concerning EDPR Group's mission and tax policy and the overall tax contribution to public finance in 2023.

#### **Main features of the tax systems of the countries in which the EDP Renewables Group operates**

The statutory corporate income tax rates applicable in the main countries in which EDP Renewables Group operates are as follows:

EDP Renováveis S.A. and its subsidiaries file individual tax returns in accordance with the applicable tax legislation. Nevertheless, the company and the majority of its Spanish subsidiaries are taxed under the tax consolidation group regime foreseen in the Spanish law. EDP -Energias de Portugal, S.A. - Sucursal en España (Branch)(which is not consolidated under EDPR consolidated financial statement) is the dominant company of this Group, which includes other subsidiaries that are not within the renewables energy industry.

As per the applicable legislation, in general terms, the corporate income tax for a fiscal year may be subject to review and reassessment by the tax authorities during a limited period of time. In Spain and Portugal, this period is 4 years, or, if tax losses or credits have been used, the number of years that such tax losses or credits may be carried forward. The general period in the USA is 3 years, and in Brazil is 5 years. In other key jurisdictions, the statute of limitation period ranges between 2 and 12 years.

Tax losses generated in each year are also subject to the tax authorities' review and reassessment and may be carried forward and set off against income over a time period and limits established in each jurisdiction. In Spain, Portugal, USA, Brazil and the Netherlands, tax losses may be carried forward indefinitely. Moreover, in the Netherlands the tax losses of a given year may be used to recover current tax of the previous year with limitations. However, the deduction of tax losses in Spain, Portugal, the Netherlands, USA and Brazil may be limited to a percentage of the taxable income of each period or is subject to other limitations.

EDPR Group companies may, in accordance with the law, benefit from certain tax benefits or incentives in specific conditions, namely the Production Tax Credits in North America, which represent an extra source of revenue per unit of electricity, over the first 10 years of the asset's life. Wind and solar facilities that achieve commercial operations by 2022 or later qualify for the application of the Production Tax Credits (\$2.75/KWh being adjusted for inflation in subsequent years). Alternatively, the EDP Group companies can, instead of the production tax credit, choose to benefit from the Investment Tax Credit which avails solar and wind projects to a credit based upon its capital expenditures. This credit amount equates to 30% for projects that achieve commercial operations by 2022 or later. Additionally, this credit can increase to 40% or 50% dependent on the 1) the use of domestic made equipment and/or 2) locating a project in an economically depressed area or an area that once had a traditional energy facility.Transfer pricing legislation is duly complied with by EDP Renováveis Group. Its policy follows the rules, guidelines and best international practices applicable across all geographies where the Group operates, in due compliance with the spirit and letter of the Law.

During 2023, the EDPR Group had various tax audits regarding different topics. In May 2022, the

commencement of a general tax audit was notified to the Spanish tax consolidation group headed

| COUNTRY                  | 31 DEC 2023 | 31 DEC 2022 |
|--------------------------|-------------|-------------|
| EUROPE                   |             |             |
| France                   | 25%         | 25%         |
| Greece                   | 22%         | 22%         |
| Italy                    | 24% - 27.9% | 24% - 28.8% |
| Poland                   | 19%         | 19%         |
| Portugal                 | 21% - 31.5% | 21% - 31.5% |
| Romania                  | 16%         | 16%         |
| Spain                    | 25%         | 25%         |
| NORTH AMERICA            |             |             |
| Mexico                   | 30%         | 30%         |
| United States of America | 24.91%      | 24.91%      |
| Canada                   | 23% - 26.5% | 26.5%       |
| LATAM                    |             |             |
| Colombia                 | 35%         | 35%         |
| Brazil                   | 34%         | 34%         |
| APAC                     |             |             |
| Singapore                | 17%         | 17%         |
| Vietnam                  | 20%         | 20%         |

{384}------------------------------------------------

by EDP - Energias de Portugal, S.A. - Sucursal en España (Branch), whose scope mainly covers

fiscal years 2017 - 2019. This tax audit is currently close to finalise and EDPR does not expect any liability exceeding the one already recorded in the companies' accounts at December, 2023.

#### **Changes in the tax law with relevance to the EDP Renewables Group in 2023**

As from 2023, the statutory CIT rates applicable in the following relevant geographies have been modified as follows:

- In the United Kingdom, the general CIT rate has raised to 25% from April 2023, onwards. The former 19% still applies only for profits under GBP 50,000.
- In Korea, a reduction of 1% has been enacted for the CIT rate applicable for each bracket. Namely, from January 2023 onwards, 9% on income up to KRW 200 million; 19% between KRW 200 million and KRW 20,000 million; 21% between KRW 20,000 million and KRW 300,000 million; 24% on excess.

Directive 2022/2523, of 22 December 2022 (Pillar 2 Directive)

On 22 December 2022, European Union adopted Directive 2022/2523 (Pillar 2), on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union. These rules aim to ensure that multinational enterprises that operate inEU pay an effective minimum rate of tax of 15% on their profits, regardless of the country in which those profits are generated. The directive should have been transposed by Member States by 31 December 2023.

Taking into account the preliminary analysis carried out and EDP and EDPR Group´s consolidated revenues, it is expected that the Group will be subject to this tax regulation. Spain did not comply with the transposition deadlines, although it is expected that such transposition occurs during 2024. However, assuming that the transposition will strictly follow the Directive, no top-up tax is expected to be paid by EDP or EDPR Group.

In the countries where EDPR Group carries out its activities and where the Pillar 2 rules were already enacted, we expect the safe harbours will apply and therefore no additional tax will be due.

Windfall / extra-profit taxes

During the course of 2023 several European countries maintained the so-called windfall taxes / extra-profit taxes, inclusively beyond EU recommendation to terminate the imposition of those tributes from July 2023 onwards. In what concerns to EDPR, as of December 31, 2023, these taxes mainly impact Spain, Romania and Poland. For additional information on the nature of these taxes see Note 1 - Regulatory Framework.

As per described in the referred Note, the European Union Council Regulation 2022/1854 of 6 October 2022 (Regulation) consubstantiated on a European Union wide emergency intervention to address high energy prices. While EDPR fully acknowledges that the existing emergency situation required for extraordinary measures, the Company also considers that (i) the principle of not taxing unrealized extra-profits should always prevail and (ii) the compatibility of those measures with the existing, legitimately implemented, risk management strategies, needs to be ensured. These requirements are necessary to avoid harming producers that do not actually benefit from the current high electricity prices volatility, due to having hedged, individually or at Group level, their revenues, against fluctuations in the wholesale electricity market. These financial hedges follow the Company's established low risk strategy to secure long term revenues and to remove electricity prices volatility on the company's earnings.

Considering the above EDPR is pursuing the necessary legal actions at its disposal in order to challenge the legality of these measures.

#### **Corporate income tax provision.**

This caption is analysed as follows:

| THOUSAND EUROS     | 31 DEC 2023 | 31 DEC 2022 |
|--------------------|-------------|-------------|
| Current tax        | -44,119     | -233,540    |
| Deferred tax       | -54,813     | 91,315      |
| Income tax expense | -98,932     | -142,225    |

The effective income tax rate as at 31 December, 2023 and 2022, is analysed as follows:

| THOUSAND EUROS            | 31 DEC 2023 | 31 DEC 2022 |
|---------------------------|-------------|-------------|
| Profit before tax         | 561,331     | 962,402     |
| Income tax expense        | -98,932     | -142,225    |
| Effective Income Tax Rate | 17.62%      | 14.78%      |

The difference between the theoretical and the effective income tax expense, results from the

application of the law provisions in the determination of the tax base, as demonstrated below.

{385}------------------------------------------------

The reconciliation between the nominal and the effective income tax rate for the Group during the

years ended 31 December, 2023 and 2022, is analysed as follows:

| THOUSAND EUROS                                                           | 31 DEC 2023 | 31 DEC 2022 |
|--------------------------------------------------------------------------|-------------|-------------|
| Profit before taxes                                                      | 561,331     | 962,402     |
| Nominal income tax rate*                                                 | 25.00%      | 25.00%      |
| Theoretical income tax expense                                           | -140,333    | -240,601    |
| Fiscal revaluations, amortization, depreciation and provisions           | -62,140     | -15,098     |
| Tax losses and tax credits                                               | -10,434     | 8,576       |
| Financial investments in associates                                      | 16,293      | 21,851      |
| Difference between tax and accounting gains and losses                   | 91,881      | 76,986      |
| Non-deductible windfall taxes                                            | -           | -35,732     |
| Effect of tax rates in foreign jurisdictions and CIT rate changes        | 38,381      | -7,823      |
| Taxable differences attributable to non-controlling interests<br>(USA)   | 14,473      | 17,926      |
| Others                                                                   | -47,053     | 31,690      |
| Effective income tax expense as per the Consolidated Income<br>Statement | -98,932     | -142,225    |

\* Statutory corporate income tax rate applicable in Spain

The main captions are the following:

- The caption Fiscal revaluations, amortization, depreciation and provisions mainly includes the effect of non-deductible impairments recognized over property, plant and equipment in Colombia.
- The caption Difference between tax and accounting gains and losses refers to changes in the Group's perimeter not subject to income taxes.
- The caption Non-deductible windfall taxes includes the effect of the Italian and Polish windfall taxes, enacted in 2022, as those taxes are not deductible for CIT purposes.
- The caption Effect of tax rates in foreign jurisdictions and CIT rate changes mainly includes the difference between the nominal statutory rate (reference rate for effective income tax reconciliation purposes) and the tax rates applicable in each EDPR jurisdiction.
- The caption Taxable differences attributable to non-controlling interests (USA) essentially includes the effect inherent to the attribution of taxable income to non-controllable interests in the subgroup EDPR NA, as determined by the tax legislation of that geography.
- The caption Others mainly refers to the adjustment for inflation and exchange rate in Mexico.

#### **Extraordinary Contribution to the Energy Sector (CESE)**

Law 83-C/2013, of the State Budget 2014, approved by the Portuguese Government on 31 December 2013, introduced an extraordinary contribution applicable to the energy sector (CESE), with the objective of financing mechanisms that promote the energy sector systemic sustainability, through the establishment of a fund which aims to contribute for the reduction of tariff debt and to finance social and environmental policies in the energy sector. This contribution focuses generally on the economic operators that develop the following activities: (i) generation, transportation or distribution of electricity; (ii) transportation, distribution, storage or wholesale supply of natural gas; and (iii) refining, treatment, storage, transportation, distribution and wholesale supply of crude oil and oil products.

CESE is calculated based on the companies' net assets as at 1 January, which comply, cumulatively, to: (i) property, plant and equipment; (ii) intangible assets, except industrial property elements; and (iii) financial assets assigned to concessions or licensed activities. In the case of regulated activities, CESE focuses on the value of regulated assets if it is higher than the value of those assets.

As at 31 December 2023, EDPR Group recorded in caption Tax Liabilities a fair value for this contribution of 2,964 thousand Euros.

{386}------------------------------------------------

16. Property, plant and equipment

This caption is analysed as follows:

| THOUSAND EUROS                                 | 31 DEC 2023 | 31 DEC 2022 |
|------------------------------------------------|-------------|-------------|
| COST                                           |             |             |
| Land and natural resources                     | 55,130      | 50,481      |
| Buildings and other constructions              | 17,615      | 30,925      |
| Plant and machinery:                           |             |             |
| - Renewables generation                        | 21,500,825  | 19,969,929  |
| - Other plant and machinery                    | 10,926      | 9,992       |
| Other                                          | 105,925     | 87,417      |
| Assets under construction                      | 6,343,435   | 4,870,215   |
|                                                | 28,033,856  | 25,018,959  |
| ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES |             |             |
| Depreciation charge                            | -680,157    | -648,345    |
| Accumulated depreciation in previous years     | -6,722,131  | -6,280,429  |
| Impairment losses                              | -146,917    | -54,432     |
| Impairment losses in previous years            | -232,487    | -144,899    |
|                                                | -7,781,692  | -7,128,105  |
| Carrying amount                                | 20,252,164  | 17,890,854  |

The movement in Property, plant and equipment for the period ended 31 December 2023, is analysed as follows:

| THOUSAND<br>EUROS                       | BALANCE<br>AT 01 JAN | ADDITIONS | DISPOSALS/<br>WRITE-OFF | TRANSFERS  | EXCHANGE<br>DIFFERENCES | CHANGES IN<br>PERIMETER/<br>OTHER | BALANCE<br>AT 31 DEC |
|-----------------------------------------|----------------------|-----------|-------------------------|------------|-------------------------|-----------------------------------|----------------------|
| COST                                    |                      |           |                         |            |                         |                                   |                      |
| Land and natural<br>resources           | 50,481               | 3,308     | -199                    | -          | -755                    | 2,295                             | 55,130               |
| Buildings and<br>other<br>constructions | 30,925               | 1,068     | -93                     | -          | -713                    | -13,572                           | 17,615               |
| Plant and<br>machinery                  | 19,979,921           | 175,334   | -36,892                 | 2,905,681  | -350,929                | -1,161,364                        | 21,511,751           |
| Other                                   | 87,417               | 4,840     | -1,251                  | 14,283     | -1,346                  | 1,982                             | 105,925              |
| Assets under<br>construction            | 4,870,215            | 4,376,031 | -19,299                 | -2,919,289 | 41,280                  | -5,503                            | 6,343,435            |
|                                         | 25,018,959           | 4,560,581 | -57,734                 | 675        | -312,463                | -1,176,162                        | 28,033,856           |

| THOUSAND<br>EUROS                              | BALANCE<br>AT 01 JAN | CHARGE FOR<br>THE PERIOD | IMPAIRMENT<br>LOSSES/<br>REVERSES | DISPOSALS/<br>WRITE-OFF | EXCHANGE<br>DIFFERENCES | CHANGES IN<br>PERIMETER /<br>OTHER | BALANCE<br>AT 31 DEC |
|------------------------------------------------|----------------------|--------------------------|-----------------------------------|-------------------------|-------------------------|------------------------------------|----------------------|
| ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES |                      |                          |                                   |                         |                         |                                    |                      |
| Buildings and<br>other<br>constructions        | 14,638               | 476                      | -                                 | -65                     | -449                    | -625                               | 13,975               |
| Plant and<br>machinery                         | 6,932,514            | 670,278                  | 2,990                             | -35,464                 | -124,325                | -45,557                            | 7,400,436            |
| Assets under<br>construction                   | 122,987              | -                        | 143,927                           | -                       | 32,844                  | -                                  | 299,758              |
| Other                                          | 57,966               | 9,403                    | -                                 | -753                    | -1,164                  | 2,071                              | 67,523               |
|                                                | 7,128,105            | 680,157                  | 146,917                           | -36,282                 | -93,094                 | -44,111                            | 7,781,692            |

Plant and machinery include the cost of the wind farms and solar plants under operation.

Additions includes, the investment in wind farms and solar plants under development and construction mainly in the United States of America, Brazil, Italy, Spain, Canada, Poland, Chile, Colombia, Portugal, Greece, Singapore, France, China, Mexico, United Kingdom, Taiwan, Netherlands, Japan and Hungary.

This caption also includes the allocation of the acquisition cost of certain companies due to the nature of the transactions, the type of assets and the initial stage of completion of the projects acquired (see note 6). The most significant ones, including additions from their acquisition, are:

• North American companies Cheboygan Solar Farm LLC and Three Lakes Solar LLC for a total amount of 39,883 thousand Euros;

{387}------------------------------------------------

• North American companies CF OH Solar St RT 118, Ansonia LLC, CF OH Solar St RT 118,

Rossburg LLC, CF OH Solar SR 309, Kenton LLC, CF OH Solar County Hwy 58, Upper Sandusky LLC, CF OH Solar Lincoln Hwy, Bucyrus1 LLC, CF OH Solar Rd N, Pandora LLC and CF OH Solar SR 81 Ada LLC, Generate USF Livermore LLCand CF OH Solar N Dixie Hwy Lima LLC, for a total amount of 5,498 thousand Euros;

- Italian Companies Solar Italy XXIII, S.r.l., Wind Energy Castelluccio, Wind Energy Monte Cavallo, S.r.l. and Winderg Valleverde, S.r.l. for a total amount of 79,098 thousand Euros;
- Portuguese company SPEE Sociedade Produção Energia Eólica, S.A. for a total amount of 17,165 thousand Euros;
- Spanish companies Global Pracima, S.L., Jul Solar, S.L., Agos Fotovoltaicas, S.L. andCorona Fotovoltaicas, S.L. for a total amount of 16,209 thousand Euros;
- Vietnamese companies HTD Vietnam Investment Development Co., Ltd. and HTT Binh Duong Investment Development Co., Ltd., 100%, Lam Gia Luat Co., Ltd. and Dai Linh Phat Co., Ltd. for a total amount of 4,166 thousand Euros;
- British companies Balnacraig Battery Storage Limited and Harrington Franklin Limited for a total amount of 16,269 thousand Euros;

In addition, the caption additions increases due to dismantling cost associated with the projects that have reached COD during the year ended 31 December 2023 for a total amount of 25,495 thousand Euros (see note 32).

Transfers from assets under construction into operation refer to wind and solar farms that became operational in the United States of America, Brazil, Poland, Canada, Mexico, Portugal, Spain, Italy, Singapore, France, Greece, Taiwan and China.

Write-offs mainly refer to abandonment of projects in Europe and North America. This amount is recorded under the caption Losses on fixed assets in the consolidated income statement (see note 12).

Exchange differences are mainly generated by the variation in the exchange rate of the US Dollar, Mexican Peso, Canadian Dollar, Colombian COPS, Singaporean Dollar, Polish zloty and Brazilian Real.

The caption Changes in perimeter/Other mainly includes:

- Increase amounting to 48,977 thousand Euros related to the acquisition in 2023 of the new Longroad portfolio, a distributed solar generation business in the United States of America (see note 6);
- Increase amounting to 43,374 thousand Euros related to the acquisition and the adjustment in the provisional purchase price allocation of the remaining stake in San Juan de Bargas Eólica, S.L., a Wind generation business in the Spain (see notes 6 and 42);
- Net decrease amounting to 486,111 thousand Euros related to the reclassification to held for sale of certain portfolio in North America (see note 27);
- Decrease amounting to 205,842 thousand Euros related to the sale of certain portfolio in Poland (see note 6);
- Decrease amounting to 242,213 thousand Euros related to the sale of certain portfolio in Brazil (see note 6);
- Decrease amounting to 260,571 thousand Euros related to the sale of certain portfolio in Spain (see note 6).

The Company has taken out an insurance global program to cover risks relating to property, plant and equipment. The coverage provided by these policies is considered to be sufficient.

Loans with credit institutions formalized as 'Project Finance' are secured by the shares of the corresponding wind farms and, ultimately, by the fixed assets of the wind farm to which the financing is related (see note 31). Additionally, the construction of certain assets has been partly financed by grants received from different Government Institutions.

Impairment losses are mainly related with certain projects in Colombia and other less relevant projects in APAC and Europe for a total amount of 184,714 thousand Euros. In addition, the caption includes the reversal of an impairment in Romania amounting to 37,797 thousand Euros (see note 19).

The movement in Property, plant and equipment during 2022, is analysed as follows:

| THOUSAND EUROS                       | BALANCE<br>AT 01 JAN | ADDITIONS | DISPOSALS/<br>WRITE-OFF | TRANSFERS | EXCHANGE<br>DIFFERENCES | CHANGES IN<br>PERIMETER /<br>OTHER | BALANCE<br>AT 31 DEC |
|--------------------------------------|----------------------|-----------|-------------------------|-----------|-------------------------|------------------------------------|----------------------|
| COST                                 |                      |           |                         |           |                         |                                    |                      |
| Land and natural<br>resources        | 31,491               | 18,295    | -113                    | -         | 942                     | -134                               | 50,481               |
| Buildings and other<br>constructions | 20,646               | 328       | -135                    | 3,814     | 1,007                   | 5,265                              | 30,925               |
| Plant and<br>machinery               | 18,276,306           | 63,589    | -25,517                 | 760,334   | 719,984                 | 185,225                            | 19,979,921           |
| Other                                | 76,909               | 6,425     | -1,464                  | 2,514     | 2,378                   | 655                                | 87,417               |
| Assets under<br>construction         | 2,420,599            | 3,340,158 | -14,245                 | -765,880  | -10,081                 | -100,336                           | 4,870,215            |

{388}------------------------------------------------

| THOUSAND EUROS                                 | BALANCE<br>AT 01 JAN | CHARGE FOR<br>THE PERIOD | IMPAIRMENT<br>LOSSES/<br>REVERSES | DISPOSALS/<br>WRITE-OFF | EXCHANGE<br>DIFFERENCES | CHANGES IN<br>PERIMETER /<br>OTHER | BALANCE<br>AT 31 DEC |
|------------------------------------------------|----------------------|--------------------------|-----------------------------------|-------------------------|-------------------------|------------------------------------|----------------------|
| ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES |                      |                          |                                   |                         |                         |                                    |                      |
| Buildings and other<br>constructions           | 13,056               | 496                      | -                                 | -23                     | 1,109                   | -                                  | 14,638               |
| Plant and<br>machinery                         | 6,126,449            | 641,235                  | 344                               | -24,900                 | 209,311                 | -19,925                            | 6,932,514            |
| Assets under<br>construction                   | 73,131               | -                        | 54,088                            | -                       | -7,851                  | 3,619                              | 122,987              |
| Other                                          | 51,015               | 6,614                    | -                                 | -1,121                  | 1,731                   | -273                               | 57,966               |
|                                                | 6,263,651            | 648,345                  | 54,432                            | -26,044                 | 204,300                 | -16,579                            | 7,128,105            |

Plant and machinery include the cost of the wind farms and solar plants under operation.

Additions included, the investment in wind farms and solar plants under development and construction mainly in the United States of America, Colombia, Brazil, Poland, Italy, Canada, Spain, Portugal, Mexico, Singapore, Greece, Taiwan, France, China. Vietnam, Chile and Hungary. This caption also included the allocation of the acquisition cost of certain companies due to the nature of the transactions, the type of assets and the initial stage of completion of the projects acquired (see note 6). The most significant ones, including additions from their acquisition, were:

- Polish companies Farma Fotowoltaiczna Radziejów, Sp. z o.o. and Farma Fotowoltaiczna Ujazd, Sp. Z.o.o. Farma Fotowoltaiczna Warta, Sp. Z o.o., Farma Fotowoltaiczna Wielkopolska, Sp. Z o.o., Farma Fotowoltaiczna Budzyn, Sp. Z o.o., Farma Fotowoltaiczna Dobrzyca, Sp. Z o.o. and Farma Fotowoltaiczna Tomaszów, Sp. Z o.o. for a total amount of 40,335 thousand Euros;
- Colombian company Parque Solar Fotovoltaico El Copey, S.A.S. E.S.P. for a total amount of 8,036 thousand Euros;
- Hungarian companies Szabadsolar, Kft, Sunglare Capture, Kft., Sunglare Expert, Kft. and Napenergia, Kft. For a total amount of 6,726 thousand Euros;
- Greek company Aeolos Evias Energiaki, M.A.E for a total amount of 20,128 thousand Euros.
- Spanish companies Rocio Hive, S.L., Palma Hive, S.L. and Pedregal Hive, S.L. for a total amount of 19,274 thousand Euros;
- Italian companies Solar Italy I, S.r.l., Solar Italy II, S.r.l. and Solar Italy IV, S.r.l. for a total amount of 41,463 thousand Euros;
- North American Distributed Generation companies for a total amount of 33,498 thousand Euros;
- Brazilian companies for a total amount of 38,204 thousand Euros;
- Asian Distributed Generation companies for a total amount of 19,148 thousand Euros.

Changes in the perimeter / other also included the change in the dismantling provisions related to the update of the main assumptions as at 31 December 2023 (see note 32).

Transfers from assets under construction into operation refered to wind and solar farms that became operational in Poland, the United States of America, Italy, Brazil, Spain, France, Mexico, Singapore, Taiwan and Canada.

Write-offs mainly referred to abandonment of projects in the United States of America and other certain projects in Europe. This amount was recorded under the caption Losses on fixed assets in the consolidated income statement (see note 12).

LTO-001
LTO-001
LTO-001
LTO-001
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LTO-001

Exchange differences were mainly generated by the variation in the exchange rate of the US Dollar, Mexican Peso, Canadian Dollar, Colombian COPS, Singaporean Dollar, Polish zloty and Brazilian Real.

The caption Changes in perimeter/Other mainly included:

- Increase amounting to 520,521 thousand Euros related to the acquisition of Sunseap, a distributed solar generation business in Singapore (see note 6 and 42);
- Increase amounting to 198,241 thousand Euros related to the acquisition of a certain solar generation business in Vietnam (see note 6 and 42);
- Increase amounting to 97,330 thousand Euros related to the acquisition of a distributed solar generation business in EDPR North America (see note 6 and 42);
- Increase amounting to 4,871 thousand Euros related to the acquisition of a solar generation business "Kronos" (see note 6 and 42);
- Net decrease amounting to 222,919 thousand Euros due to the sale of the companies WinCap, S.r.l., TACA Wind, S.r.l., San Mauro, S.r.l., Conza Energia, S.r.l., Lucus Power, S.r.l., Breva Wind, S.r.l. and Aria del Vento in Italy (see note 6 and 9);
- Decrease amounting to 210,044 thousand Euros due to the sale of the companies Central Eólica Aventura II, S.A., Central Eólica Aventura III, S.A., Central Eólica Aventura IV, S.A., Central Eólica Aventura V, S.A., Central Eólica SRMN I, S.A., Central Eólica SRMN II, S.A., Central Eólica SRMN III, S.A., Central Eólica SRMN IV, S.A. and Central Eólica SRMN V, S.A. in Brazil (see note 6);
- Decrease amounting to 182,766 thousand Euros due to the sale of the companies Meadow Lake Solar Park LLC and RSBF E470 I LLC in the United States of America (see note 6);
- Decrease amounting to 9,152 thousand Euros due to the reclassification to held for sale of

certain portfolio in Europe (see note 27).

{389}------------------------------------------------

• Increase in the amount of 9,841 thousand Euros related to the dismantling cost for projects

that have reached the COD during the year ended 31 December 2022.

• Update on the estimated dismantling cost according to an in-depth analysis performed by the EDPR's technical department with a net impact of a decrease in the amount of 84,613 thousand Euros

The Company had taken out an insurance global program to cover risks relating to property, plant and equipment. The coverage provided by these policies is considered to be sufficient.

Loans with credit institutions formalized as 'Project Finance' were secured by the shares of the corresponding wind farms and, ultimately, by the fixed assets of the wind farm to which the financing was related (see note 31). Additionally, the construction of certain assets has been partly financed by grants received from different Government Institutions.

Impairment losses were mainly related to certain projects in Colombia as a result of the recoverability assessment (see note 19).

Assets under construction as at 31 December 2023 and 31 December 2022 were analysed as follows:

| THOUSAND EUROS | 31 DEC 2023 | 31 DEC 2022 |
|----------------|-------------|-------------|
| EDPR NA        | 3,788,190   | 2,589,575   |
| EDPR EU        | 1,087,256   | 1,074,177   |
| EDPR LATAM     | 1,389,904   | 1,098,164   |
| EDPR APAC      | 78,085      | 108,299     |
|                | 6,343,435   | 4,870,215   |

Assets under construction as at 31 December 2023 are mainly related to wind and solar farms under construction and development in the United States of America,Colombia, Poland, Canada, Spain, Brazil, Mexico, Italy, Greece, Portugal, China, Japan, Singapore, Taiwan, Hungary, France, United Kingdom, Chile and Romania.

Financial interests capitalized during the period amount to 131,711 thousand Euros as at 31 December 2023 (31 December 2022: 41,342 thousand Euros) (see note 14). Personnel costs capitalised during the period amount to 97,445 thousand Euros as at 31 December 2023 (31 December 2022: 72,666 thousand Euros) (see note 11).

The EDP Renováveis Group has purchase obligations disclosed in Note 38 - Commitments.

#### 17. Right of use assets

This caption is analysed as follows:

| THOUSAND EUROS                                 | 31 DEC 2023 | 31 DEC 2022 |
|------------------------------------------------|-------------|-------------|
| COST                                           |             |             |
| Land and natural resources                     | 1,032,162   | 1,070,178   |
| Buildings and other constructions              | 81,115      | 51,490      |
| Plant and machinery:                           | 140         | -           |
| Other                                          | 9,068       | 6,743       |
|                                                | 1,122,485   | 1,128,411   |
| ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES |             |             |
| Depreciation charge                            | -51,314     | -44,067     |
| Accumulated depreciation                       | -135,534    | -96,042     |
|                                                | -186,848    | -140,109    |
| Carrying amount                                | 935,637     | 988,302     |

The movements in Right of use assets, for the Group, for the period ended 31 December 2023, are as follows:

| THOUSAND EUROS                       | BALANCE<br>AT 01 JAN | ADDITIONS | DISPOSALS/<br>WRITE-OFF | TRANSFERS | EXCHANGE<br>DIFFERENCES | CHANGES IN<br>PERIMETER /<br>OTHER | BALANCE<br>AT 31 DEC |
|--------------------------------------|----------------------|-----------|-------------------------|-----------|-------------------------|------------------------------------|----------------------|
| COST                                 |                      |           |                         |           |                         |                                    |                      |
| Land and natural<br>resources        | 1,070,178            | 93,715    | -                       | -         | -21,533                 | -110,198                           | 1,032,162            |
| Buildings and other<br>constructions | 51,490               | 18,200    | -153                    | -         | -829                    | 12,406                             | 81,114               |
| Plant and machinery:                 | -                    | 1,954     | -                       | -         | 37                      | -1,851                             | 140                  |
| Other                                | 6,743                | 478       | -91                     | -         | 77                      | 1,862                              | 9,069                |

1,128,411 114,347 -244 - -22,248 -97,781 1,122,485

{390}------------------------------------------------

**CHARGE** 

**DISPOSALS**

**CHANGES IN** 

| THOUSAND EUROS                                 | AT 01 JAN | FOR THE<br>PERIOD | /<br>WRITE-OFF | TRANSFERS | DIFFERENCES | PERIMETER /<br>OTHER | AT 31 DEC |
|------------------------------------------------|-----------|-------------------|----------------|-----------|-------------|----------------------|-----------|
| ACCUMULATED DEPRECIATION AND IMPAIRMENT LOSSES |           |                   |                |           |             |                      |           |
| Land and natural<br>resources                  | 113,271   | 39,207            | -              | -         | -2,549      | -3,568               | 146,361   |
| Buildings and other<br>constructions           | 22,590    | 10,674            | -46            | -         | -213        | 1,865                | 34,870    |
| Plant and machinery:                           | -         | 3                 | -              | -         | 31          | -34                  |           |
| Other                                          | 4,248     | 1,431             | -44            | -         | 54          | -72                  | 5,617     |
|                                                | 140,109   | 51,315            | -90            | -         | -2,677      | -1,809               | 186,848   |

Cost additions include new lease contracts mainly located in the United States, Spain and APAC. Exchange differences are mainly generated by the variation in the exchange rate of the US Dollar.

The caption Changes in perimeter/Other mainly includes:

- Decrease, net of accumulated depreciation, amounting to 22,213 thousand Euros due to the sale of certain portfolio in Spain, Brazil and Poland (see note 6).
- Decrease, net of accumulated depreciation, amounting to 57,478 thousand Euros due to the reclassification to held for sale of certain portfolio of US companies (see note 27).

The movements in Right of use assets, for the Group, for the period ended 31 December 2022, are as follows:

| THOUSAND<br>EUROS                    | BALANCE<br>AT 01 JAN | ADDITIONS | DISPOSALS/<br>WRITE-OFF | EXCHANGE<br>DIFFERENCES<br>TRANSFERS | EXCHANGE<br>DIFFERENCES | CHANGES<br>IN<br>PERIMETER<br>/ OTHER | BALANCE<br>AT 31 DEC |
|--------------------------------------|----------------------|-----------|-------------------------|--------------------------------------|-------------------------|---------------------------------------|----------------------|
| COST                                 |                      |           |                         |                                      |                         |                                       |                      |
| Land and natural<br>resources        | 721,642              | 316,735   | -1,613                  | 3,221                                | 28,222                  | 1,971                                 | 1,070,178            |
| Buildings and other<br>constructions | 35,720               | 15,015    | -                       | -3,193                               | 1,108                   | 2,840                                 | 51,490               |
| Plant and machinery:                 | 119                  | -         | -                       | -119                                 | -                       | -                                     | -                    |
| Other                                | 5,568                | 1,508     | -288                    | -74                                  | 32                      | -3                                    | 6,743                |
|                                      | 763,049              | 333,258   | -1,901                  | -165                                 | 29,362                  | 4,808                                 | 1,128,411            |

| THOUSAND<br>EUROS                                 | BALANCE<br>AT 01 JAN | ADDITIONS | DISPOSALS/<br>WRITE-OFF | TRANSFERS | EXCHANGE<br>DIFFERENCES | CHANGES<br>IN<br>PERIMETER/<br>OTHER | BALANCE AT<br>31 DEC |
|---------------------------------------------------|----------------------|-----------|-------------------------|-----------|-------------------------|--------------------------------------|----------------------|
| ACCUMULATED DEPRECIATION AND IMPAIRMENT<br>LOSSES |                      |           |                         |           |                         |                                      |                      |
| Land and natural resources                        | 75,789               | 35,523    | -795                    | 325       | 2,554                   | -125                                 | 113,271              |
| Buildings and other constructions                 | 15,168               | 7,451     | -                       | -407      | 391                     | -13                                  | 22,590               |
| Plant and<br>machinery:                           | 10                   | 4         | -                       | -14       | -                       | -                                    | -                    |
| Other                                             | 3,294                | 1,089     | -116                    | -24       | 8                       | -3                                   | 4,248                |
|                                                   | 94,261               | 44,067    | -911                    | -120      | 2,953                   | -141                                 | 140,109              |

Cost additions include new lease contracts mainly located in the USA, Spain, Canada and Poland. 

Exchange differences are mainly generated by the variation in the exchange rate of the US Dollar. The caption Changes in perimeter/Other mainly includes:

- Increase amounting to 39,000 thousand Euros related to the acquisition of the Sunseap Group (see note 6);
- Decrease amounting to 9,705 thousand Euros due to the sale of a certain portfolio in Europe;
- Decrease amounting to 24,346 thousand Euros due to the sale of certain portfolio in North America.

{391}------------------------------------------------

18. Intangible assets

| THOUSAND EUROS EUROS                                          | 31 DEC<br>2023 | 31 DEC<br>2022 |
|---------------------------------------------------------------|----------------|----------------|
| Cost                                                          |                |                |
| Industrial property, other rights and other intangible assets | 464,551        | 426,891        |
| Concession Rights                                             | 51,536         | 55,913         |
| Intangible assets under development                           | 63,785         | 70,511         |
|                                                               | 579,872        | 553,315        |
| Accumulated amortisation                                      |                |                |
| Amortisation charge                                           | -43,107        | -23,900        |
| Accumulated amortisation in previous years                    | -156,451       | -137,010       |
| Impairment losses                                             | -              | -              |
| Impairment losses in previous years                           | -442           | -11,559        |
|                                                               | -200,000       | -172,469       |
| Carrying amount                                               | 379,872        | 380,846        |

Industrial property, other rights and other intangible assets include mainly:

- Power sales contracts in relation to former asset acquisitions out of the scope of IFRS 3 in the amount of 56,845 thousand Euros (31 December 2022: 58,892) that are amortized over the term of the power sales contracts. The variation is explained by the effect of the exchange rates;
- Fair value related to the power sales contracts acquired in business combination transactions in the amount of 233,235 thousand Euros (31 December 2022: 219,438 thousand Euros);
- Software substation access rights and wind generation permit and licenses amounting to 140,134 thousand Euros (31 December 2022: 135,698 thousand Euros).

The movement in Intangible assets for the period ended 31 December 2023, are as follows:

| THOUSAND EUROS                                                      | BALANCE<br>AT 01 JAN | ADDITION<br>S | DISPOSALS /<br>WRITE-OFFS | TRANSFERS | EXCHANGE<br>DIFFERENCES | CHANGES IN<br>PERIMETER /<br>OTHER | BALANCE<br>AT 31 DEC |
|---------------------------------------------------------------------|----------------------|---------------|---------------------------|-----------|-------------------------|------------------------------------|----------------------|
| COST                                                                |                      |               |                           |           |                         |                                    |                      |
| Industrial property,<br>other rights and other<br>intangible assets | 426,891              | 1,061         | -                         | 9,345     | -13,933                 | 41,188                             | 464,552              |
| Concession rights                                                   | 55,913               | 46            | -                         | 14,321    | 20                      | -18,765                            | 51,535               |
| Intangible assets<br>under development                              | 70,511               | 18,209        | -                         | -24,341   | -995                    | 401                                | 63,785               |
|                                                                     | 553,315              | 19,316        | -                         | -675      | -14,908                 | 22,824                             | 579,872              |

**CHANGES IN** 

| THOUSAND EUROS                                                      | BALANCE<br>AT 01 JAN | ADDITIONS | DISPOSALS/<br>WRITE-OFFS | EXCHANGE<br>DIFFERENCES | CHANGES IN<br>PERIMETER /<br>OTHER | BALANCE<br>AT 31 DEC |
|---------------------------------------------------------------------|----------------------|-----------|--------------------------|-------------------------|------------------------------------|----------------------|
| ACCUMULATED AMORTISATION AND IMPAIRMENT LOSSES                      |                      |           |                          |                         |                                    |                      |
| Industrial property,<br>other rights and other<br>intangible assets | 147,543              | 37,321    | -                        | -3,001                  | 84                                 | 181,948              |
| Concession Rights                                                   | 24,926               | 5,786     | -                        | 9                       | -12,667                            | 18,052               |
|                                                                     | 172,469              | 43,107    | -                        | -2,992                  | -12,583                            | 200,000              |

Additions mainly refer to software development during the period.

Changes in the perimeter and others mainly refers to the final amount for the allocation to the fair value of power purchase agreements associated to the generation assets acquired in the business combination transaction acquired in December 2022 of Longroad portfolio for a total amount of 18,364 thousand Euros (see note 6 and 19), 8,822 for the acquisition of certain rights for future projects in APAC and sale of certain portfolio in Spain for a total amount of 6,391 thousand euros (see note 6).

{392}------------------------------------------------

The movement in Intangible assets during 2022, is analysed as follows:

| THOUSAND EUROS                                                      | BALANCE<br>AT 01 JAN | ADDITIONS | DISPOSALS/<br>WRITE-<br>OFFS | TRANSFERS | EXCHANGE<br>DIFFERENCES | CHANGES<br>IN<br>PERIMETER<br>/ OTHER | BALANCE<br>AT 31 DEC |
|---------------------------------------------------------------------|----------------------|-----------|------------------------------|-----------|-------------------------|---------------------------------------|----------------------|
| COST                                                                |                      |           |                              |           |                         |                                       |                      |
| Industrial property,<br>other rights and other<br>intangible assets | 232,351              | 1,574     | -                            | 6,038     | 4,990                   | 181,938                               | 426,891              |
| Concession rights                                                   | 31,493               | 420       | -853                         | 5,933     | 41                      | 18,879                                | 55,913               |
| Intangible assets<br>under development                              | 44,461               | 15,515    | -1,315                       | -12,753   | 514                     | 24,089                                | 70,511               |
|                                                                     | 308,305              | 17,509    | -2,168                       | -782      | 5,545                   | 224,906                               | 553,315              |

| THOUSAND EUROS                                                      | BALANCE<br>AT 01 JAN                           | ADDITIONS | DISPOSALS/<br>WRITE-OFFS | EXCHANGE<br>DIFFERENCES | CHANGES IN<br>PERIMETER /<br>OTHER | BALANCE<br>AT 31 DEC |  |
|---------------------------------------------------------------------|------------------------------------------------|-----------|--------------------------|-------------------------|------------------------------------|----------------------|--|
|                                                                     | ACCUMULATED AMORTISATION AND IMPAIRMENT LOSSES |           |                          |                         |                                    |                      |  |
| Industrial property,<br>other rights and other<br>intangible assets | 140,246                                        | 20,093    | -                        | 3,568                   | -16,364                            | 147,543              |  |
| Concession Rights                                                   | 9,183                                          | 3,807     | -177                     | 15                      | 12,098                             | 24,926               |  |
|                                                                     | 149,429                                        | 23,900    | -177                     | 3,583                   | -4,266                             | 172,469              |  |

Additions mainly refer to software development during the period.

Changes in the perimeter mainly refers to the fair value of power purchase agreements associated to the generation assets agreements acquired in the business combination transactions. An amount of 113,717 thousand Euros corresponds to the Sunseap Group, 85,476 thousand Euros corresponds to the Xuan Thien and 20,667 thousand Euros to Longroad from the acquisition of the Sunseap Group.

#### 19. Goodwill

For the Group, the breakdown of Goodwill resulting from the difference between the cost of the investments and the corresponding share of the fair value of the net assets acquired, is analysed as follows:

| THOUSAND EUROS                | 31 DEC 2023 | 31 DEC 2022(*) |
|-------------------------------|-------------|----------------|
| Goodwill booked in EDPR EU :  | 1,074,805   | 1,177,206      |
| - EDPR Spain                  | 354,439     | 419,023        |
| - EDPR France                 | 25,904      | 25,904         |
| - EDPR Portugal               | 43,712      | 43,712         |
| - Kronos Solar Group          | 613,487     | 611,605        |
| - Other                       | 37,263      | 36,910         |
| Goodwill booked in EDPR NA    | 729,880     | 758,736        |
| Goodwill booked in EDPR LATAM | 704         | 668            |
| Goodwill booked in EDPR APAC  | 430,212     | 393,354        |
|                               | 2,235,601   | 2,289,912      |

\* See note 2.A) for details regarding the restatement as a result of the Purchase Price Allocation assessment closing during 2023.

#### The movements in Goodwill, by subgroup, during the period ended 31 December 2023 is as follows:

| THOUSAND<br>EUROS       | BALANCE<br>AT 01 JAN(*) | INCREASES | DECREASES/<br>REGULARIZATIONS | IMPAIRMENT | EXCHANGE<br>DIFFERENCES | BALANCE<br>AT 31 DEC |
|-------------------------|-------------------------|-----------|-------------------------------|------------|-------------------------|----------------------|
| EDPR EU :               |                         |           |                               |            |                         |                      |
| - EDPR Spain            | 419,023                 | -         | -64,584                       | -          | -                       | 354,439              |
| - EDPR France           | 25,904                  | -         | -                             | -          | -                       | 25,904               |
| - EDPR Portugal         | 43,712                  | -         | -                             | -          | -                       | 43,712               |
| - Kronos Solar<br>Group | 611,605                 | -         | 1,882                         | -          | -                       | 613,487              |
| - Other                 | 36,910                  | -         | -                             | -          | 353                     | 37,263               |
| EDPR NA                 | 758,736                 | 14,511    | -17,310                       | -          | -26,057                 | 729,880              |
| EDPR LATAM              | 668                     | -         | -                             | -          | 36                      | 704                  |
| EDPR APAC               | 393,354                 | 16,983    | 28,829                        | -          | -8,954                  | 430,212              |
|                         | 2,289,912               | 31,494    | -51,183                       | -          | -34,622                 | 2,235,601            |

\* See note 2.A) for details regarding the restatement as a result of the Purchase Price Allocation assessment closing during 2023.

{393}------------------------------------------------

The caption increase includes the Goodwill related to the business combination closed during

2023 (see note 42).

The movements in Goodwill, by subgroup, during 2022 are analysed as follows:

| THOUSAND EUROS       | BALANCE<br>AT 01 JAN | INCREASES | DECREASES/<br>REGULARIZATIONS | IMPAIRMENT | EXCHANGE<br>DIFFERENCES | BALANCE<br>AT 31 DEC |
|----------------------|----------------------|-----------|-------------------------------|------------|-------------------------|----------------------|
| EDPR EU :            |                      |           |                               |            |                         |                      |
| - EDPR Spain         | 470,784              | -         | -51,761                       | -          | -                       | 419,023              |
| - EDPR France        | 25,904               | -         | -                             | -          | -                       | 25,904               |
| - EDPR Portugal      | 43,712               | -         | -                             | -          | -                       | 43,712               |
| - Kronos Solar Group | -                    | 651,657   | -                             | -          | -                       | 651,657              |
| - Other              | 37,720               | -         | -685                          | -          | -125                    | 36,910               |
| EDPR NA              | 686,842              | 28,965    | -                             | -          | 42,929                  | 758,736              |
| EDPR LATAM           | 627                  | -         | -33                           | -          | 75                      | 668                  |
| EDPR APAC            | 2,446                | 384,721   | -                             | -          | 6,186                   | 393,354              |
|                      | 1,268,035            | 1,065,343 | -52,479                       | -          | 49,065                  | 2,329,964            |

Movements in goodwill as of 31 December 2022 were the following:

- Increase amounting to 651,657 thousand Euros provisional goodwill related to the business combination for the acquisition of the Kronos Solar Group (see note 6 and 42);
- Increase amounting to 363,485 thousand Euros provisional goodwill related to the business combination for the acquisition of the Sunseap Group (see note 6 and 42);
- Increase amounting to 28,965 thousand Euros provisional goodwill related to the business combination for the acquisition of certain portfolio in the United States of America (see note 6 and 42);
- Increase amounting to 21,236 thousand Euros provisional goodwill related to the business combination for the acquisition of certain portfolio in Vietnam (see note 6 and 42);
- Decrease in the amount of 51,761 thousand Euros related to the sale of Spanish companies during the period ended 31 December 2022 (see note 6 and 9).
- Decrease in amount of 685 thousand Euros related to completion of a sale of a certain European portfolio (see note 6 and 9).

#### **Impairment tests - EDPR Group**

Goodwill, property, plant and equipment, right of use assets, intangible assets and investments in joint ventures and associates of the EDPR Group are tested for impairment each year. In the case of operational wind farms and solar plants, it is performed by determining the recoverable value through the value in use. Goodwill is allocated to each country (CGUs)where EDPR Group performs its activity, so the EDPR Group calculates cash flows in each country in order to determine the recoverable amount of goodwill and the rest of the assets allocated.

To perform this analysis, a Discounted Cash Flow (DCF) method was used. This method is based on the principle that the estimated value of an entity or business is defined by its capacity to generate financial resources in the future, assuming these can be removed from the business and distributed among the company's shareholders, without compromising the maintenance of the activity. Therefore, for the businesses developed by EDPR's CGUs, the valuation was based on free

cash flows generated by the business, discounted at appropriate discount rates.

The future cash flows projection period used is the useful life of the assets (20 to 35 years) which is consistent with the current depreciation method. The cash flows also incorporate the long-term off-take contract in place and long-term estimates of power prices, whenever the asset holds merchant exposure.

The main assumptions used for the impairment tests are as follows:

- **Power produced:** net capacity factors used for each CGU utilize the wind studies carried out, which takes into account the long-term predictability of wind output and that wind generation is supported in nearly all countries by regulatory mechanisms that allow for production and priority dispatching whenever weather conditions permit;
- **Electricity remuneration:** regulated or contracted remuneration has been applied where available, as for the CGUs that benefit from regulated remuneration or that have signed contracts to sell their output during all or part of their useful life; where this is not available, prices were derived using price curves projected by the company based on its experience, internal models and using external data references;
- **New capacity:** tests were based on the best information available on the wind and solar farms expected to be built in coming years, adjusted by probability of success and by the growth prospects of the company based on the Business Plan Targets, which includes the commitment to develop under construction wind farms, its historical growth and market size projections. The tests considered the contracted and expected prices to buy turbines from various suppliers;
- **Operating costs:** established contracts for land leases and maintenance agreements were used; other operating costs were projected consistent with the company's experience and

internal models;

{394}------------------------------------------------

• **Terminal value:** considered as a 15% of the initial investment in each wind farm, considering

inflation;

• **Discount rate:** the discount rates used are post-tax (which does not differ significatively from the discount rate pre-tax), reflect EDPR Group's best estimate of the risks specific to each CGU and range as follows:

|               | 2023         | 2022       |
|---------------|--------------|------------|
| Europe        | 4.40%-9.02%  | 3.7%-8.6%  |
| North America | 6.5%-7.5%    | 6.0%       |
| LATAM         | 6.68%-11.27% | 5.9%-9.6%  |
| APAC          | 2.84%-11.02% | 6.9%-10.8% |

Impairment tests done have taken into account the regulation changes in each country, as disclosed in note 1.

As a result of the impairment tests, it has been required to book an impairment in Property, plant and equipment during the year ended 31 December 2023, mainly, for certain Colombian projects which do not have any associated goodwill (in 2022 for certain Colombian projects which did not have any associated goodwill) and reversal impairment for previous years in Romania in the amount of 37,797 thousand Euros. Further, EDPR has performed the following sensitivity analyses in the results of goodwill impairment tests performed in Europe, North America, LATAM and APAC in some of the key variables, such as:

- 5% reduction of Merchant Prices used in the base case. This sensitivity analysis performed for this assumption independently would not suppose any impairment for the goodwill allocated to each country;
- 100 basis points increase of the discount rate used in the base case. This sensitivity analysis performed for this assumption independently would not suppose any impairment for the goodwill allocated to each country.

#### 20. Investments in Joint Ventures and Associates

This caption is analysed as follows:

| THOUSAND EUROS              | 31 DEC<br>2023 | 31 DEC<br>2022 |
|-----------------------------|----------------|----------------|
| INVESTMENTS IN ASSOCIATES   |                |                |
| Interests in joint ventures | 997,973        | 1,057,048      |
| Interests in associates     | 81,603         | 100,201        |
| Carrying amount             | 1,079,576      | 1,157,249      |

For the purpose of the consolidated financial statements presentation, goodwill arising from the acquisition of joint ventures and associated companies is presented in this caption. None of the companies is listed.

The movement in Investments in joint ventures and associates, is analysed as follows:

| THOUSAND EUROS                                                  | 2023      | 2022      |
|-----------------------------------------------------------------|-----------|-----------|
| Balance as at 1 January                                         | 1,157,249 | 988,522   |
| Changes in the consolidation perimeter                          | -9,906    | 25,002    |
| Changes in consolidation method                                 | -8,595    | -         |
| Acquisitions / other perimeter variations                       | 74,230    | -839      |
| Disposals                                                       | -875      | -         |
| Share of profits of joint ventures and associates               | 20,969    | 161,534   |
| Dividends                                                       | -41,600   | -45,445   |
| Exchange differences                                            | -15,039   | 23,142    |
| Hedging and fair value reserve in joint ventures and associates | -80,055   | 85,782    |
| Others                                                          | -16,802   | -80,449   |
| Balance as at the end of the period                             | 1,079,576 | 1,157,249 |

Acquisition and other perimeter variations as at 31 December 2023 includes mainly an amount related to capital increases of 73,429 thousand Euros of the entity OW Offshore S.L.

Acquisition and other perimeter variations included as at 31 December 2022 an amount related to capital increases of 2,586 thousand Euros mainly of the entities of Evoikos Voreas A.E., Total Sofrano A.E. and Charge+ Pte. Ltd and a negative amount of 3,425 thousand Euros related to capital reductions mainly of the entities of San Juan de Bargas Eólica, S.L. and Unión de

Generadores de Energía, S.L.

{395}------------------------------------------------

As at 31 December 2023 the caption changes in the consolidation perimeter includes the impact

from the sale of the associate entity of Geólica Magallón, S.L. As at 31 December 2022 the caption mainly included an amount of 9,111 thousand Euros related to the acquisition of SunseapGroup (see note 42) and the fair value adjustment amounting to 14,842 thousand Euros. The caption changes in the consolidation method includes the change to full consolidation method after the acquisition of the remaining 53% of the share capital of San Juan de Bargas Eólica, S.L. (see note 6).

The caption dividends includes as at 31 December 2023 dividends distributed by Geólica Magallón S.L. before the sale of the associate, as well as a dividend distributed by San Juan de Bargas Eólica, S.L. before the change of the consolidation method, for a total amount of 2,058 thousand of Euros.

The caption "joint venture and associates" in the income statement includes a loss amounting to 10,566 thousand Euros resulting from the sale of the associate entity of Geólica Magallón, S.L., as well as the gains for the sale of the EDPR's entire stake in Sunseap Solutions Taiwan Ltd. and Charge+ Pte for an amount of 3,198 thousand euros which are not reflected in the chart above due to this amount is recorded in the corresponding holding companies (see note 6). The caption also includes an amount of 137 thousand Euros gains from other concepts not reflected as well in the chart above. As at 31 December 2022 the caption included a gain amounting to 16,981 thousand Euros resulting from the sale of the remaining stake in the offshore company Moray West Holdings Limited and an amount of 752 thousand Euros resulting from the sale of the stake in the company Solar Works! B.V., which are were not reflected in the chart above due to this amount is recorded in the corresponding holding companies.

The following table resumes the companies' financial information of joint ventures included in the Group consolidated accounts, as of December 2023:

| THOUSAND EUROS                                     | OW<br>OFFSHORE, S.L.<br>AND<br>SUBSIDIARIES | GOLDFINGER<br>VENTURES II<br>LLC     | FLAT ROCK<br>WINDPOWER<br>LLC     | GOLDFINGER<br>VENTURES<br>LLC | 2017 VENTO<br>XVII LLC AND<br>SUBSID. | 2019 VENTO<br>XX LLC AND<br>SUBSID. |
|----------------------------------------------------|---------------------------------------------|--------------------------------------|-----------------------------------|-------------------------------|---------------------------------------|-------------------------------------|
| COMPANIES' FINANCIAL INFORMATION OF JOINT VENTURES |                                             |                                      |                                   |                               |                                       |                                     |
| Non-Current Assets                                 | 3,582,388                                   | 300,851                              | 176,022                           | 193,093                       | 502,088                               | 594,753                             |
| Current Assets                                     | 575,929                                     | -59                                  | 9,339                             | 949                           | 11,599                                | 9,257                               |
| Cash and cash<br>equivalents                       | 222,488                                     | 40                                   | 8,328                             | -                             | 1                                     | 200                                 |
| Total Equity                                       | 1,004,825                                   | 217,389                              | 177,947                           | 151,444                       | 219,159                               | 108,645                             |
| Long term Financial<br>debt                        | 1,534,036                                   | -                                    | -                                 | -                             | -                                     | -                                   |
| Non-Current Liabilities                            | 2,606,331                                   | 77,169                               | 4,296                             | 39,309                        | 288,169                               | 473,348                             |
| Short term Financial<br>debt                       | 6,323                                       | -                                    | -                                 | 23                            | 146                                   | 536                                 |
| Current Liabilities                                | 547,161                                     | 6,234                                | 3,118                             | 3,289                         | 6,359                                 | 22,017                              |
| Revenues                                           | 69,363                                      | 16,115                               | 9,243                             | 10,990                        | 39,421                                | 34,922                              |
| PPE and intangible<br>assets amortisations         | -8,700                                      | -9,708                               | -14,341                           | -10,180                       | -22,014                               | -24,027                             |
| Other financial<br>expenses                        | -161,732                                    | -3,202                               | -58                               | -1,623                        | -13,390                               | -18,105                             |
| Income tax expense                                 | 3,986                                       | -                                    | -                                 | -                             | -                                     | -                                   |
| Net profit for the period                          | -20,760                                     | 18,046                               | -18,775                           | 9,850                         | 37,554                                | 30,739                              |
| AMOUNTS PROPORTIONALLY ATTRIBUTED TO EDPR GROUP    |                                             |                                      |                                   |                               |                                       |                                     |
| Net assets                                         | 450,073                                     | 96,905                               | 90,064                            | 68,630                        | 62,557                                | 47,788                              |
| Goodwill                                           | 5,352                                       | -                                    | -                                 | -                             | -                                     | -                                   |
| Dividends paid                                     | -                                           | 2,530                                | 14,940                            | 3,333                         | 4,448                                 | 4,006                               |
| THOUSAND EUROS                                     | 2018 VENTO<br>XIX LLC AND<br>SUBSIDIARIES   | RIVERSTART<br>VENTURES<br>LLC (SOLV) | FLAT ROCK<br>WINDPOWE<br>R II LLC | EVOIKOS<br>VOREAS A.E.        | EVOLUCIÓN<br>2000, S.L.               | OTHERS                              |
| COMPANIES' FINANCIAL INFORMATION OF JOINT VENTURES |                                             |                                      |                                   |                               |                                       |                                     |
| Non-Current Assets                                 | 451,809                                     | 297,048                              | 72,433                            | 1,575                         | 25,330                                | 32,364                              |
| Current Assets                                     | 13,871                                      | 8,686                                | 2,688                             | 891                           | 10,220                                | 14,175                              |
| Cash and cash<br>equivalents                       | 1                                           | -                                    | 2,489                             | 891                           | 9,219                                 | 6,202                               |
| Total Equity                                       | 121,934                                     | 206,674                              | 72,688                            | 1,967                         | 30,404                                | 14,770                              |
| Long term Financial<br>debt                        | -                                           | -                                    | -                                 | -                             | -                                     | 6,024                               |
| Non-Current Liabilities                            | 338,364                                     | 96,388                               | 1,646                             | -                             | 3,995                                 | 10,353                              |
| Short term Financial<br>debt                       | 152                                         | 39                                   | -                                 | -                             | -                                     | 2,016                               |
| THOUSAND EUROS                                     | XIX LLC AND<br>SUBSIDIARIES                 | VENTURES<br>LLC (SOLV)               | WINDPOWE<br>R II LLC              | VOREAS A.E.                   | 2000, S.L.                            | OTHERS                              |
| Revenues                                           | 30,107                                      | 24,911                               | 3,709                             | -                             | 8,758                                 | 3,706                               |
| PPE and intangible<br>assets amortisations         | -18,222                                     | -8,867                               | -5,605                            | -                             | -2,583                                | -1,304                              |
| Other financial<br>expenses                        | -16,378                                     | -2,317                               | -26                               | -83                           | -107                                  | -1,532                              |
| Income tax expense                                 | -                                           | -                                    | -                                 | -                             | -1,288                                | 7                                   |
| Net profit for the period                          | 24,879                                      | 29,868                               | -7,408                            | -416                          | 3,132                                 | 226                                 |
| AMOUNTS PROPORTIONALLY ATTRIBUTED TO EDPR GROUP    |                                             |                                      |                                   |                               |                                       |                                     |
| Net assets                                         | 43,493                                      | 40,327                               | 36,344                            | 21,578                        | 17,611                                | 22,603                              |
| Goodwill                                           | -                                           | -                                    | -                                 | -                             | 2,667                                 | 27                                  |
| Dividends paid                                     | 4,200                                       | 3,313                                | -                                 | -                             | -                                     | -                                   |

Current Liabilities 5,382 2,672 787 499 1,151 21,416

{396}------------------------------------------------

**2018 VENTO**

**RIVERSTART** 

**FLAT ROCK** 

The following table resumes the companies' financial information of joint ventures included in the Group consolidated accounts, as of December 2022:

| THOUSAND EUROS                                     | OW OFFSHORE,<br>S.L. AND<br>SUBSIDIARIES  | FLAT ROCK<br>WINDPOWER<br>LLC     | GOLDFINGER<br>VENTURES II<br>LLC | GOLDFINGER<br>VENTURES<br>LLC | 2019 VENTO<br>XX LLC AND<br>SUBSID. | 2017 VENTO<br>XVII LLC AND<br>SUBSID. |
|----------------------------------------------------|-------------------------------------------|-----------------------------------|----------------------------------|-------------------------------|-------------------------------------|---------------------------------------|
| COMPANIES' FINANCIAL INFORMATION OF JOINT VENTURES |                                           |                                   |                                  |                               |                                     |                                       |
| Non-Current Assets                                 | 2,625,31<br>2                             | 196,542                           | 322,496                          | 211,527                       | 632,137                             | 539,395                               |
| Current Assets                                     | 457,761                                   | 12,882                            | -2,069                           | 221                           | 7,830                               | 11,673                                |
| Cash and cash<br>equivalents                       | 237,416                                   | 10,400                            | 58                               | -                             | -                                   | -                                     |
| Total Equity                                       | 1,069,68<br>0                             | 203,387                           | 211,917                          | 153,491                       | 24,236                              | 202,561                               |
| Long term Financial<br>debt                        | 493,044                                   | -                                 | -                                | -                             | -                                   | -                                     |
| Non-Current Liabilities                            | 987,607                                   | 4,391                             | 98,885                           | 54,690                        | 597,474                             | 340,973                               |
| Short term Financial<br>debt                       | 4,918                                     | -                                 | -                                | 448                           | 517                                 | 219                                   |
| Current Liabilities                                | 1,025,78<br>6                             | 1,646                             | 9,625                            | 3,567                         | 18,257                              | 7,534                                 |
| Revenues                                           | 46,200                                    | 20,238                            | 17,172                           | 12,484                        | 39,529                              | 46,946                                |
| PPE and intangible<br>assets amortisations         | -8,466                                    | -14,719                           | -10,039                          | -10,556                       | -23,872                             | -25,529                               |
| Other financial<br>expenses                        | -121,882                                  | -60                               | -3,432                           | -1,724                        | -20,218                             | -17,905                               |
| Income tax expense                                 | 7,298                                     | -                                 | -                                | -                             | -                                   | -                                     |
| Net profit for the period                          | 257,040                                   | -6,653                            | 20,039                           | 11,192                        | 27,652                              | 33,995                                |
| AMOUNTS PROPORTIONALLY ATTRIBUTED TO EDPR GROUP    |                                           |                                   |                                  |                               |                                     |                                       |
| Net assets                                         | 490,929                                   | 111,047                           | 93,349                           | 68,989                        | 34,035                              | 62,510                                |
| Goodwill                                           | 5,352                                     | -                                 | -                                | -                             | -                                   | -                                     |
| Dividends paid                                     | -                                         | 1,012                             | 5,858                            | 3,677                         | 4,186                               | 4,311                                 |
| THOUSAND EUROS                                     | 2018 VENTO XIX<br>LLC AND<br>SUBSIDIARIES | FLAT ROCK<br>WINDPOWE<br>R II LLC | SOL V                            | EVOIKOS<br>VOREAS<br>A.E.     | EVOLUCIÓN<br>2000, S.L.             | OTHERS                                |
| COMPANIES' FINANCIAL INFORMATION OF JOINT VENTURES |                                           |                                   |                                  |                               |                                     |                                       |
| Non-Current Assets                                 | 489,003                                   | 80,600                            | 324,297                          | 1,021                         | 27,826                              | 30,487                                |
| Current Assets                                     | 18,917                                    | 4,901                             | 4,415                            | 878                           | 8,964                               | 15,502                                |
| Cash and cash<br>equivalents                       | -                                         | 3,889                             | -                                | 878                           | 7,125                               | 7,175                                 |
| Total Equity                                       | 101,026                                   | 82,815                            | 194,623                          | 1,723                         | 27,272                              | 14,461                                |
| Long term Financial<br>debt                        | -                                         | -                                 | -                                | -                             | -                                   | 16,211                                |
| Non-Current Liabilities                            | 398,228                                   | 1,677                             | 125,503                          | -                             | 4,037                               | 18,716                                |
| Short term Financial<br>debt                       | 38                                        | -                                 | 58                               | -                             | 1                                   | 317                                   |
| Current Liabilities                                | 8,666                                     | 1,009                             | 8,586                            | 176                           | 5,481                               | 12,812                                |
| Revenues                                           | 22,271                                    | 7,653                             | 17,751                           | -                             | 23,673                              | 2,833                                 |
| PPE and intangible<br>assets amortisations         | -20,377                                   | -5,682                            | -9,473                           | -                             | -2,594                              | -900                                  |
| Other financial<br>expenses                        | -17,990                                   | -27                               | -3,630                           | -5                            | -86                                 | -994                                  |

Income tax expense - - - - -5,080 6

{397}------------------------------------------------

**2018 VENTO XIX** 

**FLAT ROCK** 

**EVOIKOS** 

| THOUSAND EUROS                                  | LLC AND<br>SUBSIDIARIES | WINDPOWE<br>R II LLC | SOL V  | VOREAS<br>A.E. | 2000, S.L. | OTHERS |
|-------------------------------------------------|-------------------------|----------------------|--------|----------------|------------|--------|
| Net profit for the period                       | 16,866                  | -2,916               | 20,389 | -153           | 14,022     | -552   |
| AMOUNTS PROPORTIONALLY ATTRIBUTED TO EDPR GROUP |                         |                      |        |                |            |        |
| Net assets                                      | 40,986                  | 41,407               | 39,001 | 21,454         | 16,071     | 37,270 |
| Goodwill                                        | -                       | -                    | -      | -              | 2,667      | 27     |
| Dividends paid                                  | 2,290                   | -                    | 1,217  | -              | 7,063      | -      |

The following table resumes the companies' financial information of associates included in the Group consolidated accounts, as of December 2023:

| THOUSAND EUROS                                  | EÓLICA DE<br>SÃO<br>JULIÃO,<br>LDA. | PARQUE<br>EÓLICO<br>SIERRA DEL<br>MADERO,<br>S.A. | UNIÓN DE DESARROLL<br>OS EÓLICOS<br>ES DE<br>ENERGÍA,<br>S.L. | DE<br>CANARIAS,<br>S.A. |
|-------------------------------------------------|-------------------------------------|---------------------------------------------------|---------------------------------------------------------------|-------------------------|
| COMPANIES' FINANCIAL INFORMATION OF ASSOCIATES  |                                     |                                                   |                                                               |                         |
| Non-Current Assets                              | 4,942                               | 39,330                                            | 2,600                                                         | 1,508                   |
| Current Assets                                  | 25,984                              | 36,301                                            | 960                                                           | 2,759                   |
| Equity                                          | 14,928                              | 54,369                                            | 2,889                                                         | 3,014                   |
| Non-Current Liabilities                         | 8,901                               | 4,365                                             | 3                                                             | 793                     |
| Current Liabilities                             | 7,097                               | 16,897                                            | 668                                                           | 460                     |
| Revenues                                        | 11,827                              | 12,195                                            | 870                                                           | 2,943                   |
| Net profit for the period                       | 5,522                               | 2,995                                             | 1,568                                                         | 846                     |
| AMOUNTS PROPORTIONALLY ATTRIBUTED TO EDPR GROUP |                                     |                                                   |                                                               |                         |
| Net assets                                      | 25,609                              | 22,835                                            | 9,792                                                         | 7,827                   |
| Goodwill                                        | 1,457                               | -                                                 | 1,913                                                         | 6,479                   |
| Dividends paid                                  | -                                   | -                                                 | 350                                                           | 2,249                   |

| THOUSAND EUROS                                  | PARQUE EÓLICO<br>BELMONTE, S.A | SOLAR<br>POWER<br>ZETA GK | EOS PAX IIA,<br>S.L | OTHERS |
|-------------------------------------------------|--------------------------------|---------------------------|---------------------|--------|
| COMPANIES' FINANCIAL INFORMATION OF ASSOCIATES  |                                |                           |                     |        |
| Non-Current Assets                              | 17,577                         | 7,593                     | 729                 | 13,189 |
| Current Assets                                  | 1,912                          | 1,239                     | 2,677               | 3,671  |
| Equity                                          | 16,015                         | 73                        | 2,548               | 8,623  |
| Non-Current Liabilities                         | 1,921                          | 8,017                     | 381                 | 7,618  |
| Current Liabilities                             | 1,553                          | 742                       | 477                 | 619    |
| Revenues                                        | 4,711                          | 1,266                     | 2,687               | 3,797  |
| Net profit for the period                       | 879                            | 159                       | -98                 | 269    |
| AMOUNTS PROPORTIONALLY ATTRIBUTED TO EDPR GROUP |                                |                           |                     |        |
| Net assets                                      | 6,514                          | 3,912                     | 3,755               | 1,359  |
| Goodwill                                        | 1,726                          | -                         | -                   | -      |
| Dividends paid                                  | -                              | 156                       | -                   | 17     |

The following table resumes the companies' financial information of associates included in the Group consolidated accounts, as of December 2022:

| THOUSAND EUROS                                 | PARQUE EÓLICO SIERRA<br>DEL MADERO, S.A. | EÓLICA DE<br>SÃO JULIÃO,<br>LDA. | UNIÓN DE<br>GENERADORE<br>S DE ENERGÍA,<br>S.L. | GEÓLICA<br>MAGALLÓ<br>N, S.L. |
|------------------------------------------------|------------------------------------------|----------------------------------|-------------------------------------------------|-------------------------------|
| COMPANIES' FINANCIAL INFORMATION OF ASSOCIATES |                                          |                                  |                                                 |                               |
| Non-Current Assets                             | 41,120                                   | 5,839                            | 2,600                                           | 4,441                         |
| Current Assets                                 | 32,020                                   | 23,725                           | 1,626                                           | 11,800                        |
| Equity                                         | 51,374                                   | -1,219                           | 3,171                                           | 4,243                         |
| Non-Current Liabilities                        | 3,852                                    | 15,411                           | 28                                              | 2,211                         |
| Current Liabilities                            | 17,914                                   | 15,372                           | 1,027                                           | 9,787                         |
| Revenues                                       | 30,477                                   | 15,821                           | -                                               | 571                           |
| Net profit for the period                      | 17,973                                   | 12,496                           | 8,665                                           | 8,247                         |

{398}------------------------------------------------

**EÓLICA DE** 

**UNIÓN DE** 

**GEÓLICA** 

| THOUSAND EUROS                                  | PARQUE EÓLICO SIERRA<br>DEL MADERO, S.A. | SÃO JULIÃO,<br>LDA. | GENERADORE<br>S DE ENERGÍA,<br>S.L. | MAGALLÓ<br>N, S.L. |
|-------------------------------------------------|------------------------------------------|---------------------|-------------------------------------|--------------------|
| AMOUNTS PROPORTIONALLY ATTRIBUTED TO EDPR GROUP |                                          |                     |                                     |                    |
| Net assets                                      | 21,577                                   | 19,639              | 13,851                              | 10,181             |
| Goodwill                                        | -                                        | 1,457               | 1,913                               | 683                |
| Dividends paid                                  | 3,262                                    | -                   | 150                                 | 3,880              |

| THOUSAND EUROS                                  | DESARROLLOS<br>EÓLICOS DE<br>CANARIAS, S.A. | SAN JUAN<br>DE<br>BARGAS<br>EÓLICA,<br>S.L. | PARQUE<br>EÓLICO<br>BELMONTE,<br>S.A | OTHERS |
|-------------------------------------------------|---------------------------------------------|---------------------------------------------|--------------------------------------|--------|
| COMPANIES' FINANCIAL INFORMATION OF ASSOCIATES  |                                             |                                             |                                      |        |
| Non-Current Assets                              | 2,246                                       | 5,866                                       | 18,250                               | 21,061 |
| Current Assets                                  | 7,211                                       | 6,992                                       | 7,440                                | 13,645 |
| Equity                                          | 7,193                                       | 4,811                                       | 15,136                               | 17,460 |
| Non-Current Liabilities                         | 607                                         | 1,741                                       | 1,934                                | 5,935  |
| Current Liabilities                             | 1,658                                       | 6,306                                       | 8,620                                | 11,311 |
| Revenues                                        | 8,212                                       | 475                                         | 12,469                               | 13,638 |
| Net profit for the period                       | 4,568                                       | 3,784                                       | 6,863                                | 3,705  |
| AMOUNTS PROPORTIONALLY ATTRIBUTED TO EDPR GROUP |                                             |                                             |                                      |        |
| Net assets                                      | 9,697                                       | 8,455                                       | 6,251                                | 10,550 |
| Goodwill                                        | 6,479                                       | -                                           | 1,725                                | -      |
| Dividends paid                                  | 1,542                                       | 3,451                                       | 360                                  | 3,186  |

During 2023, the significant companies' financial information of joint ventures and associates presented the following fair value reconciliation of net assets proportionally attributed to EDPR Group:

| THOUSAND EUROS                           | EQUITY  | %<br>INVESTMENT | FAIR VALUE<br>ADJUSTMENTS | GOODWILL | OTHERS | NET<br>ASSETS |
|------------------------------------------|---------|-----------------|---------------------------|----------|--------|---------------|
| OW Offshore S.L. and<br>subsidiaries 2   | 997,192 | 50,00%          | -53,875                   | 5,352    | -      | 450,073       |
| Goldfinger Ventures II LLC               | 217,389 | 50,00%          | -11,790                   | -        | -      | 96,905        |
| Flat Rock Windpower LLC                  | 177,947 | 50,00%          | -                         | -        | 1,090  | 90,064        |
| Goldfinger Ventures LLC                  | 151,444 | 50,00%          | -7,092                    | -        | -      | 68,630        |
| 2017 Vento XVII LLC and subs.            | 219,159 | 20,00%          | 18,725                    | -        | -      | 62,557        |
| 2019 Vento XX and<br>subsidiaries        | 108,645 | 20,00%          | 26,059                    | -        | -      | 47,788        |
| 2018 Vento XIX LLC and subs.             | 121,934 | 20,00%          | 19,106                    | -        | -      | 43,493        |
| Riverstart Ventures LLC (Sol V)          | 206,674 | 20,00%          | -1,008                    | -        | -      | 40,327        |
| Flat Rock Windpower II LLC               | 72,688  | 50,00%          | -                         | -        | -      | 36,344        |
| Evoikos Voreas A.E 1                     | 1,967   | 51,00%          | 20,575                    | -        | -      | 21,578        |
| Evolución 2000, S.L.                     | 30,404  | 49,15%          | -                         | 2,667    | -      | 17,611        |
| Eólica de São Julião, Lda.               | 14,928  | 45,00%          | 17,434                    | 1,457    | -      | 25,609        |
| Parque Eólico Sierra del<br>Madero, S.A. | 54,369  | 42,00%          | -                         | -        | -      | 22,835        |
| Unión de Generadores de<br>Energía, S.L. | 2,889   | 50,00%          | 6,434                     | 1,913    | -      | 9,792         |
| Desarrollos Eólicos de<br>Canarias, S.A. | 3,014   | 44,75%          | -                         | 6,479    | -1     | 7,827         |
| Parque Eólico Belmonte, S.A.             | 16,015  | 29,90%          | -                         | 1,725    | -      | 6,514         |
| Solar Power Zeta GK                      | 73      | 100,00%         | 1,084                     | -        | 2,755  | 3,912         |
| Eos Pax IIa, S.L                         | 2,548   | 48,50%          | 2,519                     | -        | -      | 3,755         |

↻

<sup>1</sup> According to the relevant shareholder agreements, it has been concluded a joint control over the company.

2 In caption equity only Equity attributable to holders of parent is disclosed.

During 2022, the significant companies' financial information of joint ventures and associates presented the following fair value reconciliation of net assets proportionally attributed to EDPR Group:

{399}------------------------------------------------

|                                       | INVESTMENT | % INVESTMENT | ADJUSTMENTS |       | ASSETS  |
|---------------------------------------|------------|--------------|-------------|-------|---------|
| OW Offshore S.L. and subsidiaries     | 1.069,680  | 50.00%       | -49,265     | 5,352 | 490,929 |
| Flat Rock Windpower LLC               | 203,387    | 50.00%       | -           | -     | 111,047 |
| Goldfinger Ventures II LLC            | 211,917    | 50.00%       | -12,610     | -     | 93,349  |
| Goldfinger Ventures LLC               | 153,491    | 50.00%       | -7,756      | -     | 68,989  |
| 2019 Vento XX and subsidiaries        | 24,236     | 20.00%       | 29,188      | -     | 34,035  |
| 2017 Vento XVII LLC and subs.         | 202,561    | 20.00%       | 21,998      | -     | 62,510  |
| 2018 Vento XIX LLC and subs.          | 101,026    | 20.00%       | 20,781      | -     | 40,986  |
| Flat Rock Windpower II LLC            | 82,815     | 50.00%       | -           | -     | 41,407  |
| Sol V                                 | 194,623    | 20.00%       | 76          | -     | 39,001  |
| Evoikos Voreas A.E(1)                 | 1,723      | 51.00%       | 20,575      | -     | 21,454  |
| Evolución 2000, S.L.                  | 27,212     | 49.15%       | -           | 2,667 | 16,071  |
| Parque Eólico Sierra del Madero, S.A. | 51,374     | 42.00%       | -           | -     | 21,577  |
| Eólica de São Julião, Lda.            | -1,219     | 45.00%       | 18,731      | 1,457 | 19,639  |
| Unión de Generadores de Energía, S.L. | 3,171      | 50.00%       | 10,352      | 1,913 | 13,851  |
| Geólica Magallón, S.L.                | 4,243      | 36.23%       | 7,961       | 683   | 10,181  |
| Desarrollos Eólicos de Canarias, S.A. | 7,193      | 44.75%       | -           | 6,479 | 9,697   |
| San Juan de Bargas Eólica, S.L.       | 4,811      | 47.01%       | 6,193       | -     | 8,455   |
| Parque Eólico Belmonte, S.A.          | 15,136     | 29,90%       | -           | 1,725 | 6,251   |

<sup>1</sup> According to the relevant shareholder agreements, it has been concluded a joint control over the company.

#### EDPR commitments to provide funding to Joint Ventures as at 31 December 2023 are:

|                                                          |         |                        |                                 |                         | 2023                    |
|----------------------------------------------------------|---------|------------------------|---------------------------------|-------------------------|-------------------------|
|                                                          |         |                        | CAPITAL OUTSTANDING BY MATURITY |                         |                         |
| THOUSAND EUROS                                           | TOTAL   | LESS<br>THAN 1<br>YEAR | FROM 1 TO<br>3 YEARS            | FROM 3<br>TO 5<br>YEARS | MORE<br>THAN 5<br>YEARS |
| EDPR Commitments to provide funding<br>to Joint Ventures | 286,135 | 286,135                | -                               | -                       | -                       |
|                                                          | 286,135 | 286,135                | -                               | -                       | -                       |

EDPR commitments to provide funding to Joint Ventures as at 31 December 2022 are:

|                                                          |         |                        | 2022<br>CAPITAL OUTSTANDING BY MATURITY |                         |                         |  |
|----------------------------------------------------------|---------|------------------------|-----------------------------------------|-------------------------|-------------------------|--|
| THOUSAND EUROS                                           | TOTAL   | LESS<br>THAN 1<br>YEAR | FROM 1 TO<br>3 YEARS                    | FROM 3<br>TO 5<br>YEARS | MORE<br>THAN 5<br>YEARS |  |
| EDPR Commitments to provide funding<br>to Joint Ventures | 295,780 | 295,780                | -                                       | -                       | -                       |  |
|                                                          | 295,780 | 295,780                | -                                       | -                       | -                       |  |

EDPR Commitments to provide funding for Joint Ventures in 2023and 2022refer to funds agreed to be provided to Ocean Winds for financing the offshore business.

EDPR Group granted parent company guarantees for certain joint venture projects. Total guarantees granted refer to financial and operational guarantees granted by EDPR to joint ventures in the amount of 838,531 thousand Euros and 634,810 thousand Euros respectively (411,637 thousand Euros and 455,579 thousand Euros respectively as at 31 December 2022). Further, EDP Energías de Portugal Sucursal en España has operational guarantees to EDPR's joint ventures in the amount of 11,312 thousand Euros (11,719 thousand Euros as at 31 December 2022).

{400}------------------------------------------------

21. Deferred tax assets and liabilities

EDP Renováveis Group records the tax effect resulting from temporary differences between the assets and liabilities determined on an accounting basis and on a tax basis. As at 31 December 2023, on a consolidated basis, the movement by nature of Net Deferred Tax Assets and Liabilities are as follows:

| NET DEFERRED TAX ASSETS                              |                          |                 |                  |                                                                   |                          |
|------------------------------------------------------|--------------------------|-----------------|------------------|-------------------------------------------------------------------|--------------------------|
| THOUSAND EUROS                                       | BALANCE AT<br>31.12.2022 | MOV.<br>RESULTS | MOV.<br>RESERVES | PERIMETER<br>VARIATIONS,<br>EXCHANGE<br>DIFFERENCES AND<br>OTHERS | BALANCE AT<br>31.12.2023 |
| Tax losses and tax credits                           | 856,933                  | 56,692          | -2,262           | -48,658                                                           | 862,705                  |
| Provisions                                           | 51,079                   | 8,190           | -15              | 5,194                                                             | 64,448                   |
| Financial instruments                                | 353,836                  | -85,079         | -313,883         | 109,177                                                           | 64,051                   |
| Property plant and equipment                         | 39,254                   | -2,883          | 619              | 3,341                                                             | 40,331                   |
| Non-deductible financial<br>expenses                 | -1,383                   | -14,047         | -                | 15,039                                                            | -391                     |
| Lease liabilities and other<br>temporary differences | 296,187                  | 60,464          | 847              | 8,624                                                             | 366,122                  |
| Assets/liabilities compensation of<br>deferred taxes | -970,549                 | -46,619         | -847             | 242,254                                                           | -775,761                 |
|                                                      | 625,357                  | -23,282         | -315,541         | 334,970                                                           | 621,505                  |

|                                                                |                          |                 | NET DEFERRED TAX LIABILITIES |                                                                   |                          |  |
|----------------------------------------------------------------|--------------------------|-----------------|------------------------------|-------------------------------------------------------------------|--------------------------|--|
| THOUSAND EUROS                                                 | BALANCE<br>AT 31.12.2022 | MOV.<br>RESULTS | MOV.<br>RESERVES             | PERIMETER<br>VARIATIONS,<br>EXCHANGE<br>DIFFERENCES AND<br>OTHERS | BALANCE AT<br>31.12.2023 |  |
| Financial instruments                                          | 34,361                   | -8,499          | 12,676                       | 9,880                                                             | 48,418                   |  |
| Property plant and equipment                                   | 613,962                  | 34,687          |                              | -1,593                                                            | 647,056                  |  |
| Allocation of fair value to assets<br>and liabilities acquired | 459,109                  | -4,644          | 1,841                        | -22,385                                                           | 433,921                  |  |
| Income from institutional<br>partnerships (North America)      | 439,588                  | 6,325           | 88                           | -15,421                                                           | 430,580                  |  |
| Other temporary differences                                    | 61,819                   | 5,160           | 105                          | 5,802                                                             | 72,886                   |  |
| Assets/liabilities compensation of<br>deferred taxes           | -970,549                 | -46,619         | -847                         | 242,254                                                           | -775,761                 |  |
|                                                                | 638,290                  | -13,590         | 13,863                       | 218,537                                                           | 857,100                  |  |

As at 31 December 2022, on a consolidated basis, the movement by nature of Net Deferred Tax Assets and Liabilities are as follows:

|                                                      |                          |                 |                  | NET DEFERRED TAX ASSETS                                           |                             |
|------------------------------------------------------|--------------------------|-----------------|------------------|-------------------------------------------------------------------|-----------------------------|
| THOUSAND EUROS                                       | BALANCE<br>AT 31.12.2021 | MOV.<br>RESULTS | MOV.<br>RESERVES | PERIMETER<br>VARIATIONS,<br>EXCHANGE<br>DIFFERENCES AND<br>OTHERS | BALANCE<br>AT<br>31.12.2022 |
| Tax losses and tax credits                           | 762,913                  | 58,118          | 3,244            | 32,658                                                            | 856,933                     |
| Provisions                                           | 23,320                   | 708             | -30              | -3,991                                                            | 20,006                      |
| Financial instruments                                | 133,261                  | 131,506         | 185,624          | -96,555                                                           | 353,836                     |
| Property plant and equipment                         | 68,105                   | -16,823         | -                | -12,029                                                           | 39,254                      |
| Non-deductible financial<br>expenses                 | 15,858                   | -14,403         | -                | -2,838                                                            | -1,383                      |
| Other temporary differences                          | 36,808                   | 19,362          | -3,159           | 42,340                                                            | 95,352                      |
| Assets/liabilities compensation of<br>deferred taxes | -708,461                 | -32,463         | 3,159            | -875                                                              | -738,641                    |
|                                                      | 331,803                  | 146,005         | 188,838          | -41,289                                                           | 625,357                     |

| THOUSAND EUROS                                                 | BALANCE<br>AT 31.12.2021 | MOV.<br>RESULTS | MOV.<br>RESERVES | PERIMETER<br>VARIATIONS, EXCHANGE<br>DIFFERENCES AND<br>OTHERS | BALANCE AT<br>31.12.2022 |
|----------------------------------------------------------------|--------------------------|-----------------|------------------|----------------------------------------------------------------|--------------------------|
| Financial instruments                                          | 2,119                    | 47,295          | 53,420           | -68,472                                                        | 34,361                   |
| Property plant and equipment                                   | 302,384                  | 12,550          | 39,411           | 27,694                                                         | 382,039                  |
| Allocation of fair value to assets<br>and liabilities acquired | 461,374                  | 2,215           | -                | -4,481                                                         | 459,109                  |

Income from institutional

partnerships (North America) 383,232 32,733 -91 23,714 439,588

{401}------------------------------------------------

**NET DEFERRED TAX LIABILITIES**

| THOUSAND EUROS                                       | BALANCE<br>AT 31.12.2021 | MOV.<br>RESULTS | MOV.<br>RESERVES | PERIMETER<br>VARIATIONS, EXCHANGE<br>DIFFERENCES AND<br>OTHERS | BALANCE AT<br>31.12.2022 |
|------------------------------------------------------|--------------------------|-----------------|------------------|----------------------------------------------------------------|--------------------------|
| Other temporary differences                          | 24,715                   | 23,700          | -1               | 13,404                                                         | 61,819                   |
| Assets/liabilities compensation of<br>deferred taxes | -719,260                 | -32,463         | 3,159            | 9,940                                                          | -738,624                 |
|                                                      | 454,564                  | 86,030          | 95,898           | 1,799                                                          | 638,290                  |

The compensation between deferred tax assets and liabilities is performed at each subsidiary, and therefore the consolidated financial statements reflect the total deferred tax assets and deferred tax liabilities of the Group's subsidiaries.

Provisions, Property plant and equipment and Other temporary differences include 204,625 thousand Euros (31 December 2022: 217,138 thousand Euros) of Deferred tax assets related to Lease liabilities and 187,504 thousand Euros (31 December 2022: 202,836 thousand Euros) of Deferred tax liability related to Right of use assets, due to the application of IFRS 16.

Additionally, Provisions and Property plant and equipment, deferred tax assets and deferred tax liabilities associated with the recognition of provisions for dismantling, pursuant to the IAS 12 amendments – Income taxes mentioned in note 3.

Management considers that in accordance with the business plan approved by the Board of Directors, the deferred tax assets related to tax losses and tax credits will be recoverable with future tax profit. In relation to the Spanish Constitutional Court ruling dated 19 January 2024, Management has concluded that it has no significant impact on the accompanying financial statements.

The Group tax losses carried forward are analysed as follows:

| THOUSAND EUROS          | 31 DEC 2023 | 31 DEC 2022 |
|-------------------------|-------------|-------------|
| EXPIRATION DATE         |             |             |
| 2023                    | -           | 2,983       |
| 2024                    | 1,375       | 1,555       |
| 2025                    | 2,890       | 3,189       |
| 2026                    | 12,956      | 11,842      |
| 2027                    | 10,736      | 62,869      |
| 2028                    | 18,156      | 4,985       |
| 2029                    | 417         | 409         |
| 2030 to 2044            | 2,381,523   | 2,313,971   |
| Without expiration date | 740,058     | 851,916     |
|                         | 3,168,111   | 3,253,720   |

In addition to the above, EDPR North America LLC has State tax losses that are recorded in the Group's accounts. The associated deferred tax asset raised to 71,035 thousand Euros as at 31 December 2023 (78,566 thousand Euros as at 31 December 2022).

Of the total tax losses available to carry forward as at 31 December 2023, an amount of 199,996 thousand Euros does not have an associated deferred tax asset, in accordance with the applicable accounting standards since, at the present date, there is still not sufficient visibility about the future period in which such tax losses will be used.

#### 22. Inventories

This caption is analysed as follows:

| THOUSAND EUROS                               | 31 DEC 2023 | 31 DEC 2022 |
|----------------------------------------------|-------------|-------------|
| Advances on account of purchases             | 5,555       | 4,749       |
| Finished and intermediate products           | 18,132      | 11,490      |
| Green certificates and RECs                  | 171,668     | 172,658     |
| Raw and subsidiary materials and consumables | 64,467      | 63,947      |
|                                              | 259,822     | 252,844     |

The caption Green certificates and RECs includes the Green certificates and RECs generated and pending to be sold.

{402}------------------------------------------------

23. Debtors and other assets from commercial activities

Debtors and other assets from commercial activities are analysed as follows:

| THOUSAND EUROS                                                    | 31 DEC 2023 | 31 DEC 2022 |
|-------------------------------------------------------------------|-------------|-------------|
| DEBTORS AND OTHER ASSETS FROM COMMERCIAL ACTIVITIES – NON-CURRENT |             |             |
| Trade receivables                                                 | 5           | 54          |
| Deferred costs                                                    | 22,337      | 23,209      |
| Sundry debtors and other operations                               | 35,602      | 12,743      |
|                                                                   | 57,944      | 36,006      |
| DEBTORS AND OTHER ASSETS FROM COMMERCIAL ACTIVITIES – CURRENT     |             |             |
| Trade receivables                                                 | 313,582     | 370,231     |
| Services rendered                                                 | 37,272      | 44,825      |
| Advances to suppliers                                             | 30,177      | 44,810      |
| Deferred costs                                                    | 86,418      | 58,473      |
| Sundry debtors and other operations                               | 37,325      | 55,344      |
|                                                                   | 504,774     | 573,683     |
| Impairment losses                                                 | -3,826      | -3,996      |
|                                                                   | 558,892     | 605,693     |

The amount of trade receivables - current as at 31 December 2023 principally refers to Europe in the amount of 111,712 thousand Euros (188,828 thousand Euros as at 31 December 2022) and to North America in the amount of 133,678 thousand Euros (120,288 thousand Euros as at 31 December 2022), which mainly includes electricity generation invoicing. Also, as at 31 December 2023 the caption includes an amount of 30,317 thousand Euros refers to APAC (32,210 thousand Euros as at 31 December 2022).

The caption debtors and other assets from commercial activities – Current, includes 3,826 thousand Euros, which is the result of impairment losses under the expected credit loss model recommended in IFRS 9 (3,996 thousand Euros as at 31 December 2022).

The caption Advances to suppliers mainly includes as at 31 December 2023 an amount of 30,177 thousand Euros as a result of the under construction of certain projects mainly in Italy, Portugal, Colombia and Brazil. The caption mainly included as at 31 December 2022 an amount of 44,801 thousand Euros as a result of the under construction of certain projects in LATAM and Europe.

The caption Deferred costs – current has increased due to the variation of the availability bonus receivables in North America.

The credit risk analysis are disclosed in note 5, under the Counterparty credit risk management section.

The fair values and carrying amounts of current debtors and other assets do not differ significantly.

#### 24. Other debtors and other assets

Other debtors and other assets are analysed as follows:

| THOUSAND EUROS                               | 31 DEC 2023 | 31 DEC 2022 |
|----------------------------------------------|-------------|-------------|
| OTHER DEBTORS AND OTHER ASSETS – NON-CURRENT |             |             |
| Loans to related parties                     | 430,876     | 185,775     |
| Derivative financial instruments             | 268,030     | 137,597     |
| Sundry debtors and other operations          | 125,570     | 138,802     |
|                                              | 824,476     | 462,174     |
| OTHER DEBTORS AND OTHER ASSETS – CURRENT     |             |             |
| Loans to related parties                     | 111,740     | 337,020     |
| Derivative financial instruments             | 127,820     | 163,262     |
| Sundry debtors and other operations          | 337,930     | 722,624     |
|                                              | 577,490     | 1,222,906   |
|                                              | 1,401,966   | 1,685,080   |

Loans to related parties mainly include loans granted to Ocean Winds in the amount of 429,098 thousand Euros in the long-term with maturity between 2028 and 2030 and 105,537 thousand Euros in the short-term, in the context of the agreement with ENGIE on January 2020 to establish

a co-controlled 50/50 joint venture, OW Offshore S.L., to jointly develop fixed and floating

{403}------------------------------------------------

offshore wind business (184,644 thousand Euros in the long-term and 326,730 thousand Euros in

the short-term as at 31 December 2022). These loans bear interest at market rates, which are fixed or with reference rate indexed to Euribor, plus a market spread.

Sundry debtors and other operations- non-current mainly includes:

- Fair value of the variable price in the amount of 42,813 thousand Euros in connection with the sale in 2020 of the stake in the company Mayflower Wind Energy LLC in the context of the sale of the offshore business to OW Offshore S.L. (41,452 thousand Euros as at 31 December 2022);
- 62,776 thousand Euros (51,758 thousand Euros as af 31 December 2022) mainly related to Interconnection and transmission deposits in EDPR NA;
- 9,698 thousand Euros as of 31 December 2023 (9,421 thousand Euros as of 31 December 2022) as part of the price adjustment, according to the corresponding agreements, in the transaction of selling 49% of EDP Renováveis Portugal S.A to CTG that took place in 2013.
- In addition, as of 31 December 2022, the caption also included 30,000 thousand Euros related to the advance payment paid during 2022 for future investment acquisitions.

Sundry debtors and other operations-current mainly includes:

- As of 31 December 2022 the caption included the fair value of the variable price in connection with the sale in 2020 and 2018 of 29.5% and 13.5% stake of the French companies Éoliennes en Mer Dieppe - Le Tréport, S.A.S. and Éoliennes en Mer Îles d'Yeu et dxe Noirmoutier, S.A.S. to OW Offshore S.L. and Sumitomo Corporation respectively, in accordance with the relevant agreements signed, that amounted to 77,920 thousand Euros and 29,112 thousand Euros, respectively. As of 31 December 2023 an amount of 39,400 thousand Euros and 18,305 thousand Euros has been collected from OW Offshore S.L. and Sumitomo, respectively.
- As at 31 December 2022included the receivable for the proceeds for the sale of the Brazilian companies Aventura Holding, S.A. and SRMN Holding, S.A. and its subsidiaries in the amount 184,778 thousand Euros (see note 9). The amount has been collected during 2023;
- Cash collateral held in markets where the Group enters into derivative instruments and trades US green certificates in the amount of 149,222 thousand Euros (238,375 thousand Euros as of 31 December 2022);
- 24,621 thousand Euros related to the sale transaction in 2021 of the company Indiana Crossroads Wind Farm LLC (116,141 thousand Euros as of 31 December 2022);
- Receivables related to the derivatives, mainly with the EDP Group, in the amount of 5,851 thousand Euros (19,916 thousand Euros as at 31 December 2022);
- An amount of 9,341 thousand Euros as part of the price adjustment, according to the corresponding agreements, in the transaction of selling 49% of EDP Renováveis Portugal S.A. to CTG that took place in 2013 (16,063 thousand Euros as of 31 December 2022);
- 55,423 thousand Euros related to receivable of the sale transaction in 2023 for the sale of Viesgo's companies (see note 9 and 6);
- As of 31 December 2022, an amount of 4,634 thousand Euros related to the advance payment paid during 2022 for future investment acquisitions.

For derivatives, refer to note 37.

The fair values and carrying amounts of other debtors and other assets do not differ significantly.

#### 25. Current tax assets

#### Current tax assets are analysed as follows:

| THOUSAND EUROS        |  | 31 DEC 2023 | 31 DEC 2022 |
|-----------------------|--|-------------|-------------|
| Income tax            |  | 90,932      | 68,345      |
| Value added tax (VAT) |  | 192,044     | 208,883     |
| Other taxes           |  | 58,359      | 25,156      |
|                       |  | 341,335     | 302,384     |

The increase in the income tax caption corresponds, mainly, to the amount related with the tax paid in the past for the sale of certain companies which Directors and legal experts have estimated recoverable.

In certain geographies, there are taxes that base their prepayments on the result of the previous year. Since 2022 had abnormally high energy prices, the base in which our instalments were calculated was also higher than usual, making the Company overpay and later obtain tax credits in those regions.

{404}------------------------------------------------

26. Cash and cash equivalents

Cash and cash equivalents are analysed as follows:

| THOUSAND EUROS                                                     | 31 DEC 2023 | 31 DEC 2022 |
|--------------------------------------------------------------------|-------------|-------------|
| Cash                                                               | 554         | 410         |
| BANK DEPOSITS                                                      |             |             |
| Current deposits                                                   | 1,064,423   | 799,938     |
| Term deposits                                                      | 94,680      | 30,632      |
| Specific demand deposits in relation to institutional partnerships | 2,915       | 1,536       |
|                                                                    | 1,162,018   | 832,106     |
| Other short-term investments                                       | 209,196     | 339,416     |
|                                                                    | 1,371,768   | 1,171,932   |

Term deposits include temporary financial investments to place treasury surpluses.

Specific demand deposits in relation to institutional partnerships are funds required to be held in escrow sufficient to pay the remaining construction related costs of projects in institutional equity partnerships (see note 33), under the accounting policy. The governing agreements of these partnerships and specific escrow agreements define the appropriate expenditure of these funds.

The caption "Other short-term investments" essentially includes, as at 31 December 2023 and 31 December 2022, the debit balance of the current account with EDP Servicios Financieros España S.A. in the amount of 199.038 thousand euros (326.815 thousand euros in 2022) in accordance with the terms and conditions of the contract signed between the parties (see note 39).

## 27. Assets and liabilities held for sale

The criteria for classifying assets and liabilities as held for sale and discontinued operations, as well as their presentation in the EDPR Group's consolidated financial statements, are presented under accounting policies.

This caption is analysed as follows:

| THOUSAND EUROS                | 31 DEC 2023<br>ASSETS<br>HELD FOR<br>SALE | LIABILITIES<br>HELD FOR<br>SALE | 31 DEC 2022<br>ASSETS<br>HELD FOR<br>SALE | LIABILITIES<br>HELD FOR<br>SALE |
|-------------------------------|-------------------------------------------|---------------------------------|-------------------------------------------|---------------------------------|
| Electricity generation assets | 516,602                                   | 273,816                         | 9,198                                     | -                               |

- Reduction of 9,198 thousand Euros related to the closing of the sale of portfolio in Europe (see note 6) and other non-current Property, plant and equipment.
- Increase in 509,908 thousand Euros related to the process of selling the assets of a project in North America. Liabilities associated to this operation amount to 273,816 thousand Euros.
- Increase in 6,694 thousand Euros related to the process of selling an asset in Europe. There are no liabilities associated to this operation.

As at 31 December 2023 the following reclassifications were made to held for sale:

| THOUSAND EUROS                                          | ELECTRICITY GENERATION |
|---------------------------------------------------------|------------------------|
| ASSETS                                                  |                        |
| Property, plant and equipment                           | 486,111                |
| Right-of-use assets                                     | 57,402                 |
| Other assets                                            | 12,955                 |
| Impairment loss from assets held for sale (see note 13) | -39,866                |
| Non-Current Assets Held for Sale                        | 516,602                |
| LIABILITIES                                             |                        |
| Financial debt                                          | 469                    |
| Provisions                                              | 2,447                  |
| Institutional partnerships in USA wind farms            | 207,452                |
| Other liabilities                                       | 63,448                 |
| Non-Current Liabilities Held for Sale                   | 273,816                |

{405}------------------------------------------------

As at 31 December 2022 the following reclassifications were made to held for sale:

| THOUSAND EUROS                        | ELECTRICITY GENERATION |
|---------------------------------------|------------------------|
| ASSETS                                |                        |
| Property, plant and equipment         | 9,152                  |
| Right-of-use assets                   | -                      |
| Other assets                          | 46                     |
| Cash and cash equivalents             | -                      |
| Non-Current Assets Held for Sale      | 9,198                  |
| LIABILITIES                           |                        |
| Financial debt                        | -                      |
| Provisions                            | -                      |
| Other liabilities                     | -                      |
| Non-Current Liabilities Held for Sale | -                      |

These reclassifications were made only for financial statement presentation purposes. As a consequence of the reclassification in accordance with IFRS 5, it has been necessary to register an impairment because the book value was higher than the fair value less the sale cost expected to receive (see note 13).

## 28. Share capital and share premium

On March 6, 2023, EDPR made a capital increase by issuing 50,968,400 ordinary shares, with a par value of 5 Euros each and a share premium of 14,62 Euros per share. The new shares are fungible with EDPR's other shares and will confer on their holders, as from the date of the respective issue, the same rights as the other shares existing prior to the capital increase.

On April 4, 2023, the Annual General Shareholders' Meeting approved for 2022 profits distribution through a scrip dividend to be executed as a share capital increase, through the issuance of new ordinary shares, with a par value of 5 Euros, without share premium. The scrip dividends were executed by the 92,32% of the Shareholders. This has meant that the company has increased its share capital by issuing 12,451,539 new shares with a par value of 5 Euro against the share premium. The new shares are fungible with EDPR's other shares and will confer on their holders, as from the date of the respective issue, the same rights as the other shares existing prior to the capital increase. The capital increase has been completed on May 25, 2023. The shareholders who have not executed this mechanism have sold their subscription rights to the company for a total amount of 20,580 thousand Euro, receiving this amount as a dividend charged against the EDPR's share premium.

As such, the share capital of EDPR at 31 December 2023 amounts to 5,119,890,505 Euros, represented by 1,023,978,101 shares of 5 euros par value each, all of a single class and series. As of 31 December2022 the share capital of EDPR amounted to 4,802,790,810 Euros, represented by 960,558,162 shares of 5 euros par value each, all of a single class and series.

EDP Renováveis, S.A. shareholder's structure as at 31 December 2023 is analysed as follows:

|                                                                     | NO. OF<br>SHARES | % CAPITAL | % VOTING<br>RIGHTS |
|---------------------------------------------------------------------|------------------|-----------|--------------------|
| EDP - Energias de Portugal, S.A.<br>Sucursal en España (EDP Branch) | 729,793,922      | 71.27%    | 71.27%             |
| Other*                                                              | 294,184,179      | 28.73%    | 28.73%             |
|                                                                     | 1,023,978,101    | 100.00%   | 100.00%            |

\* Shares quoted on the Lisbon stock exchange

EDP Renováveis, S.A. shareholder's structure as at 31 December 2022 is analysed as follows:

|                                                                     | NO. OF<br>SHARES | % CAPITAL | % VOTING<br>RIGHTS |
|---------------------------------------------------------------------|------------------|-----------|--------------------|
| EDP - Energias de Portugal, S.A.<br>Sucursal en España (EDP Branch) | 720,191,372      | 74.98%    | 74.98%             |
| Other*                                                              | 240,366,790      | 25.02%    | 25.02%             |
|                                                                     | 960,558,162      | 100.00%   | 100.00%            |

\* Shares quoted on the Lisbon stock exchange

{406}------------------------------------------------

Movements in Share capital and Share premium during 2023 are as follows:

|                                                        | SHARE<br>CAPITAL | SHARE<br>PREMIUM |
|--------------------------------------------------------|------------------|------------------|
| Balance as at 1 January 2023                           | 4,802,791        | 1,599,013        |
| Movements during the period (net of transaction costs) | 317,100          | 655,542          |
| Balance as at 31 December 2023                         | 5,119,891        | 2,254,555        |

There were no changes in Share capital and Share premium during 2023. The Share premium is freely distributable.

Earnings per share attributable to the shareholders of EDPR are analysed as follows:

|                                                                                                                        | 31 DEC 2023   | 31 DEC 2022 |
|------------------------------------------------------------------------------------------------------------------------|---------------|-------------|
| Profit attributable to the equity holders of the parent<br>(in thousand Euros)                                         | 309,014       | 616,231     |
| Profit from continuing operations attributable to the equity holders of<br>the parent (in thousand Euros)              | 309,014       | 616,231     |
| Weighted average number of ordinary shares outstanding                                                                 | 1,011,332,855 | 960,558,162 |
| Weighted average number of diluted ordinary shares outstanding                                                         | 1,011,332,855 | 960,558,162 |
| Earnings per share (basic) attributable to equity holders of the parent<br>(in Euros)                                  | 0.31          | 0.64        |
| Earnings per share (diluted) attributable to equity holders of the<br>parent (in Euros)                                | 0.31          | 0.64        |
| Earnings per share (basic) from continuing operations attributable to<br>the equity holders of the parent (in Euros)   | 0.31          | 0.64        |
| Earnings per share (diluted) from continuing operations attributable to<br>the equity holders of the parent (in Euros) | 0.31          | 0.64        |

The EDPR Group calculates its basic and diluted earnings per share attributable to equity holders of the parent using the weighted average number of ordinary shares outstanding during the period.

The company does not hold any treasury stock as at 31 December 2023 and 31 December 2022.

The average number of shares was determined as follows:

|                                                       | 31 DEC 2023   | 31 DEC 2022 |
|-------------------------------------------------------|---------------|-------------|
| Ordinary shares issued at the beginning of the period | 960,558,162   | 960,558,162 |
| Effect of shares issued during the period             | 50,774,693    | -           |
| Average number of realised shares                     | 1,011,332,855 | 960,558,162 |
| Average number of shares during the period            | 1,011,332,855 | 960,558,162 |
| Diluted average number of shares during the period    | 1,011,332,855 | 960,558,162 |

## 29. Other comprehensive income, reserves and retained earnings

#### This caption is analysed as follows:

| THOUSAND EUROS                                                          | 31 DEC 2023 | 31 DEC 2022 |
|-------------------------------------------------------------------------|-------------|-------------|
| OTHER COMPREHENSIVE INCOME                                              |             |             |
| Fair value reserve (cash flow hedge)                                    | -271,501    | -1,052,141  |
| Fair value reserve (equity instruments at fair value)                   | 3,278       | 19,737      |
| Exchange differences – Currency translation arising on<br>consolidation | 508,257     | 672,254     |
| Exchange differences – Net investment hedge                             | -639,118    | -790,670    |
| Exchange differences – Net investment hedge – Cost of hedging           | -11,398     | -20,925     |
|                                                                         | -410,482    | -1,171,745  |
| OTHER RESERVES AND RETAINED EARNINGS                                    |             |             |
| Retained earnings and other reserves                                    | 3,513,784   | 2,903,746   |
| Additional paid in capital                                              | 60,666      | 60,666      |
| Legal reserve                                                           | 214,829     | 214,829     |
|                                                                         | 3,789,279   | 3,179,241   |
|                                                                         | 3,378,797   | 2,007,496   |

{407}------------------------------------------------

**Currency translation reserve - Net investment hedge and Cost of hedging**

The changes in these captions for the year 2023 are as follows:

| THOUSAND EUROS                                                                  | NET INVESTMENT<br>HEDGE | COST OF<br>HEDGING |
|---------------------------------------------------------------------------------|-------------------------|--------------------|
| Balance as at 31 December 2022                                                  |                         | -20,925            |
| Changes in fair value                                                           | 203,939                 | 12,704             |
| Tax effect fair value changes                                                   | -49,411                 | -3,176             |
| Transfer to income statement resulting from the sale of a<br>foreign subsidiary | -2,976                  | -                  |
| Balance as at 31 December 2023                                                  | -639,118                | -11,397            |

The changes in these captions for the year 2022 are as follows:

| THOUSAND EUROS                                                                  | NET INVESTMENT<br>HEDGE | COST OF<br>HEDGING |
|---------------------------------------------------------------------------------|-------------------------|--------------------|
| Balance as at 31 December 2021                                                  | -544,039                | 711                |
| Changes in fair value                                                           | -320,792                | -28,849            |
| Tax effect fair value changes                                                   | 77,383                  | 7,213              |
| Transfer to income statement resulting from the sale of a<br>foreign subsidiary | -3,222                  | -                  |
| Balance as at 31 December 2022                                                  | -790,670                | -20,925            |

#### **Additional paid in capital**

The accounting for transactions among entities under common control is excluded from IFRS 3. Consequently, in the absence of specific guidance, within IFRSs, the Group EDPR has adopted an accounting policy for such transactions, judged appropriate. According to the Group's policy, business combinations among entities under common control are accounted for in the consolidated financial statements using the book values of the acquired company (subgroup) in the EDPR consolidated financial statements. The difference between the carrying amount of the net assets received and the consideration paid is recognised in equity.

#### **Legal reserve**

The legal reserve has been appropriated in accordance with Article 274 of the Spanish Companies Act whereby companies are obliged to transfer 10% of the profits for the year to a legal reserve until such reserve reaches an amount equal to 20% of the share capital. This reserve is not distributable to shareholders and may only be used to offset losses, if no other reserves are available, or to increase the share capital.

#### **Results distribution (parent company)**

The EDP Renováveis, S.A. Board of Directors proposal for 2023results distribution to be presented in the Annual General Meeting is as follows:

|                        | EUROS        |
|------------------------|--------------|
| BASE FOR DISTRIBUTION  |              |
| Loss for the year 2023 | -247,715,982 |
| Prior years' losses    | 247,715,982  |

The Board of Directors of EDP Renováveis, S.A. has agreed to propose to the Ordinary General Shareholders' Meeting to remunerate its shareholders through a flexible dividend (scrip dividend) for a maximum gross amount of 210,000 thousand Euros , so that they may elect to receive new issued shares of the Company or all or part of the remuneration in cash.

The scrip dividend will be paid through the issue of free allotment rights for new shares and the subsequent execution of a capital increase, which the Board of Directors will propose to the Ordinary General Meeting of Shareholders, so that shareholders wishing to receive their remuneration in cash will do so by selling their free-of-charge allocation rights to the Company, which will undertake to purchase them at a guaranteed fixed price, the approval of which will also be proposed to the Annual General Meeting of Shareholders, or on the regulated market of Euronext Lisbon.

Both the acquisition of the free-of-charge allocation rights by the Company and the capital increase will be charged against share premium at the date on which the Board of Directors, if any,

{408}------------------------------------------------

resolves to execute them. Thus, the final aggregate gross amount of the scrip dividend will be equal

to the sum of the amounts indicated below:

(i) the result of multiplying the nominal value of the Company's shares (€5) by the number of shares issued in the capital increase, resulting from the conversion of the free-ofcharge allocation rights outstanding after the end of the period for requesting the Company to exercise the purchase commitment or their sale on the market; plus

(ii) (ii) the result of multiplying the guaranteed fixed price by the number of free-of-charge allocation rights acquired by the Company under the purchase commitment.

At the date of preparation of these Consolidated Financial Statements, it is not possible to specify the amount of the scrip dividend or, consequently, the amount of the dividend to be charged to the results of the financial year 2023.

Once the scrip dividend process has been completed, the final nominal amounts of the capital increase and of the cash remuneration to be applied to the share premium will be communicated as soon as the Board of Directors, or the person to whom it delegates the corresponding powers, determines them in accordance with the terms of the resolution to distribute the dividend corresponding to financial year 2023 and to increase the share capital, which the Board of Directors will propose to the Ordinary General Shareholders' Meeting in relation to the scrip dividend.

The EDP Renováveis, S.A. Board of Directors proposal for 2022 profits distribution was presented in the Annual General Meeting was as follows:

|                                         | EUROS        |
|-----------------------------------------|--------------|
| BASE FOR DISTRIBUTION                   |              |
| Loss for the year 2022                  | -220,662,410 |
| Retained earnings from previous periods | 240,139,541  |
| DISTRIBUTION                            |              |
| Prior years' losses                     | -220,662,410 |
| Dividends                               | 240,139,541  |

#### **Fair value reserve (cash flow hedge)**

The Fair value reserve (cash flow hedge) comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments.

#### **Fair value reserve (equity instruments at fair value)**

This reserve includes the cumulative net change in the fair value of equity instruments at fair value as at the balance sheet date:

|                                         | THOUSAND EUROS |
|-----------------------------------------|----------------|
| Balance as at 1 January 2021            | 4,146          |
| Parque Eólico Montes de las Navas, S.L. | 4,542          |
| Eólicas Páramo de Poza, S.A.            | 10,352         |
| Others                                  | 697            |
| Balance as at 31 December 2022          | 19,737         |
| Parque Eólico Montes de las Navas, S.L. | -4,205         |
| Eólicas Páramo de Poza, S.A.            | -3,918         |
| Lhyfe, S.A.S.                           | -7,664         |
| Others                                  | -672           |
| Balance as at 31 December 2023          | 3,278          |

#### **Exchange differences arising on consolidation**

This caption reflects the amount arising on the translation of the financial statements of subsidiaries and associated companies from their functional currency into Euros. The most significant exchange rates used in the preparation of the consolidated financial statements are as follows:

|           |     | EXCHANGE RATES<br>AT 31 DECEMBER 2023 |              | EXCHANGE RATES<br>AT 31 DECEMBER 2022 |                 |
|-----------|-----|---------------------------------------|--------------|---------------------------------------|-----------------|
|           |     | CLOSING RATE                          | AVERAGE RATE | CLOSING RATE                          | AVERAGE<br>RATE |
| US Dollar | USD | 1.105                                 | 1.081        | 1.067                                 | 1.053           |

Polish Zloty PLN 4.348 4.544 4.690 4.688

{409}------------------------------------------------

**EXCHANGE RATES** 

**EXCHANGE RATES** 

|                    |     | AT 31 DECEMBER 2023 |              |              | AT 31 DECEMBER 2022 |
|--------------------|-----|---------------------|--------------|--------------|---------------------|
|                    |     | CLOSING RATE        | AVERAGE RATE | CLOSING RATE | AVERAGE<br>RATE     |
| Brazilian Real     | BRL | 5.362               | 5.401        | 5.639        | 5.440               |
| New Leu            | RON | 4.975               | 4.946        | 4.947        | 4.931               |
| Pound Sterling     | GBP | 0.869               | 0.870        | 0.887        | 0.853               |
| Canadian Dollar    | CAD | 1.464               | 1.459        | 1.444        | 1.369               |
| Mexican Peso       | MXN | 18.690              | 19.167       | 20.781       | 21.198              |
| Colombian Peso     | COP | 4,222               | 4,677        | 5,133.687    | 4,470.960           |
| Hungarian Forint   | HUF | 382.800             | 381.853      | 400.87       | 391.286             |
| Vietnamese Dong    | VND | 26,807              | 25,828       | 25,182       | 24,601              |
| Singaporian Dollar | SGD | 1.459               | 1.452        | 1.43         | 1.451               |

#### 30. Non-controlling interests

This caption is analysed as follows:

| THOUSAND EUROS                                          | 31 DEC 2023 | 31 DEC 2022 |
|---------------------------------------------------------|-------------|-------------|
| Non-controlling interests in income statement           | 150,421     | 200,871     |
| Non-controlling interests in share capital and reserves | 1,439,748   | 1,344,263   |
|                                                         | 1,590,169   | 1,545,134   |

Non-controlling interests, by subgroup, are analysed as follows:

| THOUSAND EUROS | 31 DEC 2023 | 31 DEC 2022 |
|----------------|-------------|-------------|
| EDPR NA        | 905,241     | 912,461     |
| EDPR EU        | 573,592     | 520,217     |
| EDPR LATAM     | 67,026      | 65,131      |
| EDPR APAC      | 44,310      | 47,325      |
|                | 1,590,169   | 1,545,134   |

The movement in non-controlling interests of EDP Renováveis Group is mainly related to:

| THOUSAND EUROS                                   | 31 DEC 2023 | 31 DEC 2022 |
|--------------------------------------------------|-------------|-------------|
| Balance as at 1 January                          | 1,545,134   | 1,408,026   |
| Dividends distribution                           | -59,122     | -62,867     |
| Net profit for the year                          | 150,421     | 200,871     |
| Exchange differences arising on consolidation    | -18,089     | 55,916      |
| Acquisitions and sales without change of control | 7,106       | -2,076      |
| Increases/(Decreases) of share capital           | -36,353     | -98,508     |
| Other changes                                    | 1,072       | 43,772      |
| Balance as at 31 December                        | 1,590,169   | 1,545,134   |

{410}------------------------------------------------

31. Financial debt

Financial debt current and Non-current is analysed as follows:

| THOUSAND EUROS                                      | 31 DEC 2023 | 31 DEC 2022 |
|-----------------------------------------------------|-------------|-------------|
| FINANCIAL DEBT - NON-CURRENT                        |             |             |
| Bank loans:                                         |             |             |
| - EDPR EU                                           | 23,825      | 66,876      |
| - EDPR LATAM                                        | 366,292     | 325,656     |
| - EDPR NA                                           | 438,678     | 361,177     |
| - EDPR APAC                                         | 184,349     | 182,886     |
| Loans received from EDP group entities:             |             |             |
| - EDP Renováveis, S.A.                              | -           | 207,507     |
| - EDP Renováveis Servicios Financieros, S.L.        | 5,028,467   | 3,698,948   |
| Other loans:                                        |             |             |
| - EDPR EU                                           | 358         | 15,374      |
| - EDPR APAC                                         | 7,472       | 11,428      |
| Total Debt and borrowings - Non-current             | 6,049,441   | 4,869,851   |
| Collateral Deposit - Project Finance and others*    | - 31,914    | -23,311     |
| Total Collateral Deposits - Non-current             | - 31,914    | -23,311     |
| FINANCIAL DEBT - CURRENT                            |             |             |
| Bank loans:                                         |             |             |
| - EDPR EU                                           | 155,094     | 318,482     |
| - EDPR LATAM                                        | 91,529      | 9,393       |
| - EDPR NA                                           | 24,900      | 37,455      |
| - EDPR APAC                                         | 23,957      | 66,847      |
| Loans received from EDP group entities:             |             |             |
| - EDP Renováveis, S.A.                              | 200,167     | 37,026      |
| - EDP Renováveis Servicios Financieros, S.L.        | 609,088     | 770,298     |
| Other loans:                                        |             |             |
| - EDPR EU                                           | 4           | 1,207       |
| - EDPR APAC                                         | 2,759       | 1,258       |
| Interest payable                                    | 82,537      | 48,137      |
| Total Debt and borrowings – Current                 | 1,190,035   | 1,290,103   |
| Collateral Deposit - Project Finance and others*    | - 35,213    | -26,734     |
| Total Collateral Deposits – Current                 | - 35,213    | -26,734     |
| Total Debt and borrowings – Current and Non-current | 7,239,476   | 6,159,954   |

#### Total Debt and borrowings net of collaterals – Current and Noncurrent 7,172,349 6,109,909

7,172,349

6,109,909

\* Collateral deposits mainly refer to amounts held in bank accounts to comply with obligations under project finance agreements entered into by certain EDP Renewable subsidiaries.

Loans received from EDP group entities current and non-current as of 31 December 2023 mainly refer to a set of loans granted by EDP Finance BV amounting to 4,566,019 thousand Euros (31 December 2022: 4,213,354 thousand Euros), including accrued interests and deducted of debt origination fees (4,028,467 thousand Euros non-current and 537,552 thousand Euros current) (31 December 2022: 3,906,456 thousand Euros non-current and 306,898 thousand Euros current) and by EDP Servicios Financieros España S.A. amounting to 1,000,000 thousand Euros noncurrent and 348,789 current (31 December 2022: 544,832 thousand euros current), the balance includes an amount related to cash pooling of 338,037 thousand Euros (31 December 2022: 311,807 thousand euros).

The bundled average maturity regarding long-term loans is approximately 5 years and bear interest at weighted average fixed market rates of 3,85% for EUR loans and 4% for USD loans. In 2023, EDPR has received corporate loans from EDP Group for total amount of 1,685 million of Euros. The purpose of these corporate financings is to fund the growth of EDPR either paying new investments in acquisition of projects (mainly in Europe) and developing and construction costs of the EDPR pipeline.

The main events regarding external financing and refinancing of the Group refers to: i) new debt in the Sunseap portfolio, (CNY 353,926,575.69, TWD 1,006,071,180 and VND 64,571,617,406), ii) Brazilian project of Monte Verde and Catanduba plus additional dispositions in existing projects resulting in 149,6 million Euros debt increase and iii) Amortization on existing project finance around 249 million of Euros.

{411}------------------------------------------------

Regarding the new Corporate loans, two were contracted in 2023: a 1,000,000 thousand SGD

were financed, with EDP Finance BV, on a 5 year tenor, at a variable rate, but with an interest rate swap of 70% over the notional amount of the loan, with an average all-in rate, at 31 of December of 4,86%; a 500,000 thousand Euros Loan and two 250,000 thousand euros with EDP Servicios Financeiros España SA also with a 5y tenor, at fixed rate, but due to the use of the pre-hedge executed, in 2022, by the EDPR group, the average all-in rate of this loan was set on 3,37%, 4,16% and 4,73% respectively.

As at 31 December 2023, future debt and borrowings payments and accrued interest by type of loan and currency are analysed as follows:

| THOUSAND<br>EUROS             | 2024      | 2025    | 2026    | 2027    | 2028      | FOLLOW<br>ING<br>YEARS | TOTAL     |
|-------------------------------|-----------|---------|---------|---------|-----------|------------------------|-----------|
| BANK LOANS                    |           |         |         |         |           |                        |           |
| Euro                          | 127,981   | 11,755  | 352     | -       | -         | -                      | 140,088   |
| Polish Zlotych                | 20,707    | 8,873   | 3,564   | -       | -         | -                      | 33,144    |
| American dólar                | 23,941    | 22,435  | 22,446  | 77,861  | 55,095    | 190,676                | 392,454   |
| Brazilian Real                | 95,577    | 24,318  | 28,906  | 30,093  | 31,292    | 237,341                | 447,527   |
| Canadian dólar                | 6,714     | 7,681   | 7,864   | 7,995   | 8,247     | 104,195                | 142,696   |
| Singapore dólar               | 5,724     | 27,435  | -       | -       | -         | -                      | 33,159    |
| Other                         | 20,732    | 12,942  | 13,038  | 14,936  | 17,616    | 56,215                 | 135,479   |
|                               | 301,376   | 115,439 | 76,170  | 130,885 | 112,250   | 588,427                | 1,324,547 |
| LOANS RECEIVED FROM EDP GROUP |           |         |         |         |           |                        |           |
| Euro                          | 338,082   | -       | -       | -       | 500,000   | 500,000                | 1,338,082 |
| American Dollar               | 539,009   | 225,241 | 478,054 | 452,489 | -         | 2,187,329              | 3,882,122 |
| Singapore Dolar               | 9,250     | -       | -       | -       | 685,354   | -                      | 694,604   |
|                               | 886,341   | 225,241 | 478,054 | 452,489 | 1,185,354 | 2,687,329              | 5,914,808 |
| OTHER LOANS                   |           |         |         |         |           |                        |           |
| Euro                          | 7         | -       | -       | 358     | -         | -                      | 365       |
| Other                         | 2,831     | -       | -       | -       | -         | 7,472                  | 10,303    |
|                               | 2,838     | -       | -       | 358     | -         | 7,472                  | 10,668    |
| Origination fees              | - 520     | -       | - 18    | - 349   | -         | -9,660                 | -10,547   |
|                               | 1,190,035 | 340,680 | 554,206 | 583,383 | 1,297,604 | 3,273,568              | 7,239,476 |

As at 31 December 2022, future debt and borrowings payments and accrued interest by type of loan and currency are analysed as follows:

| THOUSAND EUROS                | 2023    | 2024    | 2025    | 2026    | 2027    | FOLLOWING<br>YEARS | TOTAL     |
|-------------------------------|---------|---------|---------|---------|---------|--------------------|-----------|
| BANK LOANS                    |         |         |         |         |         |                    |           |
| Euro                          | 302,990 | 25,224  | 11,755  | 158     | -       | -                  | 340,127   |
| Polish Zlotych                | 15,938  | 19,121  | 8,226   | 3,901   | -       | -                  | 47,186    |
| American dólar                | 33,194  | 23,874  | 23,242  | 28,104  | 23,822  | 177,350            | 309,585   |
| Brazilian Real                | 14,298  | 17,817  | 19,441  | 24,287  | 22,737  | 250,173            | 348,753   |
| Canadian dólar                | 6,338   | 6,442   | 7,789   | 7,974   | 8,107   | 114,015            | 150,665   |
| Singapore dólar               | 31,147  | 2,336   | 4,695   | 2,568   | 23,091  | 15,262             | 79,099    |
| Other                         | 32,526  | 12,226  | 12,846  | 9,752   | 11,082  | 31,156             | 109,588   |
|                               | 436,431 | 107,040 | 87,994  | 76,743  | 88,839  | 587,956            | 1,385,002 |
| LOANS RECEIVED FROM EDP GROUP |         |         |         |         |         |                    |           |
| Euro                          | 589,224 | -       | -       | -       | -       | 1,126,220          | 1,715,444 |
| American Dollar               | 262,507 | 488,641 | 233,350 | 507,242 | 568,779 | 982,223            | 3,042,742 |
|                               | 851,731 | 488,641 | 233,350 | 507,242 | 568,779 | 2,108,443          | 4,758,186 |
| OTHER LOANS                   |         |         |         |         |         |                    |           |
| Euro                          | 1,243   | 1,011   | 1,031   | 1,304   | 1,073   | 10,954             | 16,616    |
| Other                         | 1,305   | -       | 11,428  | -       | -       | -                  | 12,733    |
|                               | 2,549   | 1,011   | 12,459  | 1,304   | 1,073   | 10,954             | 29,350    |
| Origination fees              | -607    | -       | -       | -11,977 | -       | -                  | -12,584   |

1,290,103 596,692 333,803 573,312 658,691 2,707,353 6,159,954

{412}------------------------------------------------

The Group has project finance funding that include the usual guarantees on this type of financings, namely the pledge or a promise of pledge of bank accounts and assets of the related projects. As of 31 December 2023, these financings amount to 1,034,866thousand Euros (31 December 2022: 1,097,288 thousand Euros), which are included within the financial debt caption. At 31 December 2023 and 31 December 2022, the Group confirms the fulfilment of all the covenants of the Project Finance Portfolio under the Facilities Agreements. Additionally, there are no loans, as of 31 of December 2023, that are being guaranteed by EDPR (31 December 2022 was 16,111 thousand Euros), due to an early repayment performed in June 2023.

The fair value of EDP Renováveis Group's debt is analysed as follows:

|                              |                    | 31 DEC 2023     |                    | 31 DEC 2022     |  |
|------------------------------|--------------------|-----------------|--------------------|-----------------|--|
| THOUSAND EUROS               | CARRYING<br>VALUE* | MARKET<br>VALUE | CARRYING<br>VALUE* | MARKET<br>VALUE |  |
| Financial debt - Non-current | 6,049,441          | 5,311,864       | 4,869,851          | 4,196,714       |  |
| Financial debt - Current     | 1,190,035          | 1,190,035       | 1,290,103          | 1,290,103       |  |
|                              | 7,239,476          | 6,501,899       | 6,159,954          | 5,486,817       |  |

#### \* Net of origination fees

The market value of the medium/long-term (non-current) debt and borrowings that bear a fixed interest rate is calculated based on the discounted cash flows at the rates ruling at the balance sheet date. The market value of debt and borrowing that bear a floating interest rate is considered not to differ from its book value as these loans bear interest at a rate indexed to Euribor. The book value of the short-term (current) debt and borrowings is considered to be the market value.

#### 32. Provisions

Provisions are analysed as follows:

| THOUSAND EUROS                                         | 31 DEC 2023 | 31 DEC 2022 |
|--------------------------------------------------------|-------------|-------------|
| Dismantling and decommission provisions                | 294,730     | 264,756     |
| Provision for other liabilities and charges            | 24,416      | 4,989       |
| Long-term provision for other liabilities and charges  | 20,356      | 4,266       |
| Short-term provision for other liabilities and charges | 4,060       | 723         |
| Employee benefits                                      | 660         | 468         |
|                                                        | 319,806     | 270,213     |

Dismantling and decommission provisions refer to the costs to be incurred for dismantling wind and solar farms and restoring sites and land to their original condition, in accordance with the corresponding accounting policy. The above amount mainly refers to: (i) 133,033 thousand Euros for wind farms and solar plants in North America (31 December 2022: 140,723 thousand Euros); (ii) 116,758 thousand Euros for wind farms and solar plants in Europe (31 December 2022: 110,441 thousand Euros); (iii) 40,330 thousand Euros for wind farms and solar plants in APAC (31 December 2022: 10,913 thousand Euros) and (iv) 4,609 thousand Euros for wind farms and solar

plants in LATAM (31 December 2022: 2,679 thousand Euros).

The variation during the year ended 31 December 2023 in the dismantling provision is mainly explained by:

- Increase in the amount of 25,495 thousand Euros for projects that have reached the COD during the period ended 31 December 2023 (31 December 2022: 9.841 thousand Euros);
- Increase in the amount of 4,355 thousand Euros related to the Longroad acquisition (see note 6) and 640 thousand Euros related to the Juan de Bargas Eólica, S.L. acquisition.
- Decrease in the amount of 7,937 thousand euros for the sale of various projects in Europe and LATAM (See note 6);
- Decrease in the amount of 2,447 thousand euros for projects under held for sale in North America (see note 27);
- Increase for the unwinding charged for the period ended 31 December 2023 amounted to 11,270 thousand Euros.
- Increase in the amount of 4,849thousand Euros due to the purchase price allocation from the acquisition of Longroad during 2022 and 2023 (see note 19);
- Update on the estimated dismantling cost according to an in-deep analysis performed by the EDPR's technical department as well as update in the discount and inflation rates used for determining the provisions, with a net impact of a decrease in the amount of 1,489 thousand Euros.
- Decrease in the amount of 4,762 thousand Euros related to the effect of the exchange rates variation, and mainly for the US Dollar.

EDP Renováveis believes that the provisions booked on the consolidated statement of financial position adequately cover the foreseeable obligations described in this note. Therefore, it is not

expected that they will give rise to liabilities in addition to those recorded.

{413}------------------------------------------------

33. Institutional partnerships in North America

This caption is analysed as follows:

| THOUSAND EUROS                                                       | 31 DEC 2023 | 31 DEC 2022 |
|----------------------------------------------------------------------|-------------|-------------|
| Deferred income related to benefits provided                         | 769,191     | 798,362     |
| Liabilities arising from institutional partnerships in North America | 1,419,054   | 1,413,800   |
|                                                                      | 2,188,245   | 2,212,162   |

The movements in Institutional partnerships in North America are analysed as follows:

| THOUSAND EUROS                                 | 31 DEC 2023 | 31 DEC 2022 |
|------------------------------------------------|-------------|-------------|
| Balance at the beginning of the period         | 2,212,162   | 2,259,741   |
| Proceeds received from institutional investors | 505,922     | 57,095      |
| Deferred transaction costs                     | -4,311      | -2,172      |
| Cash paid to institutional investors           | -130,745    | -134,480    |
| Income (see note 8)                            | -231,055    | -233,505    |
| Unwinding (see note 14)                        | 81,058      | 96,955      |
| Transfers to Held for sale (see note 27)       | -207,452    | -           |
| Perimeter variations                           | 45,581      | -           |
| Exchange differences                           | -78,032     | 142,242     |
| Others                                         | -4,883      | 26,286      |
| Balance at the end of the period               | 2,188,245   | 2,212,162   |

The Group has entered in several partnerships with institutional investors in the United States, through limited liability companies operating agreements that apportions the cash flows generated by the wind farms between the investors and the Company and allocates the tax benefits, which include Production Tax Credits (PTC), Investment Tax Credits (ITC) and accelerated depreciation, largely to the investor.

Proceeds received from institutional investors refer to proceeds secured and received amounting to 505,922 thousand Euros (547,038 thousand US dollars) mainly related to institutional equity financing from First Development LLC, Huntington Bank and State Street & Citizens Bank, in exchange for an interest in onshore wind and solar projects.

EDPR NA is providing its tax equity investors with standard corporate guarantees typical of these agreements to indemnify them against costs they may incur as a result of fraud, willful misconduct or a breach of EDPR NA of any operational obligation under the tax equity agreements.

Caption perimeter variations includes, mainly, as at 31 December 2023 an amount related to the Longroad acquisition of 2023.

#### 34. Trade and other payables from commercial activities

Tuesday, October 1, 2024 | 1:00 PM - 2:00 PM | Virtual

Trade and other payables from commercial activities are analysed as follows:

| THOUSAND EUROS                                                       | 31 DEC 2023 | 31 DEC 2022 |
|----------------------------------------------------------------------|-------------|-------------|
| TRADE AND OTHER PAYABLES FROM COMMERCIAL<br>ACTIVITIES – NON-CURRENT |             |             |
| Government grants / subsidies for investments in fixed assets        | 293,102     | 317,446     |
| Electricity sale contracts – EDPR NA                                 | 3,397       | 4,353       |
| Property, plant and equipment suppliers                              | 196,195     | 202,826     |
| Other creditors and sundry operations                                | 79,485      | 108,424     |
|                                                                      | 572,179     | 633,049     |
| TRADE AND OTHER PAYABLES FROM COMMERCIAL<br>ACTIVITIES – CURRENT     |             |             |
| Suppliers                                                            | 245,300     | 248,577     |
| Property, plant and equipment suppliers                              | 2,642,857   | 2,387,080   |
| Other creditors and sundry operations                                | 253,950     | 283,087     |
|                                                                      | 3,142,107   | 2,918,744   |
|                                                                      | 3,714,286   | 3,551,793   |

Government grants for investments in fixed assets are essentially related to grants received by EDPR NA subgroup under the American Recovery and Reinvestment Act promoted by the United States of America Government.

{414}------------------------------------------------

Property plant and equipment suppliers-non-current mainly includes success fees payables in the

long term for the acquisition of certain projects in Colombia for a total amount of 46,094 thousand Euros (47,754 thousand Euros as of December 31, 2022), the United States for a total amount of 25,529 thousand Euros (46,600 thousand Euros as of December 31, 2022), UK for a total amount of 26,956 thousand Euros (32,754 thousand Euros as of December 31, 2022), Greece for a total amount of thousand Euros 24,757 (32,687 thousand Euros as of December 31, 2022), Italy for a total amount of 20,000 thousand Euros, Poland for a total amount of 12,755 thousand Euros (22,155 thousand Euros as of December 31, 2022), Romania for a total amount of 18,179 thousand Euros (13,396 thousand Euros as of December 31, 2022), Brazil for a total amount 17,585 thousand Euros and Portugal for a total amount of 4,500 thousand Euros that, due to the nature of such transactions, the type of assets acquired and the initial stage of completion of the projects, they have been considered asset acquisitions (see note 6). The main variation in this caption is due to the acquisition of various projects in North America and Europe and payments made in Europe.

Variation in other creditors and sundry operations – non-current is mainly explained by the evolution of the energy pool prices in the Spanish market related to the establishment of the pool boundaries adjustment as a result of the publication of Royal Decree-Law 413/2014 and Order IET/1045/2014, and the regulatory reforms established by Royal Decree-Law 6/2022 and Royal Decree-Law 10/2022.

The balance of such concept as at 31 December 2023 amounts to a credit amount of 41,222 thousand Euros (87,369 thousand Euros as at 31 December 2022) of which a debit amount of 12,733 thousand Euros refers to the current 2023 semi-period, a credit amount of 45,276 thousand Euros refers to the 2020-2021 and 2022 semi-periods, a credit amount of 11,405 thousand Euros refers to the 2017-2019 semi-period and a debit amount of 2,726 thousand Euros refers to the 2014-2016 semi-period.

The movements during the period, which has been recorded under the revenues caption of the consolidated income statement, are mainly related to:

- Decrease amounting to 15,540 thousand Euros as a result of the adjustment for the current 2023 period.
- Decrease amounting to 10,826 thousand Euros as a result of the straight-line basis recognition according to the EDPR accounting policy.
- Decrease amounting to 19,780 thousand Euros as a result of the sale of certain portfolio in Spain (see note 6).

Because of the high electricity prices that were occurring in the Spanish market in 2022, considering the market prices until December 2022 and updated in December 2023, the EDPR Group facilities whose commissioning was in the years 2006, and 2007 will reach net present value equal to zero before the next regulatory semi-period (2026) instead of at the end of the regulatory useful life of the facility. Thus, EDPR Group had stopped recognizing, for these installations, adjustments for deviations from market prices, and had derecognized the net accruals (assets & liabilities). The accounting impact as at 31 December 2022, in the amount of 40,324 thousand Euros, had been recorded as an increase under the revenues caption of the consolidated income statement.

Variation in suppliers, is cause by the normal course of the business.

Property plant and equipment suppliers - current refer to wind and solar farms in construction mainly in the United States in the amount of 1,855,254 thousand Euros (1,225,554 thousand Euros as of December 31, 2022), Italy in the amount of 134,636 thousand Euros (31 December 2022: 69,769 thousand Euros), Canada in the amount of 87,711 thousand Euros (31 December 2022: 108,275 thousand Euros), Brazil in the amount of 77,870 thousand Euros, Colombia in the amount of 71,154 thousand Euros (31 December 2022: 356,474 thousand Euros), Greece in the amount of 57,464 thousand Euros, Spain in the amount of 54,623 thousand Euros (31 December 2022: 73,724 thousand Euros), Mexico in the amount of 51,269 thousand Euros (31 December 2022: 74,769 thousand Euros), Chile in the amount of 46,316 thousand Euros, Portugal in the amount of 28,040 thousand Euros (31 December 2022: 97,709 thousand Euros) and Poland in the amount of 25,931 thousand Euros (31 December 2022: 172,308 thousand Euros).

The caption Property plant and equipment suppliers -current also includes success fees payables for the acquisition of certain projects in the amount of 125,491thousand Euros (31 December 2022: 141,838 thousand Euros) mainly in the United States, Colombia, UK, Greece, Italy, Romania and Poland that due to the nature of such transactions, the type of assets acquired and the initial stage of completion of the projects, they have been considered asset acquisitions.

The fair values and carrying amounts of current trade and other payables do not differ significantly.

The Company has prepared the below information for Spanish subsidiaries, according to criterion required by the Spanish Accounting and Auditing Institute (ICAC) resolution of 29 January 2017 and the requirements introduced by the Law 18/2022 approved in 2022 on disclosures in notes to financial statements of late payments to suppliers in commercial transactions:

{415}------------------------------------------------

**THOUSAND EUROS 31 DEC 2023 31 DEC 2022**

| DAYS                        |         |         |
|-----------------------------|---------|---------|
| Average payment period      | 33      | 35      |
| Ratio paid operations       | 34      | 37      |
| Ratio of pending operations | 21      | 24      |
| Total payments made         | 203,724 | 202,121 |
| Total outstanding payments  | 19,802  | 28,799  |

In 2023, total number of invoices paid by Spanish companies within the legal payment period amounted to 36,259 invoices, 93% of total invoices, while the payments made within the legal payment period amounted to 184,710 thousand Euros, which represents 91% of total payments. The average supplier payment period was of 33 days, below the payment period stipulated by law of 60 days.

#### 35. Other liabilities and other payables

Other liabilities and other payables are analysed as follows:

| THOUSAND EUROS                                     | 31 DEC 2023 | 31 DEC 2022(*) |
|----------------------------------------------------|-------------|----------------|
| OTHER LIABILITIES AND OTHER PAYABLES – NON-CURRENT |             |                |
| Amount payable for changes in the perimeter        | 66,032      | 71,035         |
| Loans from non-controlling interests               | 68,394      | 82,895         |
| Derivative financial instruments                   | 584,827     | 1,335,600      |
| Rents due from lease contracts                     | 927,063     | 966,932        |
| Other creditors and sundry operations              | 345,469     | 347,830        |
|                                                    | 1,991,785   | 2,804,292      |
| OTHER LIABILITIES AND OTHER PAYABLES – CURRENT     |             |                |
| Amount payable for changes in the perimeter        | 114,191     | 229,186        |
| Derivative financial instruments                   | 266,014     | 647,419        |
| Loans from non-controlling interests               | 21,067      | 17,407         |
| Rents due from lease contracts                     | 77,442      | 72,889         |
| Other creditors and sundry operations              | 130,166     | 43,343         |
|                                                    | 608,880     | 1,010,244      |
|                                                    | 2,600,665   | 3,814,536      |

\* See note 2.A) for details regarding the restatement as a result of the Purchase Price Allocation assessment closing during 2023.

The caption Loans from non-controlling interests Current and Non-Current mainly includes:

• Loans granted by ACE Portugal (CTG Group) due to the sale in 2017 of 49% of shareholding in EDPR PT – Parques Eólicos S.A and subsidiaries for a total amount of 15,382 thousand Euros, including accrued interests (20,713 thousand Euros as of 31 December 2022), bearing interest at a fixed rate of 3.75%; • Loans granted by ACE Poland (CTG Group) due to the sale in 2016 of 49% of shareholding in EDP Renewables Polska HoldCo, S.A. and subsidiaries for a total amount of 35,390 thousand Euros including accrued interests (41,026 thousand Euros as at 31 December 2022), bearing interest at a fixed rate of a range between 2.95% and 7.23%; • Loans granted by ACE Italy (CTG Group) due to the sale in 2016 of 49% of shareholding in EDP Renewables Italia, S.r.l. and subsidiaries for a total amount of 30,527 thousand Euros including accrued interests (31,954 thousand Euros as at 31 December 2022), bearing interest at a fixed rate of 4.50%.

The caption Rents due from lease contracts - Non-Current and Current includes lease liabilities related to IFRS 16. Variation in both captions is as follows:

| THOUSAND EUROS                             | 31 DEC 2023 | 31 DEC 2022 |
|--------------------------------------------|-------------|-------------|
| Balance as at 1 January                    | 1,039,821   | 698,527     |
| Increases due to new lease contracts       | 114,347     | 327,487     |
| Unwinding (note 14)                        | 34,706      | 33,612      |
| Payment of leases                          | -61,686     | -54,612     |
| Exchange differences                       | -20,167     | 28,590      |
| Changes in the perimeter and other changes | -102,516    | 6,217       |
| Balance at the end of the period           | 1,004,505   | 1,039,821   |

{416}------------------------------------------------

Increases due to new lease contracts are mainly located in the USA, Spain and APAC.

Changes in the perimeter and other changes in 2023 mainly refers to:

• Decrease amounting to 22,205 thousand Euros due to the sale of certain portfolio of European companies;

• Decrease amounting to 57,478 thousand Euros due to the reclassification to held for sale of certain US companies (see note 27).

Changes in the perimeter and other changes in 2022 mainly refers to:

- Increase amounting to 40,581 thousand Euros related to the acquisition of Sunseap Group;
- Decrease amounting to 10,072 thousand Euros due to the sale of certain portfolio of European companies;
- Decrease amounting to 24,302 thousand Euros due to the sale of a company in North America.

As at 31 December 2023, the nominal value of the rents due from lease contracts is detailed as follows: (i) less than 5 years: 403,062 thousand Euros; (ii) from 5 to 10 years: 371,430 thousand Euros; (iii) from 10 to 15 years: 359,552 thousand Euros; and (iv) more than 15 years: 734,831 thousand Euros.

The captions amount payable for changes in the perimeter non-current and current mainly include in 2023:

- Decrease amounting to 24,933 thousand Euros in the caption non-current related to the payment of the variable price associated to the sale transaction of the company Vento XX and subsidiaries;
- Decrease amounting to 76,837 thousand Euros in the caption current refers to payment during 2023 for the remaining cost related to the projects Indiana Crossroads Wind Farm LLC, Meadow Lake Solar Park LLC, Rosewater and Vento V.

The captions amount payable for changes in the perimeter non-current and current mainly included in 2022:

- Increase amounting to 71,035 thousand Euros in the caption non-current related to the acquisition of Kronos Group (see note 42);
- Decrease amounting to 20,395 thousand Euros in the caption non-current related to the payment of the variable price associated to the sale transaction of the company Vento XX and subsidiaries;
- Increase amounting to 41,288 thousand Euros in the caption current related to the acquisition of Xuan Thien Ninh Thuan JSC and Xuan Thien Thuan Vac JSC (see note 42);
- Increase amounting to 166,510 thousand Euros in the caption current related to the remaining cost to pay, mainly, for the projects Meadow Lake Solar Park LLC, Rosewater and Vento XX;
- Decrease amounting to 39,549 thousand Euros in the caption current refers to payment during 2022 for the remaining cost related to the project Indiana Crossroads Wind Farm LLC.

The caption other creditors and sundry operations non-current mainly includes as at 31 December 2023 the present value accrued for the put options associated to the Sunseap Group acquisition in the amount of 40,173 thousand Euros (40,991 thousand Euros as at 31 December 2022) and Kronos Group in the amount of 301,944 thousand Euros (341,996 thousand Euros as at 31 December 2022) (see note 19 and 2.A). As at 31 December 2022 the caption other creditors and sundry operations current included 15,451 thousand Euros related to the put option associated to the Sunseap Group which has been executed by EDPR in 2023 (see note 6).

The caption other creditors and sundry operations current mainly includes as at 31 December 2023 i) an amount of 6,303 thousand Euros related to the acquisition of ITPD Group (see note 42); ii) an amount of 5,380 thousand Euros related to the acquisition of Kronos Group in 2022 which has been reclassified from the caption amount payable for changes in the perimeter non-current; iii) 22,669 thousand Euros related to certain cost outstanding in relation to the portfolio sold in Poland and iv) 17,100 thousand Euros related to dividends to non-controlling interest. In addition the caption includes 41,950 thousand Euros related to the balance of tax pooling with the head of the Spanish tax Group, EDP - Energias de Portugal, S.A. Sucursal en España.

The fair values and carrying amounts of current trade and other payables do not differ significantly.

See note 37 for non-current and current derivatives.

{417}------------------------------------------------

36. Current tax liabilities

This caption is analysed as follows:

| THOUSAND EUROS        | 31 DEC 2023 | 31 DEC 2022 |
|-----------------------|-------------|-------------|
| Income tax            | 60,295      | 99,463      |
| Withholding tax       | 8,532       | 13,674      |
| Value added tax (VAT) | 43,807      | 45,430      |
| Other taxes           | 88,198      | 76,837      |
|                       | 200,832     | 235,404     |

The caption Other taxes mainly includes windfall taxes in Poland as well as Property taxes in the United States of America.

#### 37. Derivative financial instruments

As of 31 December 2023, the fair value of derivatives is analysed as follows:

| THOUSAND EUROS            | ASSETS  | LIABILITIES | UNITS | UNTIL<br>1 YEAR | 1 TO<br>5 YEARS | MORE<br>THAN 5<br>YEARS | TOTAL     |
|---------------------------|---------|-------------|-------|-----------------|-----------------|-------------------------|-----------|
| NET INVESTMENT HEDGE      |         |             |       |                 |                 |                         |           |
| Cross currency rate swaps | 68,484  | -63,726     | EUR   | 1,187,392       | 317,232         | 1,212,812               | 2,717,436 |
| Currency forwards         | 690     | -10,321     | EUR   | 254,856         | 22,113          | -                       | 276,969   |
|                           | 69,174  | -74,047     |       | 1,442,248       | 339,345         | 1,212,812               | 2,994,405 |
| FAIR VALUE HEDGES         |         |             |       |                 |                 |                         |           |
| Cross currency rate swaps | 195     | -4,239      | EUR   | 39,800          | -               | 82,912                  | 122,712   |
|                           | 195     | -4,239      |       | 39,800          | -               | 82,912                  | 122,712   |
| CASH FLOW HEDGE           |         |             |       |                 |                 |                         |           |
| Power price swaps         | 263,749 | -572,010    | MWh   | 13,297          | 46,007          | 78,075                  | 137,379   |
| Interest rate swaps       | 15,348  | -17,305     | EUR   | 91,021          | 227,862         | 270,583                 | 589,466   |
| Currency forwards         | 7       | -23,485     | EUR   | 361,430         | -               | -                       | 361,430   |
|                           | 279,104 | -612,800    |       |                 |                 |                         |           |
| TRADING                   |         |             |       |                 |                 |                         |           |
| Power price swaps         | 27,404  | -114,687    | MWh   | 4,737           | 3,253           | 837                     | 8,827     |
| Interest rate swaps       | 9,288   | -8,761      | EUR   | -               | -               | 7,460                   | 7,460     |
| Cross currency rate swaps | 303     | -2,859      | EUR   | 73,598          | 45,777          | -                       | 119,375   |
| Currency forwards         | 10,382  | -33,448     | EUR   | 1,428,381       | 54,101          | -                       | 1,482,482 |
|                           | 47,377  | -159,755    |       |                 |                 |                         |           |

The fair value of derivative financial instruments is recorded under Other debtors and other assets (note 24) or Other liabilities and other payables (note 35), if the fair value is positive or negative, respectively.

The net investment derivatives are mainly related to the CIRS and Forward in USD and EUR with EDP SA as referred in the notes 39 and 40. The net investment derivatives also include CIRS and Forward in CAD, BRL, COP, CNY, TWD, PLN, GBP and SGD with EDP with the purpose of hedging EDP Renováveis Group's operations in Canada, Brazil, Colombia, Taiwan, China, Poland, UK and Singapore.

Interest rate swaps are related to the project finances and have been formalised to convert variable to fixed interest rates.

Cash flow hedge power price swaps are related to the hedging of the sales price. EDPR NA has entered into a power price swap to hedge the variability in the spot market prices received in some of its projects. Additionally, both EDPR NA and EDPR EU have entered in short and long term hedges to hedge the short and long term volatility of certain un-contracted generation of its wind farms.

In certain US power markets, EDPR NA is exposed to congestion and line loss risks which typically have a negative impact on the price received for power generated in these markets. To economically hedge these risk exposures, EDPR NA entered into Financial Transmission Rights ("FTR") and a three year fixed for floating Locational Marginal Price (LMP) swap.

{418}------------------------------------------------

The trading derivative financial instruments are derivatives contracted for economic hedging that

are not eligible for hedge accounting.

Fair value of derivative financial instruments is based, mainly, on quotes indicated by external entities, which are compared in each date of report to fair values available in common financial information platforms. These entities use discounted cash flows techniques usually accepted and data from public markets. The only exceptions are the CIRS in USD/EUR with EDP SA, which fair values are determined by the Financial Department of EDP, using the same above-mentioned discounted cash flows techniques and data. As such, according to IFRS13 requirements, the fair value of the derivative financial instruments is classified as of level 2 (see note 40) and no changes of level were made during this period.

As of 31 December 2022, the fair value and maturity of derivatives is analysed as follows:

| THOUSAND EUROS            | FAIR VALUE |             |       | NOTIONAL (THOUSAND UNITS) |                 |                         |             |
|---------------------------|------------|-------------|-------|---------------------------|-----------------|-------------------------|-------------|
|                           | ASSETS     | LIABILITIES | UNITS | UNTIL<br>1 YEAR           | 1 TO<br>5 YEARS | MORE<br>THAN 5<br>YEARS | TOTAL       |
| NET INVESTMENT HEDGE      |            |             |       |                           |                 |                         |             |
| Cross currency rate swaps | 5,702      | -159,114    | EUR   | 91,158                    | 1,430,850       | 957,776                 | 2,479,784   |
| Currency forwards         | 22,583     | -84,063     | EUR   | 1,819,013                 | 133,660         | -                       | 1,952,673   |
|                           | 28,285     | -243,177    |       | 1,910,171                 | 1,564,510       | 957,776                 | 4,432,457   |
| FAIR VALUE HEDGES         |            |             |       |                           |                 |                         |             |
|                           | 18         | -2,056      | EUR   | -                         | -               | 85,897                  | 85,897      |
|                           | 18         | -2,056      | EUR   | -                         | -               | 85,897                  | 85,897      |
| CASH FLOW HEDGE           |            |             |       |                           |                 |                         |             |
| Power price swaps         | 44,117     | -1,594,997  | MWh   | 13,261                    | 42,051          | 72,915                  | 128,227     |
| Interest rate swaps       | 79,753     | -1,725      | EUR   | 159,363                   | 204,355         | 1,725,040               | 2,088,758   |
| Currency forwards         | 13,985     | -14,578     | EUR   | 146,760                   | 290             | -                       | 147,050     |
|                           | 137,855    | -1,611,300  |       |                           |                 |                         |             |
| TRADING                   |            |             |       |                           |                 |                         |             |
| Power price swaps         | 29,338     | -94,952     | MWh   | 4,082                     | 5,124           | 871                     | 10,077      |
| Interest rate swaps       | 1,189      | -105        | EUR   | 700                       | 3,070           | 8,753                   | 12,523      |
| Cross currency rate swaps | 25,539     | -1,521      | EUR   | 182,062                   | 32,353          | 493,896                 | 708,311     |
| Currency forwards         | 78,635     | -29,654     | EUR   | 2,349,940                 | 72,629          |                         | - 2,422,569 |
|                           | 134,701    | -126,231    |       |                           |                 |                         |             |
|                           | 300,859    | -1,983,019  |       |                           |                 |                         |             |

The changes in the fair value of hedging instruments and risks being hedged are as follows: **CHANGES IN FAIR** 

 **31 DEC 2023 31 DEC 2022 CHANGES IN FAIR** 

|                         |                              |                                                                           | VALUE      |          | VALUE      |         |
|-------------------------|------------------------------|---------------------------------------------------------------------------|------------|----------|------------|---------|
| THOUSAND<br>EUROS       | HEDGING<br>INSTRUMENT        | HEDGED ITEM                                                               | INSTRUMENT | RISK     | INSTRUMENT | RISK    |
| Net Investment<br>hedge | Cross currency<br>rate swaps | Subsidiary accounts<br>in USD, RON, BRL,<br>GBP, CAD and COP              | 158,170    | -151,909 | -91,970    | 77,881  |
| Net Investment<br>hedge | Currency forward             | Subsidiary accounts<br>in USD, GBP, BRL,<br>SGD, PLN, CNY, TWD<br>and COP | 51,849     | -67,636  | -34,765    | 9,174   |
| Fair Value hedge        | Cross currency rate<br>swaps | Subsidiary accounts<br>in BRL                                             | -2,006     | -2,006   | -2,038     | -2,038  |
| Cash-flow hedge         | Interest rate swap           | Interest rate                                                             | -79,985    | -        | 77,539     | -       |
| Cash-flow hedge         | Power price swaps            | Power price                                                               | 1,242,619  | -        | -517,166   | -       |
| Cash-flow hedge         | Currency forward             | Exchange rate                                                             | -22,885    | -        | -21,783    | -       |
|                         |                              |                                                                           | 1,347,762  | -221,551 | -590,183   | -85,017 |

During 2023 and 2022 the following market inputs were considered for the fair value calculation:

{419}------------------------------------------------

**INSTRUMENT MARKET INPUT**

| Cross currency interest<br>rate swaps | Fair value indexed to the following interest rates: Euribor 3M, Euribor 6M, Libor 3M,<br>Libor 6M daily Brazilian CDI, CAD-BA-CDOR 3M, Wibor 3M, Wibor 6M and CO IBR<br>index; and exchange rates: EUR/BRL, EUR/PLN, EUR/CAD, EUR/GBP, EUR/RON,<br>USD/BRL and EUR/USD.        |
|---------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Interest rate swaps                   | Fair value indexed to the following interest rates: Euribor 3M, Euribor 6M, Wibor 3M,<br>Wibor 6M Libor 1M, Libor 3M, SORA 1D and CAD-BA-CDOR 3M.                                                                                                                              |
| Foreign exchange forwards             | Fair value indexed to the following exchange rates: EUR/USD, EUR/PLN, EUR/GBP,<br>USD/PLN, USD/HUF, EUR/HUF, USD/CAD, EUR/CAD, BRL/CNY, BRL/EUR, BRL/USD,<br>COP/USD, EUR/COP, SGD/USD, EUR/SGD, EUR/TWD, JPY/EUR, EUR/KRW,<br>EUR/AUD, USD/JPY, SGD/CNY, SGD/TWD and USD/VND. |
| Power price swaps                     | Fair value indexed to the price of electricity.                                                                                                                                                                                                                                |

The movements in cash flow hedge reserve have been as follows:

| THOUSAND EUROS                                               | 31 DEC 2023 | 31 DEC 2022 |
|--------------------------------------------------------------|-------------|-------------|
| Balance at the beginning of the year                         | -1,052,141  | -754,884    |
| Fair value changes                                           | 863,378     | -366,010    |
| Transfers to results                                         | -6,567      | 6,323       |
| Effect of derivatives in the equity consolidated companies   | -76,137     | 82,639      |
| Effect of the sale with loss of control of EDPR subsidiaries | -34         | -20,209     |
| Balance at the end of the year                               | -271,501    | -1,052,141  |

The gains and losses on the financial instruments portfolio booked in the income statement are as follows:

| THOUSAND EUROS                                            | 31 DEC 2023 | 31 DEC 2022 |
|-----------------------------------------------------------|-------------|-------------|
| Net investment hedge – ineffectiveness                    | -8,696      | -39,680     |
| Cash-flow hedge                                           |             |             |
| Transfer to results from hedging of financial liabilities | 10,977      | 2,829       |
| Transfer to results from hedging of commodity prices      | -4,410      | -9,153      |
| Non eligible for hedge accounting derivatives             | -234,026    | 104,371     |
|                                                           | -236,155    | 58,367      |

The amount from transfers to results from hedging of commodity prices is registered in Revenues while the remaining gains and losses are registered in Financial income and Financial expense, respectively (see note 14).

The effective interest rates for derivative financial instruments associated with financing operations during 2023, were as follows:

|                         |          | EDPR GROUP        |                     |
|-------------------------|----------|-------------------|---------------------|
|                         | CURRENCY | PAYS              | RECEIVES            |
| INTEREST RATE CONTRACTS |          |                   |                     |
| Interest rate swaps     | EUR      | [ 1.75% - 4.13% ] | [ -4.13% - -1.75% ] |
| Interest rate swaps     | PLN      | [ 2.48% - 4.17% ] | [ -7.05% - -5.82% ] |
| Interest rate swaps     | USD      | [ 0.86% - 1.86% ] | [ -5.65% - -0.01% ] |
| Interest rate swaps     | CAD      | [ 2.10% - 2.75% ] | [ -5.53% - -5.44% ] |
| Interest rate swaps     | TWD      | [ 1.47% - 1.74% ] | [ 1.49% ]           |
| Interest rate swaps     | SGD      | [ 0.95% ]         | [ 3.94% ]           |
| Interest rate swaps     | VND      | [ 4.45% ]         | [ 5.58% ]           |

#### CURRENCY AND INTEREST RATE CONTRACTS

| CIRS (currency interest rate swaps) | EUR/USD | [1.08% – 5.78%] | [-0.29% - 4.17%]  |
|-------------------------------------|---------|-----------------|-------------------|
| CIRS (currency interest rate swaps) | EUR/BRL | [10.71%]        | [3.93% - 3.93%]   |
| CIRS (currency interest rate swaps) | EUR/CAD | [5.15% – 5.58%] | [3.89% – 3.97%]   |
| CIRS (currency interest rate swaps) | EUR/GBP | [1.54% - 2.19%] | [0.00%]           |
| CIRS (currency interest rate swaps) | EUR/PLN | [6.82% - 8.72%] | [3.93% - 5.78%]   |
| CIRS (currency interest rate swaps) | EUR/SGD | [2.94% - 3.11%] | [-0.01% - -0.01%] |

{420}------------------------------------------------

The effective interest rates for derivative financial instruments associated with financing

operations during 2022, were as follows:

|                                      | CURRENCY | PAYS            | EDPR GROUP<br>RECEIVES |
|--------------------------------------|----------|-----------------|------------------------|
| INTEREST RATE CONTRACTS              |          |                 |                        |
| Interest rate swaps                  | EUR      | [1.59% - 3.67%] | [-2.70% - -2.48%]      |
| Interest rate swaps                  | PLN      | [2.48% - 4.17%] | [-7.15% - 7.05%]       |
| Interest rate swaps                  | USD      | [1.08% - 1.86%] | [-4.73% - -3.75%]      |
| Interest rate swaps                  | CAD      | [2.10% - 2.75%] | [-4.88% - -4.20%]      |
| CURRENCY AND INTEREST RATE CONTRACTS |          |                 |                        |
| CIRS (currency interest rate swaps)  | EUR/USD  | [1.08% – 5.78%] | [-0.29% – 4.73%]       |
| CIRS (currency interest rate swaps)  | EUR/CAD  | [4.41% - 5.16%] | [1.56% - 2.20%]        |
| CIRS (currency interest rate swaps)  | EUR/COP  | [4.13%]         | [2.13%]                |
| CIRS (currency interest rate swaps)  | EUR/GBP  | [1.35% - 1.92%] | [-0.00%]               |
| CIRS (currency interest rate swaps)  | EUR/BRL  | [5.95%]         | [-0.44%]               |
| CIRS (currency interest rate swaps)  | USD/BRL  | [1.37% - 2.02%] | [1.40% - 2.71%]        |

#### 38. Commitments

As at 31 December 2023 and 2022, the financial commitments not included in the statement of financial position in respect of financial and operational guarantees provided, are analysed as follows:

| THOUSAND EUROS                   | 31 DEC 2023 | 31 DEC 2022 |
|----------------------------------|-------------|-------------|
| GUARANTEES OF OPERATIONAL NATURE |             |             |
| EDP Renováveis, S.A.             | 1,614,697   | 1,625,852   |
| EDPR NA                          | 2,495,815   | 1,973,492   |
| EDPR EU                          | 316,599     | 16,628      |
| EDPR LATAM                       | 120,572     | 86,373      |
| EDPR APAC                        | 7,302       | 15,166      |
| Total                            | 4,554,985   | 3,717,511   |

The above operating guarantees, which are not included in the consolidated statement of financial position or in the Notes, as at 31 December 2023 and 2022, mainly refer to Power Purchase Agreements (PPA), interconnection, permits and market participation guarantees. Concepts covered by PPA guarantees depends on the status of the project and typically cover related risks of development and construction, correct operation and maintenance of the projects and compliance with payment obligations. These guarantees amount to 1,529,951 thousand Euros as at 31 December 2023 of which 624,805 thousand Euros refer to guarantees granted by EDP to EDPR companies and 80,276 thousand Euros refer to guarantees granted by EDP and EDPR to Joint Ventures (1,037,351 thousand Euros as at 31 December 2022, of which 341,085 thousand Euros refer to guarantees granted by EDP to EDPR companies and 87,826 thousand Euros refer to guarantees granted by EDP and EDPR to Joint Ventures).

Additional to the above guarantees, there are operational guarantees amounted to 112,865 thousand Euros associated to the portfolio classified as Held for sale as at 31 December 2023 (see note 27).

In 2023, the above guarantees include an amount of 10,268 thousand Euros refer to guarantees of operational nature related to the Spanish and Polish companies that have been sold during 2023 (see note 6) although EDPR assumed temporarily the responsibility under such guarantees until these were effectively replaced.

In 2022, additionally to the above guarantees, an amount of 30,450 thousand Euros referred to guarantees of operational nature related to the Spanish, Polish, Italian and Brazilian companies that were sold as at 31 December 2022 although EDPR assumed temporarily the responsibility under such guarantees until these were effectively replaced. An amount of 152,770 thousand Euros referred to guarantees of financial nature related to Brazilian companies that were also sold in 2022, although EDPR only assumed responsibility under such guarantees until 30 January 2023, when this had been effectively replaced.

Refer to note 39 for guarantees granted by EDP Group companies to EDPR Group companies.

Refer to note 20 for guarantees granted by EDP Group and EDPR' Group to joint venture companies.

{421}------------------------------------------------

There are additional financial and operating guarantees granted by EDPR Group that have

underlying liabilities already reflected in its Consolidated Statement of Financial Position and/or disclosed in the Notes.

EDPR does not expect any significant liability arising from the above commitments related to financial and operational guarantees provided.

The EDPR Group future cash outflows not reflected in the measurement of the lease liabilities and purchase obligations by maturity date are as follows:

| THOUSAND EUROS                                                                       | TOTAL     | UP TO 1<br>YEAR | 1 TO 3<br>YEARS | 3 TO 5<br>YEARS | MORE<br>THAN<br>5YEARS |
|--------------------------------------------------------------------------------------|-----------|-----------------|-----------------|-----------------|------------------------|
| Future Cash Outflows not reflected<br>in the measurement of the Lease<br>Liabilities | 210,671   | 16,731          | 27,154          | 17,840          | 148,946                |
| Purchase obligations                                                                 | 5,718,473 | 3,608,076       | 1,473,233       | 155,239         | 481,925                |
|                                                                                      | 5,929,144 | 3,624,807       | 1,500,387       | 173,079         | 630,871                |

|                                                                                      |           |                                 |                 |                 | 31 DEC 2022            |
|--------------------------------------------------------------------------------------|-----------|---------------------------------|-----------------|-----------------|------------------------|
|                                                                                      |           | CAPITAL OUTSTANDING BY MATURITY |                 |                 |                        |
| THOUSAND EUROS                                                                       | TOTAL     | UP TO 1<br>YEAR                 | 1 TO 3<br>YEARS | 3 TO 5<br>YEARS | MORE<br>THAN<br>5YEARS |
| Future Cash Outflows not reflected in<br>the measurement of the Lease<br>Liabilities | 66,340    | 9,994                           | 18,429          | 7,935           | 29,982                 |
| Purchase obligations                                                                 | 5,361,294 | 3,678,743                       | 1,089,012       | 126,215         | 467,324                |
|                                                                                      | 5,427,634 | 3,688,737                       | 1,107,441       | 134,150         | 497,306                |

The variation in commitments with respect to 2022 is fully in line with the evolution of the business and increasing activity of the EDPR Group.

According with IFRS 16 EDPR Group presents the information related to lease contracts in the caption Right-of-use assets (see note 17).

Purchase obligations include debts related with long-term agreements of property, plant and equipment and operational and maintenance contracts product and services supply related to the Group operational activity. When prices are defined under forward contracts, these are used in estimating the amounts of the contractual commitments.

Some of the disposal of non-controlling interests transactions retaining control carried out in previous years incorporate contingent assets and liabilities according to the terms of the corresponding agreements.

#### 39. Related parties

The Members of the Board of Directors of the Company and its delegated Committees do not own directly or indirectly any shares from EDPR, as of 31 December 2023 or 31 December 2022.

According to Article nr 229 of "Ley de Sociedades de Capital" (Spanish Companies Law), the members of the Board of Directors of EDP Renováveis have not communicated, or the parent company has knowledge, of any conflict of interests or incompatibility that could affect the performance of their duties.

#### **Remuneration of the members of the Board of Directors and Management Team**

In accordance with the Company's by-laws, the remuneration of the members of the Board of Directors is proposed by the Appointments, Remunerations and Corporate Governance Committee to the Board of Directors on the basis of the overall amount of remuneration authorized by the General Meeting of Shareholders. The Board of Directors approves the distribution and the exact amount to be paid to each Director on the basis of this proposal. The average number of members of the Board of Directors during 2023 and 2022 is 11.

The remuneration paid to the members of the Board of Directors in 2023and 2022were as follows:

| THOUSAND EUROS | 31 DEC 2023 | 31 DEC 2022 |
|----------------|-------------|-------------|
| CEO            | -           | -           |
| Board members  | 785         | 727         |

{422}------------------------------------------------

The above amount refers to salaries, allowances and other remuneration as members of the Board

of Directors and their membership/chairmanship of the Delegated Committees. Further, EDPR signed an Executive Management Services Agreement with EDP, under which EDP bears the cost for the services rendered by its Executive and Non-Executive Directors, which are Miguel Stilwell d'Andrade, Rui Teixeira, Miguel Setas (until April 2023), Vera de Morais Pinto Pereira Carneiro and Ana Paula Marques. This corporate governance practice of remuneration is in line with the model adopted by the EDP Group, in which the executive Directors of EDP do not receive any remuneration directly from the group companies on whose governing bodies they serve, but rather through EDP.

Under this contract, EDPR is due to pay an amount to EDP, for the services rendered by the Executive Managers and the Non-executive Managers. The amount due under said Agreement for the management services rendered by EDP in 2023 is 1,862 thousand Euros (1,208 thousand Euros in 2022), of which 1,710 thousand Euros refers to the management services rendered by the Executive Members (979 thousand Euros as at 31 December 2022) and 152 thousand Euros to the management services rendered by the non-executive Members (195 thousand Euros as at 31 December 2022). There is an additional amount of46thousand Euros related to retirement saving plans (34 thousand Euros as at 31 December 2022).

As per the Management Team, there is a retirement savings plan for the members indicated which, acts as an effective retirement supplement with a range between 3% to 6% of their annual salary. The percentage is defined according with the retirement savings plan applicable in their home country.

In the case of the Duarte Bello- COO EU&LatAm; Bautista Rodríguez, -CTO&Business Offshore; Sandhya Ganapathy -COO NA; and Pedro Vasconcelos - COO APAC , the remuneration in 2023 was as follows:

| THOUSAND EUROS                | 31 DEC 2023 | 31 DEC 2022 |
|-------------------------------|-------------|-------------|
| Salaries and other allowances | 2,967       | 2,808       |
| Retirement saving plans       | 75          | 44          |
| Life insurance premiums       | 7           | 16          |
|                               | 3,049       | 2,868       |

*Since April 2023, following his appointment as member of the Executive Board of Directors of EDP Energías de Portugal, S.A., Pedro Vasconcelos receives his remuneration exclusively from EDP Energías de Portugal, S.A. Since that moment, the amount corresponding to the services rendered by Pedro Vasconcelos to EDPR is invoiced by EDP Energías de Portugal, S.A. to EDPR.*

Additionally they received the following non-monetary benefits: retirement savings plan (as described above), company car and Health Insurance in the amount of 116 thousand Euros (363 thousand Euros in 2022).

#### **Relevant balances and transactions with subsidiaries and associates of China Three Gorges Group**

Within the context of the transactions with CTG related to the sale of 49% of EDPR Portugal, EDPR PT-PE, EDPR Italia and EDPR Polska equity shareholding to CTG Group, CTG has granted loans to the EDPR Group in the amount of 81,299 thousand Euros including accrued interests (19,576 thousand Euros as current and 61,732 thousand Euros as non-current) as at 31 December 2023. As at 31 December 2022, this balance amounted to 93,693 thousand Euros including accrued interests (17,392 thousand Euros as current and 76,301 thousand Euros as non-current). See note 35.

During the year ended 31 December 2022, EDPR sold the entire stake in the Spanish companies Eólica La Janda, S.L. and Parc Eòlic Serra Voltorera, S.L. to CTG. Total shares proceeds amounted to 207,018 thousand Euros.

#### **Balances and transactions with EDP Group companies**

In their ordinary course of business, EDPR Group companies establish commercial transactions and operations with other Group companies, whose terms reflect current market conditions.

As at 31 December 2023, assets and liabilities with related parties, are analysed as follows:

|                                                                     |                                      |        | ASSETS  |
|---------------------------------------------------------------------|--------------------------------------|--------|---------|
| THOUSAND EUROS                                                      | LOANS AND<br>INTERESTS TO<br>RECEIVE | OTHERS | TOTAL   |
| EDP Energias de Portugal, S.A.                                      | -                                    | 23,674 | 23,674  |
| EDP - Energias de Portugal, S.A. Sucursal en España<br>(EDP Branch) | -                                    | 3,253  | 3,253   |
| Joint Ventures and Associated companies                             | 540,348                              | 89,038 | 629,386 |
| EDP Serviço Universal, S.A.                                         | -                                    | 19,068 | 19,068  |
| EDP Finance B.V.                                                    | -                                    | 69,218 | 69,218  |

{423}------------------------------------------------

**ASSETS**

| THOUSAND EUROS                         | LOANS AND<br>INTERESTS TO<br>RECEIVE | OTHERS  | TOTAL     |
|----------------------------------------|--------------------------------------|---------|-----------|
| EDP Servicios Financieros España, S.A. | 199,567                              | -       | 199,567   |
| EDP España S.A.U.                      | -                                    | 29,511  | 29,511    |
| EDP GEM Portugal, S.A.                 | -                                    | 135,922 | 135,922   |
| Other EDP Group companies              | -                                    | 3,327   | 3,327     |
|                                        | 739,915                              | 373,011 | 1,112,926 |

| THOUSAND EUROS                                                      | LOANS AND<br>INTERESTS TO PAY | LIABILITIES |           |
|---------------------------------------------------------------------|-------------------------------|-------------|-----------|
|                                                                     |                               | OTHERS      | TOTAL     |
| EDP Energias de Portugal, S.A.                                      | -                             | 121,917     | 121,917   |
| EDP - Energias de Portugal, S.A. Sucursal en España<br>(EDP Branch) | -                             | 61,372      | 61,372    |
| Joint Ventures and Associated companies                             | 52                            | 4,028       | 4,080     |
| EDP Finance B.V.                                                    | 4,566,019                     | 17,242      | 4,583,261 |
| EDP Servicios Financieros España, S.A.                              | 1,348,789                     | 8,494       | 1,357,283 |
| EDP Global Solutions                                                | -                             | 1,443       | 1,443     |
| EDP GEM Portugal, S.A.                                              | -                             | 128,589     | 128,589   |
| Other EDP Group companies                                           | -                             | 2,834       | 2,834     |
|                                                                     | 5,914,860                     | 345,919     | 6,260,779 |

Assets mainly refer to:

- Debit balance of the Euro and US Dollar current accounts with EDP Servicios Financieros España, S.A. (see note 26) amounting to 199,038 thousand Euros as at 31 December 2023 (31 December 2022: 326,815 thousand Euros);
- Loans granted to companies consolidated by the equity method, mainly to Ocean Winds in the total amount of 534,635 thousand Euros (31 December 2022: 511,374 thousand Euros);
- Others with Joint Ventures and Associated companies correspond mainly with the variable price related to the sale of the offshore business to Ocean Winds in the amount of 77,679 thousand Euros and derivatives contracted with Eólica de São Julião in the amount of 5,550 thousand Euros (31 December 2022: 77,920 thousand Euros and 17,775 thousand Euros respectively) (see note 24 and 37);
- Commercial receivables related to the sale of energy in EDPR Portugal and EDPR Spain through EDP Serviço Universal, S.A. (which is a last resort retailer due to regulatory legislation) and EDP España S.A.U.;
- Derivatives contracted with EDP Energias de Portugal, S.A., EDP Finance B.V. and EDP GEM Portugal, S.A. which market value as at 31 December 2023 amounts to 22,044 thousand Euros (31 December 2022: 84,686thousand Euros), 69,218 thousand Euros (31 December 2022: 73,812 thousand Euros) and 122,767 thousand Euros, respectively (see note 37).

Liabilities mainly refer to:

- Loans obtained by EDP Renováveis S.A. and by EDP Renováveis Servicios Financieros S.A. from EDP Finance BV in the amount, including interests and deducted from debt origination fees, of 4,566,019 thousand Euros (31 December 2022: 4,212,912 thousand Euros) and from EDP Servicios Financieros España S.A. in the amount of 1,010,752 thousand Euros (544,832 thousand Euros as at 31 December 2022) (see note 31) including the cash-pooling in the amount of 338,037 thousand Euros as at 31 December 2023;
- Derivatives contracted with EDP Energias de Portugal, S.A. which market value as at 31 December 2023 amounts to 119,160 thousand Euros (31 December 2022: 614,415 thousand Euros), with EDP Finance B.V. which market value as at 31 December 2023 amounts to 17,099 thousand Euros (31 December 2022: 37,270 thousand Euros) and with EDP GEM Portugal, S.A. which market value as at 31 December 2023 amounts to 124,204 thousand Euros, mainly related to power price derivatives and Cross currency rate swaps (See note 37);
- The amount included in EDP Energias de Portugal, S.A. Sucursal en España is mainly explained by the increase of the tax pooling base for a total amount of 41,707thousand Euros.

Transactions with related parties for the period ended 31 December 2023 are analysed as follows:

| THOUSAND EUROS                                                    | OPERATING<br>INCOME | FINANCIAL<br>INCOME | OPERATING<br>EXPENSES | FINANCIAL<br>EXPENSES |
|-------------------------------------------------------------------|---------------------|---------------------|-----------------------|-----------------------|
| EDP Energias de Portugal, S.A.                                    | 11,704              | 310,637             | -331,324              | -373,146              |
| EDP Energias de Portugal, S.A.<br>Sucursal en España (EDP Branch) | 67                  | -                   | -47,694               | -1,298                |

Joint Ventures and Associated

companies 25,679 27,131 -13,855 -

{424}------------------------------------------------

| THOUSAND EUROS                                       | INCOME    | INCOME  | EXPENSES | EXPENSES |
|------------------------------------------------------|-----------|---------|----------|----------|
| EDP Serviço Universal, S.A.                          | 254,809   | 20      | -30      | -41      |
| EDP Finance B.V.                                     | -         | 125,420 | -        | -210,894 |
| EDP Servicios Financieros<br>España, S.A.            | -         | 5,755   | -        | -47,283  |
| EDP España S.A.U.                                    | 339,027   | -       | -5,396   | -41      |
| EDP Clientes S.A.                                    | 4,109     | -       | -1,640   | -        |
| EDP Trading Comercialização e<br>Serviços de Energia | 60,758    | -       | -66      | -        |
| EDP GEM Portugal, S.A.                               | 371,322   | -       | -3,887   | -1,825   |
| Other EDP Group companies                            | 4,463     | -       | -5,843   | -        |
|                                                      | 1,071,938 | 468,963 | -409,735 | -634.528 |

Operating income mainly includes electricity sales to EDP Serviço Universal, S.A. which is a supplier of last resource in Portugal due to regulatory legislation, to EDP España S.A.U. as the commercial agent in Spain and to EDP Trading Comercialização e Serviços de Energia;

Operating transactions with EDP Energias de Portugal, S.A. and EDP GEM Portugal, S.A. are mainly related to commodity derivatives financial instruments;

Financial Income is mainly explained by the derivative financial instruments of EDP Energias de Portugal, S.A. and EDP Finance B.V. as well as interests accrued with Joint Ventures and Associated companies;

Financial expenses with EDP Finance B.V., EDP Energias de Portugal, S.A. and EDP Servicios Financieros España S.A., are related interests on the loans granted to EDP Renováveis S.A. and EDP Renováveis Servicios Financieros, S.A. referred above, and the income/expenses related to derivative instruments;

The payments for financial leasing of IFRS 16 during the period amounts to 1,786 thousand Euros with EDP Energias de Portugal, S.A. Sucursal en España (EDP Branch).

As at 31 December 2022, assets and liabilities with related parties, are analysed as follows:

|                                                                     |                                      |         | ASSETS      |
|---------------------------------------------------------------------|--------------------------------------|---------|-------------|
| THOUSAND EUROS                                                      | LOANS AND<br>INTERESTS TO<br>RECEIVE | OTHERS  | TOTAL       |
| EDP Energias de Portugal, S.A.                                      | -                                    | 100,978 | 100,978     |
| EDP - Energias de Portugal, S.A.<br>Sucursal en España (EDP Branch) | -                                    | 140     | 140         |
| Joint Ventures and Associated companies                             | 521,584                              | 148,361 | 669,945     |
| EDP Finance B.V.                                                    | -                                    | 26,860  | 26,860      |
| EDP Serviço Universal, S.A.                                         | -                                    | 73,812  | 73,812      |
| EDP Servicios Financieros España, S.A.                              | 326,815                              | -       | 326,815     |
| EDP España S.A.U.                                                   | -                                    | 41,947  | 41,947      |
| Other EDP Group companies                                           | -                                    | 5,322   | 5,322       |
|                                                                     | 848,399                              | 397,420 | 1,245,819   |
|                                                                     |                                      |         |             |
|                                                                     |                                      |         | LIABILITIES |
| THOUSAND EUROS                                                      | LOANS AND<br>INTERESTS TO PAY        | OTHERS  | TOTAL       |
| EDP Energias de Portugal, S.A.                                      | -                                    | 634,935 | 634,935     |
| EDP - Energias de Portugal, S.A.<br>Sucursal en España (EDP Branch) | -                                    | 13,243  | 13,243      |
| Joint Ventures and Associated companies                             | -                                    | 820     | 820         |
| EDP Finance B.V.                                                    | 4,213,354                            | 37,693  | 4,251,047   |
| EDP Servicios Financieros España, S.A.                              | 544,832                              | 3,493   | 548,325     |
| EDP Global Solutions                                                | -                                    | 1,861   | 1,861       |
| Other EDP Group companies                                           | -                                    | 16,951  | 16,951      |
|                                                                     | 4,758,186                            | 708,996 | 5,467,182   |

{425}------------------------------------------------

Assets mainly refer to:

- Debit balance of the Euro and US Dollar current accounts with EDP Servicios Financieros España, S.A. (see note 26) amounting to 326,815 thousand Euros as at 31 December 2022;
- Loans granted to companies consolidated by the equity method, mainly to Ocean Winds in the total amount of 511,374 thousand Euros;
- Others with Joint Ventures and Associated companies correspond mainly with the variable price related to the sale of the offshore business to Ocean Winds in the amount of 77,920 thousand Euros and derivatives contracted with Eólica de São Julião in the amount of 17,775 thousand Euros (see note 24 and 37);
- Commercial receivables related to the sale of energy in EDPR Portugal and EDPR Spain through EDP Serviço Universal, S.A. (which is a last resort retailer due to regulatory legislation) and EDP España S.A.U.;
- Derivatives contracted with EDP Energias de Portugal, S.A. and EDP Finance B.V. which market value as at 31 December 2022 amounts to 84,686 thousand Euros and 73,812 thousand Euros, respectively (see note 37);

Liabilities mainly refer to:

- Loans obtained by EDP Renováveis S.A. and by EDP Renováveis Servicios Financieros S.A. from EDP Finance BV in the amount, including interests and deducted from debt origination fees, of 4,212,912 thousand Euros (31 December 2021: 2,652,219 thousand Euros) and from EDP Servicios Financieros España S.A. in the amount of 544,832 thousand Euros (445,499 thousand Euros as at 31 December 2021) (see note 31) including the cash-pooling in the amount of 311,807 thousand Euros as at 31 December 2022;
- Derivatives contracted with EDP Energias de Portugal, S.A. which market value as at 31 December 2022 amounts to 614,415 thousand Euros and with EDP Finance B.V. which market value as at 31 December 2022 amounts to 37,270 thousand Euros, mainly related to power price derivatives and Cross currency rate swaps (See note 37).

Transactions with related parties for the year ended 31 December 2022 are analysed as follows:

| THOUSAND EUROS                                                    | OPERATING<br>INCOME | FINANCIAL<br>INCOME | OPERATING<br>EXPENSES | FINANCIAL<br>EXPENSES |
|-------------------------------------------------------------------|---------------------|---------------------|-----------------------|-----------------------|
| EDP Energias de Portugal, S.A.                                    | 56,488              | 296,834             | -264,171              | -233,580              |
| EDP Energias de Portugal, S.A.<br>Sucursal en España (EDP Branch) | 16                  | -                   | -36,197               | -1,134                |
| Joint Ventures and Associated<br>companies                        | 50,497              | 16,388              | -5,247                | -2,761                |
| EDP Serviço Universal, S.A.                                       | 255,983             | -                   | -26                   | -                     |
| EDP Finance B.V.                                                  | 20,234              | 97,679              | -                     | -170,958              |
| EDP Servicios Financieros<br>España, S.A.                         | -                   | -                   | -                     | -31,767               |
| EDP España S.A.U.                                                 | 728,267             | -                   | -8,523                | -57                   |
| EDP Clientes S.A.                                                 | 1,928               | -                   | -359                  | -                     |
| EDP Trading Comercialização e<br>Serviços de Energia              | 37,601              | -                   | -1,002                | -                     |
| Other EDP Group companies                                         | 187                 | -                   | -6,557                | -                     |

| 1,151,201 | 410,901 | -322,082 | -440,257 |
|-----------|---------|----------|----------|
|-----------|---------|----------|----------|

Operating income mainly includes electricity sales to EDP Serviço Universal, S.A. which is a supplier of last resource in Portugal due to regulatory legislation, to EDP España S.A.U. as the commercial agent in Spain, to EDP Trading Comercialização e Serviços de Energia.

Operating transactions with EDP Energias de Portugal, S.A., EDP Finance BV and EDP GEM Portugal, S.A. are mainly related to commodity derivatives financial instruments;

Financial expenses with EDP Finance B.V. and EDP Servicios Financieros España S.A., are related interests on the loans granted to EDP Renováveis S.A. and EDP Renováveis Servicios Financieros, S.A. referred above, and the income/expenses related to derivative instruments.

Financial Income is mainly explained by the derivative financial instruments of EDP Energias de Portugal, S.A. and EDP Finance B.V.

As part of its operational activities, the EDP Renováveis Group must present guarantees in favor of certain suppliers and in connection with renewable energy contracts. As at 31 December 2023, EDP España and EDP Energías de Portugal Sucursal en España granted operational guarantees to suppliers in favour of EDP Renováveis S.A. and EDPR NA in the amount of 697,278 thousand Euros (444,520 thousand Euros as at 31 December 2022). The operational guarantees are issued following the commitments assumed by EDPR EU and EDPR NA in relation to Power Purchase Agreements (PPA), interconnection, permits and market participation.

Refer to note 20 for guarantees granted by EDP Group and EDPR Group to joint venture companies.

{426}------------------------------------------------

40. Fair value of financial assets and liabilities

Fair value of financial instruments is based, whenever available, on quoted market prices. Otherwise, fair value is determined through internal models, which are based on generally accepted cash flow discounting techniques and option valuation models or through quotations supplied by third parties.

Non-standard instruments may require alternative techniques, which consider their characteristics and the generally accepted market practices applicable to such instruments. These models are developed considering the market variables that affect the underlying instrument, namely yield curves, exchange rates and volatility factors.

Market data is obtained from generally accepted suppliers of financial data (Bloomberg and Reuters). Non-listed equity instruments, for which a reliable and consistent fair value estimate is not available either by internal models or external providers, are recognized at their historical cost.

As at 31 December 2023 and 2022, the following table presents the interest rate curves of the major currencies to which the Group is exposed. These interest rates were used as the base for the fair value calculations made through internal models referred above:

| 31 DEC 2023<br>CURRENCIES |       |       | 31 DEC 2022<br>CURRENCIES |       |       |       |
|---------------------------|-------|-------|---------------------------|-------|-------|-------|
|                           | EUR   | USD   | SGD                       | EUR   | USD   | SGD   |
| 3 months                  | 3,88% | 5,66% | 3,48%                     | 2.13% | 4.77% | 3.57% |
| 6 months                  | 3,09% | 5,49% | 3,38%                     | 2.69% | 5.07% | 3.86% |
| 9 months                  | 3,63% | 5,26% | 3,30%                     | 3.45% | 5.16% | 3.88% |
| 1 year                    | 3,46% | 5,04% | 3,19%                     | 3.69% | 5.07% | 3.84% |
| 2 years                   | 2,80% | 4,35% | 2,81%                     | 3.39% | 4.71% | 3.48% |
| 3 years                   | 2,55% | 4,04% | 2,64%                     | 3.31% | 4.34% | 3.30% |
| 5 years                   | 2,43% | 3,82% | 2,56%                     | 3.24% | 4.02% | 3.15% |
| 7 years                   | 2,44% | 3,77% | 2,57%                     | 3.20% | 3.90% | 3.10% |
| 10 years                  | 2,49% | 3,76% | 2,58%                     | 3.20% | 3.84% | 3.04% |

#### **Equity instruments at fair value and financial assets at fair value through profit or loss**

Listed financial instruments are recognized at fair value based on market prices. The financial instruments for which reliable fair value estimates are not available, are recorded in the statement of financial position at their cost.

#### **Cash and cash equivalents, trade receivables and suppliers**

These financial instruments include mainly short-term financial assets and liabilities. Given their short-term nature at the reporting date, their book values are not significantly different from their fair values.

#### **Loans granted**

These loans bear interest at market rates, which are fixed or with reference rate indexed, such as Euribor and SOFR, etc plus a market spread. Given the long-term maturity, for fixed rate loans, fair value has been calculated based on the discounted cash flows at market interest rates at the balance sheet date.

#### **Financial debt**

The fair value of the financial debt is estimated through internal models, which are based on generally accepted cash flow discounting techniques. At the reporting date, the carrying amount of floating rate loans is approximately their fair value. In case of fixed rate loans, mainly the intercompany loans granted by EDP Group, their fair value is obtained through internal models based on generally accepted discounting techniques.

#### **Derivative financial instruments**

All derivatives are accounted at their fair value. For those which are quoted in organized markets, the respective market price is used. For over-the-counter derivatives, fair value is estimated through the use of internal models based on cash flow discounting techniques and option valuation models generally accepted by the market, or by dealer price quotations.

#### **CIRS with EDP - Energias de Portugal, S.A. (note 37)**

With the purpose of hedging the foreign exchange risk resulting from the net investment in EDPR NA, the Group entered into CIRS in USD and EUR with EDP - Energias de Portugal, S.A. These

financial derivatives are presented in the statement of financial position at its fair value, which is

{427}------------------------------------------------

estimated by discounting the projected USD and EUR cash flows. The discount rates and forward

interest rates were based on the interest rate curves referred to above and the USD/EUR exchange rate is disclosed on note 35.

The fair values of assets and liabilities as at 31 December 2023 and 2022 are analysed as follows:

|                                                           |                    |            | 31 DECEMBER 2023 | 31 DECEMBER 2022   |            |            |
|-----------------------------------------------------------|--------------------|------------|------------------|--------------------|------------|------------|
| THOUSAND EUROS                                            | CARRYING<br>AMOUNT | FAIR VALUE | DIFFERENCE       | CARRYING<br>AMOUNT | FAIR VALUE | DIFFERENCE |
| FINANCIAL ASSETS                                          |                    |            |                  |                    |            |            |
| Equity instruments at fair<br>value                       | 24,785             | 24,785     | -                | 43,321             | 43,321     | -          |
| Debtors and other assets<br>from commercial activities    | 558,682            | 558,682    | -                | 605,693            | 605,693    | -          |
| Loans to related parties                                  | 542,616            | 436,661    | -105,955         | 522,795            | 476,624    | -46,171    |
| Other debtors and other<br>assets                         | 845,611            | 845,611    | -                | 1,162,285          | 1,162,285  | -          |
| Derivative financial<br>instruments                       | 382,110            | 382,110    | -                | 272,660            | 272,660    | -          |
| Cash and cash equivalents                                 | 1,371,768          | 1,371,768  | -                | 1,171,932          | 1,171,932  | -          |
|                                                           | 3,725,572          | 3,619,617  | -105,955         | 3,707,166          | 3,732,515  | -46,171    |
| FINANCIAL LIABILITIES                                     |                    |            |                  |                    |            |            |
| Financial debt                                            | 7,239,476          | 6,501,899  | -737,577         | 6,159,954          | 5,486,817  | -673,137   |
| Suppliers                                                 | 3,084,352          | 3,084,352  | -                | 2,838,483          | 2,838,483  | -          |
| Institutional partnerships in<br>North America            | 2,188,245          | 2,188,245  | -                | 2,212,162          | 2,212,162  | -          |
| Trade and other payables<br>from<br>commercial activities | 629,934            | 629,934    | -                | 713,310            | 713,310    | -          |
| Other liabilities and other<br>payables                   | 1,749,983          | 1,749,983  | -                | 1,871,568          | 1,871,568  | -          |
| Derivative financial<br>instruments                       | 883,937            | 883,937    | -                | 1,954,820          | 1,954,820  | -          |
|                                                           | 15,775,718         | 15,038,141 | 737.577          | 15,750,297         | 15,077,160 | -673,137   |

The fair value levels used to valuate EDP Renováveis Group financial assets and liabilities are defined as follows:

- **Level 1**  Quoted prices (unadjusted) in active market for identical assets and liabilities
- **Level 2** Inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly (i.e. as prices) or indirectly (i.e., derived from prices)
- **Level 3** Inputs for assets or liabilities that are not based on observable market data (unobservable inputs).

|                                                                    | 31 DECEMBER 2023 |         |         | 31 DECEMBER 2022 |           |         |
|--------------------------------------------------------------------|------------------|---------|---------|------------------|-----------|---------|
| THOUSAND EUROS                                                     | LEVEL 1          | LEVEL 2 | LEVEL 3 | LEVEL 1          | LEVEL 2   | LEVEL 3 |
| FINANCIAL ASSETS                                                   |                  |         |         |                  |           |         |
|                                                                    |                  |         |         |                  |           |         |
| Equity instruments at fair value                                   | 14,400           | -       | 10,385  | 24,712           | -         | 18,609  |
| Derivative financial instruments                                   | -                | 382,111 | -       | -                | 272,660   | -       |
|                                                                    | 14,400           | 382,111 | 10,385  | 24,712           | 272,660   | 18,609  |
| Financial liabilities                                              |                  |         |         |                  |           |         |
| Liabilities arising from options<br>with non-controlling interests | -                | -       | -       | -                | -         | 883     |
| Derivative financial instruments                                   | -                | 883,937 | -       | -                | 1,954,820 | -       |
|                                                                    | -                | 883,937 | -       | -                | 1,954,820 | 883     |

The remaining assets and liabilities are valuated within Level 1 or correspond to assets and liabilities which fair value is the same as its carrying amount. In 2023, there are no transfers between levels.

The movement in 2023and 2022 of the financial assets and liabilities within Level 3 are analysed was as follows:

{428}------------------------------------------------

**TRADE AND OTHER PAYABLES**

|                                                | 2023 | 2022 |
|------------------------------------------------|------|------|
| Balance at the beginning of the year           | 883  | 883  |
| Gains / (Losses) in other comprehensive income | -    | -    |
| Increases/Purchases                            | -883 | -    |
| Disposals                                      | -    | -    |
| Others                                         | -    | -    |
| Balance at the end of the year                 | -    | 883  |

The Trade and other payables within level 3 are related to Liabilities with non-controlling interests.

The movements in 2023and 2022of the derivative financial instruments are presented in note 37.

## 41. Relevant subsequent events

#### **EDPR secures its first PPA in Germany**

EDPR has secured a 15-year Power Purchase Agreement ("PPA") Lhyfe, with whom EDPR has a partnership agreement to provide renewable power for the future green hydrogen production sites in the region, that will be used for mobility and industrial processes, thus consolidating its sustained growth.

The PPA entitles the sale of the renewable energy generated by a 55 MWsolar project in Germany with start of operations expected during 2025.

EDPR entered the German market in 2022 through the acquisition of Kronos Solar EDPR and currently has a capacity of 8.5 GW in different stages of development in solar utility scale, including agri-PV projects. Although EDPR's business in Germany is focused on solar technology, the company has the ambition of developing wind projects in the country by the end of the decade.

Germany announced in 2022 ambitious renewables capacity targets of 360 GW of renewable capacity to be installed until 2030. To reach that target, The Country has committed to install 155 GW of solar capacity, representing close to 40% of the expected EU solar additions and making it one of the largest and fastest growing solar markets in the world.

EDPR's success in securing new PPAs reinforces its low-risk profile and growth strategy based on the development of competitive projects with long-term visibility, fostering the acceleration of the energy transition and the decarbonization of the economy.

#### **EDPR secures a PPA for a 250 MW portfolio in Spain**

EDPR has secured a 15-year Power Purchase Agreement ("PPA") with a global corporate client to sell the green energy produced by a 250 MW portfolio in Spain.

The portfolio consists of 4 solar projects amounting to 205 MW and 1 wind project with 45 MW of capacity, all of them expected to enter in operation in 2025.

This pay-as-produced PPA supports EDPR's value creation thresholds, and with it EDPR has now more than 55% of the capacity secured out of the ~17 GW target additions for 2023-2026 announced in EDPR Capital Markets Day in March 2023.

#### **EDPR awarded with 20-year CfD for 100 MW in Italy**

EDPR has been awarded with 20- year contracts for difference ("CfD") for 100 MW of wind renewable capacity, at the latest renewable auction in Italy promoted by the Gestore ServiziEnergetici ("GSE"). These CfDs were attributed to 3 onshore wind projects located in the south of Italy, which are expected to enter in operation by 2026.

The auction, that has delivered 1 GW of new clean energy, achieved a clearing price of €77.6/MWh, a significant increase from last year's €66.5/MWh in the twelfth auction. CfD auctions play a pivotal role in supporting the green transition and ensuring competitive projects.

With these new contracts, EDPR has now 57% of the capacity secured out of the ~17 GW targeted additions announced in EDPR Capital Markets Day in March 2023.

#### **EDPR signs Asset Rotation deal for a 297 MW wind project in Canada**

EDPR has signed a Sale and Purchase Agreement with Connor, Clark & Lunn Infrastructure (" CC&L Infrastructure") to sell an 80% equity stake in a 297 MW operating wind project located in Alberta, Canada for an estimated Enterprise Value of C\$0.6 billion (for the 80% stake).

This is EDPR's second transaction with CC&L Infrastructure, having previously sold a 560 MW portfolio of wind and solar assets in the United States. EDPR will retain a minority equity interest in the project and continue to operate and manage the asset.

{429}------------------------------------------------

The transaction is subject to conditions precedent, regulatory and other usual conditions for a

transaction of this nature.

This transaction comes in the context of the €7 billion Asset rotation program for 2023-26 announced in EDPR's Capital Markets Day in March 2023, allowing EDPR to accelerate value creation while recycling capital to reinvest in accretive growth.

#### **EDPR completes Asset Rotation deal for a 340 MW solar portfolio in the US**

EDPR announces the completion of a Sale and Purchase Agreements with a major energy global player, to sell an 80% equity stake in portfolios of 340 MW from 3 operating solar projects, 2 in Ohio and 1 in Texas, for a total Enterprise Values of \$0.4 billion (for the 80% stake).

With the conclusion of these agreements, EDPR has executed and signed ~35% of the €7 billion Asset rotation program for 2023-2026 as announced in EDPR's Capital Markets Day in March 2023, allowing EDPR to accelerate value creation while recycling capital to reinvest in accretive growth.

#### 42. Business Combination

#### **Business Combination closed during the year ended 31 December 2023**

#### **San Juan de Bargas**

On June 1, 2023, EDPR entered into an agreement to acquire the remaining 53% of the stake in San Juan de Bargas Eólica, S.L. (hereinafter, "SJB"), which holds a windfarm of 44,8 MW in operation and located in Spain, for a total consideration of 13,898 thousand Euros that were paid at a closing date. The agreement did not entail any conditions precedent therefore signing and closing was simultaneous.

Within this transaction, EDPR has gained control over the company San Juan de Bargas Eólica, S.L. (SJB), where EDPR had 47% of the shares of the company and acquired the remaining 53% of the shares, considering this acquisition a business combination achieved in stages under IFRS 3. Until the date in which the control was obtained, the shareholding previously held was being included in the consolidated financial statements under the equity method. Total value of the equity investment, previously to the transaction, amounted to 12,329 thousand Euros of which an amount of 270 thousand Euros corresponds to the result of the company for the year 2023 attributable to EDPR and the goodwill allocated to this company in the amount of 3,464 thousand Euros.

The Group used the financial statements as of 31 May 2023 of the acquired company, to determine pre-acquisition balance sheet and results, and, consequently, the company have been consolidated from that date following the full consolidation method. Thus, this acquisition has contributed to the consolidated financial statements with Revenues, mainly from energy sales, in the approximate amount of 2,196 thousand Euros and with a Net loss in the approximate amount of 1,199 thousand Euros, referring to the seven-month period ended on 31 December 2023.

If this acquisition had occurred in the beginning of the exercise, it would have contributed to the consolidated financial statements with revenues, mainly from energy sales, in the approximate amount of 4,410 thousand Euros and with a Net loss for the period in the approximate amount of 1,981 thousand Euros, referring to the twelve-month period ended on 31 December 2023.

At the acquisition date, EDPR Group has determined internally the fair value of the assets acquired and liabilities assumed. The valuation methodology utilized has been the Multi-Excess Earning Method (MEEM) and the discounted cashflow approach. This valuation methodology assumes that the kind of assets to be valued normally generates cash flows in combination with other tangible and intangible assets and therefore consists in deducting the estimated cost of the use of other assets, such as PP&E or working capital, from the estimated cash flows associated to the asset to be valued. The main components of cashflow, namely production, long term power prices and operational costs were estimated using EDPR's own methodology using historical data and experience assessing investments of similar windfarm projects in EDPR's portfolio. The after-tax cash flows were then discounted at the weighted average cost of capital, reflecting the risk of the country, and adjusted for the profile of the project.

Such valuation has determined a fair value of the net assets acquired in the amount of 34,950 thousand Euros.

Fair value of identifiable assets and liabilities at the acquisition date is presented as follows:

| THOUSAND EUROS                | BOOK VALUE<br>AT<br>ACQUISITION<br>DATE | FAIR VALUE<br>ADJUSTMENT | FAIR VALUE<br>AT<br>ACQUISITION<br>DATE |
|-------------------------------|-----------------------------------------|--------------------------|-----------------------------------------|
| ASSETS                        |                                         |                          |                                         |
| Intangible assets             | 115                                     | -                        | 115                                     |
| Property, plant and equipment | 4,294                                   | 39,080                   | 43,374                                  |
| Other Non-Current Assets      | 714                                     | -                        | 714                                     |
| Total Non-Current Assets      | 5,123                                   | 39,080                   | 44,203                                  |

Other debtors and other assets 3,343 - 3,343

{430}------------------------------------------------

**BOOK VALUE** 

**FAIR VALUE** 

| THOUSAND EUROS                                                                             | AT<br>ACQUISITION<br>DATE               | FAIR VALUE<br>ADJUSTMENT | AT<br>ACQUISITION<br>DATE               |
|--------------------------------------------------------------------------------------------|-----------------------------------------|--------------------------|-----------------------------------------|
| Total Current Assets                                                                       | 3,343                                   | -                        | 3,343                                   |
| Total Assets                                                                               | 8,466                                   | 39,080                   | 47,546                                  |
| LIABILITIES                                                                                | -                                       | -                        | -                                       |
| Provisions                                                                                 | 640                                     | -                        | 640                                     |
| Deferred tax liabilities                                                                   | -                                       | 9,770                    | 9,770                                   |
| Total Non-Current Liabilities                                                              | 640                                     | 9,770                    | 10,410                                  |
| Trade and other payables from commercial<br>activities                                     | 2,186                                   | -                        | 2,186                                   |
| Total Current Liabilities                                                                  | 2,186                                   | -                        | 2,186                                   |
| Total Liabilities                                                                          | 2,826                                   | 9,770                    | 12,596                                  |
| Total Net assets acquired at fair value                                                    | -                                       | -                        | 34,950                                  |
| Net assets previously held in San Juan de Bargas (business combination achieved in stages) | -                                       | -                        | -12,329                                 |
| Total Net assets acquire at fair value                                                     | -                                       | -                        | 22,621                                  |
| - Total consideration for the acquisition of the shares                                    | -                                       | -                        | -13,898                                 |
| Badwill                                                                                    | -                                       | -                        | -8,723                                  |
|                                                                                            | BOOK VALUE<br>AT<br>ACQUISITION<br>DATE | FAIR VALUE<br>ADJUSTMENT | FAIR VALUE<br>AT<br>ACQUISITION<br>DATE |
| THOUSAND EUROS                                                                             |                                         |                          |                                         |
| ASSETS                                                                                     |                                         |                          |                                         |
| Property, plant and equipment                                                              | 409,589                                 | 110,932                  | 520,521                                 |
| Right-of-use assets                                                                        | 39,000                                  | -                        | 39,000                                  |
| Intangible assets                                                                          | 422                                     | 113,295                  | 113,717                                 |
| Goodwill                                                                                   | 2,159                                   | -2,159                   | -                                       |
| Investments in joint ventures and associates                                               | 9,111                                   | 14,842                   | 23,954                                  |
| Equity instruments at fair value                                                           | 24                                      | -                        | 24                                      |
| Deferred tax assets                                                                        | 9,908                                   | -                        | 9,908                                   |
| Other Non-Current Assets                                                                   | 11,136                                  | -                        | 11,136                                  |
| Total Non-Current Assets                                                                   | 481,348                                 | 236,910                  | 718,259                                 |
| Inventories                                                                                | 6,945                                   | -                        | 6,945                                   |
| Debtors and other assets from commercial activities                                        | 70,534                                  | -                        | 70,534                                  |
| Other debtors and other assets                                                             | 49,532                                  | -                        | 49,532                                  |
| Current tax assets                                                                         | 6,867                                   | -                        | 6,867                                   |
| Cash and cash equivalents                                                                  | 127,576                                 | -                        | 127,576                                 |
| Total Current Assets                                                                       | 261,455                                 | -                        | 261,455                                 |
| Total Assets                                                                               | 742,803                                 | 236,910                  | 979,713                                 |
| LIABILITIES                                                                                |                                         |                          |                                         |
| Medium / Long term financial debt                                                          | 233,746                                 | -                        | 233,746                                 |
| Provisions                                                                                 | 6,162                                   | -                        | 6,162                                   |
| Deferred tax liabilities                                                                   | 1,836                                   | 38,836                   | 40,673                                  |
| Other liabilities and other payables                                                       | 115,021                                 | -                        | 115,021                                 |
| Total Non-Current Liabilities                                                              | 356,766                                 | 38,836                   | 395,603                                 |
| Short term financial debt                                                                  | 30,425                                  | -                        | 30,425                                  |
| Trade and other payables from commercial<br>activities                                     | 70,845                                  | -                        | 70,845                                  |
| Current tax liabilities                                                                    | 823                                     | -                        | 823                                     |
| Other current liabilities                                                                  | 147,858                                 | -                        | 147,858                                 |
| Total Current Liabilities                                                                  | 249,951                                 | -                        | 249,951                                 |
| Total Liabilities                                                                          | 606,707                                 | 38,836                   | 645,554                                 |
| Total Net assets acquired at fair value                                                    |                                         |                          | 334,160                                 |
| - Non-controlling interests                                                                |                                         |                          | -37,986                                 |
| THOUSAND EUROS                                                                             | AT<br>ACQUISITION<br>DATE               | FAIR VALUE<br>ADJUSTMENT | AT<br>ACQUISITION<br>DATE               |
| - Total consideration for the acquisition of the shares                                    |                                         |                          | -659,658                                |
|                                                                                            |                                         | Goodwill                 | 363,485                                 |

The aforementioned San Juan de Bargas's valuation has determined a fair value for Property, plant and equipment in the amount of 43,374 thousand Euros, generating a fair value adjustment of 39,080 thousand Euros and a corresponding deferred tax liability in the amount of 9,770 thousand Euros (see notes 16 and 21).

The purchase price allocation exercise carried out in accordance with IFRS 3 resulted in a gain recognition in the amount of 8,723 thousand Euros, as per the difference of the net assets acquired at fair value and the consideration transferred for the acquisition of the shares. The gain resulting from the purchase price allocation has been registered in the "Other income" caption of the consolidated financial statements (see note 9).

#### **Others**

In addition to the above transaction, as at 31 December 2023, EDPR Group has acquired the Australian business ITP Development Pty. Ltd. and North American business Longroad Solar Portfolio III LLC and SunE Solar V LLC (Longroad portfolio). The impact of both is consider not material. The net book values of these projects at acquisition date amounted to -3,335 thousand Euros and 2,783 thousand Euros, respectively. The provisional goodwill recognized for these transactions have been 16,983 thousand Euros related to ITP Development and 14,511 thousand Euros related to Longroad (Portfolio III and SunE Solar V)(see notes 6 and 19).

#### **Business Combination closed during the year ended 31 December 2022**

#### **Sunseap**

EDPR entered in November 2021 into an agreement with BPIN Investment Company Limited (owner of 47% issued shares at the moment of entering into the agreement) , Mr. Frank Phuan and Mr. Lawrence Wu (as the "Founder Shareholders") (owners of 14%% issued shares at the moment of entering into the agreement), and the additional selling shareholders (owners of 36%% issued shares at the moment of entering into the agreement) for the acquisition of up to 91.4% of the shares of Sunseap Group Pte.Ltd which holds a sizeable portfolio including of close to 10 GW of renewable projects at different stages of development. The agreement also includes the acquisition of the subscription rights granted to some shareholders and employees of the company by EDPR and the new issuance of those shares to be paid by EDPR, the total percentage acquired of 91.4% is inclusive of such shares. At that moment, the completion of this transaction was subject to customary conditions precedent. With this transaction, completed in 24 February 2022 once the aforementioned customary conditions precedent were fulfilled, EDPR acquired 91.4% of the mentioned Group for a total consideration of 659,658 thousand Euros (including the put option present value). This transaction is considered under the scope of IFRS 3 - Business combinations.

EDPR signed the corresponding shareholders agreements which include put and call options agreements for the remaining percentage of the shares of the Sunseap Group with the minority shareholders. As a consequence, EDPR has call options to acquire the remaining stake of the capital of the Sunseap Group and the sellers have put options to sell their shares. EDPR have applied the anticipated-acquisition method (see note 2.A and 6).The exercise price for these options has been determined in an amount equal to 56,442 thousand Euros (see note 35).

Upon completion of the agreement, Sunseap Group Pte.Ltd performed a capital increase which was subscribed solely by EDP Renováveis, S.A and lead to EDP Renováveis, S.A holding 92.28% of the total stake of the acquired company, the amount of the capital increase is not

considered within the consideration transferred for the business combination.

{431}------------------------------------------------

The Group used the financial statements as at 28 February 2022 of the company acquired, to

determine pre-acquisition balance sheet and results, and, consequently, the companies have been consolidated from that date following the full consolidation method. Thus, this acquisition has contributed to the consolidated financial statements with Revenues, mainly from energy sales, in the approximate amount of 108,763 thousand Euros and with a Net profit in the approximate amount of 224 thousand Euros, referring to the ten-month period ended at 31 December 2022. If this acquisition had occurred in the beginning of the exercise, it would have contributed to the consolidated financial statements with revenues, mainly from energy sales, in the approximate amount of 121,430 thousand Euros and with a Net loss for the period in the approximate amount of 7,623 thousand Euros , referring to the twelve-month period ended at 31 December 2022.

At the acquisition date, EDPR Group has determined the fair value of the assets acquired and liabilities assumed, with the assistance of a specialized and independent firm. The valuation methodology utilized has been the Multi-Excess Earning Method (MEEM) and the discounted cashflow approach. This valuation methodology assumes that the kind of assets to be valued normally generates cash-flows in combination with other tangible and intangible assets and therefore consists in deducting the estimated cost of the use of other assets, such as PP&E or working capital, from the estimated cash flows associated to the asset to be valued. The main components of cashflow, namely production, long term power prices and operational costs were estimated using EDPR's own methodology using historical data and experience assessing investments of similar solar PV projects in EDR's portfolio. These internal assumptions used in the preparation of the cashflows of the portfolio have been challenged by the specialized firm. The after tax cash flows were then discounted at the weighted average cost of capital within a range of 6.3%-10.8% (blended), that has been calculated by the firm, reflecting the risks of the specific countries and adjusted for the profile of each project. Such valuation has determined a fair value of the net assets acquired in the amount of 296,173 thousand Euros.

{432}------------------------------------------------

**BOOK VALUE** 

**FAIR VALUE** 

The aforementioned Sunseap's group valuation has determined a fair value for Property, plant and equipment in the amount of 520,521 thousand Euros, generating a fair value adjustment of 110,932 thousand Euros corresponding to the permits, licences and concessions (PLCs) and an associated deferred tax liability in the amount of 21,472 thousand Euros (see note 16 and 21). Furthermore, the valuation has determined a fair value for Intangible assets in the amount of 113,717 thousand Euros, generating a fair value adjustment of 113,295 thousand Euros corresponding to the power purchase agreements and feed-in-tariffs of the whole portfolio and an associated deferred tax liability in the amount of 17,378 thousand Euros.

The purchase price allocation exercise carried out in accordance with IFRS 3 resulted as a goodwill recognition in the amount of 363,485 thousand Euros, as per the difference of the net assets acquired at fair value and the consideration transferred for the acquisition of the shares.

The aforementioned provisional goodwill recognition resulting from the purchase price allocation, is mainly attributable to EDPR's establishment in the APAC platform within the context of EDP Business plan 2021-25, allowing EDPR to establish a portfolio for the APAC region of close to 10 GW of solar projects, of which 563 MW operating and under construction, and an experienced team of more than 600 employees spread across 9 markets, providing a growth platform for the region. The purchase price allocation exercise has been closed during 2023 with no significant impacts compared to the allocation carried out in 2022.

#### **Xuan Thien**

EDPR, through its wholly owned Vietnamese subsidiary Sunseap Commercial & Industrial Assets (Vietnam) Co., Ltd. entered in 2022 into an agreement with Xuan Thien Group for the acquisition of 99.99% of the shares of Xuan Thien Ninh Thuan JSC and Xuan Thien Thuan Vac JSC, each of one holding a PV project totalling 200 MWac (255MWdc) (see note 6). At that moment, the completion of this transaction was subject to customary conditions precedent. With this transaction, completed in 7 September 2022 once the aforementioned customary conditions precedent were fulfilled, EDPR has acquired 99,99% of the shareholding of the mentioned companies for a total consideration of 198,832 thousand Euros. Of the total consideration, 157,544 thousand Euros have been paid as of 31 December 2022, and an amount of 41,288 thousand Euros is accrued under the caption Other liabilities and other payables - Current (see note 35) correspond to the retentions that, in accordance with the sale purchase agreement, will be paid when certain milestones related to financing, module damages repairs and land use rights are fulfilled. This transaction is considered under the scope of IFRS 3 - Business combinations.

The Group used the financial statements as at 7 September 2022 of the companies acquired, to determine pre-acquisition balance sheet and results, and, consequently, the companies have been consolidated from that date following the full consolidation method. Thus, this acquisition has contributed to the consolidated financial statements with Revenues, mainly from energy sales, in the approximate amount of 9,319 thousand Euros and with a Net profit in the approximate amount of 1,819 thousand Euros, referring to the four months period ended at 31 December 2022. If this acquisition had occurred in the beginning of the exercise, it would have contributed to the consolidated financial statements with revenues, mainly from energy sales, in the approximate amount of 33,225 thousand Euros and with a Net profit for the period in the approximate amount of 8.985 thousand Euros referring to the twelve-month period ended at 31 December 2022.

At the acquisition date, EDPR Group has determined the fair value of the assets acquired and liabilities assumed, with the assistance of a specialized and independent firm. The valuation methodology utilized has been the Multi-Excess Earning Method (MEEM) and the discounted cashflow approach. This valuation methodology assumes that the kind of assets to be valued normally generates cash-flows in combination with other tangible and intangible assets and therefore consists in deducting the estimated cost of the use of other assets, such as PP&E or working capital, from the estimated cash flows associated to the asset to be valued. The main assumptions of cashflow, namely production, long term power prices and operational costs were estimated using EDPR's own methodology using historical data and experience assessing investments of similar solar assets in EDPR's portfolio. These internal assumptions used in the preparation of the cashflows of the portfolio have been challenged by the specialized firm. The after tax cash flows were then discounted at the weighted average cost of capital of 10.3%, that has been calculated by the firm, reflecting the risk of the country and adjusted for the profile of the projects.

Such valuation has determined a fair value of the net assets acquired in the amount of 181,061 thousand Euros.

{433}------------------------------------------------

Fair value of identifiable assets and liabilities at the acquisition date is presented as follows:

|                                                         | BOOK VALUE<br>AT<br>ACQUISITION<br>DATE | FAIR VALUE<br>ADJUSTMENT | FAIR VALUE<br>AT<br>ACQUISITION<br>DATE |
|---------------------------------------------------------|-----------------------------------------|--------------------------|-----------------------------------------|
| THOUSAND EUROS                                          |                                         |                          |                                         |
| ASSETS                                                  |                                         |                          |                                         |
| Property, plant and equipment                           | 171,487                                 | 26,754                   | 198,241                                 |
| Intangible assets                                       | -                                       | 85,476                   | 85,476                                  |
| Deferred tax assets                                     | -                                       | 238                      | 238                                     |
| Total Non-Current Assets                                | 171,487                                 | 112,468                  | 283,956                                 |
| Debtors and other assets from commercial<br>activities  | 14,562                                  | -                        | 14,562                                  |
| Other debtors and other assets                          | 3,500                                   | -16                      | 3,484                                   |
| Cash and cash equivalents                               | 314                                     | -                        | 314                                     |
| Total Current Assets                                    | 18,376                                  | -16                      | 18,360                                  |
| Total Assets                                            | 189,864                                 | 112,452                  | 302,316                                 |
| LIABILITIES                                             |                                         |                          |                                         |
| Medium / Long term financial debt                       | 102,425                                 | -                        | 102,425                                 |
| Provisions                                              | 2,303                                   | -                        | 2,303                                   |
| Deferred tax liabilities                                | -                                       | 8,497                    | 8,497                                   |
| Other liabilities and other payables                    | -                                       | 3,155                    | 3,155                                   |
| Total Non-Current Liabilities                           | 104,728                                 | 965                      | 116,380                                 |
| Short term financial debt                               | 352                                     | -                        | 352                                     |
| Other current liabilities                               | 4,521                                   | -                        | 4,521                                   |
| Total Current Liabilities                               | 4,874                                   | -                        | 4,874                                   |
| Total Liabilities                                       | 109,602                                 | 11,652                   | 121,254                                 |
| Total Net assets acquired at fair value                 |                                         |                          | 181,061                                 |
| - Total consideration for the acquisition of the shares |                                         |                          | -202,298                                |
| Goodwill                                                |                                         |                          | 21,236                                  |

The aforementioned Xuan Thien's projects valuation has determined a fair value for Property, plant and equipment in the amount of 198,241 thousand Euros, generating a fair value adjustment of 26,754 thousand Euros corresponding to the permits, licences and concessions (PLCs) and an associated deferred tax liability in the amount of 2,026 thousand Euros (see note 16 and 21). Furthermore, the valuation has determined a fair value for Intangible assets in the amount of 85,476 thousand Euros,which equals the amount of the fair value adjustment corresponding to the power purchase agreements that these companies have in place and an associated deferred tax liability in the amount of 6,471 thousand Euros.

The purchase price allocation exercise carried out in accordance with IFRS 3 resulted in goodwill recognition in the amount of 21,236 thousand Euros, as per the difference of the net assets acquired at fair value and the consideration transferred for the acquisition of the shares.

The aforementioned provisional goodwill recognition resulting from the provisional purchase price allocation, which is identified according to what is indicated in note 2.A, is mainly attributable to EDPR doubling its operational capacity in Vietnam, strengthening its presence in the APAC region, a market where it entered in 2021 and has been since reinforced with the integration of Sunseap in February 2022. The purchase price allocation exercise has been closed during 2023 with no significant impacts compared to the allocation carried out in 2022.

#### **Kronos Group**

In the third quarter of 2022, EDPR entered into an agreement with Summercourt Capital GmbH (owner of 85% of the shares) and Bohne-Vermögensverwaltungs-GmbH (owner of 15% of the shares) to acquire a 66.80% stake of Kronos Solar Projects GmbH. which holds a solar generation portfolio of 9,4GW under development located in Germany, Netherlands, France and UK (see note 6). At that moment, the completion of this transaction was subject to customary conditions precedent. With this transaction, completed in 5 October 2022 once the aforementioned customary conditions precedent were fulfilled, EDPR has acquired 66,80% of the mentioned companies for a total consideration of 663,030 thousand Euros of which an amount of 341,995 thousand Euros corresponds to the put options and an amount of 71,035 thousand Euros relates to the estimation for the success fee to be paid to the sellers (see note 35). This transaction is considered under the scope of IFRS 3 - Business combinations.

Upon completion of the agreement, Kronos Solar Projects GmbH performed a capital increase which was subscribed solely by EDP Renewables Europe, S.L.U. and lead to EDP Renewables

Europe, S.L.U. holding 70% of the total stake of the acquired company, the amount of the capital

{434}------------------------------------------------

increase is not considered within the consideration transferred for the business combination.

Furthermore and within the context of this acquisition, and for the purpose of constructing and operating the projects, EDP Renewables Europe, S.L.U. and the sellers have incorporated the company Kronos Projektgesellschaft mbH with the same split in the shareholding (70%-30%).

EDPR signed the corresponding shareholders agreements which include put and call options agreements for the remaining percentage of the shares of the Kronos Group with the minority shareholders. As a consequence, EDPR has call options to acquire the remaining stake of the capital of the Kronos Group and the sellers have put options to sell their shares. EDPR have applied the anticipated-acquisition method (see note 2.A, 6 and 35).

The Group used the financial statements as at 30 September 2022 of the acquired companies, to determine pre-acquisition balance sheet and results, and, consequently, the companies have been consolidated from that date following the full consolidation method and equity method when applicable. Thus, this acquisition has contributed to the consolidated financial statements with no revenues since none of the projects of the portfolio are operating and no sales of projects have occurred during the period and with a Net loss in the approximate amount of 438 thousand Euros, referring to the four-month period ended at 31 December 2022. If this acquisition had occurred in the beginning of the exercise, it would have contributed to the consolidated financial statements with no revenues since none of the projects of the portfolio are operating and no sales of projects have occurred during the year and with a Net loss in the approximate amount of 1,176 thousand Euros , referring to the twelve-month period ended at 31 December 2022.

At the acquisition date, EDPR Group has determined internally the fair value of the assets acquired and liabilities assumed. Since the portfolio acquired is still in an early stage of development EDPR has not allocated any value to specific assets, hence the difference amounting to 651,657 thousand Euros between the consideration transferred and the net assets acquired has been allocated to provisional goodwill. Such assessment has determined a fair value of the net assets acquired in the amount of 11,373 thousand Euros.

Fair value of identifiable assets and liabilities at the acquisition date is presented as follows:

| THOUSAND EUROS                                          | BOOK VALUE<br>AT<br>ACQUISITION<br>DATE | FAIR VALUE<br>ADJUSTMENT | FAIR VALUE<br>AT<br>ACQUISITION<br>DATE |
|---------------------------------------------------------|-----------------------------------------|--------------------------|-----------------------------------------|
| ASSETS                                                  |                                         |                          |                                         |
| Property, plant and equipment                           | 4,871                                   | -                        | 4,871                                   |
| Intangible assets                                       | 3,331                                   | -                        | 3,331                                   |
| Other non-current assets                                | 455                                     | -                        | 455                                     |
| Total Non-Current Assets                                | 8,656                                   | -                        | 8,656                                   |
| Other debtors and other assets                          | 1,591                                   | -                        | 1,591                                   |
| Cash and cash equivalents                               | 13,423                                  | -                        | 13,423                                  |
| Total Current Assets                                    | 15,014                                  | -                        | 15,014                                  |
| Total Assets                                            | 23,670                                  | -                        | 23,670                                  |
| LIABILITIES                                             |                                         |                          |                                         |
| Provisions                                              | 493                                     | -                        | 493                                     |
| Deferred tax liabilities                                | 151                                     | -                        | 151                                     |
| Other liabilities and other payables                    | 5                                       | -                        | 5                                       |
| Total Non-Current Liabilities                           | 649                                     | -                        | 649                                     |
| Other current liabilities                               | 11,560                                  | -                        | 11,560                                  |
| Total Current Liabilities                               | 11,560                                  | -                        | 11,560                                  |
| Total Liabilities                                       | 12,209                                  | -                        | 12,209                                  |
| Total Net assets acquired at fair value                 |                                         |                          | 11,461                                  |
| - Non-controlling interest                              |                                         |                          | 88                                      |
| Total Net assets acquired at fair value                 |                                         |                          | 11,373                                  |
| - Total consideration for the acquisition of the shares |                                         |                          | -663,030                                |
| Goodwill                                                |                                         |                          | 651,657                                 |

The aforementioned goodwill recognition resulting from the purchase price allocation, which is identified as provisional according to what is indicated in note 2.A, is mainly attributable to the opportunity of entrance in new regions for EDPR (namely Netherlands and Germany), which benefit from ambitious renewables targets given the increased importance of security of supply and energy independence coupled with government initiatives such as the "Easter Package" in Germany that stands out with ambitious renewables capacity targets, with 360 GW of renewable installed capacity until 2030. In that sense almost 50% of the acquired solar developmentportfolio is located in Germany. Another element to consider within the goodwill is the well-proven know-

how and track record of Kronos's team with 1,4 GW developed through 80 successfully installed

{435}------------------------------------------------

projects in 9 countries. Finally, this acquisition is considered to be highly complementary with

EDPR geographical current set up, not only allowing the entrance in Germany and Netherlands, but also scaling presence in France and the UK with a fully solar focused business.

The purchase price allocation exercise has been closed during 2023, see the impact in note 2. A).

#### **Longroad**

EDPR, through its majority controlled US subsidiary, EDPR NA Distributed Generation, LLC, entered into an agreement in April 2022 to acquire 100% of the equity interests in ninety one (91) distinct limited liability companies and limited partnerships owning an aggregate nameplate capacity of 99.3 MWdc of operating solar plants located throughout the US. The acquisition of these companies has been structured in 8 different transactions ("tranches") which are independent from each other. However, given that the seller is the same, the assets have same nature and risks and are all located in the same geography, the Group has opted to present all these transactions aggregated in the same note, grouping the assets and liabilities acquired depending on whether the transaction has generated goodwill or badwill. At that moment, the completion of this transaction was subject to certain conditions precedent. The conditions precedent, which were specific for each acquired company, necessitated multiple closings of discrete asset groups in separate tranches. The closing tranches served to organize companies based up common attributes and/or common conditions precedent such as acquired companies with loan repayments, sale leaseback financed companies, and companies with common off-takers.

With the aforementioned conditions precedent fulfilled, EDPR acquired the aforementioned 100% equity interests in 84 companies in four tranches, each of which is considered under the scope of IFRS 3 – Business combinations, for the following cash consideration:

| CLOSING DATE                                 | CLOSING DATE    | PROJECTS<br>ACQUIRED | PURCHASE<br>PRICE | CAPACITY<br>(MW DC) |
|----------------------------------------------|-----------------|----------------------|-------------------|---------------------|
|                                              | THOUSAND        |                      | EUR               | MW DC               |
| Renewable Venture Solar<br>Fund V GP, LLC    | 19 April 2022   | 7                    | 16,659            | 6.46                |
| Longroad Solar Portfolio IV,<br>LLc          | 9 August 2022   | 3                    | 248               | 1.82                |
| Longroad Solar WF<br>Portfolio, LLC          | 9 August 2022   | 6                    | 3,522             | 10.65               |
| SunE Solar VI, LLC                           | 9 August 2022   | 2                    | 2,623             | 1.22                |
| Longroad XII Holdings, LLC                   | 3 October 2022  | 7                    | 38,257            | 24.19               |
| MMA Renewable Venture<br>Solar Fund III, LLC | 3 October 2022  | 18                   | 22,867            | 16.93               |
| Longroad DG Portolio I,<br>LLC               | 9 December 2022 | 11                   | 3,661             | 5.94                |
| Longroad Fund III Holdings,<br>LLC           | 9 December 2022 | 30                   | 45,155            | 32.09               |
|                                              |                 | 84                   | 132,992           | 99.3                |

The Group used the financial statements as at each respective closing date to determine preacquisition results and, consequently, the companies and their operations have been consolidated since that date. The profit and loss and statement of cash flows reflect the activity of these project companies from the respective date of closing presented in the table above through 31 December 2022.

If these acquisitions had occurred at the beginning of 2022, these would have contributed to the consolidated financial statements with Revenues, mainly from energy and environmental attribute (REC) sales, in the approximate amount of14,244 thousand Euros (15,000 thousand USD) and with Net income for the period in the approximate amount of 2,279 thousand Euros (2,400 thousand USD), referring to the twelve-month period ended at 31 December 2022.

At the acquisition dates for each respective tranche, the Group has determined the fair values of the assets acquired and liabilities assumed, based on valuations performed by a third party. The valuation methodology utilized was a discounted cashflow approach, where cash flows for each project were forecasted for the remaining life of the assets. The main components of cashflow, namely production, long term power prices and operational costs were estimated using EDPR's own methodology using historical data of the assets provided by the seller. The after tax cash flows were then discounted at the weighted average cost of capital of 8.25% reflecting the risk of the debt and equity financing components adjusted for the contracted profile of each project. Lastly to the aggregate value of the portfolio, adjustments were made for one-off items, other balance sheet assets or liabilities and synergies, to reach the final equity valuation.

Such valuation has determined a fair value of the net assets acquired in the amount of 77,372 thousand Euros. Inputs and assumptions included in the valuation models relied upon the use of significant estimates including market energy pricing curves, federal income tax rates and other present value factors.

{436}------------------------------------------------

Fair values of identifiable assets and liabilities at the acquisition dates for tranches resulting in a

provisional goodwill from the transaction are presented as follows:

| THOUSAND EUROS                                                      | BOOK VALUE<br>AT<br>ACQUISITION<br>DATE | FAIR VALUE<br>ADJUSTMENT | FAIR VALUE<br>AT<br>ACQUISITION<br>DATE |
|---------------------------------------------------------------------|-----------------------------------------|--------------------------|-----------------------------------------|
| ASSETS                                                              |                                         |                          |                                         |
| Property, plant and equipment                                       | 41,506                                  | -                        | 41,506                                  |
| Intangible assets                                                   | -                                       | 11,570                   | 11,570                                  |
| Other non-current assets                                            | 489                                     | -                        | 489                                     |
| Total Non-Current Assets                                            | 41,995                                  | 11,570                   | 53,565                                  |
| Debtors and other assets from commercial<br>activities              | 629                                     | -                        | 629                                     |
| Other debtors and other assets                                      | 2,682                                   | -                        | 2,682                                   |
| Cash and cash equivalents                                           | 129                                     | -                        | 129                                     |
| Total Current Assets                                                | 3,440                                   | -                        | 3,440                                   |
| Total Assets                                                        | 43,435                                  | 11,570                   | 57,005                                  |
| LIABILITIES                                                         |                                         |                          |                                         |
| Provisions                                                          | 4,416                                   | -3,702                   | 714                                     |
| Deferred tax liabilities                                            | -                                       | -                        | -                                       |
| Institutional partnerships in USA wind farms                        | 2,821                                   | -212                     | 2,609                                   |
| Total Non-Current Liabilities                                       | 7,237                                   | -3,914                   | 3,323                                   |
| Other current liabilities                                           | 37                                      | -                        | 37                                      |
| Total Current Liabilities                                           | 37                                      | -                        | 37                                      |
| Total Liabilities                                                   | 7,274                                   | -3,914                   | 3,360                                   |
| Total Net assets acquired at fair value                             |                                         |                          | 53,645                                  |
| - Total consideration transferred for the acquisition of the shares |                                         |                          | -61,372                                 |
| Goodwill                                                            |                                         |                          | 7,727                                   |

| THOUSAND EUROS                                                      | BOOK VALUE<br>AT<br>ACQUISITION<br>DATE | FAIR VALUE<br>ADJUSTMENT | FAIR VALUE<br>AT<br>ACQUISITION<br>DATE |
|---------------------------------------------------------------------|-----------------------------------------|--------------------------|-----------------------------------------|
| ASSETS                                                              |                                         |                          |                                         |
| Property, plant and equipment                                       | 29,273                                  | -                        | 29,273                                  |
| Intangible assets                                                   | -                                       | 9,097                    | 9,097                                   |
| Other non-current assets                                            | 2,170                                   | -                        | 2,170                                   |
| Total Non-Current Assets                                            | 31,443                                  | 9,097                    | 40,540                                  |
| Debtors and other assets from commercial<br>activities              | 596                                     | -                        | 596                                     |
| Other debtors and other assets                                      | 750                                     | -                        | 750                                     |
| Cash and cash equivalents                                           | 1,662                                   | -                        | 1,662                                   |
| Total Current Assets                                                | 3,008                                   | -                        | 3,008                                   |
| Total Assets                                                        | 34,451                                  | 9,097                    | 43,548                                  |
| LIABILITIES                                                         |                                         |                          |                                         |
| Provisions                                                          | 1,639                                   | -1,280                   | 359                                     |
| Deferred tax liabilities                                            | -                                       | -                        | -                                       |
| Institutional partnerships in USA wind farms                        | 22,070                                  | -2,900                   | 19,170                                  |
| Total Non-Current Liabilities                                       | 23,709                                  | -4,180                   | 19,529                                  |
| Other current liabilities                                           | 292                                     | -                        | 292                                     |
| Total Current Liabilities                                           | 292                                     | -                        | 292                                     |
| Total Liabilities                                                   | 24,001                                  | -4,180                   | 19,821                                  |
| Total Net 'assets acquired at fair value                            |                                         |                          | 23,727                                  |
| - Total consideration transferred for the acquisition of the shares |                                         |                          | -22,804                                 |
| Badwill                                                             |                                         |                          | 923                                     |

The purchase price allocation exercise carried out in accordance with IFRS 3 resulted as a provisional goodwill recognition in the amount of 7,727 thousand Euros, as per the difference of the

net assets acquired at fair value and the consideration transferred for the acquisition of the shares

{437}------------------------------------------------

of the projects Longroad Solar Portfolio IV, LLC, Longroad XII Holdings, LLC, MMA Renewable

Ventures Solar Fund III, LLC, Longroad DG Portfolio I, LLC, and Longroad Fund III Holdings, LLC (see note19).

Other purchase price allocations resulted in a provisional badwill recognition. The acquisitions of Renewable Ventures Solar Fund V GP, LLC, Longroad Solar WF Portfolio, LLC, and SunE Solar VI, LLC contributed badwill amounted to 932 thousand Euros (see note 9).

The aforementioned provisional goodwill resulting from the purchase price allocation is mainly attributable to the acquisition of above-market power purchase agreements. The aforementioned valuations have determined a fair value for Intangible assets 20,667 thousand Euros.

In addition to the above, as at 31 December 2022, the last tranche of the transaction recently closed and a purchase price allocation has not yet been finalized for Longroad DG Portfolio I, LLC (DG1) and Longroad Fund III Holdings, LLC (Fund III). The book values of these projects at acquisition date amounted to net assets of 27,578 thousand Euros. The provisional goodwill recognized for these transactions has been 21,238 thousand Euros (see note 19).

The purchase price allocation exercises have been closed during 2023 with no significant impacts compared to the allocation carried out in 2022.

#### 43. Environment issues

Expenses of environmental nature are the expenses that were identified and incurred to avoid, reduce or repair damages of an environmental nature that result from the Group's normal activity.

These expenses are booked in the income statement of the year, except if they qualify to be recognised as an asset, according to IAS 16.

During the year, the environmental expenses recognised in the income statement in the amount of 9,659 thousand Euros (31 December 2022: 7,734 thousand Euros) refer to costs with the environmental management plan.

Investments of an environmental nature booked as Property, plant and equipment and intangible assets during 2023 amount to 20,417 thousand Euros (31 December 2022: 13,968 thousand Euros).

As referred in accounting policy 2.P, the Group has established provisions for dismantling and decommissioning of property, plant and equipment when a legal or contractual obligation exists to dismantle and decommission those assets at the end of their useful lives. Consequently, the Group has booked provisions for property, plant and equipment related to electricity wind and solar generation for the responsibilities of restoring sites and land to its original condition, in the amount of 294,730 thousand Euros as at 31 December 2023 (31 December 2022: 264,756 thousand Euros) (see note 32).

#### 44. Operating segments report

The Group generates energy from renewable resources and has, since 1 January 2022, four reportable segments which are the Group's business platforms, Europe, North America, Latam and Apac. The strategic business units have operations in different geographic zones and are managed separately because their characteristics are quite different. For each of the strategic business units, the Group's CEO reviews internal management reports on at least a quarterly basis.

The accounting policies of the reportable segments are the same as described in note 2. Information regarding the results of each reportable segment is included in Annex 2. Performance is based on segment operating profit measures, as included in the internal management reports that are reviewed by the Management. Segment operating profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Inter-segment pricing is determined on an arm's length basis.

A business segment is an identifiable component of the Group, aimed at providing a single product or service, or a group of related products or services, and it is subject to risks and returns that can be distinguished from those of other business segments.

The Group generates energy from renewable sources in several locations and its activity is managed based on the following business segments:

- Europe: refers to companies that operate in Spain, Portugal, Belgium, France, Italy, Germany, Netherlands, Poland, Romania, United Kingdom, Hungary and Greece;
- North America: refers to companies that operate in United States of America, Canada and Mexico;
- LATAM: refers to companies that operate in Brasil, Chile and Colombia;
- APAC: refers to companies that operate in South Korea, Singapore, Vietnam, Malaysia, Indonesia, Thailand, Cambodia, China, Taiwan, Australia and Japan.

{438}------------------------------------------------

As at 31 December 2022, business segments were the following:

- Europe: refers to companies that operate in Spain, Portugal, Belgium, France, Italy, Germany, Netherlands, Poland, Romania, United Kingdom, Hungary and Greece;
- North America: refers to companies that operate in United States of America, Canada and Mexico;
- LATAM: refers to companies that operate in Brasil, Chile and Colombia;

• APAC: refers to companies that operate in Korea, Singapore, Vietnam, Malaysia, Indonesia, Thailand, Cambodia, China, Taiwan and Japan.

#### **Segment definition**

The amounts reported in each business segment result from the aggregation of the subsidiaries and business units defined in each segment perimeter, including the intra-segment eliminations, without any inter-segment allocation adjustment.

The financial information disclosed by each business segment is determined based on the amounts booked directly in the subsidiaries that compose the segment, including the intrasegment eliminations, without any inter-segment allocation adjustment.

#### 45. Audit and non-audit fees

PricewaterhouseCoopers (PwC) was reappointed in the Shareholder's Meeting held on April 12th 2021 as the external auditor of the EDPR Group for years 2021, 2022 and 2023. Fees for professional services provided by this company and the other related entities and persons in accordance with Law 22/2015 of 20 July, for the year ended in 31 December 2023 are as follows:

|                                          |        |                  | 31 DECEMBER 2023 |       |       |
|------------------------------------------|--------|------------------|------------------|-------|-------|
| THOUSAND EUROS                           | EUROPE | NORTH<br>AMERICA | LATAM            | APAC  | TOTAL |
| Audit and statutory audit of<br>accounts | 1,810  | 2,195            | 388              | 1,008 | 5,401 |
| Other non-audit services                 | 283    | 13               | 8                | -     | 304   |
| Total                                    | 2,093  | 2,208            | 396              | 1,008 | 5,705 |

The amount of Other non-audit services in Europe includes, among others, services that refer to the entire Group such as the review of the internal control system on financial reporting and review of the non-financial information related to sustainability included in the EDPR Group's annual report, which are invoiced to a European company. This amount also includes the limited review as of June 30, 2023 of the EDPR Consolidated Financial Statements and other reviews for Group consolidation purposes which are considered non-audit services according to the respective local regulation.

Total amount for Europe includes 969 thousand Euros of services provided by PricewaterhouseCoopers Auditores S.L. from which 693 thousand Euros refer to audit services and 276 thousand Euros refer to non-audit services.

The above fees exclude the fees for the companies that were sold during 2023 amounting 139

thousand Euros (see note 6).

#### The PwC fees for 2022 are as follows:

| THOUSAND EUROS                           | EUROPE | NORTH<br>AMERICA | BRAZIL | OTHER | TOTAL |
|------------------------------------------|--------|------------------|--------|-------|-------|
| Audit and statutory audit of<br>accounts | 1,603  | 1,795            | 368    | 994   | 4,760 |
| Other non-audit services                 | 218    | 12               | 38     | -     | 268   |
| Total                                    | 1,821  | 1,807            | 406    | 994   | 5,028 |

Total amount for Europe includes 857 thousand Euros of services provided by PricewaterhouseCoopers Auditores S.L. from which 676 thousand Euros refer to audit services and 181 thousand Euros refer to non-audit services.

{439}------------------------------------------------

# ANNEX I

The Subsidiary Companies consolidated under the full consolidated method, as at 31 December 2023 and 2022, are as follows, where "% of capital" represents the direct stake held by the immediate parent company/ies and "% of voting rights" represents the indirect stake held by the Group's parent holding company (EDP Renováveis S.A.):

| COMPANY                                                  | HEAD<br>OFFICE           | AUDITOR               | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS |
|----------------------------------------------------------|--------------------------|-----------------------|----------------------|--------------------------|----------------------|--------------------------|
| GROUP'S PARENT HOLDING COMPANY AND RELATED ACTIVITIES    |                          |                       |                      |                          |                      |                          |
| EDP Renováveis, S.A. (Group's parent<br>holding company) | Oviedo                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDP Renováveis Servicios<br>Financieros, S.A.            | Oviedo                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EUROPE GEOGRAPHY / PLATFORM                              |                          |                       |                      |                          |                      |                          |
| Spain                                                    |                          |                       |                      |                          |                      |                          |
| EDP Renewables Europe, S.L.U.<br>(Europe Parent Company) | Oviedo                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDP Renovables España, S.L.U.                            | Oviedo                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Acampo Arias, S.L.                                       | Zaragoza                 | PwC                   | 95.00%               | 95.00%                   | 95.00%               | 95.00%                   |
| Agos Fotovoltaicas, S.L.U.                               | Asturias                 | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Aplicaciones Industriales de Energías<br>Limpias, S.L.   | Zaragoza                 | n.a.                  | 61.50%               | 61.50%                   | 61.50%               | 61.50%                   |
| Canerde, S.L.                                            | Madrid                   | n.a.                  | 80.00%               | 80.00%                   | 80.00%               | 80.00%                   |
| Compañía Eólica Aragonesa, S.A.U.                        | Zaragoza                 | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Corona Fotovoltaicas, S.L.U.                             | Asturias                 | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Desarrollos Eólicos de Teruel, S.L.                      | Teruel                   | n.a.                  | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| Desarrollos Renovables de Alfajarin,<br>S.L.U.           | Zaragoza                 | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Desarrollos Renovables de Allande,<br>S.L.U.             | Asturias                 | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Desarrollos Renovables de la Frontera,<br>S.L.U.         | Cádiz                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Desarrollos Renovables de Teruel, S.L.                   | Teruel                   | n.a.                  | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| EDPR México, S.L.U.                                      | Asturias                 | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Terral S.L.U.                                       | Madrid                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Yield, S.A.U.                                       | Asturias                 | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Energia Geoide VIII, S.L.                                | Asturias                 | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Eólica Arlanzón, S.A.                                    | Madrid                   | PwC                   | 85.00%               | 85.00%                   | 85.00%               | 85.00%                   |
| Eólica Campollano, S.A.                                  | Madrid                   | PwC                   | 75.00%               | 75.00%                   | 75.00%               | 75.00%                   |
| Eólica Fontesilva, S.L.U.                                | La Coruña                | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Eólica La Brújula, S.A.U.                                | Madrid                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Global Pracima, S.L.U.                                   | Asturias                 | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| IAM Caecius, S.L.U.                                      | Madrid                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Iberia Aprovechamientos Eólicos, S.A.                    | Zaragoza                 | PwC                   | 94.00%               | 94.00%                   | 94.00%               | 94.00%                   |
| ICE Tudela, S.L.U.                                       | Madrid                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Jul Solar, S.L.U.                                        | Asturias                 | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Palma Hive, S.L.U.                                       | Madrid                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Parque Eólico Altos del Voltoya, S.A.                    | Madrid                   | PwC                   | 92.50%               | 92.50%                   | 92.50%               | 92.50%                   |
| Parque Eólico de Abrazadilla, S.L.U.                     | Madrid                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Parque Eólico La Sotonera, S.L.                          | Zaragoza                 | PwC                   | 69.84%               | 69.84%                   | 69.84%               | 69.84%                   |
| Parque Eólico Los Cantales, S.L.U.                       | Zaragoza                 | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Parque Eólico Santa Quiteria, S.L.                       | Zaragoza                 | PwC                   | 100.00%              | 83.96%                   | 100.00%              | 83.96%                   |
| Pedregal Hive, S.L.U.                                    | Madrid                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Renovables Castilla La Mancha, S.A.                      | Madrid                   | PwC                   | 90.00%               | 90.00%                   | 90.00%               | 90.00%                   |
| Rocio Hive, S.L.                                         | Madrid                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| COMPANY                                                  | HEAD<br>OFFICE           | AUDITOR               | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS |
| Site Sunwind Energy, S.L.U.                              | Madrid                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Tébar Eólica, S.A.U.                                     | Madrid                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Viesgo Europa, S.L.U.                                    | Oviedo                   | PwC                   | 0.00%                | 0.00%                    | 100.00%              | 100.00%                  |
| Viesgo Mantenimiento, S.L.U.                             | Cantabria                | PwC                   | 0.00%                | 0.00%                    | 100.00%              | 100.00%                  |
| Viesgo Renovables, S.L.U.                                | Oviedo                   | PwC                   | 0.00%                | 0.00%                    | 100.00%              | 100.00%                  |
| Portugal                                                 |                          |                       |                      |                          |                      |                          |
| EDP Renováveis Portugal, S.A.                            | Porto                    | PwC                   | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| EDPR Cross Solutions, S.A.                               | Porto                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR PT - Parques Eólicos, S.A.                          | Porto                    | PwC                   | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| EDPR PT - Promoção e Operação, S.A.                      | Porto                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Eólica da Coutada II, S.A.                               | Porto                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Eólica da Coutada, S.A.                                  | Soutelo de<br>Aguiar     | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Eólica da Serra das Alturas, S.A.                        | Boticas                  | PwC                   | 50.10%               | 25.55%                   | 50.10%               | 25.55%                   |
| Eólica da Terra do Mato, S.A.                            | Porto                    | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Eólica das Serras das Beiras, S.A.                       | Piódão -<br>Arganil      | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Eólica de Alagoa, S.A.                                   | Arcos de<br>Valdevez     | PwC                   | 60.00%               | 30.60%                   | 60.00%               | 30.60%                   |
| Eólica de Montenegrelo, S.A.                             | Vila Pouca<br>de Aguiar  | PwC                   | 50.10%               | 25.55%                   | 50.10%               | 25.55%                   |
| Eólica do Alto da Lagoa, S.A.                            | Porto                    | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Eólica do Alto da Teixosa, S.A.                          | Alhões                   | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Eólica do Alto do Mourisco, S.A.                         | Cerdedo                  | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Eólica do Espigão, S.A.                                  | Vila Nova<br>CMV         | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Eólica dos Altos de Salgueiros-<br>Guilhado, S.A.        | Vila Pouca<br>de Aguiar  | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Fotovoltaica Flutuante do Grande<br>Lago, S.A.           | Porto                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Fotovoltaica Lote A, S.A.                                | Porto                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Malhadizes - Energia Eólica, S.A.                        | Porto                    | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Parque Eólico do Barlavento, S.A.                        | Porto                    | PwC                   | 89.98%               | 89.98%                   | 89.98%               | 89.98%                   |
| S.E.E. - Sul Energía Eólica, S.A.                        | Porto                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| SPEE - Sociedade Produção de<br>Energia Eólica, S.A.     | Porto                    | PwC                   | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDP Renewables SGPS, S.A.                                | Porto                    | PwC                   | 0.00%                | 0.00%                    | 100.00%              | 100.00%                  |
| IE2 Portugal, SGPS, S.A.                                 | Porto                    | PwC                   | 0.00%                | 0.00%                    | 100.00%              | 100.00%                  |
| EDP Renováveis Portugal, S.A.                            | Porto                    | PwC                   | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| EDPR Cross Solutions, S.A.                               | Porto                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR PT - Parques Eólicos, S.A.                          | Porto                    | PwC                   | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| EDPR PT - Promoção e Operação, S.A.                      | Porto                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Eólica da Coutada II, S.A.                               | Porto                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Eólica da Coutada, S.A.                                  | Soutelo de<br>Aguiar     | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Eólica da Serra das Alturas, S.A.                        | Boticas                  | PwC                   | 50.10%               | 25.55%                   | 50.10%               | 25.55%                   |
| Eólica da Terra do Mato, S.A.                            | Porto                    | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Eólica das Serras das Beiras, S.A.                       | Piódão -<br>Arganil      | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Eólica de Alagoa, S.A.                                   | Arcos de<br>Valdevez     | PwC                   | 60.00%               | 30.60%                   | 60.00%               | 30.60%                   |
| Eólica de Montenegrelo, S.A.                             | Vila Pouca<br>de Aguiar  | PwC                   | 50.10%               | 25.55%                   | 50.10%               | 25.55%                   |
| Eólica do Alto da Lagoa, S.A.                            | Porto                    | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Eólica do Alto da Teixosa, S.A.                          | Alhões                   | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Eólica do Alto do Mourisco, S.A.                         | Cerdedo                  | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Eólica do Espigão, S.A.                                  | Vila Nova<br>CMV         | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| COMPANY                                                  | HEAD<br>OFFICE           | AUDITOR               | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS |
| Eólica dos Altos de Salgueiros-Guilhado, S.A.            | Vila Pouca<br>de Aguiar  | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Fotovoltaica Flutuante do Grande<br>Lago, S.A.           | Porto                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Fotovoltaica Lote A, S.A.                                | Porto                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Malhadizes - Energia Eólica, S.A.                        | Porto                    | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Parque Eólico do Barlavento, S.A.                        | Porto                    | PwC                   | 89.98%               | 89.98%                   | 89.98%               | 89.98%                   |
| S.E.E. - Sul Energía Eólica, S.A.                        | Porto                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| SPEE - Sociedade Produção de<br>Energia Eólica, S.A.     | Porto                    | PwC                   | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDP Renewables SGPS, S.A.                                | Porto                    | PwC                   | 0.00%                | 0.00%                    | 100.00%              | 100.00%                  |
| IE2 Portugal, SGPS, S.A.                                 | Porto                    | PwC                   | 0.00%                | 0.00%                    | 100.00%              | 100.00%                  |
| France                                                   |                          |                       |                      |                          |                      |                          |
| EDPR France Holding, S.A.S.                              | Paris                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Energies France, S.A.S.                             | Paris                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Monts de la Madeleine Energie, S.A.S.                    | Paris                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Monts du Forez Energie, S.A.S.                           | Paris                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Oxavi 1, S.A.S.                                          | Paris                    | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Oxavi 2, S.A.S.                                          | Paris                    | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Parc Éolien d'Entrains-sur-Nohain,<br>S.A.S.             | Paris                    | PwC                   | 90.00%               | 90.00%                   | 90.00%               | 90.00%                   |
| Parc Eolien de Dionay, S.A.S.                            | Paris                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Saussignac Solaire, S.A.S.                               | Paris                    | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Transition Euroise Roman II, S.A.S.                      | Paris                    | n.a.                  | 85.00%               | 85.00%                   | 85.00%               | 85.00%                   |
| Vanosc Energie, S.A.S.                                   | Paris                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Kronos Solar France, S.A.S.                              | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Fransol 11, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 12, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 13, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 14, S.A.S.                                       | Paris                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 85.00%                   |
| Fransol 15, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 16, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 17, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 18, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 19, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 20, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 21, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 85.00%                   |
| Fransol 22, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 23, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 24, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 25, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 26, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 27, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 85.00%                   |
| Fransol 28, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 29, S.A.S.                                       | Boulogne-<br>Billancourt | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| COMPANY                                                  | HEAD OFFICE              | AUDITOR               | % OF CAPITAL L       | % OF VOTING RIGHTS       | % OF CAPITAL L       | % OF VOTING RIGHTS       |
| Fransol 31, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 32, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 33, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 34, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 35, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 36, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 37, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 38, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 39, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 40, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 41, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 42, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 43, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 44, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 45, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 46, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 47, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 48, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 49, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 50, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Fransol 51, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 52, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 53, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 54, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 55, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 56, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 57, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 58, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 59, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 60, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 61, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 62, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 63, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 64, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 65, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 66, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 67, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| COMPANY                                                  | HEAD OFFICE              | AUDITOR               | % OF CAPITAL         | % OF VOTING RIGHTS       | % OF CAPITAL         | % OF VOTING RIGHTS       |
| Fransol 69, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Fransol 70, S.A.S.                                       | Boulogne-Billancourt     | n.a.                  | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Kronos 18 Fain, S.A.S.                                   | Saint-Louis              | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 85.00%                   |
| Kronos IB Vogt 15, S.A.S.                                | Saint-Louis              | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Kronos IB Vogt 16, S.A.S.                                | Saint-Louis              | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Kronos IB Vogt 19, S.A.S.                                | Saint-Louis              | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Kronos IB Vogt 20, S.A.S.                                | Saint-Louis              | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Kronos IB Vogt 22, S.A.S.                                | Saint-Louis              | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Kronos IB Vogt 25, S.A.S.                                | Saint-Louis              | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Kronosol 11, S.A.R.L.                                    | Saint-Louis              | n.a.                  | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Kronosol 12, S.A.R.L.                                    | Saint-Louis              | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 85.00%                   |
| Kronosol 13, S.A.R.L.                                    | Paris                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 85.00%                   |
| Kronosol 14, S.A.R.L.                                    | Paris                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 85.00%                   |
| Kronosol 15, S.A.R.L.                                    | Saint-Louis              | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 85.00%                   |
| Eoles Montjean, S.A.S.                                   | Paris                    | n.a.                  | 0.00%                | 0.00%                    | 100.00%              | 100.00%                  |
| Poland                                                   |                          |                       |                      |                          |                      |                          |
| EDP Renewables Polska, Sp. z o.o.                        | Warsaw                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDP Renewables Polska HoldCo, S.A.                       | Warsaw                   | PwC                   | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| EDP Renewables Polska Solar, Sp. z o.o.                  | Warsaw                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDP Renewables Polska Storage, Sp. z o.o.                | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDP Renewables Polska Wind, Sp. z o.o.                   | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPR Polska Solar 2, Sp. z o.o.                          | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Ekoenergia Solar 3, Sp. z o.o.                           | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Budzyn, Sp. z o.o.                                       | Warsaw                   | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| CSH Renewables III, Sp. z o.o.                           | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Elektrownia Kamienica, Sp. z o.o.                        | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Elektrownia Wiatrowa Kresy I, Sp. z o.o.                 | Warsaw                   | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Farma Fotowoltaiczna Budzyn, Sp. z o.o.                  | Warsaw                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Farma Fotowoltaiczna Dobrzyca, Sp. z o.o.                | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Farma Fotowoltaiczna Iłża, Sp. z o.o.                    | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Farma Fotowoltaiczna Koden, Sp. z o.o.                   | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Farma Fotowoltaiczna Pakosław, Sp. z o.o.                | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Farma Fotowoltaiczna Poturzyn, Sp. z o.o.                | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Farma Fotowoltaiczna Radziejów, Sp. z o.o.               | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Farma Fotowoltaiczna Tomaszów, Sp. z o.o.                | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Farma Fotowoltaiczna Ujazd, Sp. z o.o.                   | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Farma Fotowoltaiczna Warta, Sp. z o.o.                   | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Farma Fotowoltaiczna Wielkopolska, Sp. z o.o.            | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Farma Wiatrowa Starozreby, Sp. z o.o.                    | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| FW Warta, Sp. z o.o.                                     | Poznań                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| COMPANY                                                  | HEAD<br>OFFICE           | AUDITOR               | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS |
| Karpacka Mala Energetyka, Sp. zo.o.                      | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Korsze Wind Farm, Sp. z o.o.                             | Warsaw                   | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Masovia Wind Farm I, Sp. z o.o.                          | Warsaw                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Miramit Investments, Sp. z o.o.                          | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Molen Wind II, Sp. z o.o.                                | Warsaw                   | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Neo Solar Chotków, Sp. z o.o.                            | Warsaw                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Neo Solar Farm, Sp. z o.o.                               | Warsaw                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Neo Solar Przykona II, Sp. z o.o.                        | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| R.Wind, Sp. z o.o.                                       | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Radziejów Wind Farm, Sp. z o.o.                          | Warsaw                   | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Rampton, Sp. z o.o.                                      | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Relax Wind Park I, Sp. z o.o.                            | Warsaw                   | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Relax Wind Park III, Sp. z o.o.                          | Warsaw                   | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| WF Energy III, Sp. z o.o.                                | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Wind Farm Debrzno, Sp. z o.o.                            | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Wind Farm Gniewkowo, Sp. zo.o.                           | Warsaw                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Wind Field Wielkopolska, Sp. z o.o.                      | Poznań                   | PwC                   | 0.00%                | 0.00%                    | 100.00%              | 100.00%                  |
| EW Dobrzyca, sp. z o.o.                                  | Poznań                   | PwC                   | 0.00%                | 0.00%                    | 100.00%              | 100.00%                  |
| Ujazd, Sp. z o.O.                                        | Poznań                   | PwC                   | 0.00%                | 0.00%                    | 100.00%              | 100.00%                  |
| Romania                                                  |                          |                       |                      |                          |                      |                          |
| EDPR România, S.R.L.                                     | Bucarest                 | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Beta Wind, S.R.L.                                        | Bucarest                 | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Energopark, S.R.L.                                       | Bucarest                 | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Fravezac, S.R.L.                                         | Bucarest                 | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| International Solar Energy, S.R.L.                       | Bucarest                 | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Solar Phoenix, S.R.L.                                    | Bucarest                 | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| United Kingdom                                           |                          |                       |                      |                          |                      |                          |
| EDP Renewables UK Limited                                | Edinburgh                | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Altnabreac Wind Farm Limited                             | Edinburgh                | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Balmeanach Wind Farm Limited                             | Edinburgh                | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Balnacraig Battery Storage Limited                       | Edinburgh                | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Ben Sca Wind Farm Limited                                | Edinburgh                | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Drummarnock Wind Farm Limited                            | Edinburgh                | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Harrington Franklin Limited                              | Leeds                    | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Lurg Hill Wind Farm Limited                              | Edinburgh                | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Moorshield Wind Farm Limited                             | Edinburgh                | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Muirake Wind Farm Limited                                | Edinburgh                | PwC                   | 79.00%               | 79.00%                   | 79.00%               | 79.00%                   |
| Kronos Solar Projects Limited                            | Newmarket                | Ensors                | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS SPV 00 Limited                                        | Newmarket                | Ensors                | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KS SPV 46 Limited                                        | Newmarket                | Ensors                | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS SPV 62 Limited                                        | Newmarket                | Ensors                | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KS SPV 64 Limited                                        | Newmarket                | Ensors                | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KS SPV 65 Limited                                        | Newmarket                | Ensors                | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS SPV 67 Limited                                        | Newmarket                | Ensors                | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KS SPV 68 Limited                                        | Newmarket                | Ensors                | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KS SPV 69 Limited                                        | Newmarket                | Ensors                | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| COMPANY                                                  | HEAD<br>OFFICE           | AUDITOR               | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS |
| KS SPV 70 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS SPV 71 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS SPV 72 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS SPV 73 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS SPV 74 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS SPV 75 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS SPV 76 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS SPV 77 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS SPV 78 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS SPV 79 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS SPV 80 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS SPV 81 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KS SPV 82 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KS SPV 83 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KS SPV 84 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KS SPV 85 Limited                                        | Newmark<br>et            | Ensors                | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Italy                                                    |                          |                       |                      |                          |                      |                          |
| EDP Renewables Italia, S.r.l.                            | Milan                    | PwC                   | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| EDP Renewables Italia Holding, S.r.l.                    | Milan                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Basilicata, S.r.l.                                  | Milan                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Centro Italia PV, S.r.l.                            | Milan                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Puglia Due, S.r.l.                                  | Milan                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Sardegna, S.r.l.                                    | Milan                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Sicilia Due, S.r.l.                                 | Milan                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Sicilia PV, S.r.l.                                  | Milan                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Sicilia Quattro, S.r.l.                             | Milan                    | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPR Sicilia Tre, S.r.l.                                 | Milan                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Sicilia Uno, S.r.l.                                 | Milan                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Sicilia Wind, S.r.l.                                | Milan                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Sud Italia, S.r.l.                                  | Milan                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Villa Galla, S.r.l.                                 | Milan                    | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| AW 2, S.r.l.                                             | Milan                    | PwC                   | 75.00%               | 75.00%                   | 75.00%               | 75.00%                   |
| C & C Tre Energy S.r.l.                                  | Milan                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Custolito, S.r.l.                                        | Milan                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Energia Emissioni Zero 4, S.r.l.                         | Milan                    | PwC                   | 60.00%               | 60.00%                   | 60.00%               | 60.00%                   |
| Giglio, S.r.l.                                           | Milan                    | PwC                   | 60.00%               | 60.00%                   | 60.00%               | 60.00%                   |
| Re Plus, S.r.l.                                          | Milan                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Sarve, S.r.l.                                            | Milan                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Serracapriola, S.r.l.                                    | Milan                    | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Solar Italy I, S.r.l.                                    | Milan                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Solar Italy II, S.r.l.                                   | Milan                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Solar Italy IV, S.r.l.                                   | Milan                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Solar Italy XXIII, S.r.l.                                | Milan                    | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| T Power, S.p.A.                                          | Cesena                   | Baker Tilly<br>Revisa | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| COMPANY                                                  | HEAD<br>OFFICE           | AUDITOR               | % OF<br>CAPITAL      | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITAL      | % OF<br>VOTING<br>RIGHTS |
| Tivano, S.r.l.                                           | Milan                    | PwC                   | 75.00%               | 75.00%                   | 75.00%               | 75.00%                   |
| VRG Wind 153, S.r.l.                                     | Milan                    | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Wind Energy Castelluccio, S.r.l.                         | Milan                    | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Wind Energy Monte Cavallo, S.r.l.                        | Pescara                  | n.a.                  | 51.00%               | 51.00%                   | 0.00%                | 0.00%                    |
| Wind Energy San Giorgio, S.r.l.                          | Milan                    | PwC                   | 60.00%               | 60.00%                   | 60.00%               | 60.00%                   |
| Winderg Valleverde, S.r.l.                               | Milan                    | n.a.                  | 60.00%               | 60.00%                   | 0.00%                | 0.00%                    |
| Greece                                                   |                          |                       |                      |                          |                      |                          |
| Aeolos Evias Energiaki, M.Α.Ε.                           | Athens                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Aioliki Oitis Energiaki A.E.                             | Athens                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Aioliko Parko Fthiotidas Erimia A.Ε.                     | Athens                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Hellas 1M.A.E.                                      | Athens                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Hellas 2 M.A.E.                                     | Athens                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Energiaki Arvanikou E.P.E.                               | Athens                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Kadmeios Anemos Energiaki A.E.                           | Athens                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Voiotikos Anemos Energiaki A.E.                          | Athens                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Wind Park Aerorrachi M.A.E.                              | Athens                   | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Wind Shape A.E.                                          | Athens                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Belgium                                                  |                          |                       |                      |                          |                      |                          |
| EDP Renewables Belgium, S.A.                             | Brussels                 | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Netherlands                                              |                          |                       |                      |                          |                      |                          |
| EDPR International Investments, B.V.                     | Amsterdam                | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Kronos Solar Projects NL, B.V.                           | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL10, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL12, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL13, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL14, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL16, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL17, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL20, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL23, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL24, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL25, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL27, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL28, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL29, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL3, B.V.                                             | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL30, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL31, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL32, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL33, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL34, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL35, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL36, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL37, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL38, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL39, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL40, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| COMPANY                                                  | HEAD<br>OFFICE           | AUDITOR               | % OF<br>CAPITAL<br>L | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITAL<br>L | % OF<br>VOTING<br>RIGHTS |
| KS NL43, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL44, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL45, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL46, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL47, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL48, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL49, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL50, B.V.                                            | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL6, B.V.                                             | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KS NL8, B.V.                                             | Arnhem                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Hungary                                                  |                          |                       |                      |                          |                      |                          |
| EDP Renewables Hungary                                   | Budapest                 | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Bora, Kft.                                          | Budapest                 | PwC                   | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPR Mistral, Kft.                                       | Budapest                 | PwC                   | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPR Pampero, Kft.                                       | Budapest                 | PwC                   | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPR Siesta, Kft.                                        | Budapest                 | PwC                   | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPR Silvanus, Kft.                                      | Budapest                 | PwC                   | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPR Sirocco, Kft.                                       | Budapest                 | PwC                   | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPR Terra, Kft.                                         | Budapest                 | PwC                   | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPR Zephyr, Kft.                                        | Budapest                 | PwC                   | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Napenergia, Kft.                                         | Budapest                 | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Nyírség Watt, Kft.                                       | Budapest                 | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Sunglare Capture, Kft.                                   | Budapest                 | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Sunglare Expert, Kft.                                    | Budapest                 | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Sunlight Solar, Kft.                                     | Budapest                 | PwC                   | 85.00%               | 85.00%                   | 85.00%               | 85.00%                   |
| Szabadsolar, Kft.                                        | Budapest                 | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Investment Hungary, Kft.                            | Budapest                 | PwC                   | 0.00%                | 0.00%                    | 100.00%              | 100.00%                  |
| Germany                                                  |                          |                       |                      |                          |                      |                          |
| EDP Renewables Germany GmbH                              | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Kronos Projektgesellschaft mbH                           | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Kronos Solar Projects GmbH                               | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Kronos Solar Projects France UG                          | Munich                   | n.a.                  | 85.00%               | 85.00%                   | 85.00%               | 85.00%                   |
| KSD 11 UG                                                | Bütow                    | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 12 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 13 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 14 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 15 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 16 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 17 GmbH                                              | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 18 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 19 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 21 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 22 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 23 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 24 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 25 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 26 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 27 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| COMPANY                                                  | HEAD<br>OFFICE           | AUDITOR               | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS |
| KSD 29 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 30 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 31 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 32 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 33 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 34 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 35 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 36 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 37 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 38 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 39 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 40 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| KSD 41 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 42 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 43 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 44 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 45 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 46 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 47 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 48 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 49 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 50 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 51 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 52 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 53 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 54 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 55 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 56 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 57 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 58 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 59 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| KSD 60 UG                                                | Munich                   | n.a.                  | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| NORTH AMERICA GEOGRAPHY / PLATFORM                       |                          |                       |                      |                          |                      |                          |
| Mexico                                                   |                          |                       |                      |                          |                      |                          |
| EDPR Servicios de México, S. de R.L.<br>de C.V.          | Ciudad de<br>México      | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Eólica de Coahuila, S.A. de C.V.                         | Ciudad de<br>México      | PwC                   | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| Parque Solar Los Cuervos, S. de R.L.<br>de C.V.          | Ciudad de<br>México      | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Vientos de Coahuila, S.A. de C.V.                        | Ciudad de<br>México      | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| United States                                            |                          |                       |                      |                          |                      |                          |
| EDP Renewables North America LLC                         | Delaware                 | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| 10 Point Solar Park LLC                                  | Delaware                 | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| 17th Star Wind Farm LLC                                  | Delaware                 | n.a.                  | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| 2007 Vento I LLC                                         | Delaware                 | PwC                   | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| 2007 Vento II LLC                                        | Delaware                 | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| 2008 Vento III LLC                                       | Delaware                 | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| 2009 Vento V LLC                                         | Delaware                 | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| 2011 Vento IX LLC                                        | Delaware                 | PwC                   | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |

{440}------------------------------------------------

{441}------------------------------------------------

**2023 2022**

Billancourt n.a. 100.00% 85.00% 100.00% 85.00%

{442}------------------------------------------------

**2023 2022**

Fransol 68, S.A.S. Boulogne

-

Billancourt n.a. <sup>100</sup>

.00% 85

.00%

Y

YoY

{443}------------------------------------------------

{444}------------------------------------------------

{445}------------------------------------------------

{446}------------------------------------------------

**2023 2022**

KS NL42, B.V. Arnhem n.a. 100.00% 100.00% 100.00% 100.00%

{447}------------------------------------------------

**2023 2022**

KSD 28 UG Munich n.a. 100.00% 100.00% 100.00% 100.00%

{448}------------------------------------------------

**2023 2022**

2014 Sol I LLC Delaware PwC 100.00% 50.00% 100.00% 50.00%

{449}------------------------------------------------

| COMPANY                                    | HEAD<br>OFFICE | AUDITOR | % OF<br>CAPITAL | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITAL | % OF<br>VOTING<br>RIGHTS |
|--------------------------------------------|----------------|---------|-----------------|--------------------------|-----------------|--------------------------|
| 2014 Vento XI LLC                          | Delaware       | PwC     | 100.00%         | 51.00%                   | 100.00%         | 51.00%                   |
| 2014 Vento XII LLC                         | Delaware       | PwC     | 100.00%         | 51.00%                   | 100.00%         | 51.00%                   |
| 2015 Vento XIII LLC                        | Delaware       | PwC     | 100.00%         | 51.00%                   | 100.00%         | 51.00%                   |
| 2015 Vento XIV LLC                         | Delaware       | PwC     | 100.00%         | 51.00%                   | 100.00%         | 51.00%                   |
| 2016 Vento XV LLC                          | Delaware       | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| 2016 Vento XVI LLC                         | Delaware       | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| 2017 Sol II LLC                            | Delaware       | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| 2018 Vento XVIII LLC                       | Delaware       | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| 2019 Vento XXI LLC                         | Delaware       | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| 2020 Vento XXII LLC                        | Delaware       | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| 2021 DG Agora Holdings LLC                 | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| 2021 DG Agora Ventures I LLC               | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| 2021 DG Apollo Sol II LLC                  | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| 2021 DG Apollo Ventures II LLC             | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| 2021 DG CA Agora Ventures I LLC            | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| 2021 DG CA Apollo Sol II LLC               | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| 2021 DG CA Apollo Ventures II LLC          | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| 2021 Vento XXIII LLC                       | Delaware       | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| 2022 SOL VI LLC                            | Delaware       | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| 2022 SOL VII LLC                           | Delaware       | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| 2023 SOL IX LLC                            | Delaware       | PwC     | 100.00%         | 100.00%                  | 0.00%           | 0.00%                    |
| 2023 SOL VIII LLC                          | Delaware       | PwC     | 100.00%         | 100.00%                  | 0.00%           | 0.00%                    |
| 2023 Vento XXIV LLC                        | Delaware       | PwC     | 100.00%         | 100.00%                  | 0.00%           | 0.00%                    |
| Alabama Ledge Wind Farm LLC                | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Alabama Solar Park LLC                     | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Antelope Ridge Wind Power Project<br>LLC   | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Arbuckle Mountain Wind Farm LLC            | Delaware       | PwC     | 100.00%         | 51.00%                   | 100.00%         | 51.00%                   |
| Arkwright Summit Wind Farm LLC             | Delaware       | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Arlington Wind Power Project LLC           | Delaware       | PwC     | 100.00%         | 51.00%                   | 100.00%         | 51.00%                   |
| Aroostook Wind Energy LLC                  | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Ashford Wind Farm LLC                      | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Athena-Weston Wind Power Project II<br>LLC | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Athena-Weston Wind Power Project<br>LLC    | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Avondale Solar Park LLC                    | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| AZ Solar LLC                               | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Azalea Springs Solar Park LLC              | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Bar Harbor Community Solar LLC             | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| Bayou Bend Solar Park LLC                  | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| BC2 Maple Ridge Holdings LLC               | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| BC2 Maple Ridge Wind LLC                   | Delaware       | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Bear Peak Beccaria LLC                     | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| Bear Peak Brady LLC                        | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| Bear Peak East Carroll LLC                 | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| Bear Peak Glen Hope LLC                    | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| Bear Peak Jennerstown LLC                  | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| Bear Peak Juniata LLC                      | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| Bear Peak Paint II LLC                     | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |

{450}------------------------------------------------

**2023 2022**

| COMPANY                          | HEAD<br>OFFICE | AUDITOR | % OF<br>CAPITAL | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITAL | % OF<br>VOTING<br>RIGHTS |
|----------------------------------|----------------|---------|-----------------|--------------------------|-----------------|--------------------------|
| Big River Solar Park LLC         | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Big River Wind Power Project LLC | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Black Prairie Solar Park II LLC  | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Black Prairie Solar Park LLC     | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Black Prairie Storage II LLC     | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Black Prairie Storage LLC        | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Black Prairie Wind Farm II LLC   | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Black Prairie Wind Farm III LLC  | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Black Prairie Wind Farm LLC      | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Black River Solar Park LLC       | Delaware       | n.a.    | 100.00%         | 100.00%                  | 0.00%           | 0.00%                    |
| Blackford County Solar Park LLC  | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blackford County Wind Farm LLC   | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blackstone Wind Farm II LLC      | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blackstone Wind Farm III LLC     | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blackstone Wind Farm IV LLC      | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blackstone Wind Farm LLC         | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blackstone Wind Farm V LLC       | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blissville Road LLC              | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| Blue Canyon Windpower II LLC     | Texas          | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blue Canyon Windpower III LLC    | Texas          | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blue Canyon Windpower IV LLC     | Texas          | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blue Canyon Windpower V LLC      | Texas          | PwC     | 100.00%         | 51.00%                   | 100.00%         | 51.00%                   |
| Blue Canyon Windpower VI LLC     | Delaware       | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blue Canyon Windpower VII LLC    | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blue Harvest Solar Park LLC      | Delaware       | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blue Marmot I LLC                | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blue Marmot II LLC               | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blue Marmot IV LLC               | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blue Marmot IX LLC               | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blue Marmot Solar Park LLC       | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blue Marmot V LLC                | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blue Marmot VI LLC               | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blue Marmot VII LLC              | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blue Marmot VIII LLC             | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Blue Marmot XI LLC               | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Bluebird Prairie Solar Park LLC  | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Bright Stalk Solar Park LLC      | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Broadlands Wind Farm II LLC      | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Broadlands Wind Farm III LLC     | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Buffalo Bluff Wind Farm LLC      | Delaware       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |
| Buffalo Lick Solar Park LLC      | Delaware       | n.a.    | 100.00%         | 100.00%                  | 0.00%           | 0.00%                    |
| C2 Alpha Holdings LLC            | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| C2 Bristol I LLC                 | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| C2 Bristol II LLC                | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| C2 CB 2017 Holdings LLC          | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| C2 Centrica MT LLC               | Delaware       | PwC     | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| C2 CI Holdings 2 LLC             | Delaware       | n.a.    | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |
| C2 CT Fund 1 Holding LLC         | Delaware       | PwC     | 100.00%         | 85.00%                   | 100.00%         | 85.00%                   |

C2 Energy Development LLC Delaware n.a. 100.00% 85.00% 100.00% 85.00%

{451}------------------------------------------------

**2023 2022**

| COMPANY                          | HEAD<br>OFFICE | AUDITOR | % OF<br>CAPITA<br>L | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITA<br>L | % OF<br>VOTING<br>RIGHTS |
|----------------------------------|----------------|---------|---------------------|--------------------------|---------------------|--------------------------|
| C2 MA Adams II LLC               | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 MA DEPCOM 2017 LLC            | Delaware       | PwC     | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 MA Dudley II LLC              | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 MA FKW Holdings LLC           | Delaware       | PwC     | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 MA Kelly Way Solar LLC        | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 MA Lakeville Holdings LLC     | Delaware       | PwC     | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 MA Lakeville LLC              | Delaware       | PwC     | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 MA Managing Member II LLC     | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 MA New Salem LLC              | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 MN Hopkins LLC                | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 NC Kitty Hawk LLC             | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 NJ Andover I LLC              | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 NY Brookhaven LLC             | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 NY Sentinel Heights Solar LLC | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 OH New Lebanon LLC            | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 OH Otsego II LLC              | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 Omega Holding Company LLC     | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 RI Hopkinton LLC              | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 Scripps 3 LLC                 | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 Scripps 4 LLC                 | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 SH 2019 LLC                   | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 Starratt Solar LLC            | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM 2020 Holdings LLC          | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 1 LLC              | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 10 LLC             | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 1512 LLC           | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 1549 LLC           | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 2 LLC              | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 2112 LLC           | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 3 LLC              | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 3360 LLC           | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 3465 LLC           | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 3799 LLC           | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 3833 LLC           | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 3861 LLC           | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 4 LLC              | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 4451 LLC           | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 5 LLC              | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 5768 LLC           | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 6 LLC              | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 7 LLC              | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 8 LLC              | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona 9 LLC              | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM Arizona Holdings LLC       | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM California 1789 LLC        | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM California 1988 LLC        | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM California 4202 LLC        | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| C2 WM California 4317 LLC        | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |

C2 WM California 5890 LLC Delaware n.a. 100.00% 85.00% 100.00% 85.00%

{452}------------------------------------------------

| COMPANY                            | HEAD<br>OFFICE    | AUDITOR | % OF<br>CAPITAL<br>L | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITAL<br>L | % OF<br>VOTING<br>RIGHTS |
|------------------------------------|-------------------|---------|----------------------|--------------------------|----------------------|--------------------------|
| C2 WM California Holdings LLC      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM DSA Holdings LLC             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Greenwood Leasing LLC        | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Holdings LLC                 | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Illinois 1404 LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Illinois 1489 LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Illinois 1548 LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Illinois 1553 LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Illinois 1761 LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Illinois 1848 LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Illinois 1933 LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Illinois 2215 LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Illinois 2491 LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Illinois 253 LLC             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Illinois 5442 LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Illinois 612 LLC             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Illinois 891 LLC             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Illinois Holdings LLC        | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Laurens Leasing LLC          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Louisiana 309 LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Louisiana 539 LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Louisiana 87 LLC             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Louisiana Holdings LLC       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Maryland 1715 LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Maryland 2436 LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Maryland Holdings LLC        | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM New Jersey 1 LLC             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM New Jersey 1807 LLC          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM New Jersey 1844 LLC          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM New Jersey 1869 LLC          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM New Jersey 1977 LLC          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM New Jersey 2195 LLC          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM New Jersey 3795 LLC          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM New Jersey Holdings LLC      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Phase 3 Holdings LLC         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Phase 3 Sponsor LLC          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Powdersville Leasing LLC     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Regent Dev Holdings 2020 LLC | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 WM Simpsonville Leasing LLC     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| C2 Woodbury Solar LLC              | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| CA Gettysburg Solar Farm LLC       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| CA Marinwood Solar LLC             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| CA Olde Thompson Solar LLC         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| CA Syracuse Solar LLC              | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| CA Tours Solar LLC                 | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Camden PV PSEG Solar LLC           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Camden PV Solar LLC                | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Cameron Solar LLC                  | South<br>Carolina | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |

{453}------------------------------------------------

**2023 2022**

| COMPANY                                          | HEAD<br>OFFICE | AUDITOR | % OF<br>CAPITA<br>L | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITA<br>L | % OF<br>VOTING<br>RIGHTS |
|--------------------------------------------------|----------------|---------|---------------------|--------------------------|---------------------|--------------------------|
| Carpenter Wind Farm LLC                          | Delaware       | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Casa Grande Carmel Solar LLC                     | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Castle Valley Wind Farm LLC                      | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Cattlemen Solar Park II LLC                      | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Cattlemen Solar Park LLC                         | Delaware       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| CF OH Solar County Hwy 58, Upper<br>Sandusky LLC | Delaware       | n.a.    | 100.00%             | 85.00%                   | 0.00%               | 0.00%                    |
| CF OH Solar Lincoln Hwy, Bucyrus1<br>LLC         | Delaware       | n.a.    | 100.00%             | 85.00%                   | 0.00%               | 0.00%                    |
| CF OH Solar N Dixie Hwy Lima LLC                 | Delaware       | n.a.    | 100.00%             | 85.00%                   | 0.00%               | 0.00%                    |
| CF OH Solar Rd N, Pandora LLC                    | Delaware       | n.a.    | 100.00%             | 85.00%                   | 0.00%               | 0.00%                    |
| CF OH Solar SR 309, Kenton LLC                   | Delaware       | n.a.    | 100.00%             | 85.00%                   | 0.00%               | 0.00%                    |
| CF OH Solar SR 81 Ada LLC                        | Delaware       | n.a.    | 100.00%             | 85.00%                   | 0.00%               | 0.00%                    |
| CF OH Solar St RT 118, Ansonia LLC               | Delaware       | n.a.    | 100.00%             | 85.00%                   | 0.00%               | 0.00%                    |
| CF OH Solar St RT 118, Rossburg LLC              | Delaware       | n.a.    | 100.00%             | 85.00%                   | 0.00%               | 0.00%                    |
| Chateaugay River Wind Farm LLC                   | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Cheboygan Solar Farm LLC                         | Delaware       | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Cielo Solar Park LLC                             | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Citizens Dickenson Solar LLC                     | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| Citizens Westmoreland Solar LLC                  | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| Clinton County Wind Farm LLC                     | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Cloud County Wind Farm LLC                       | Delaware       | PwC     | 100.00%             | 51.00%                   | 100.00%             | 51.00%                   |
| Clover Creek Solar Project II LLC                | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Clover Creek Solar Project LLC                   | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Coldwater Solar Park LLC                         | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Coos Curry Wind Power Project LLC                | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Cortland-Virgil Road Solar LLC                   | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| Creed Road Solar 1 LLC                           | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| Crescent Bar Solar Park LLC                      | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Crooked Lake Solar II LLC                        | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Crooked Lake Solar III LLC                       | Delaware       | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Crooked Lake Solar LLC                           | Delaware       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Cropsey Ridge Wind Farm LLC                      | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Crossing Trails Wind Power Project II<br>LLC     | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Crossing Trails Wind Power Project<br>LLC        | Delaware       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Cypress Knee Solar Park LLC                      | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Daffodil Grove Storage LLC                       | Delaware       | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Dairy Hills Wind Farm LLC                        | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| DC Michigan Solar LLC                            | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |
| Diamond Power Partners LLC                       | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Drake Peak Solar Park LLC                        | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Dry Creek Solar Park LLC                         | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Duff Solar Park II LLC                           | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Duff Solar Park LLC                              | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Duff Storage LLC                                 | Delaware       | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Eagle Creek Solar Park LLC                       | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| East Klickitat Wind Power Project LLC            | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| East River Solar LLC                             | Delaware       | n.a.    | 100.00%             | 85.00%                   | 100.00%             | 85.00%                   |

EDPR Aurora Holdings LLC Delaware n.a. 100.00% 100.00% 100.00% 100.00%

| ) |  |  |
|---|--|--|
|   |  |  |
|   |  |  |

{454}------------------------------------------------

**2023 2022**

| COMPANY                                        | HEAD<br>OFFICE    | AUDITOR | % OF<br>CAPITAL<br>L | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITAL<br>L | % OF<br>VOTING<br>RIGHTS |
|------------------------------------------------|-------------------|---------|----------------------|--------------------------|----------------------|--------------------------|
| EDPR CA Solar Park II LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR CA Solar Park III LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR CA Solar Park IV LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR CA Solar Park LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR CA Solar Park V LLC                       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR CA Solar Park VI LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Dahlia DevCo LLC                          | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPR Dahlia Holdings LLC                       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPR Magnolia DevCo LLC                        | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPR Magnolia Holdings LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPR NA DG Holding LLC                         | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR NA DG MN SLP LLC                          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPR NA DG MN YMCA LLC                         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPR NA Distributed Generation LLC             | Delaware          | PwC     | 85.00%               | 85.00%                   | 85.00%               | 85.00%                   |
| EDPR NA Greenfield Solar Park LLC              | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR NA Shelby Solar Park LLC                  | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Northeast Allen Solar Park II LLC         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Northeast Allen Solar Park III<br>LLC     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Northeast Allen Solar Park LLC            | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR RS LLC                                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Scarlet I LLC                             | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Scarlet II BESS LLC                       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Scarlet II LLC                            | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Scarlet III LLC                           | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Solar Ventures I LLC                      | Delaware          | n.a.    | 50.00%               | 50.00%                   | 50.00%               | 50.00%                   |
| EDPR Solar Ventures II LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Solar Ventures III LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Solar Ventures IV LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Solar Ventures IX LLC                     | Delaware          | PwC     | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPR Solar Ventures V LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Solar Ventures VI LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Solar Ventures VII LLC                    | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Solar Ventures VIII LLC                   | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPR South Table LLC                           | Nebraska          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Vento I Holding LLC                       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Vento II Holding LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Vento III Holding LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Vento IV Holding LLC                      | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR WF LLC                                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Wind Ventures XI LLC                      | Delaware          | n.a.    | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| EDPR Wind Ventures XII LLC                     | Delaware          | n.a.    | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| EDPR Wind Ventures XIII LLC                    | Delaware          | n.a.    | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| EDPR Wind Ventures XIV LLC                     | Delaware          | n.a.    | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| EDPR Wind Ventures XIX LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Wind Ventures XV LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Wind Ventures XVI LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Wind Ventures XVII LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Wind Ventures XVIII LLC                   | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| COMPANY                                        | HEAD<br>OFFICE    | AUDITOR | % OF<br>CAPITAL<br>L | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITAL<br>L | % OF<br>VOTING<br>RIGHTS |
| EDPR Wind Ventures XXI LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Wind Ventures XXII LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Wind Ventures XXIII LLC                   | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| EDPR Wind Ventures XXIV LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| EDPRNA Bar Harbor Holdings LLC                 | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Bristol Solar LLC                    | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG CA 2016 Holdings LLC                 | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG CA CLNS Fairfield LLC                | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG CA Mbusa LLC                         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG California Development<br>LLC        | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG CI Sponsor 2 LLC                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG CT Fund 1 MM LLC                     | Delaware          | PwC     | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Distributed Sun Holding<br>LLC       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Eaton Solar LLC                      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG Energy Holdings Inc.                 | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Franklin LLC                         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Gamma Holdings LLC                   | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Georgia Development<br>LLC           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Illinois Development LLC             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Indiana Development<br>LLC           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Kentucky Development<br>LLC          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG Lessee Holdings LLC                  | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Livermore Solar LLC                  | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG LS Rancho Cucamonga<br>LLC           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG MA 2016 Holdings LLC                 | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG MA Adams I Holdings<br>LLC           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG MA Adams I LLC                       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG MA Depcom Sponsor<br>LLC             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG MA Lakeville Sponsor<br>LLC          | Delaware          | PwC     | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG MA Managing Member<br>LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG MA Owner LLC                         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG MA Swansea Holdings<br>LLC           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG MA Swansea LLC                       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Manassas LLC                         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Manning Solar LLC                    | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG Maryland Development<br>LLC          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Michigan Development<br>LLC          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Mississippi Development<br>LLC       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Missouri Development<br>LLC          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Morin LLC                            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Morton Solar LLC                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG New York Development<br>LLC          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG O&M Services LLC                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| COMPANY                                        | HEAD<br>OFFICE    | AUDITOR | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS |
| EDPRNA DG OH Massie Solar LLC                  | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG Ohio Development LLC                 | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Pennsylvania<br>Development LLC      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG PR Aguadilla LLC                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG PR Radar LLC                         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Rho LLC                              | Delaware          | PwC     | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Ridgefield BOE LLC                   | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG RT Addison LLC                       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG RT Bedford Park LLC                  | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG RT Chicago LLC                       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG Scripps 1 LLC                        | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Solar Portfolio IV LLC               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Solar WF Portfolio LLC               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Starratt Sponsor LLC                 | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Texas Development LLC                | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Virginia Development<br>LLC          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG Washington Solar LLC                 | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| EDPRNA DG Wisconsin Development<br>LLC         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG WM 2020 Parent LLC                   | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG WM Chester Leasing<br>LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG WM DSA Sponsor LLC                   | Delaware          | PwC     | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG WM Illinois 1998 LLC                 | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG WM Illinois 3459 LLC                 | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG WM Indian Land Leasing<br>LLC        | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG WM Lake Wylie Leasing<br>LLC         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG WM Leasing LLC                       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG WM Phase 1 Holdings<br>LLC           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG WM Pickens Leasing<br>LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG XII Holdings LLC                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG York County Sun LLC                  | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| EDPRNA DG-REA Solar LLC                        | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Edwardsport Solar Park LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Eighty South Solar Park LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Esker Solar Park II LLC                        | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Esker Solar Park LLC                           | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Estill Solar I LLC                             | South<br>Carolina | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Five-Spot LLC                                  | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Flatland Storage LLC                           | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Ford Wind Farm LLC                             | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Franklin Wind Farm LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| FRV CSU Power II LLC                           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| FRV SI Transport Solar LP                      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Generate USF Fairburn LLC                      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Generate USF Las Vegas LLC                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Generate USF Livermore LLC                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Generate USF Loveland LLC                      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| COMPANY                                        | HEAD<br>OFFICE    | AUDITOR | % OF<br>CAPITAL      | % OF<br>VOTING RIGHTS    | % OF<br>CAPITAL      | % OF<br>VOTING RIGHTS    |
| Generate USF McClellan LLC                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Generate USF N Las Vegas LLC                   | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Generate USF Phoenix LLC                       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| German Community Solar LLC                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Gilpatrick Solar LLC                           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Goldfinger Ventures III LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Green Country Wind Farm LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Green Power Offsets LLC                        | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Greenbow Solar Park LLC                        | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Gulf Coast Windpower Management<br>Company LLC | Delaware          | n.a.    | 75.00%               | 75.00%                   | 75.00%               | 75.00%                   |
| Hampton Solar II LLC                           | South<br>Carolina | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| HB Steel Community Solar LLC                   | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Headwaters Wind Farm II LLC                    | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Headwaters Wind Farm III LLC                   | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Headwaters Wind Farm IV LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Headwaters Wind Farm LLC                       | Delaware          | PwC     | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Helena Harbor Solar Park LLC                   | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Hickory Solar LLC                              | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Hidalgo Wind Farm II LLC                       | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Hidalgo Wind Farm LLC                          | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| High Prairie Wind Farm II LLC                  | Delaware          | PwC     | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| High Trail Wind Farm LLC                       | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Hobolochitto Solar Park LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Holly Hill Solar Park LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind Chocolate Bayou I LLC             | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind Energy Midwest IX LLC             | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind Energy Northwest I LLC            | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind Energy Northwest IV<br>LLC        | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind Energy Northwest VII<br>LLC       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind Energy Northwest X LLC            | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind Energy Northwest XI<br>LLC        | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind Energy Panhandle I LLC            | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind Energy Southwest I LLC            | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind Energy Southwest II LLC           | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind Energy Southwest III<br>LLC       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind Energy Southwest IV<br>LLC        | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind Energy Valley I LLC               | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind Freeport Windpower I<br>LLC       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind MREC Iowa Partners<br>LLC         | Delaware          | n.a.    | 75.00%               | 75.00%                   | 75.00%               | 75.00%                   |
| Horizon Wind Ventures I LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horizon Wind Ventures III LLC                  | Delaware          | n.a.    | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| Horizon Wind Ventures IX LLC                   | Delaware          | n.a.    | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| Horizon Wyoming Transmission LLC               | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Horse Mountain Wind Farm LLC                   | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Indiana Crossroads Solar Park II LLC           | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| COMPANY                                        | HEAD<br>OFFICE    | AUDITOR | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITA<br>L  | % OF<br>VOTING<br>RIGHTS |
| Indiana Crossroads Wind Ventures<br>LLC        | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Iron Valley Solar Park LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Jericho Rise Wind Farm LLC                     | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Jericho Solar Park LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Juniper Wind Power Partners LLC                | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Leprechaun Solar Park LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Lexington Chenoa Wind Farm II LLC              | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Lexington Chenoa Wind Farm III LLC             | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Lime Hollow Solar LLC                          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Little Brook Solar Park LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Loblolly Hill Solar Park LLC                   | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Loki Solar Park LLC                            | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Loma de la Gloria Solar Park LLC               | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Lone Valley Solar Park I LLC                   | Delaware          | PwC     | 100.00%              | 50.00%                   | 100.00%              | 50.00%                   |
| Lone Valley Solar Park II LLC                  | Delaware          | PwC     | 100.00%              | 50.00%                   | 100.00%              | 50.00%                   |
| Long Hollow Wind Farm LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Longleaf Storage LLC                           | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Longroad ASD1 LLC                              | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Longroad CPA CDC1 LLC                          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Longroad CPA CSU3 LLC                          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Longroad CPA CSU4 LLC                          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Longroad DG Portfolio I LLC                    | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Longroad Fund III Holdings LLC                 | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Longroad SD LLC                                | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Longroad SIT1 Hoboken LLC                      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Longroad Solar Fund III LLC                    | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Longroad Solar Portfolio III LLC               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Longroad ST6 Stockton LLC                      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Longroad WF7 Cheshire LLC                      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Longroad WGNJ1 LLC                             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Longroad WGNJ2 LLC                             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Lost Lakes Wind Farm LLC                       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Lotus Blocker LLC                              | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Lotus DevCo II LLC                             | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Lowland Solar Park LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Loyal Wind Farm LLC                            | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Lumberjack Storage LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Machias Wind Farm LLC                          | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Madison Windpower LLC                          | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Marathon Wind Farm LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Marble River LLC                               | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Martinsdale Wind Farm LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Mastamho Holdings LLC                          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| McLean Solar 2 LLC                             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| ME Dover Foxcroft Solar LLC                    | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| ME Ellsworth Solar LLC                         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| ME New Vineyard Solar LLC                      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| ME Rocky Hill Solar LLC                        | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| COMPANY                                        | HEAD<br>OFFICE    | AUDITOR | % OF<br>CAPITAL<br>L | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITAL<br>L | % OF<br>VOTING<br>RIGHTS |
| Meadow Lake Wind Farm II LLC                   | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Meadow Lake Wind Farm III LLC                  | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Meadow Lake Wind Farm IV LLC                   | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Meadow Lake Wind Farm LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Meadow Lake Wind Farm VIII LLC                 | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Mesquite Wind LLC                              | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| MidCoast C2 Solar LLC                          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Mineral Springs Solar Park LLC                 | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Misenheimer Solar LLC                          | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| MMA Belmar Power LP                            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA BWS Power LP                               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA CCC Power LP                               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA DAS Power LP                               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA Fresno Power LP                            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA GDC Power LP                               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA Happy Valley Power LP                      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA LHIW Power LP                              | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA MDS Power I LP                             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA MDS Power II LP                            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA MDS Power IV LP                            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA Mission Bay Power LP                       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA Renewable Ventures Solar Fund<br>III LLC   | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA Rita Power LLC                             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA RMS Power LP                               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA Solar Fund III GP Sub                      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA SROSA Power LP                             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MMA WBF Power LP                               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MN CSG 2 LLC                                   | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Mohave Power Holdings LLC                      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Mohave Power LLC                               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Moonshine Solar Park LLC                       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Morgan Road Solar East LLC                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Morgan Road Solar West LLC                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MT Plentywood Solar I LLC                      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| MT Plentywood Solar II LLC                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| NC Loy Farm Solar LLC                          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| ND Crystal Solar I LLC                         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| NDIW California RE LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| New Road Power LLC                             | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| New Trail Wind Farm LLC                        | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| NH Hinsdale Solar LLC                          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| North Coast Highway Solar 1 LLC                | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| North Coast Highway Solar 2 LLC                | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| North Slope Wind Farm LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Norton Solar I LLC                             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Norton Solar II LLC                            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Number Nine Wind Farm LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| COMPANY                                        | HEAD OFFICE       | AUDITOR | % OF CAPITA L        | % OF VOTING RIGHTS       | % OF CAPITA L        | % OF VOTING RIGHTS       |
| NY CSG 2 Sponsor LLC                           | Delaware          | PwC     | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| NY Hemlock Hills Solar LLC                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| NY Mines Press Solar LLC                       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| NY Morgan Solar LLC                            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| NY OG 1 Solar LLC                              | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| OH FP Commerce Center LLC                      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| Old Trail Wind Farm LLC                        | Delaware          | PwC     | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Omega CSG1LLC                                  | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| OPQ Property LLC                               | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Pacific Southwest Wind Farm LLC                | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Paulding Wind Farm II LLC                      | Delaware          | PwC     | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Paulding Wind Farm III LLC                     | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Paulding Wind Farm IV LLC                      | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Paulding Wind Farm LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Paulding Wind Farm V LLC                       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Paulding Wind Farm VI LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Pearl River Solar Park LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Penn Yan Solar I LLC                           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Peterson Power Partners LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Pioneer Prairie Wind Farm I LLC                | Delaware          | PwC     | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Piscataquis Valley Solar LLC                   | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Pleasantville Solar Park LLC                   | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Plum Nellie Wind Farm LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Poplar Camp Wind Farm LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Poplarville Solar Park LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Post Oak Wind LLC                              | Delaware          | PwC     | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Potsdam Community Solar LLC                    | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Prospector Solar Park LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Pueblo Norte Solar Park LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Quilt Block Wind Farm II LLC                   | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Ragsdale Solar II LLC                          | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Ragsdale Solar LLC                             | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Rail Splitter Wind Farm II LLC                 | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Rail Splitter Wind Farm LLC                    | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Randolph Solar Park LLC                        | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| RE Scarlet LLC                                 | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| REA-EDPRNA DG 2016 Lessee LLC                  | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Reloj del Sol Wind Farm LLC                    | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Renewable Ventures Solar Fund V GP LLC         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Renewable Ventures Solar Fund V LLC            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Renewable Ventures V Equity Holdings LLC       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Renewable Ventures V GP Holdings LLC           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Renville County Wind Farm LLC                  | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| RevEnergy C2 Franklin LLC                      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| RI Abrava Solar LLC                            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| RI-Moo Cow                                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| RI Quarry Solar LLC                            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| COMPANY                                        | HEAD<br>OFFICE    | AUDITOR | % OF<br>CAPITAL      | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITAL      | % OF<br>VOTING<br>RIGHTS |
| Rio Blanco Wind Farm LLC                       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Rising Tree Wind Farm II LLC                   | Delaware          | PwC     | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Rising Tree Wind Farm III LLC                  | Delaware          | PwC     | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Rising Tree Wind Farm LLC                      | Delaware          | PwC     | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Riverstart Solar Park II LLC                   | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Riverstart Solar Park III LLC                  | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Riverstart Solar Park IV LLC                   | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Riverstart Solar Park V LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Riverstart Solar Park VI LLC                   | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Rock Dane Solar Park LLC                       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Rolling Upland Wind Farm LLC                   | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Rose Run Solar Park LLC                        | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Rosewater Ventures LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Route 13 Solar LLC                             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Route 149 LLC                                  | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| RS Holyoke 3 LLC                               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| RSBF Jeffco II LLC                             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| RTSW Solar Park II LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| RTSW Solar Park III LLC                        | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| RTSW Solar Park IV LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| RTSW Solar Park LLC                            | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| RTSW Solar Park V LLC                          | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| RTSW Solar Park VI LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Rush County Wind Farm LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| RV CSU Power LLC                               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Rye Patch Solar Park LLC                       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Saddleback Wind Power Project LLC              | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Sagebrush Power Partners LLC                   | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Sailor Springs Solar Park LLC                  | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Salt Lick Solar Park LLC                       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| San Clemente Solar Park LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Sandrini BESS Storage LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Sandrini LandCo LLC                            | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Sardinia Windpower LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Sawmill Junction Solar Park LLC                | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| SC Beaufort Jasper Solar LLC                   | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SC Southern Wesleyan Solar LLC                 | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Sedge Meadow Solar Park LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Shields Drive LLC                              | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Shullsburg Wind Farm LLC                       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Shy Place Solar Park LLC                       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Signal Hill Wind Power Project LLC             | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Simpson Ridge Wind Farm II LLC                 | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Simpson Ridge Wind Farm III LLC                | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Simpson Ridge Wind Farm IV LLC                 | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Simpson Ridge Wind Farm LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Simpson Ridge Wind Farm V LLC                  | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| COMPANY                                        | HEAD<br>OFFICE    | AUDITOR | % OF<br>CAPITAL      | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITAL      | % OF<br>VOTING<br>RIGHTS |
| Solar Ventures Purchasing LLC                  | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Soteria Solar Services LLC                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Spruce Ridge Wind Farm LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Stinson Mills Wind Farm LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Stone North Solar Park LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Strawberry Solar Farm LLC                      | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Sugar Plum Solar Park LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| SunE Bristow MS LLC                            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE CPA CDC2 LLC                              | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE CPA CSU5 LLC                              | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE CPA CTS1 LLC                              | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE D14 ATC-A Holdings LLC                    | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| SunE D14 DGS-A Holdings LLC                    | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| SunE D14 KHL-A Holdings LLC                    | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| SunE D14 MISC-A Holdings LLC                   | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| SunE D14 MISC-B Holdings LLC                   | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| SunE D14 SPLS-A Holdings LLC                   | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| SunE D14 WMT-A Holdings LLC                    | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| SunE Fairfield SSD LLC                         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE H3 Holdings LLC                           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE Lakeland Center LLC                       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE M5 Holdings LLC                           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| SunE M5B Holdings LLC                          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| SunE M5C Holdings LLC                          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| SunE MCPS Clarksburg LLC                       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE MCPS FSK LLC                              | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE MCPS Gardens LLC                          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE MCPS Lakelands LLC                        | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE MCPS Montgomery LLC                       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE MCPS Parkland LLC                         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE MCPS Quince Orchard LLC                   | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE MCPS Shriver LLC                          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE Multnomah JBY LLC                         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE Multnomah JJC LLC                         | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE NC Progress1 LLC                          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE NLB-2 LLC                                 | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE PD Oak LLC                                | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE PD Sycamore LLC                           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE PD Willow LLC                             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE PNMC Roof LLC                             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE Solar IV LLC                              | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE Solar V LLC                               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| SunE Solar VI LLC                              | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE Solar XII LLC                             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE Solar XIV LLC                             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 0.00%                | 0.00%                    |
| SunE SR1 Arvada5 LLC                           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE SR1 NREL LLC                              | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE SR1 Rifle PS LLC                          | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| COMPANY                                        | HEAD<br>OFFICE    | AUDITOR | % OF<br>CAPITAL      | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITAL      | % OF<br>VOTING<br>RIGHTS |
| SunE W12DG-A LLC                               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE W12DG-B LLC                               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE W12DG-C LLC                               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE W12DG-D LLC                               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE WF3 KHL A Holdings LLC                    | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE WF3 KHL B Holdings LLC                    | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE WF3-BART Holdings LLC                     | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE WF3-Broomfield Holdings LLC               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE WF3-ST Holdings LLC                       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE WF3-WG Holdings LLC                       | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE WMT PR2 LLC                               | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE H4 Holdings LLC                           | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| SunE Solar III LLC                             | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Sustaining Power Solutions LLC                 | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Sweet Acres Solar Park LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Sweet Stream Wind Farm LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Telocaset Wind Power Partners LLC              | Delaware          | PwC     | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Three Lakes Solar LLC                          | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Tillman Solar Park II LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Tillman Solar Park LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Tillman Storage LLC                            | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Timber Road II Storage LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Timber Road III Storage LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Timber Road Solar Park II LLC                  | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Timber Road Solar Park III LLC                 | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Timber Road Solar Park LLC                     | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Top Crop I Storage LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Top Crop II Storage LLC                        | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Trailing Springs Storage LLC                   | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Trolley Barn Storage LLC                       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Tug Hill Windpower LLC                         | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Tumbleweed Wind Power Project LLC              | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Turkey Creek Solar Park LLC                    | Delaware          | n.a.    | 100.00%              | 100.00%                  | 0.00%                | 0.00%                    |
| Turtle Creek Wind Farm LLC                     | Delaware          | PwC     | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Twin Groves I Storage LLC                      | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Twin Groves II Storage LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Upper Road LLC                                 | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| VT Stone Valley LLC                            | Delaware          | n.a.    | 100.00%              | 85.00%                   | 100.00%              | 85.00%                   |
| Waverly Wind Farm II LLC                       | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Waverly Wind Farm LLC                          | Delaware          | PwC     | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Western Trail Wind Project I LLC               | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Wheat Field Holding LLC                        | Delaware          | PwC     | 51.00%               | 51.00%                   | 51.00%               | 51.00%                   |
| Wheat Field Wind Power Project LLC             | Delaware          | PwC     | 100.00%              | 51.00%                   | 100.00%              | 51.00%                   |
| Whiskey Ridge Power Partners LLC               | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Whistling Wind WI Energy Center LLC            | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| White Stone Solar Park LLC                     | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |
| Whitestone Wind Purchasing LLC                 | Delaware          | n.a.    | 100.00%              | 100.00%                  | 100.00%              | 100.00%                  |

EDPR Wind Ventures XX LLC Delaware n.a. 100.00% 100.00% 100.00% 100.00%

{455}------------------------------------------------

Annual Report 2023 Consolidated Annual Accounts

**2023 2022**

EDPRNA DG OH Continental Solar LLC Delaware n.a. 100.00% 85.00% 0.00% 0.00%

{456}------------------------------------------------

{457}------------------------------------------------

{458}------------------------------------------------

**2023 2022**

ME Sandy Hill Solar LLC Delaware n.a. 100.00% 85.00% 100.00% 85.00%

{459}------------------------------------------------

**2023 2022**

NY CSG 2 Holdings LLC Delaware PwC 100.00% 85.00% 100.00% 85.00%

{460}------------------------------------------------

**2023 2022**

RI Sposato Solar LLC Delaware n.a. 100.00% 85.00% 100.00% 85.00%

{461}------------------------------------------------

**2023 2022**

Smart Sunscribe LLC Delaware n.a. 100.00% 85.00% 100.00% 85.00%

{462}------------------------------------------------

**2023 2022**

SunE U6 Holdings LLC Delaware PwC 100.00% 85.00% 100.00% 85.00%

{463}------------------------------------------------

**2023 2022**

Wilson Creek Power Project LLC Delaware n.a. 100.00% 100.00% 100.00% 100.00%

{464}------------------------------------------------

**2023 2022**

| COMPANY                         | HEAD<br>OFFICE | AUDITOR | % OF<br>CAPITA<br>L | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITA<br>L | % OF<br>VOTING<br>RIGHTS |
|---------------------------------|----------------|---------|---------------------|--------------------------|---------------------|--------------------------|
| Wind Turbine Prometheus LP      | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Winding Canyon Wind LLC         | Delaware       | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Wolf Run Solar LLC              | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Wrangler Solar Park LLC         | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| WTP Management Company LLC      | Delaware       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| 2011 Vento X LLC                | Delaware       | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| 2021 DG Agora Sol I LLC         | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| 2021 DG CA Agora Sol I LLC      | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| Amsterdam 3 Solar LLC           | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| C2 CA WMS Redlands #1693 LLC    | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| C2 IL WMS Bloomington #3459 LLC | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| C2 IL WMS Skokie #1998 LLC      | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| C2 OH Otsego I LLC              | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| C2 WM California 2039 LLC       | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| C2 WM California 5884 LLC       | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| DC Green Solar LLC              | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| DC- JD Portfolio - Barrel Roof  | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| DC- JD Portfolio - Flat Roof    | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| DC- JD Portfolio - Green Roof   | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| DC- JD Portfolio - Parking Deck | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| DC PD Solar LLC                 | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| EDPR Wind Ventures X LLC        | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| McLean Solar 1 LLC              | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| New Scotland 5 Solar LLC        | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| Nine Kings Transco LLC          | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| NY Broadway SAS LLC             | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| NY Gomer SAS LLC                | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| NY Highland SAS LLC             | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| RI Stainless LLC                | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| SC Heathwood Hall Solar LLC     | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |
| VA- Green Acres                 | Delaware       | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 85.00%                   |

Canada

| EDP Renewables Canada Ltd.                          | British<br>Columbia | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
|-----------------------------------------------------|---------------------|---------|---------------------|--------------------------|---------------------|--------------------------|
| Blue Bridge Solar Park GP Ltd.                      | British<br>Columbia | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Blue Bridge Solar Park Limited<br>Partnership       | Alberta             | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Bromhead Solar Park GP Ltd.                         | British<br>Columbia | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Bromhead Solar Park Limited<br>Partnership          | Saskatche<br>wan    | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Edgeware BESS Project GP Ltd.                       | British<br>Columbia | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Edgeware BESS Project Limited<br>Partnership        | Ontário             | n.a.    | 50.00%              | 50.00%                   | 100.00%             | 100.00%                  |
| EDP Renewables Canada<br>Management Services Ltd.   | British<br>Columbia | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| EDP Renewables SH II Project GP Ltd.                | British<br>Columbia | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| EDP Renewables SH II Project Limited<br>Partnership | Alberta             | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| EDP Renewables SH Project GP Ltd.                   | British<br>Columbia | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| EDP Renewables SH Project Limited<br>Partnership    | Alberta             | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Halbrite Solar Park GP Ltd.                         | British<br>Columbia | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| COMPANY                                             | HEAD<br>OFFICE      | AUDITOR | % OF<br>CAPITA<br>L | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITA<br>L | % OF<br>VOTING<br>RIGHTS |
| Halbrite Solar Park Limited<br>Partnership          | Saskatche<br>wan    | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Nation Rise Wind Farm GP Inc.                       | British<br>Columbia | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Nation Rise Wind Farm Limited<br>Partnership        | Ontário             | PwC     | 49.99%              | 49.99%                   | 49.99%              | 49.99%                   |
| SBWF GP Inc.                                        | British<br>Columbia | n.a.    | 51.00%              | 51.00%                   | 51.00%              | 51.00%                   |
| Sounding Creek Solar Park GP Ltd.                   | British<br>Columbia | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sounding Creek Solar Park Limited<br>Partnership    | Alberta             | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| South Branch BESS Project GP Ltd.                   | Ontário             | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| South Branch BESS Project Limited<br>Partnership    | Ontário             | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| South Branch Wind Farm II GP Inc.                   | British<br>Columbia | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| South Branch Wind Farm II Limited<br>Partnership    | Ontário             | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| South Dundas Windfarm Limited<br>Partnership        | Ontário             | PwC     | 51.00%              | 51.00%                   | 51.00%              | 51.00%                   |
| EDP Renewables Sask SE GP Ltd.                      | British<br>Columbia | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| EDP Renewables Sask SE Limited<br>Partnership       | Ontário             | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Kennedy Wind Farm GP Ltd.                           | British<br>Columbia | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Kennedy Wind Farm Limited<br>Partnership            | Saskatche<br>wan    | n.a.    | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| LATIN AMERICA GEOGRAPHY / PLATFORM                  |                     |         |                     |                          |                     |                          |
| Brazil                                              |                     |         |                     |                          |                     |                          |
| EDP Renováveis Brasil, S.A.                         | São Paulo           | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Amanhecer I, S.A.                    | São Paulo           | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Amanhecer II, S.A.                   | São Paulo           | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Amanhecer III, S.A.                  | São Paulo           | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Amanhecer IV, S.A.                   | São Paulo           | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Amanhecer V, S.A.                    | São Paulo           | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Amanhecer VI, S.A.                   | São Paulo           | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Amanhecer VII, S.A.                  | São Paulo           | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Asas de Zabelê I, S.A.               | São Paulo           | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Asas de Zabelê II, S.A.              | São Paulo           | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Asas de Zabelê III, S.A.             | São Paulo           | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Asas de Zabelê IV, S.A.              | São Paulo           | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Asas de Zabelê V, S.A.               | São Paulo           | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Asas de Zabelê VI, S.A.              | São Paulo           | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Asas de Zabelê VII, S.A.             | São Paulo           | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Aventura I, S.A.                     | São Paulo           | PwC     | 51.00%              | 51.00%                   | 51.00%              | 51.00%                   |
| Central Eólica Baixa do Feijão I, S.A.              | São Paulo           | PwC     | 51.00%              | 51.00%                   | 51.00%              | 51.00%                   |
| Central Eólica Baixa do Feijão II, S.A.             | São Paulo           | PwC     | 51.00%              | 51.00%                   | 51.00%              | 51.00%                   |
| Central Eólica Baixa do Feijão III, S.A.            | São Paulo           | PwC     | 51.00%              | 51.00%                   | 51.00%              | 51.00%                   |
| Central Eólica Baixa do Feijão IV, S.A.             | São Paulo           | PwC     | 51.00%              | 51.00%                   | 51.00%              | 51.00%                   |
| Central Eólica Barra I, S.A.                        | Lagoa<br>Nova       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Barra II, S.A.                       | Lagoa<br>Nova       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Barra III, S.A.                      | Lagoa<br>Nova       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Barra IV, S.A.                       | Lagoa<br>Nova       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Barra IX, S.A.                       | Lagoa<br>Nova       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Eólica Barra V, S.A.                        | Lagoa<br>Nova       | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |

{465}------------------------------------------------

{466}------------------------------------------------

| COMPANY                                                      | HEAD<br>OFFICE | AUDITOR   | % OF<br>CAPITA<br>L | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITA<br>L | % OF<br>VOTING<br>RIGHTS |  |        |  |        |  |        |  |
|--------------------------------------------------------------|----------------|-----------|---------------------|--------------------------|---------------------|--------------------------|--|--------|--|--------|--|--------|--|
| Central Eólica Barra VI, S.A.                                | Lagoa<br>Nova  | n.a.      | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Barra VII, S.A.                               | Lagoa<br>Nova  | n.a.      | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Barra VIII, S.A.                              | Lagoa<br>Nova  | n.a.      | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Barra X, S.A.                                 | Lagoa<br>Nova  | n.a.      | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Barra XI, S.A.                                | Lagoa<br>Nova  | n.a.      | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Borborema I, S.A.                             | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Borborema II, S.A.                            | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Borborema III, S.A.                           | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Borborema IV, S.A.                            | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Catanduba I, S.A.                             | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Catanduba II, S.A.                            | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Itaúna I, S.A.                                | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Itaúna II, S.A.                               | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Itaúna III, S.A.                              | São Paulo      | n.a.      | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |  |        |  |        |  |        |  |
| Central Eólica JAU, S.A.                                     | São Paulo      | PwC       | 51.00%              | 51.00%                   | 51.00%              | 51.00%                   |  |        |  |        |  |        |  |
| Central Eólica Monte Verde I, S.A.                           | Lagoa<br>Nova  | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Monte Verde II, S.A.                          | Lagoa<br>Nova  | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Monte Verde III, S.A.                         | Lagoa<br>Nova  | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Monte Verde IV, S.A.                          | Lagoa<br>Nova  | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Monte Verde V, S.A.                           | Lagoa<br>Nova  | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica Monte Verde VI, S.A.                          | Lagoa<br>Nova  | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica São Domingos I, S.A.                          | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica São Domingos II, S.A.                         | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica São Domingos III, S.A.                        | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Eólica São Domingos IV, S.A.                         | São Paulo      | n.a.      | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |  |        |  |        |  |        |  |
| Central Eólica São Domingos V, S.A.                          | São Paulo      | n.a.      | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |  |        |  |        |  |        |  |
| Central Geradora Fotovoltaica Monte<br>Verde Solar I, S.A.   | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Geradora Fotovoltaica Monte<br>Verde Solar II, S.A.  | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Geradora Fotovoltaica Monte<br>Verde Solar III, S.A. | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Geradora Fotovoltaica Monte<br>Verde Solar IV, S.A.  | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Geradora Fotovoltaica Monte<br>Verde Solar V, S.A.   | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Geradora Fotovoltaica Monte<br>Verde Solar VI, S.A.  | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Geradora Fotovoltaica Monte<br>Verde Solar VII, S.A. | São Paulo      | PwC       | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Nacional de Energia Eólica,<br>S.A.                  |                | São Paulo |                     | PwC                      |                     | 51.00%                   |  | 51.00% |  | 51.00% |  | 51.00% |  |
| Central Solar Barra I, S.A.                                  | Lagoa Nova     | n.a.      | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Solar Barra II, S.A.                                 | Lagoa Nova     | n.a.      | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Solar Barra III, S.A.                                | Lagoa Nova     | n.a.      | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Solar Barra IV, S.A.                                 | Lagoa Nova     | n.a.      | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Solar Fênix I, S.A.                                  | São Paulo      | n.a.      | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Solar Fênix II, S.A.                                 | São Paulo      | n.a.      | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Solar Fênix IV, S.A.                                 | São Paulo      | n.a.      | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |
| Central Solar Fênix V, S.A.                                  | São Paulo      | n.a.      | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |  |        |  |        |  |        |  |

{467}------------------------------------------------

| COMPANY                                                               | HEAD OFFICE               | AUDITOR | % OF CAPITAL<br>L   | % OF VOTING RIGHTS       | % OF CAPITAL<br>L   | % OF VOTING RIGHTS       |
|-----------------------------------------------------------------------|---------------------------|---------|---------------------|--------------------------|---------------------|--------------------------|
| Central Solar Fênix VI, S.A.                                          | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Lagoa I, S.A.                                           | São Paulo                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Lagoa II, S.A.                                          | São Paulo                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Minas do Sol II, S.A.                                   | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Minas do Sol III, S.A.                                  | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Minas do Sol IV, S.A.                                   | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Minas do Sol V, S.A.                                    | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Minas do Sol VI, S.A.                                   | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Minas do Sol VIII, S.A.                                 | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Novo Oriente I, S.A.                                    | São Paulo                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Novo Oriente II, S.A.                                   | São Paulo                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Novo Oriente III, S.A.                                  | São Paulo                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Novo Oriente IV, S.A.                                   | São Paulo                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Novo Oriente V, S.A.                                    | São Paulo                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Novo Oriente VI, S.A.                                   | São Paulo                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Pereira Barreto I, S.A.                                 | Pereira<br>Barreto        | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Pereira Barreto II, S.A.                                | Pereira<br>Barreto        | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Pereira Barreto III, S.A.                               | Pereira<br>Barreto        | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Pereira Barreto IV, S.A.                                | Pereira<br>Barreto        | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Pereira Barreto V, S.A.                                 | Pereira<br>Barreto        | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Presidente JK I, S.A.                                   | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Presidente JK VII, S.A.                                 | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Presidente JK XI, S.A.                                  | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Zebu I, S.A.                                            | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Zebu II, S.A.                                           | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Zebu III, S.A.                                          | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Zebu IV, S.A.                                           | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Zebu V, S.A.                                            | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Zebu VI, S.A.                                           | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Central Solar Zebu VII, S.A.                                          | São Paulo                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Elebrás Projetos, S.A.                                                | São Paulo                 | PwC     | 51.00%              | 51.00%                   | 51.00%              | 51.00%                   |
| Monte Verde Holding, S.A.                                             | São Paulo                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Jerusalém Holding, S.A.                                               | São Paulo                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Central Eólica Jerusalém I, S.A.                                      | São Paulo                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Central Eólica Jerusalém II, S.A.                                     | São Paulo                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Central Eólica Jerusalém III, S.A.                                    | São Paulo                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Central Eólica Jerusalém IV, S.A.                                     | São Paulo                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Central Eólica Jerusalém V, S.A.                                      | São Paulo                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Central Eólica Jerusalém VI, S.A.                                     | São Paulo                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Central Eólica Boqueirão I, S.A.                                      | São Paulo                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Central Eólica Boqueirão II, S.A.                                     | São Paulo                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Renewables Energy Colombia, S.A.S.                                    | Bogotá                    | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Elipse Energía, S.A.S. E.S.P.                                         | Bogotá                    | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Eolos Energía, S.A.S. E.S.P.                                          | Bogotá                    | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Kappa Energía, S.A.S. E.S.P.                                          | Bogotá                    | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Omega Energía, S.A.S. E.S.P.                                          | Bogotá                    | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| COMPANY                                                               | HEAD<br>OFFICE            | AUDITOR | % OF<br>CAPITAL     | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITAL     | % OF<br>VOTING<br>RIGHTS |
| Parque Solar Fotovoltaico El Copey,<br>S.A.S. E.S.P.                  | Bogotá                    | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Solar Power Solutions, S.A.S. E.S.P.                                  | Bogotá                    | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Vientos del Norte, S.A.S. E.S.P.                                      | Bogotá                    | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Chile                                                                 |                           |         |                     |                          |                     |                          |
| EDP Renewables Chile, SpA                                             | Santiago                  | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Los Llanos Solar, SpA                                                 | Santiago                  | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Parque Eólico Punta de Talca, SpA                                     | Santiago                  | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Parque Eólico San Andrés, SpA                                         | Santiago                  | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Parque Eólico Victoria, SpA                                           | Santiago                  | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| ASIA - PACIFIC GEOGRAPHY / PLATFORM                                   |                           |         |                     |                          |                     |                          |
| South Korea                                                           |                           |         |                     |                          |                     |                          |
| EDPR Korea, Ltd.                                                      | Yeosu                     | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Angang Wind Power Corporation                                         | Gyeongsa<br>ngbuk-do      | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Gumisan Wind Power Co., Ltd.                                          | Gyeongsa<br>ngbuk-do      | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| OMA Haedori Co., Ltd.                                                 | Goheung-<br>gun           | n.a.    | 75.00%              | 75.00%                   | 75.00%              | 75.00%                   |
| Vietnam                                                               |                           |         |                     |                          |                     |                          |
| EDP Renewables Vietnam Co., Ltd.                                      | Ho Chi<br>Minh City       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Bien Dong Energy Investment Co., Ltd.                                 | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| CMX RE Sunseap Vietnam Solar<br>Power Co., Ltd.                       | Ninh<br>Thuan<br>Province | PwC     | 55.00%              | 55.00%                   | 55.00%              | 55.00%                   |
| Dai Linh Phat Co., Ltd.                                               | Ho Chi<br>Minh City       | PwC     | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| DKT Energy Investment Co., Ltd.                                       | Ho Chi<br>Minh City       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| H2A Co., Ltd.                                                         | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| H2HA Co., Ltd.                                                        | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| H2HD Co., Ltd.                                                        | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| H2HO Co., Ltd.                                                        | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| H2HU Co., Ltd.                                                        | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| H2K Co., Ltd.                                                         | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| H2ML Co., Ltd.                                                        | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| H2O Ben Luc Investment Co., Ltd.                                      | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| H2S Co., Ltd.                                                         | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| H2T Co., Ltd.                                                         | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| H2TR Solar Co., Ltd.                                                  | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| H2VP Co., Ltd.                                                        | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Hao Thanh Dat Investment Co., Ltd.                                    | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| HTD Vietnam Investment<br>Development Co., Ltd.                       | Ho Chi<br>Minh City       | PwC     | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| HTT Binh Duong Investment<br>Development Co., Ltd.                    | Ho Chi<br>Minh City       | PwC     | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Incom International Investment and<br>Development Co., Ltd.           | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Kim Cuong Energy Investment Co.,<br>Ltd.                              | Long An<br>Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Lam Gia Luat Co., Ltd.                                                | Ho Chi<br>Minh City       | PwC     | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Long Dai Phat Investment Co., Ltd.                                    | Ho Chi<br>Minh City       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| COMPANY                                                               | HEAD OFFICE               | AUDITOR | % OF CAPITAL        | % OF VOTING RIGHTS       | % OF CAPITAL        | % OF VOTING RIGHTS       |
| Millennium Energy Investment Co., Ltd.                                | Ho Chi Minh City          | PwC     | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Phu An Energy Investment Co., Ltd.                                    | Long An Province          | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Quang Lam Printing Import Export Co., Ltd.                            | Long An Province          | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| SSKT Beta Energy Co., Ltd.                                            | Ho Chi Minh City          | PwC     | 100.00%             | 59.00%                   | 100.00%             | 100.00%                  |
| STP5 Energy Production Trading Co., Ltd.                              | Ho Chi Minh City          | PwC     | 100.00%             | 89.90%                   | 100.00%             | 100.00%                  |
| STP6 Energy Trading Technical Co., Ltd.                               | Ho Chi Minh City          | PwC     | 100.00%             | 89.90%                   | 100.00%             | 100.00%                  |
| STP7 Energy Development Co., Ltd.                                     | Ho Chi Minh City          | PwC     | 100.00%             | 89.90%                   | 100.00%             | 100.00%                  |
| STP8 Energy Investment Co., Ltd.                                      | Ho Chi Minh City          | PwC     | 100.00%             | 89.90%                   | 100.00%             | 100.00%                  |
| Sun Times 1 Energy Co., Ltd.                                          | Ho Chi Minh City          | PwC     | 100.00%             | 89.90%                   | 100.00%             | 100.00%                  |
| Sun Times 3 Energy Co., Ltd.                                          | Ho Chi Minh City          | PwC     | 100.00%             | 89.90%                   | 100.00%             | 100.00%                  |
| Sun Times 4 Energy Co., Ltd.                                          | Ho Chi Minh City          | PwC     | 100.00%             | 89.90%                   | 100.00%             | 100.00%                  |
| Sun Times 5 Energy Co., Ltd.                                          | Ho Chi Minh City          | PwC     | 100.00%             | 89.90%                   | 100.00%             | 100.00%                  |
| Sun Times 6 Energy Co., Ltd.                                          | Ho Chi Minh City          | PwC     | 100.00%             | 89.90%                   | 100.00%             | 100.00%                  |
| Sun Times 7 Energy Co., Ltd.                                          | Ho Chi Minh City          | PwC     | 100.00%             | 89.90%                   | 100.00%             | 100.00%                  |
| Sunseap Commercial & Industrial Assets (Vietnam) Co., Ltd.            | Ho Chi Minh City          | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap KTG Energy Investment Co., Ltd.                               | Ho Chi Minh City          | PwC     | 59.00%              | 59.00%                   | 100.00%             | 100.00%                  |
| Sunseap Sun Times Solar Investment Co., Ltd.                          | Ho Chi Minh City          | PwC     | 89.90%              | 89.90%                   | 100.00%             | 100.00%                  |
| Thiet Thanh Cong Investment Co., Ltd.                                 | Long An Province          | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Trung Son Energy Development LLC                                      | Khanh Hoa Province        | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Uper Renewable Energy Vietnam Co., Ltd.                               | Ho Chi Minh City          | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Xuan Thien Ninh Thuan Co., Ltd.                                       | Ninh Thuan Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Xuan Thien Thuan Bac Co., Ltd.                                        | Ninh Thuan Province       | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Singapore                                                             |                           |         |                     |                          |                     |                          |
| EDPR Sunseap Korea Holdings Pte. Ltd.                                 | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap Group Pte. Ltd.                                               | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Data4Eco Holdings Pte. Ltd.                                           | Singapore                 | PwC     | 60.00%              | 60.00%                   | 60.00%              | 60.00%                   |
| LYS Energy Investment Pte. Ltd.                                       | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Solarland Alpha Assets Pte. Ltd.                                      | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| SolarNova 4 Beta Assets Pte. Ltd.                                     | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| SolarNova Phase 1 Pte. Ltd.                                           | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap Australia Holdings Pte. Ltd.                                  | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap Batam Pte. Ltd.                                               | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap China Pte. Ltd.                                               | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap CMX RE Solar Holdings Pte. Ltd.                               | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap Commercial Assets Pte. Ltd.                                   | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap Delta Holdings Pte. Ltd.                                      | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap Energy Pte. Ltd.                                              | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap Energy Ventures Pte. Ltd.                                     | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap Engineering Pte. Ltd.                                         | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| COMPANY                                                               | HEAD<br>OFFICE            | AUDITOR | % OF<br>CAPITA<br>L | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITA<br>L | % OF<br>VOTING<br>RIGHTS |
| Sunseap Gamma Holdings Pte. Ltd.                                      | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap Indonesia Pte. Ltd.                                           | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap International Pte. Ltd.                                       | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap Japan Pte. Ltd.                                               | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap Leasing Pte. Ltd.                                             | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap Links Daklong Pte. Ltd.                                       | Singapore                 | PwC     | 95.00%              | 95.00%                   | 95.00%              | 95.00%                   |
| Sunseap Links Pte. Ltd.                                               | Singapore                 | PwC     | 80.00%              | 80.00%                   | 80.00%              | 80.00%                   |
| Sunseap Taiwan Pte. Ltd.                                              | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Trung Son SG Pte. Ltd.                                                | Singapore                 | PwC     | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| SolarNova 4 Beta Holdings Pte. Ltd.                                   | Singapore                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Solar PV Exchange Pte. Ltd.                                           | Singapore                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Solarland Alpha Holdings Pte. Ltd.                                    | Singapore                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Sunseap Commercial & Industrial<br>Assets (S.Ε.Α.) Holdings Pte. Ltd. | Singapore                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Sunseap Commercial Holdings Pte.<br>Ltd.                              | Singapore                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Sunseap Leasing Alpha Pte. Ltd.                                       | Singapore                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Sunseap Leasing Beta Pte. Ltd.                                        | Singapore                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Sunseap Philippines Solar Holdings<br>Pte. Ltd.                       | Singapore                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Sunseap SolarNova Pte. Ltd.                                           | Singapore                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Sunseap Solutions Pte. Ltd.                                           | Singapore                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Sunseap Vietnam Beta Pte. Ltd.                                        | Singapore                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Sunseap Vietnam Gamma Pte. Ltd.                                       | Singapore                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Sunseap Vietnam Pte. Ltd.                                             | Singapore                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Sunseap Vpower Pte. Ltd.                                              | Singapore                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Uper Renewable Energy (Singapore)<br>Pte. Ltd.                        | Singapore                 | PwC     | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Australia                                                             |                           |         |                     |                          |                     |                          |
| Sunseap (Australia) Investments Pty.<br>Ltd.                          | Melbourne                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap (Australia) Pty. Ltd.                                         | Melbourne                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap Assets (Australia) Pty. Ltd.                                  | Melbourne                 | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Energy Democracy Management Pty.<br>Ltd.                              | Canberra                  | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| ITP Development Pty. Ltd.                                             | Canberra                  | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| ITP-NHT Devco Pty. Ltd.                                               | Canberra                  | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Merino Solar Farm Pty. Ltd.                                           | Canberra                  | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Merino Solar Farm Trust                                               | Canberra                  | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Orange Community Renewable<br>Energy Park Pty. Ltd.                   | Canberra                  | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Orange Community Renewable<br>Energy Park Trust                       | Canberra                  | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Yoogali Solar Farm Pty. Ltd.                                          | Canberra                  | n.a.    | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Cambodia                                                              |                           |         |                     |                          |                     |                          |
| Sunseap Solar Cambodia Co., Ltd.                                      | Phnom<br>Penh City        | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| China                                                                 |                           |         |                     |                          |                     |                          |
| Anhui Jinyang New Energy Co., Ltd.                                    | Anhui City                | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Changchun Xingsheng Jinhu<br>Photovoltaic New Energy Co., Ltd.        | Changchu<br>n City        | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Changzhou Jingyi New Energy<br>Technology Co., Ltd.                   | Changzho<br>u City        | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Chongqing Xingzhi New Energy<br>Technology Co., Ltd.                  | Chongqin<br>g City        | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Chuzhou Huitai Photovoltaic Power<br>Generation Co., Ltd.             | Chuzhou<br>City           | n.a.    | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Dongguan Jiehuang New Energy                                          | Dongguan                  | n.a.    |                     |                          |                     |                          |

{468}------------------------------------------------

{469}------------------------------------------------

{470}------------------------------------------------

**2023 2022**

Technology Co., Ltd.

City n.a. 100.00% 100.00% 100.00% 100.00%

{471}------------------------------------------------

| COMPANY                                                       | HEAD<br>OFFICE   | AUDITOR | % OF<br>CAPITAL | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITAL | % OF<br>VOTING<br>RIGHTS |  |         |  |         |  |         |  |
|---------------------------------------------------------------|------------------|---------|-----------------|--------------------------|-----------------|--------------------------|--|---------|--|---------|--|---------|--|
| Dongying Daoli New Energy Co., Ltd.                           | Dongying<br>City | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Fangxian Tianhang New Energy Co.,<br>Ltd.                     | Fangxian<br>City | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Fengcheng Xingtai New Energy<br>Technology Co., Ltd.          | Fengcheng City   | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Foshan YingYuan New Energy<br>Technology Co., Ltd.            | Foshan<br>City   | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Harbin Panshuo Energy Technology<br>Co., Ltd.                 | Harbin<br>City   | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Hefei Yiman New Energy Technology<br>Co., Ltd.                | Hefei City       | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Heze Dechen New Energy Co., Ltd.                              | Heze City        | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Hubei Jianghui New Energy Co., Ltd.                           | Jingzhou<br>City | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Jiangsu Xingsheng New Energy<br>Technology Co., Ltd.          | Jiangsu<br>City  | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Jiaxing Luken Energy Technology Co.,<br>Ltd.                  | Jiaxing<br>City  | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Jingmen Xingsheng New Energy Co.,<br>Ltd.                     | Jingmen<br>City  | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Jingmen Zhongbei New Energy Co.,<br>Ltd.                      | Jingmen<br>City  | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Jining Yihang New Energy<br>Technology Co., Ltd.              | Jining City      | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Liyang Yushun Power New Energy<br>Co., Ltd.                   | Liyang<br>City   | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Nantong Eaton Guoyun Photovoltaic<br>New Energy Co., Ltd.     | Nantong<br>City  | n.a.    | 95.00%          | 95.00%                   | 95.00%          | 95.00%                   |  |         |  |         |  |         |  |
| Ningbo Jiangbei Baoyi Enterprise<br>Management CP LP          | Ningbo<br>city   | PwC     | 100.00%         | 100.00%                  | 60.00%          | 60.00%                   |  |         |  |         |  |         |  |
| Putian Xingsheng New Energy Co.,<br>Ltd.                      | Putian<br>City   | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Qingdao Xingqi Energy Co., Ltd.                               | Qingdao          | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Qinghe County Xinou Funeng New<br>Energy Technology Co., Ltd. | Xingtai<br>City  | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Rongcheng Xingyi New Energy<br>Technology Co., Ltd.           | Weihai<br>City   | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Shanghai Jingwen Equity Investment<br>Center LP               | Shanghai         | PwC     | 90.22%          | 90.22%                   | 90.22%          | 90.22%                   |  |         |  |         |  |         |  |
| Shanghai Yihuang New Energy<br>Technology Co., Ltd.           | Shanghai         | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Shanghai Yikuang New Technology<br>Co., Ltd.                  | Shanghai         | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Siping Lvsheng Energy Technology<br>Co., Ltd.                 | Sipiang<br>City  | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| State Cloud Sunseap Equity<br>Investment Partnership LP       | Jinan City       | PwC     | 80.33%          | 80.33%                   | 80.33%          | 80.33%                   |  |         |  |         |  |         |  |
| Sunseap China Energy (Qingdao) Co.,<br>Ltd.                   | Qingdao          | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Sunseap China Energy (Shanghai)<br>Ltd.                       | Shanghai         | PwC     | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Suzhou Haoruitian Power New Energy<br>Co., Ltd.               | Kunshan<br>City  | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Suzhou Liansong New Energy<br>Technology Co., Ltd.            | Suzhou<br>City   | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Suzhou Xingdao New Energy<br>Technology Co., Ltd.             | Suzhou<br>City   | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Suzhou Xingyi Energy Engineering<br>Co., Ltd.                 | Suzhou<br>City   | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Tianjin Baoyi New Energy Technology<br>Co., Ltd.              | Tianjin<br>City  | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Tianjin Pengling Funeng New Energy<br>Technology Co., Ltd.    | Tianjin<br>City  | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Tianjin Xingrun Energy Development<br>Co., Ltd.               | Tianjin<br>City  | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Tianjin Xingsheng Energy<br>Development Co., Ltd.             | Tianjin<br>City  | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Tianjin Yuntong New Energy                                    |                  | Tianjin |                 | n.a.                     |                 | 100.00%                  |  | 100.00% |  | 100.00% |  | 100.00% |  |
| Technology Co., Ltd.                                          | City             | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Weihai Deao New Energy Technology<br>Co., Ltd.                | Weihai City      | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |
| Wenzhou Xingyi New Energy<br>Technology Co., Ltd.             | Wenzhou City     | n.a.    | 100.00%         | 100.00%                  | 100.00%         | 100.00%                  |  |         |  |         |  |         |  |

{472}------------------------------------------------

**2023 2022**

| COMPANY                                             | HEAD<br>OFFICE    | AUDITOR                           | % OF<br>CAPITA<br>L | % OF<br>VOTING<br>RIGHTS | % OF<br>CAPITA<br>L | % OF<br>VOTING<br>RIGHTS |
|-----------------------------------------------------|-------------------|-----------------------------------|---------------------|--------------------------|---------------------|--------------------------|
| Wuhan Panshuo Energy Technology<br>Co., Ltd.        | Wuhan<br>City     | n.a.                              | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Wuhu Xingsheng New Energy Co., Ltd.                 | Wuhu City         | n.a.                              | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Wuxi Lingzhong New Energy<br>Technology Co., Ltd.   | Wuxi City         | n.a.                              | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Yancheng Baoyi New Energy<br>Technology Co., Ltd.   | Yancheng<br>City  | n.a.                              | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Yancheng Qingneng Power<br>Technology Co., Ltd.     | Yancheng<br>City  | n.a.                              | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Zhenjiang Ruichengda New Energy<br>Co., Ltd.        | Zhenjiang<br>City | n.a.                              | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Jinan Xingsheng Energy Co., Ltd.                    | Jinan City        | n.a.                              | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Yuzhou Yixing Energy Technology<br>Co., Ltd.        | Yuzhou<br>City    | n.a.                              | 0.00%               | 0.00%                    | 100.00%             | 100.00%                  |
| Indonesia                                           |                   |                                   |                     |                          |                     |                          |
| PT Green Corridor Indonesia                         | Kota<br>Batam     | BDO                               | 99.00%              | 99.00%                   | 99.00%              | 99.00%                   |
| PT Right People Renewable Energy                    | Jakarta           | BDO                               | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| PT Sunseap Commercial Industrial<br>Indonesia Asset | Jakarta           | BDO                               | 99.00%              | 99.00%                   | 99.00%              | 99.00%                   |
| Japan                                               |                   |                                   |                     |                          |                     |                          |
| RE Capital Co., Ltd.                                | Tokyo             | n.a.                              | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Godo Kaisha NW-3                                    | Tokyo             | n.a.                              | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Miyagi Motoyoshi Solar GK                           | Tokyo             | n.a.                              | 100.00%             | 100.00%                  | 0.00%               | 0.00%                    |
| Malaysia                                            |                   |                                   |                     |                          |                     |                          |
| Sunseap Energy (Malaysia) Sdn. Bhd.                 | Kuala<br>Lumpur   | NHT                               | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Taiwan                                              |                   |                                   |                     |                          |                     |                          |
| Hoya Energy Ltd.                                    | Taipei City       | PwC                               | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Pacific Sunseap Energy Ltd.                         | Taipei City       | PwC                               | 65.00%              | 65.00%                   | 65.00%              | 65.00%                   |
| Shuangjian Photoelectric Ltd.                       | Taipei City       | PwC                               | 70.00%              | 70.00%                   | 70.00%              | 70.00%                   |
| Sunseap Advance Green Technology<br>Ltd.            | Taipei City       | PwC                               | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap Advance International Ltd.                  | Taipei City       | PwC                               | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Sunseap Taiwan Solar Holdings Ltd.                  | Taipei City       | PwC                               | 100.00%             | 100.00%                  | 100.00%             | 100.00%                  |
| Top Green Energy Ltd.                               | Taipei City       | PwC                               | 100.00%             | 65.00%                   | 100.00%             | 65.00%                   |
| Thailand                                            |                   |                                   |                     |                          |                     |                          |
| Sunseap Energy (Thailand) Co., Ltd.                 | Bangkok           | Thai Info Ltd                     | 95.50%              | 95.50%                   | 95.50%              | 95.50%                   |
| Thai-Sunseap Asset Co. Ltd.                         | Bangkok           | Pechrungroj<br>Office Co.,<br>Ltd | 100.00%             | 67.00%                   | 100.00%             | 67.00%                   |
| Thai-Sunseap Co., Ltd.                              | Bangkok           | Pechrungroj<br>Office Co.,<br>Ltd | 67.00%              | 67.00%                   | 67.00%              | 67.00%                   |
| Thai-Sunseap Energy Solutions Co.<br>Ltd.           | Bangkok           | Pechrungroj<br>Office Co.,<br>Ltd | 100.00%             | 67.00%                   | 100.00%             | 67.00%                   |

![image](https://i.imgur.com/999999999.png)

The main financial indicators of the jointly controlled companies included in the consolidation under the equity method as at 31 December 2023, are as follows:

| COMPANY                                   | SHARE<br>CAPITAL | HEAD OFFICE | AUDITOR | % OF<br>CAPITAL | % OF<br>VOTING<br>RIGHTS |
|-------------------------------------------|------------------|-------------|---------|-----------------|--------------------------|
| Desarrollos Energéticos<br>Canarios, S.A. | € 15.025         | Las Palmas  | n.a.    | 49,90%          | 49,90%                   |
| Desarrollos Energéticos del<br>Val, S.L.  | € 137,070        | Soria       | n.a.    | 25.00%          | 25.00%                   |
| Evolución 2000, S.L.                      | € 117,994        | Albacete    | PwC     | 49.15%          | 49.15%                   |
| OW Offshore, S.L.                         | € 72,205,252     | Madrid      | PwC     | 50.00%          | 50.00%                   |

{473}------------------------------------------------

**% OF** 

| COMPANY                                       | SHARE<br>CAPITAL | HEAD OFFICE     | AUDITOR               | % OF<br>CAPITAL | VOTING<br>RIGHTS |
|-----------------------------------------------|------------------|-----------------|-----------------------|-----------------|------------------|
| Sistemas Eólicos Tres Cruces,<br>S.L.         | € 50,000         | Soria           | n.a.                  | 25.00%          | 25.00%           |
| Evoikos Voreas A.E.                           | € 196,000        | Athens          | PwC                   | 51.00%          | 51.00%           |
| Sofrano A.E.                                  | € 900,000        | Athens          | PwC                   | 51.00%          | 51.00%           |
| Centrale Eolienne D'Occey,<br>S.A.S.          | € 484,844        | Paris           | n.a.                  | 51.00%          | 51.00%           |
| Lomartico Investments, Sp. z<br>o.o.          | € 1,150          | Warsaw          | n.a.                  | 50.00%          | 50.00%           |
| Medsteville Investments, Sp. z<br>o.o.        | € 1,150          | Warsaw          | n.a.                  | 50.00%          | 50.00%           |
| Ondentille Investments, Sp. z<br>o.o.         | € 1,150          | Warsaw          | n.a.                  | 50.00%          | 50.00%           |
| Kronos IBV UK GmbH                            | € 25,000         | Berlin          | n.a.                  | 50.00%          | 50.00%           |
| KSD 20 UG                                     | € 1,000          | Munich          | n.a.                  | 50.00%          | 50.00%           |
| 2017 Vento XVII LLC                           | € 422,602,223    | Delaware        | PwC                   | 20.00%          | 20.00%           |
| 2018 Vento XIX LLC                            | € 405,808,645    | Delaware        | PwC                   | 20.00%          | 20.00%           |
| 2019 Vento XX LLC                             | € 516,800,347    | Delaware        | PwC                   | 20.00%          | 20.00%           |
| Flat Rock Windpower LLC                       | € 507,125,989    | Delaware        | PwC                   | 50.00%          | 50.00%           |
| Flat Rock Windpower II LLC                    | € 199,604,602    | Delaware        | PwC                   | 50.00%          | 50.00%           |
| Goldfinger Ventures II LLC                    | € 151,779,538    | Delaware        | PwC                   | 50.00%          | 50.00%           |
| Goldfinger Ventures LLC                       | € 115,559,303    | Delaware        | PwC                   | 50.00%          | 50.00%           |
| Riverstart Development LLC                    | € -              | Delaware        | n.a.                  | 20.00%          | 20.00%           |
| Riverstart Ventures LLC                       | € 162,128,696    | Delaware        | PwC                   | 20.00%          | 20.00%           |
| Solar Ventures Acquisition LLC                | -€ 41,600,200    | Delaware        | n.a.                  | 50.00%          | 50.00%           |
| Sunseap Asset (Cambodia)<br>Co., Ltd.         | € 1,273,846      | Phnom Penh City | BDO                   | 51.00%          | 51.00%           |
| Sunseap Energy (Cambodia)<br>Co., Ltd.        | € 161,855        | Phnom Penh City | n.a.                  | 49.00%          | 49.00%           |
| Cenergi Sunseap Energy<br>Solutions Sdn. Bhd. | € 787,789        | Kuala Lumpur    | EY                    | 40.00%          | 40.00%           |
| Sunseap LCS Energy Sdn. Bhd.                  | € 9,650          | Kuala Lumpur    | HLCO                  | 49.00%          | 49.00%           |
| RL Sunseap Energy Sdn. Bhd.                   | € 241,260        | Sarawak         | Crowe<br>Malaysia PLT | 49.00%          | 49.00%           |
| Powersource Sunseap Corp.                     | € -              | Makati City     | n.a.                  | 40.00%          | 40.00%           |
| Powersource Sunseap Solar<br>Solution Corp.   | € -              | Makati City     | n.a.                  | 40.00%          | 40.00%           |

The main financial indicators of the jointly controlled companies included in the consolidation under the equity method as at 31 December 2022, were as follows:

**COMPANY SHARE** 

**CAPITAL HEAD OFFICE AUDITOR % OF** 

**% OF VOTING** 

| COMPANY                                   | CAPITAL       | HEAD OFFICE | AUDITOR | CAPITAL | VOTING<br>RIGHTS |
|-------------------------------------------|---------------|-------------|---------|---------|------------------|
| Desarrollos Energéticos<br>Canarios, S.A. | € 15,025      | Las Palmas  | n.a.    | 49.90%  | 49.90%           |
| Desarrollos Energéticos del<br>Val, S.L.  | € 137,070     | Soria       | n.a.    | 25.00%  | 25.00%           |
| Evolución 2000, S.L.                      | € 117,994     | Albacete    | PwC     | 49.15%  | 49.15%           |
| OW Offshore, S.L.                         | € 57,519,614  | Madrid      | PwC     | 50.00%  | 50.00%           |
| Sistemas Eólicos Tres Cruces,<br>S.L.     | € 50,000      | Soria       | n.a.    | 25.00%  | 25.00%           |
| Evoikos Voreas A.E.                       | € 126,000     | Athens      | n.a.    | 51.00%  | 51.00%           |
| Sofrano A.E.                              | € 830,000     | Athens      | n.a.    | 51.00%  | 51.00%           |
| Centrale Eolienne D'Occey,<br>S.A.S.      | € 284,844     | Paris       | n.a.    | 51.00%  | 51.00%           |
| Lomartico Investments, Sp. z<br>o.o.      | € 1,066       | Warsaw      | n.a.    | 50.00%  | 50.00%           |
| Medsteville Investments, Sp. z<br>o.o.    | € 1,066       | Warsaw      | n.a.    | 50.00%  | 50.00%           |
| Ondentille Investments, Sp. z<br>o.o.     | € 1,066       | Warsaw      | n.a.    | 50.00%  | 50.00%           |
| Kronos IBV UK GmbH (1)                    | € 25,000      | Berlin      | n.a.    | 50.00%  | 50.00%           |
| KSD 20 UG (1)                             | € 1,000       | Munich      | n.a.    | 50.00%  | 50.00%           |
| 2017 Vento XVII LLC                       | € 457,105,962 | Delaware    | PwC     | 20.00%  | 20.00%           |
| 2018 Vento XIX LLC                        | € 436,471,238 | Delaware    | PwC     | 20.00%  | 20.00%           |

{474}------------------------------------------------

**% OF** 

| COMPANY                                       | SHARE<br>CAPITAL | HEAD OFFICE     | AUDITOR | % OF<br>CAPITAL | VOTING<br>RIGHTS |
|-----------------------------------------------|------------------|-----------------|---------|-----------------|------------------|
| 2019 Vento XX LLC                             | € 540,192,107    | Delaware        | PwC     | 20.00%          | 20.00%           |
| Flat Rock Windpower LLC                       | € 514,100,517    | Delaware        | KPMG    | 50.00%          | 50.00%           |
| Flat Rock Windpower II LLC                    | € 202,349,774    | Delaware        | KPMG    | 50.00%          | 50.00%           |
| Goldfinger Ventures II LLC                    | € 158,862,680    | Delaware        | PwC     | 50.00%          | 50.00%           |
| Goldfinger Ventures LLC                       | € 123,728,648    | Delaware        | PwC     | 50.00%          | 50.00%           |
| Nine Kings Wind Farm LLC                      | € -              | Delaware        | n.a.    | 50.00%          | 50.00%           |
| Riverstart Development LLC                    | € -              | Delaware        | n.a.    | 20.00%          | 20.00%           |
| Riverstart Ventures LLC                       | € 175,144,763    | Delaware        | PwC     | 20.00%          | 20.00%           |
| Solar Ventures Acquisition LLC                | € -              | Delaware        | n.a.    | 50.00%          | 50.00%           |
| Sunseap Asset (Cambodia)<br>Co., Ltd.         | € 2,760,000      | Phnom Penh City | n.a.    | 51.00%          | 51.00%           |
| Sunseap Energy (Cambodia)<br>Co., Ltd.        | € 365,000        | Phnom Penh City | n.a.    | 49.00%          | 49.00%           |
| Cenergi Sunseap Energy<br>Solutions Sdn. Bhd. | € 2,131,119      | Kuala Lumpur    | n.a.    | 40.00%          | 40.00%           |
| Powersource Sunseap Corp.                     | € -              | Makati City     | n.a.    | 40.00%          | 40.00%           |
| Powersource Sunseap Solar<br>Solution Corp.   | € -              | Makati City     | n.a.    | 40.00%          | 40.00%           |
| RL Sunseap Energy Sdn. Bhd.                   | € 532,780        | Sarawak         | n.a.    | 49.00%          | 49.00%           |
| Sunseap LCS Energy Sdn. Bhd.                  | € 21,311         | Kuala Lumpur    | n.a.    | 49.00%          | 49.00%           |
| Sunseap Solutions Taiwan Ltd.                 | € 924,126        | Taipei City     | n.a.    | 49.00%          | 49.00%           |

{475}------------------------------------------------

The Associated Companies included in the consolidation under the equity method as at 31

December 2023, are as follows:

| COMPANY                                      | SHARE<br>CAPITAL | HEAD OFFICE | AUDITOR  | % OF<br>CAPITAL | % OF<br>VOTING<br>RIGHTS |
|----------------------------------------------|------------------|-------------|----------|-----------------|--------------------------|
| Biomasas del Pirineo, S.A.                   | € 454,896        | Huesca      | n.a.     | 30.00%          | 30.00%                   |
| Desarrollos Eólicos de<br>Canarias, S.A.     | € 1,817,130      | Las Palmas  | PwC      | 44.75%          | 44.75%                   |
| Eos Pax IIa, S.L.                            | € 6,010          | La Coruña   | Deloitte | 48.50%          | 48.50%                   |
| Parque Eólico Belmonte, S.A.                 | € 120,400        | Madrid      | KPMG     | 29.90%          | 29.90%                   |
| Parque Eólico Sierra del<br>Madero, S.A.     | € 7,193,970      | Madrid      | KPMG     | 42.00%          | 42.00%                   |
| Promotores Villarrubia<br>Elevación, S.L.    | € 3,000          | Madrid      | n.a.     | 32.87%          | 32.87%                   |
| Promotores Villarrubia Morata<br>200KV, S.L. | € 3,000          | Madrid      | n.a.     | 43.62%          | 43.62%                   |
| Solar Siglo XXI, S.A.                        | € 80,000         | Ciudad Real | n.a.     | 25.00%          | 25.00%                   |
| Unión de Generadores de<br>Energía, S.L.     | € 23,044         | Zaragoza    | PwC      | 50.00%          | 50.00%                   |
| Hytlantic, S.A.                              | € 50,000         | Sines       | E&Y      | 28.50%          | 28.50%                   |
| Eólica de São Julião, Lda.                   | € 500,000        | Lourinhã    | n.a.     | 45.00%          | 45.00%                   |
| Blue Canyon Windpower LLC                    | € 57,783,738     | Texas       | PWC      | 25.00%          | 25.00%                   |

The Associated Companies included in the consolidation under the equity method as at 31 December 2022, were as follows:

| COMPANY                                  | SHARE<br>CAPITAL | HEAD OFFICE  | AUDITOR    | % OF<br>CAPITAL | % OF<br>VOTING<br>RIGHTS |
|------------------------------------------|------------------|--------------|------------|-----------------|--------------------------|
| Biomasas del Pirineo, S.A.               | € 454,896        | Huesca       | n.a.       | 30.00%          | 30.00%                   |
| Blue Canyon Windpower LLC                | € 63,851,000     | Texas        | PwC        | 25.00%          | 25.00%                   |
| Desarrollos Eólicos de<br>Canarias, S.A. | € 1,817,130      | Gran Canaria | PwC        | 44.75%          | 44.75%                   |
| Eólica de São Julião, Lda.               | € 500,000        | Lourinhã     | n.a.       | 45.00%          | 45.00%                   |
| Eos Pax Ila, S.L.                        | € 6,010          | Coruña       | Deloitte   | 48.50%          | 48.50%                   |
| Geólica Magallón, S.L.                   | € 2,040,000      | Zaragoza     | PwC        | 36.24%          | 36.24%                   |
| Parque Eólico Belmonte, S.A.             | € 120,400        | Madrid       | KPMG       | 29.90%          | 29.90%                   |
| Parque Eólico Sierra del<br>Madero, S.A. | € 7,193,970      | Madrid       | KPMG       | 42.00%          | 42.00%                   |
| San Juan de Bargas Eólica,<br>S.L.       | € 5,000,000      | Zaragoza     | PwC        | 47.01%          | 47.01%                   |
| Solar Siglo XXI, S.A.                    | € 80,000         | Ciudad Real  | n.a.       | 25.00%          | 25.00%                   |
| Solar Works! B.V.                        | € 5,976,514      | Rotterdam    | RSM Global | 20.19%          | 20.19%                   |
| Unión de Generadores de<br>Energía, S.L. | € 23,044         | Zaragoza     | PwC        | 50.00%          | 50.00%                   |
|                                          |                  |              |            |                 |                          |

{476}------------------------------------------------

# ANNEX II

# **Group Activity by Operating Segment**

Operating Segment Information for the years ended 31 December 2023

| THOUSAND EUROS                                             | EUROPE    | NORTH AMERICA | LATAM     | APAC      | SEGMENTS TOTAL |
|------------------------------------------------------------|-----------|---------------|-----------|-----------|----------------|
| Revenues                                                   | 1,069,374 | 729,370       | 78,208    | 114,489   | 1,991,441      |
| Income from institutional partnerships<br>in North America | -         | 231,055       | -         | -         | 231,055        |
|                                                            | 1,069,374 | 960,425       | 78,208    | 114,489   | 2,222,496      |
| Other operating income                                     | 458,913   | 42,715        | 69,837    | 1,276     | 572,741        |
| Supplies and services                                      | -229,501  | -214,545      | -45,766   | -30,124   | -519,936       |
| Personnel costs and Employee<br>benefits expenses          | -65,266   | -117,109      | -9,290    | -16,438   | -208,103       |
| Other operating expenses                                   | -142,406  | -118,229      | -14,940   | -4,214    | -279,789       |
|                                                            | 21,740    | -407,168      | -159      | -49,500   | -435,087       |
| Joint ventures and associates                              | -4,503    | 30,446        | -         | 3,131     | 29,074         |
| Gross operating profit                                     | 1,086,611 | 583,703       | 78,049    | 68,120    | 1,816,482      |
| Provisions                                                 | -12,800   | 314           | -3,946    | -         | -16,432        |
| Amortisation and impairment                                | -218,957  | -442,256      | -208,672  | -56,810   | -926,695       |
| Operating profit                                           | 854,854   | 141,761       | -134,569  | 11,310    | 873,355        |
| Assets                                                     | 7,090,076 | 13,244,616    | 1,790,354 | 1,633,786 | 23,758,832     |
| Liabilities                                                | 579,628   | 2,385,956     | 277,841   | 111,680   | 3,355,105      |
| Operating Investment                                       | 876,467   | 2,746,543     | 708,253   | 160,077   | 4,491,340      |

Note: The Segment "Europe" includes: i) revenues in the amount of 384,944 thousands of Euros from Spanish companies; ii) assets from Spanish companies in the amount of 2,090,071 thousands of Euros.

#### Reconciliation between the Segment Information and the Financial Statements:

| THOUSAND EUROS                                  |             |
|-------------------------------------------------|-------------|
| Revenues of the Reported Segments               | 2,222,488   |
| Revenues of Other Segments                      | 51,115      |
| Elimination of intra-segment transactions       | -34,759     |
| Revenues of the EDPR Group                      | 2,238,844   |
| Gross operating profit of the Reported Segments | 1,816,482   |
| Gross operating profit of Other Segments        | -92,345     |
| Elimination of intra-segment transactions       | 110,542     |
| Gross operating profit of the EDPR Group        | 1,834,672   |
| Operating profit of the Reported Segments       | 873,355     |
| Operating profit of Other Segments              | -118,992    |
| Elimination of intra-segment transactions       | 120,189     |
| Operating profit of the EDPR Group              | 874,543     |
| Assets of the Reported Segments                 | 23,758,832  |
| Not Allocated Assets                            | 5,168,125   |
| Financial Assets                                | 2,947,335   |
| Tax assets                                      | 710,041     |
| Debtors and other assets                        | 1,510,749   |
| Assets of Other Segments                        | 13,100,316  |
| Elimination of intra-segment transactions       | -11,980,621 |
| Assets of the EDPR Group                        | 30,070,311  |
| Investments in joint ventures and associates    | 1,079,576   |
| Liabilities of the Reported Segments            | 3,355,106   |
| Not Allocated Liabilities                       | 10,157,247  |
| Financial Liabilities                           | 1,548,246   |
| Institutional investors in wind farms in USA    | 2,188,245   |

Tax liabilities 730,291

{477}------------------------------------------------

**THOUSAND EUROS** 

| Payables and other liablities                 | 5,690,464   |
|-----------------------------------------------|-------------|
| Liabilities of Other Segments                 | 4,014,027   |
| Elimination of intra-segment transactions     | -132,154    |
| Liabilities of the EDPR Group                 | 17,452,133, |
| Operating Investment of the Reported Segments | 4,491,340   |
| Operating Investment of Other Segments        | 72,313      |
| Operating Investment of the EDPR Group        | 4,563,653   |

| THOUSAND EUROS                                             | TOTAL<br>OF THE<br>REPORTED<br>SEGMENTS | OTHER<br>SEGMENTS | ELIMINATION OF<br>INTRA-SEGMENT<br>TRANSACTIONS | TOTAL OF<br>THE EDPR<br>GROUP |
|------------------------------------------------------------|-----------------------------------------|-------------------|-------------------------------------------------|-------------------------------|
| Income from institutional<br>partnerships in North America | 231,055                                 | -                 | -                                               | 231,055                       |
| Other operating income                                     | 572,741                                 | 4,751             | 5,711                                           | 583,203                       |
| Supplies and services                                      | -519,937                                | -62,868           | 108,280                                         | -474,525                      |
| Personnel costs and Employee<br>benefits expenses          | -208,103                                | -44,649           | 8,686                                           | -244,066                      |
| Other operating expenses                                   | -279,789                                | -25,356           | 22,623                                          | -282,522                      |
| Provisions                                                 | -16,432                                 | -15,868           | 15,833                                          | -16,467                       |
| Amortisation and impairment                                | -926,695                                | -10,779           | -6,187                                          | -943,667                      |
| Joint ventures and associates                              | 29,074                                  | -15,337           | 1                                               | 13,738                        |

Operating Segment Information for the consolidated income statement and consolidated statement of financial position ended 31 December 2022:

| THOUSAND EUROS                                          | EUROPE    | NORTH AMERICA | LATAM     | APAC      | SEGMENTS TOTAL |
|---------------------------------------------------------|-----------|---------------|-----------|-----------|----------------|
| Revenues                                                | 1,279,292 | 718,298       | 52,821    | 84,516    | 2,134,928      |
| Income from institutional partnerships in North America | -         | 233,505       | -         | -         | 233,505        |
|                                                         | 1,279,292 | 951,803       | 52,821    | 84,516    | 2,368,432      |
| Other operating income                                  | 308,311   | 89,091        | 122,054   | 2,653     | 522,108        |
| Supplies and services                                   | -204,833  | -202,395      | -30,005   | -29,900   | -467,134       |
| Personnel costs and Employee benefits expenses          | -54,087   | -124,436      | -6,710    | -21,127   | -206,359       |
| Other operating expenses                                | -129,693  | -94,291       | -10,061   | -1,024    | -235,070       |
|                                                         | -80,303   | -332,031      | 75,278    | -49,399   | -386,455       |
| Joint ventures and associates                           | 49,280    | 35,308        | -         | -354      | 84,234         |
| Gross operating profit                                  | 1,248,270 | 655,080       | 128,099   | 34,763    | 2,066,212      |
| Provisions                                              | 5,527     | 81            | -         | -         | 5,608          |
| Amortisation and impairment                             | -245,835  | -399,356      | -63,129   | -21,723   | -730,043       |
| Operating profit                                        | 1.007,961 | 255,805       | 64,970    | 13,040    | 1,341,777      |
| Assets                                                  | 6,901,430 | 11,836,674    | 1,397,053 | 1,514,603 | 21,649,760     |
| Liabilities                                             | 833,365   | 1,771,275     | 451,670   | 85,101    | 3,141,41       |
| Operating Investment                                    | 736,466   | 1,850,471     | 708,436   | 126,204   | 3,421,577      |

Note: The Segment "Europe" includes: i) revenues in the amount of 263,264 thousand of Euros from Spanish companies; ii) assets from Spanish companies in the amount of 2,228,498 thousands of Euros.

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Reconciliation between the Segment Information and the Financial Statements

| THOUSAND EUROS                                  |             |
|-------------------------------------------------|-------------|
| Revenues of the Reported Segments               | 2,134,928   |
| Revenues of Other Segments                      | -7,261      |
| Elimination of intra-segment transactions       | 10,315      |
| Revenues of the EDPR Group                      | 2,137,981   |
| Gross operating profit of the Reported Segments | 2,066,212   |
| Gross operating profit of Other Segments        | 319,378     |
| Elimination of intra-segment transactions       | -228,383    |
| Gross operating profit of the EDPR Group        | 2,157,207   |
| Operating profit of the Reported Segments       | 1,341,777   |
| Operating profit of Other Segments              | 310,861     |
| Elimination of intra-segment transactions       | -241,133    |
| Operating profit of the EDPR Group              | 1,411,505   |
| Assets of the Reported Segments                 | 21,649,760  |
| Not Allocated Assets                            | 5,447,142   |
| Financial Assets                                | 2,742,557   |
| Tax assets                                      | 876,689     |
| Debtors and other assets                        | 1,827,896   |
| Assets of Other Segments                        | 11,512,060  |
| Elimination of intra-segment transactions       | -11,115,893 |
| Assets of the EDPR Group                        | 27,493,069  |
| Investments in joint ventures and associates    | 1,157,249   |
| Liabilities of the Reported Segments            | 3,141,411   |
| Not Allocated Liabilities                       | 11,592,798  |
| Financial Liabilities                           | 2,048,861   |
| Institutional investors in wind farms in USA    | 2,212,162   |
| Tax liabilities                                 | 766,403     |
| Payables and other liabilities                  | 6,565,372   |
| Liabilities of Other Segments                   | 3,234,241   |
| Elimination of intra-segment transactions       | -1,046,047  |
| Liabilities of the EDPR Group                   | 16,922,404  |
| Operating Investment of the Reported Segments   | 3,421,577   |
| Operating Investment of Other Segments          | 31,967      |
| Operating Investment of the EDPR Group          | 3,453,544   |

| THOUSAND EUROS                                                | TOTAL<br>OF THE<br>REPORTED<br>SEGMENTS | OTHER<br>SEGMENTS | ELIMINATION OF<br>INTRA-SEGMENT<br>TRANSACTIONS | TOTAL OF<br>THE EDPR<br>GROUP |
|---------------------------------------------------------------|-----------------------------------------|-------------------|-------------------------------------------------|-------------------------------|
| Income from institutional<br>partnerships<br>in North America | 233,505                                 | -                 | -                                               | 233,505                       |
| Other operating income                                        | 522,108                                 | 6,554             | -2,637                                          | 526,026                       |
| Supplies and services                                         | -467,134                                | -48,880           | 77,039                                          | -438,974                      |
| Personnel costs and Employee<br>benefits expenses             | -206,359                                | -43,446           | 9,195                                           | -240,611                      |
| Other operating expenses                                      | -235,070                                | 317,374           | -322,292                                        | -239,987                      |
| Provisions                                                    | 5,608                                   | -                 | -                                               | 5,608                         |
| Amortisation and impairment                                   | -730,043                                | -8,517            | -12,751                                         | -751,311                      |
| Joint ventures and associates                                 | 84,121                                  | 95,148            | -2                                              | 179,267                       |

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Image /page/479/Picture/0 description: The image shows a blurred, abstract shape in shades of blue and white. The shape resembles a curved or rounded form, with the blue hues transitioning from darker to lighter shades. The white areas are concentrated towards the bottom of the shape, creating a gradient effect. The overall composition is soft and indistinct, lacking sharp lines or clear definition.

Members of the Board of Directors of the Company EDP Renováveis, S.A.

## **DECLARE**

To the extent of our knowledge, the information referred to in paragraph 1 of Article 29-G of Decree-Law no. 486/99 of November 13, in sub-paragraph a) of paragraph 1 of Article 8 of the Royal Decree 1362/2007 of October 19th, and other documents relating to the submission of accounts required by current regulations (including, among others, article 253 of the *Spanish Companies' Act* and article 44 of the *Spanish Commercial Code*), have been prepared in accordance with applicable accounting standards and principles, reflecting a true, faithful and appropriate view of the equity, assets, liabilities, financial position and results of EDP Renováveis, S.A. and the companies included in its scope of consolidation and the management report fairly presents the business evolution, the performance, the business results and the position of EDP Renováveis, S.A. and the companies included in its scope of consolidation, containing a description of the principal risks and uncertainties that they face.

That the **Consolidated Annual Financial Statements and the Consolidated Management Report** submitted, including the Non-Financial Statements, were drawn up by the Board of Directors following the single electronic format and mark up requirements set under the Commission Delegated Regulation (EU) 2019/815 of December 17th, 2018, at its meeting held on February 27th 2024.

Madrid, February 27th, 2024.

| Antonio Sarmento Gomes Mota |
|-----------------------------|
| Chairman                    |

Miguel Stilwell de Andrade Vice Chairman

Rui Manuel Rodrigues Lopes Teixeira Director

Vera de Morais Pinto Pereira Carneiro Director

Ana Paula Garrido de Pina Marques Director

Manuel Menéndez Menéndez

Director

# Acácio Jaime Liberado Mota Piloto Director

Rosa María García García Director

José Manuel Félix Morgado Director

Allan J. Katz Director

Cynthia Kay Mc Call Director

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Image /page/480/Picture/0 description: The image contains a logo with a circular design on the left and the text "Renewables" on the right. The circular design consists of concentric circles in shades of blue and green. The text "Renewables" is in a simple, sans-serif font.

Ms. María González Rodríguez, Secretary non director of the Board of
Directors of EDP Renováveis, S.A.

That on February 27th, 2024 a meeting of the Board of Directors of EDP
Renováveis, S.A. was held in Madrid, being present or attending by
videoconference, as permitted under the Company's Bylaws, all the Directors:
Mr. Antonio Sarmento Gomes Mota, Mr. Miguel Stilwell de Andrade, Mr. Rui
Manuel Rodrigues Lopes Teixeira, Ms. Vera de Morais Pinto Pereira Carneiro,
Ms. Ana Paula Garrido de Pina Marques, Mr. Manuel Menéndez Menéndez, Mr.
Acacio Liberado Mota Piloto, Mr. Allan Katz, Ms. Rosa María García García, Mr.
José Manuel Félix Morgado and Ms. Cynthia Kay Mc Call.

That it was unanimously agreed to drawn up the Individual and Consolidated
Annual Financial Statements and the Individual and Consolidated Management
Report (including the Non-Financial Information Report which is incorporated in
the same) of EDP Renováveis, S.A. and its subsidiaries for the fiscal year 2023,
expressly stating the approval and without any disconformity being raised.

That the Individual Annual Financial Statements and the Individual Management
Report submitted, were drawn up following the single electronic reporting format
requirements set under the Commission Delegated Regulation (EU) 2019/815 at
the referred Board of Directors meeting.

That the Consolidated Annual Financial Statements and the Consolidated
Management Report (including the Non-Financial Information Report which is
incorporated in the same) submitted, were drawn up following the single
electronic reporting format and mark up requirements set under the Commission
Delegated Regulation (EU) 2019/815 also at the referred Board of Directors
meeting.

That Individual and Consolidated Annual Financial Statements and the Individual
and Consolidated Management Report for the financial year 2023 submitted are
consistent with those audited, and that the Auditor's Reports attached to the
XHTML files (including the Independent Verification Report ("EINF") and the
report about the Internal Control System over Financial Reporting ("SCIIF")) are
copy of the original signed by the Auditor.

That the documentation described above was signed by all the members of the
Board except in the case of Ms. Rosa María García García, that attended the
meeting by videoconference as permitted under the Bylaws. They all, stated their
agreement with drawing up the Individual and Consolidated Accounts. In that
sense, the relevant minutes contains the favorable vote of such drawing up,
issued by each of the Directors (either by those present or attending via
videoconference) during the meeting.

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Image /page/481/Picture/0 description: The image shows a logo with a circular design on the left and the text "Renewables" on the right. The circular design consists of multiple concentric circles in shades of blue and green. The text "Renewables" is in a simple, sans-serif font and is positioned to the right of the circular design.

That EDP Renováveis S.A. is hereby submitting its Individual and Consolidated
Annual Financial Statements and the Individual and Consolidated Management
Reports for the fiscal year 2023 in ESEF format which were drawn up both in
Spanish and English languages and duly drawn up by the Board of Directors of
the company at its meeting held on February 27th, 2024.

This certification, the authenticity of which I hereby guarantee, is issued at Madrid
on February 27th, 2024.

Secretary Non-director

Chairman's approval

signature

A.V

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# Concepts and definitions

Image /page/482/Picture/1 description: The image shows the logo for EDP Renewables. On the left is a circular design with three concentric circles in purple, green, and blue. To the right of the circle design is the text "edp" in a dark gray color, with the word "Renewables" underneath in a smaller font.

Annual Report 2023 Concepts and definitions

484

edp

Renewables

Nation Rise Wind Farm, Canada

{483}------------------------------------------------

th rate.

Annual Report 2023 The concepts and definitions

![edp Renewables](https://i.imgur.com/0999999.png)

# The concepts and definitions

## **A**

# Asset Rotation

Strategy aimed at crystallizing the value of a project by selling a minority stake in an asset and reinvesting the proceeds in another asset, targeting greater growth.

## Availability

The percentage of time a wind turbine is technically available to capture the wind resource and convert it to electricity.

#### **B**

#### Blades

The large "arms" of wind turbines that extend from the hub of a generator. Most turbines have either two or three blades. Wind blowing over the blades causes the blades to "lift" and rotate.

#### BOP

Balance of plant. All the supporting components and auxiliary equipment of the wind farm other than the generating unit.

#### BP

Business Plan.

#### BU

Budget.

#### **C**

#### CAGR

Compound annual growth rate.

## Carbon leakage

Occurs when due to the higher costs related with climate change policies (for example taxes or other penalties on carbon emissions), the companies decide to move their production to countries with more relaxed policies, therefore leading to higher carbon

emissions ex-post.

#### Capex

Capital Expenditure. Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment (ex: construction of wind farms).

#### Cash-flow

Amount of cash generated and used by a company in a given period. Cash flow can be used as an indication of a company's financial strength.

#### CfD

Contract for difference. Remuneration scheme based on the difference between the market price and an agreed "strike price" where if the "strikeprice" is higher than the market price, the CfD. Counterparty pays the generator the price difference.

# =

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# CO2

Carbon dioxide. A heavy colorless gas that does not supportcombustion, dissolves in water to form carbonic acid, is formed especially in animal respiration and in the decay or combustion of animal and vegetable matter, is absorbed from the air by plants in photosynthesis, and is used in the carbonation of beverages.

#### COD

Commercial Operating Date. Date at which the project starts officially operating, after the testing and commissioning period.

#### Core opex

Includes costs of supplies and services and with personnel, costs that are controllable by the company.

#### Critical suppliers

Includes suppliers of turbines, balance of plant and O&M.

#### Curtailment

The forced shut-down of some or all the wind turbine generators within a wind farm to mitigate issues associated with turbine loading export to the grid, or certain planning conditions. Curtailment is controlled by the regional transmission operator.

#### CO2e avoided (by renewables)

Emissions that would have occurred if the electricity generated by renewable energy sources in each geography was produced from the mix of thermoelectric power plants in that geography.

#### **D**

#### Dividend pay-out ratio

Measures the percentage of a company's net income that is given to shareholders in the form dividends. (Total Annual Dividends per Share / Earnings per Share).

#### Dividend policy

Set of guidelines a company uses to decide how much of its earnings it will pay out to

shareholders.

#### **E**

#### EBITDA

An accounting measure calculated using a company's net earnings, before interest expenses, taxes, depreciation and amortization are subtracted, as a proxy for a company's current operating profitability.

#### EMS

Environmental Management System. System that assures the protection of the environment through a proactive environmental management of the facilities in operation.

#### EPS

Earnings per share. The portion of a company's profit allocated to each outstanding share

of common stock.

# Equity consolidation

Accounting process of treating equity investments, in associate companies. Equity account is usually applied where the entity holds 20-50% of voting stock.

T

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Annual Report 2023 The concepts and definitions

Image /page/485/Picture/28 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a dark blue, sans-serif font, stacked above the word "Renewables" in a smaller, lighter blue, sans-serif font. The "d" in "edp" has a long vertical stroke that extends down to the baseline of the word "Renewables".

## **F**

# Feed in tariffs

Remuneration framework that guarantees that a company will receive a set price from their utility, applied to all of the electricity they generate and provide to the grid.

#### Financial investment

An asset in which to put money into with the expectation of obtaining gains or an appreciation into a larger sum of money.

#### Forex/FX

The market in which currencies are traded.

#### Full scope

Scheme of maintenance in which a third-party supplier is directly responsible for the full maintenance of the project. The project pays a fixed fee and assumes low risk.

#### **G**

#### GC

Green certificate. Tradable commodity proving that certain electricity is generated using renewable energy sources.

#### GCF

Gross Capacity Factor – The ratio of a site's gross output over a period of time, to its potential output if it were possible for it to operate at full capacity continuously over the same period of time.

#### GHG

Greenhouse gases. Gases that trap the heat of the sun in the Earth's atmosphere, producing the greenhouse effect; the two major greenhouse gases are water vapor and carbon dioxide; lesser greenhouse gases include methane, ozone, chlorofluorocarbons, and nitrogen oxides.

## GO/GoO

Guarantee of Origin. Tracking instrument that guarantees that electricity has been produced from renewable energy sources. Those GO are traded and used by suppliers to sell green energy.

# Gross profit

An accounting measure calculated using a company's revenue minus its cost of goods sold. Gross profit is a company's residual profit for selling a product or service and deducting the cost associated with its production and sale.

#### GW

Unit of electric power equal to 1,000 MW.

#### GWh

Equal to 1,000 MW used continuously for one hour.

#### **H**

# Hedging

Risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities.

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Image /page/486/Picture/26 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a simple, sans-serif font, stacked above the word "Renewables" in a smaller, similar font. The letters and word are in a dark blue or gray color.

Annual Report 2023 The concepts and definitions

## IFRS16

Regulatory standard of operating leases that requires the recognition of lease commitments for the entire duration of contracts into the balance sheet liabilities as well as the recognition of a new asset "Right of Use Asset" as counterparty.

#### Installed capacity

Capacity installed and ready to produce energy.

## ISO 14001

ISO 14001:2015 – Environmental Management Certification is an international standard for designing and implementing an effective environmental management system (EMS) to enhance the company's environmental performance.

#### ISO 45001

ISO 45001:2018 - Specifies requirements for an occupational health and safety (OH&S) management system, and gives guidance for its use, to enable organizations to provide safe and healthy workplaces by preventing work-related injury and ill health, as well as by proactively improving its OH&S performance.

## ITC

Investment tax credit. Tax incentive in the US which differ from the Production Tax Credit in the sense that the Tax Equity Investor receives a one shot tax credit that covers a percentage of the investment.

# **L**

## LCOE

Levelized cost of electricity. Provides a common way to compare the cost of energy across technologies. LCOE takes into account the installed system price and associated costs such as financing, land, insurance, transmission, operation and maintenance, and depreciation. The LCOE is a true apples-to-apples comparison of electricity costs and is the most common measure used by electric utilities or purchasers of power to evaluate the financial viability and attractiveness of a wind energy project.

#### **M**

#### M3

Modular maintenance model. Maintenance scheme which is halfway between the selfperform and a full scope maintenance, with some activities being performed in- house.

#### MW

Unit of electric power equal to 106 watts.

#### MWh

Equal to 106 watts of electricity used continuously for one hour.

#### **N**

# Net capacity factor (NCF)

The ratio of a plant's actual output over a period of time, to its potential output if it were possible for it to operate at full nameplate capacity continuously over the same period of time. Also known as Load Factor.

{487}------------------------------------------------

![edp Renewables](https://i.imgur.com/949999l.png)

Annual Report 2023 The concepts and definitions

#### Net debt

A metric that shows a company's overall debt situation calculated using company's total debt less cash on hand.

#### Net investment

Equals (Capex + Financial investments – Financial divestments).

#### **O**

#### O&M

Operations and maintenance. All the activities necessary to run the wind farm in a reliable, safe and economical way including for instance maintenance, repair, monitoring and operation.

#### PPA

Power purchase agreement. A legal contract between an electricity generator (provider) and a power purchaser (host). The power purchaser buys energy, and sometimes also capacity and/or ancillary services, from the electricity generator.

## PTC

Production tax credit. The result of the Energy Policy Act of 1992, a commercial tax credit in the US that applies to wholesale electrical generators of wind energy facilities based upon the amount of energy generated in a year.

#### **R**

#### Renewable energy

Energy that is derived from resources that are regenerative or that cannot be depleted including wind energy, solar, biomass, geothermal, and moving water. Also known as alternative energy.

#### REC

Renewable energy credit. Represents the property rights to the environmental, social, and other non-power qualities of renewable electricity generation. A REC can be sold separately from the electricity associated with a renewable energy generation source.

#### RES

Renewable energy sources.

#### RCF

Retained cash-flow. The amount to pay dividends to shareholders and/or to fund new investments and includes EBITDA after paying interests and tax equity investor's costs and after paying distributions to equity partners and taxes.

#### ROIC Cash

Return on Invested Capital (based on Cash Flows). Represents a measure of the profitability and value creation of a project or company.

#### RPS

Renewable Portfolio Standard. Regulation in the US that places an obligation in certain states on electricity supply companies to source a specific percentage of their energy from renewable sources.

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Annual Report 2023 The concepts and definitions

Image /page/488/Picture/24 description: The image shows the logo for EDP Renewables. The logo consists of the letters "edp" in a rounded, sans-serif font, stacked above the word "Renewables" in a smaller, sans-serif font. The letters "edp" are in a dark blue color, while the word "Renewables" is in a gray color.

==

↩

## **S**

#### Self-perform

Maintenance scheme in which all the maintenance works are done in-house which means that the project assumes the whole risk.

#### Sell-down

Divestment strategy by which the company sells majority stakes of projects in operation or under development to recycle capital, with up-front cash flow crystallization, and creates value by reinvesting the proceeds in accretive growth, while continuing to provide operating and maintenance services.

#### SF6

Sulfur hexafluoride. Colorless, odorless, non-flammable and potent greenhouse gas which is used in the electrical industry especially in gas insulated switchgear power installations.

#### Solar DG

Solar Distributed Generation. Facilities that generate electricity by means of solar power through Distributed Generation (DG), a system that generates power near the point of consumption.

#### Solar PV

Solar photovoltaic. Plant that generates electricity by means of solar power through photovoltaics, consisting of an arrangement of several components, including solar panels to absorb and convert sunlight into electricity, a solar inverter, cables and other electrical accessories.

## **T**

#### TSR

Total Shareholder Re
including dividends p

Total Shareholder Return. Measures the return that the stock provides to the shareholder, including dividends paid and the stock price appreciation.

## Tax equity

Financing structure (US) where the tax equity investor contributes capital in exchange of tax benefits and cash distributions during the 1st ten years the park operates, or until investment is recovered.

#### TEI

Tax Equity Investor – Financing structure (US) where the tax equity investor contributes capital in exchange of tax benefits and cash distributions during the 1st ten years the park operates, or until investment is recovered.

#### Transition risks

Climate risks related to the transition to a lower-carbon economy, that may entail extensive policy, legal, technology and market changes to address mitigation and adaptation requirements related to climate change. Depending on the nature, speed, and focus of these changes, transition risks may pose varying levels of financial and reputational risk to organizations.

#### UN SDG

United Nation's Sustainable Development Goal.

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Annual Report 2023 The concepts and definitions

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## **W**

# WATT (W)

The rate of energy transfer equivalent to one ampere under an electrical pressure of one volt. One watt equals 1/746 horsepower, or one joule per second. It is the product of voltage and current (amperage). Watts are the yardstick for measuring power.

#### Wind energy

Power generated by converting the mechanical energy of the wind into electrical energy using a wind generator.

#### Wind farm

Used in reference to the land, wind turbine generators, electrical equipment, and transmission lines for the purpose of generating wind energy and alternative energy.

# **Y**

-on YearYear-on-Year.

YTD
Year-to-date.

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Image /page/490/Picture/0 description: The image shows a solar farm under a blue sky with some clouds. The solar panels are arranged in rows and columns, and they are tilted towards the sun. The logo for EDP Renewables is in the upper center of the image.