ACCESS ROADS
Access roads allow access to a wind energy project site and individual wind turbine location during the development, construction, and the operational phases of a wind energy project. Access roads are constructed for long-term use and built to accommodate heavy equipment and maintenance vehicles throughout the life of the project.

ASSET ROTATION
Strategy aimed at crystallising 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.

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.

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).

CARBON DIOXIDE (CO2)
A heavy colourless gas that does not support combustion, 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.

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.

COP 21
Conference of parties, UN Climate Change Conference held in Paris

CURTAILMENT
The forced shut-down of some or all of 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.

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.

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.

ENEOP (EÓLICAS DE PORTUGAL)
A consortium created to win a wind energy tender in 2005- 2006. The bid was designed to promote renewable energy as part of an industrial policy whereby all the steps form turbines design to operation would be located in Portugal. ENEOP won the first and biggest exploitation license at 1,335 MW, of which EDPR holds a 40% economic interest (533 MW).

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.

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 in to a larger sum of money.

FOREX
The market in which currencies are traded.

GREENHOUSE GASES (GHG)
Gases that trap the heat of the sun in the Earth’s atmosphere, producing the greenhouse effect; the two major greenhouse gases are water vapour and carbon dioxide; lesser greenhouse gases include methane, ozone, chlorofluorocarbons, and nitrogen oxides.

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 one billion watts, one thousand megawatts (MW). Watts are the yardstick for measuring power.

HEDGING
Risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities.

INDC
“Intended Nationally Determined Contribution” submitted by the parties before COP 21 Summit

INSTALLED CAPACITY
Capacity installed and ready to produce energy.

LEAN
A production philosophy that considers the expenditure of resources in any aspect other than the direct creation of value for the end customer to be wasteful, and thus a target for elimination.

LEVELIZED COST OF ENERGY (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.

MWH
Equal to 1,000 kilowatts of electricity used continuously for one hour

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.

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).

POWER PURCHASE AGREEMENT (PPA)
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.

PRODUCTION TAX CREDIT (PTC)
The result of the Energy Policy Act of 1992, a commercial tax credit that applies to wholesale electrical generators of wind energy facilities based upon the amount of energy generated in a year.

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.

RENEWABLE ENERGY CREDITS (REC)
A REC 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.

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).

WIND ENERGY
Power generated by converting the mechanical energy of the wind into electrical energy through the use of a wind generator.

WIND FARM
Wind farm is used in reference to the land, wind turbine generators, electrical equipment, and transmission lines for the purpose of generating wind energy and alternative energy.