Analysts see EDP renewables unit at 8.9-11 bln euros

LISBON, May 9 (Reuters) - Two analysts have valued the renewable energy unit of Energias de Portugal (EDP.LS) at between 8.9 billion euros and 11 billion euros ahead of an anticipated initial public offering of the business.

Citi set the enterprise value of the unit at between 8.9 billion and 10.8 billion euros while UBS set a range of 9.8 billion to 11.0 billion euros.

EDP has said it is likely to launch an IPO of 20 to 25 percent of the renewable energy unit, the world's fourth biggest wind power company, in June.

A final decision is expected this month on whether the sale will go ahead. EDP has said it depends on market conditions.

Citi said in a research note that EDP's renewable unit has an experienced management team to "to build upon a well established business."

But Citi warned that return on investments in the wind energy market may change as regulation evolves for the sector.

UBS estimated that the wind power market should deliver internal rates of return of between 9 to 13 percent in coming years but fall in the longer term. (Reporting by Sergio Goncalves; writing by Axel Bugge; Editing by David Cowell)