UPDATE 1-EDP to price renewables IPO at 7.4-8.9 euros/shr

(Updates with details throughout)

LISBON, May 15 (Reuters) - Energias de Portugal (EDP.LS: Quote, Profile, Research) said on Thursday it will go ahead with a planned initial public offering of its renewable energy unit and set the IPO price at between 7.4 euros and 8.9 euros per share.

EDP said in a statement the IPO of 25 percent of EDP Renewables, which is the world's fourth biggest wind power company, would be launched on May 19 and the new shares will be listed as of June 4.

EDP Renewables has an enterprise value of between 7 billion euros and 8 billion euros at the established price range and the IPO will raise up to 2 billion euros, EDP said.

It would be the largest IPO in Europe so far this year and the biggest ever in Portugal.

"The main objective of the IPO is to support the leadership position of EDP Renewables and its programme of growth," EDP Chief Executive Antonio Mexia told journalists.

EDP is hoping to harness alternative energy at a time of record oil prices and has said it hopes 67 percent of its electricity production will come from alternative energy by 2015, up from 39 percent currently.

EDP shares fell on Thursday on what was expected to be a lower evaluation of the renewables unit than previously estimated.

EDP shares closed 2.55 percent lower at 4.0200 euros on Thursday before the announcement. The shares are down 8 percent since the beginning of 2008.