EDP Energias de Portugal

EDP is planning to increase its renewable electricity capacity by at least 20 GW by 2025, and by at least 50 GW by 2030. The company is supporting the expansion of its renewable generation by dedicating around 80% of its total generation CapEx to low-carbon generation between 2021 and 2025.
EDP is rolling out smart grids at scale. It plans to install smart meters for more than 70% of its customers by 2022, and 100% in Iberia by 2025. Furthermore, EDP aims to facilitate the adoption of smart grids, and deliver customer solutions such as electric vehicle charging, energy storage and digital innovations.

EDP has set a target to reduce its scope 1 and 2 emissions intensity by 98% by 2030 compared to 2015 and has also set a target to reduce its scope 3 emissions by 50% by 2030. The Science Based Targets initiative has verified that these targets are consistent with a 1.5°C pathway. EDP is on track to meet all targets set for 2030.

EDP has set a comprehensive transition plan. EDP’s Strategic Update 2021-2025 sets out targets for 2025 and 2030 focused on renewable energy expansion, networks and client solutions and energy management. By 2025, EDP intends to phase out all coal-fired generation, while by 2030 it intends on delivering 100% renewable energy, become carbon neutral and have rolled out 100% of its smart meters in Iberia by 2025. EDP outlines its investment between 2021-2025 of EUR 24 billion (USD 2.74 billion), but not its CapEx investment beyond this.

The result of EDP’s scenario analysis until 2050 using Representative Concentration Pathway (RCP) 2.6, RCP 4.5 and RCP 8.5 investigating physical risks identified two key risks to their operations, with higher risks identified using RCP 8.5. The company’s scenario analysis identified the structural reduction of water availability in Iberia and Brazil, which would impact the productivity of hydroelectric generation assets in Portugal, Spain and Brazil, along with the increased occurrence and severity of extreme weather events which could damage electricity distribution assets.

Though EDP aims to phase out coal-fired powered generation by 2025, and deliver 100% renewable energy and become carbon neutral by 2030, the company still has gas assets. These three assets were commissioned between 2004 and 2009, and no projected decommissioning dates for these assets were found. To achieve 100% renewable energy generation and become carbon neutral these assets must be decommissioned by 2030. If not, EDP will not meet its 100% renewable energy generation objectives in 2030. EDP is projected to exceed its carbon budget to 2035. To deliver 100% renewables and phase-out coal in 2025 and gas in 2030, EDP must accelerate the decline in electricity production from fossil fuel assets, and the retirement of these assets, based on current projections.

EDP aims to reduce its scope 1 and 2 emissions intensity by 98%, and scope 3 emissions by 50% by 2030. By 2025 EDP commits to become coal free, deploy 4 GW per year of renewables, and invest in the energy transition. By 2030, EDP also aims to have deployed at least 50 GW of renewables, achieved 100% renewables generation, and become carbon neutral.

EDP projects to spend 99.3% of its electricity portfolio development CapEx in low-carbon generation over the next five years. EDP is focusing on renewables, allocating about 80% of its EUR 24 billion (USD 2.74 billion) CapEx for 2021 and 2025 on renewables, focusing on Europe and North America.

EDP utilised 74% of its total electricity portfolio development CapEx on the development of its low-carbon electricity portfolio in 2020. EDP invested EUR 110.9 million (USD 126.7 million) in mitigation research and development (R&D) in 2020, with 22% of this R&D investment on non-mature technologies, such as smart grids.

Between 2015 and 2020, EDP’s combined scope 1 and 2 emissions intensity decreased by 56%, due to recent reductions in its coal and gas generation capacity, and 73% decrease in coal-fired power generation over this time frame.

EDP’s transition plan and low-carbon business models are supported by EUR 24 billion (USD 2.74 billion) CapEx from 2021 to 2025, with the primary focus on renewable generation and a coal-free target for 2025. Furthermore, EDP also aim to double of its solar and wind generation capacity by 2025.