Energias de Portugal （EDP） SA is investing $2.75 billion （EUR 2.5 billion） until 2026 to install an additional four gigawatts （GW） in solar distributed generation （DG） projects globally.
EDP, which operates in 17 markets worldwide, has installed around 1.6 GW of solar DG capacity for business and residential clients worldwide, of which 0.9 GW were executed in a model where the company secures 100 percent of the initial investment and contracts a long-term power purchase agreement with the client, EDP said in a recent news release.
DG refers to a variety of technologies that generate electricity at or near where it is used, such as solar panels and combined heat and power. Solar DG has become one of EDP’s fastest-growing business segments and is expected to represent close to 50 percent of all new solar additions globally in the coming years, EDP said.
“Solar distributed generation represents a tremendous opportunity to accelerate the energy transition alongside our clients”， EDP CEO Miguel Stilwell d’Andrade said. “This business segment can efficiently provide significant energy cost savings for our clients as it entails shorter permitting and development times and faster payback as compared to the larger utility-scale renewables projects, while also addressing our clients’ growing energy independence aspirations. We are proud to be able to partner with thousands of companies and families to generate clean, reliable, and affordable energy for all.”
In Europe, EDP said its solar DG installed capacity is expected to grow approximately 500 percent in the next three years. In the USA, the company sees a strong potential to develop DG projects in large commercial and industry clients and to develop remote energy communities, according to the news release.
In Asia-Pacific, EDP plans to grow its solar DG presence by three times in the next three years, supported by rising decarbonization targets and a strong manufacturing presence in the region. The company has more than 1.1 GW in the pipeline and more than 150 megawatts （MW） secured or under construction. In China, EDP built its biggest DG project worldwide with a 19 MW capacity.
In Brazil, EDP said it is a “top three player in solar DG”， with a total of 205 MW of alternating current between plants in operation and under construction. The company expects to grow 600 percent by 2026 compared to 2022 with a focus on remote solar communities.
Meanwhile, two of EDP’s green hydrogen initiatives have been selected by the European Commission to receive funding from the European Union Innovation Funds, according to a separate news release.
The European Commission will award funding to EDP’s GreenH2Atlantic project, to be developed in Sines, Portugal, and the Asturias H2 Valley plan in Spain. The funding program was created to “support the implementation of innovative technologies, processes, and products that will contribute to the European Union’s decarbonization commitments”， the news release noted.
In Portugal, through HYTLANTIC, EDP leads a consortium of 13 entities that are developing the GreenH2Atlantic project, which aims to transform the decommissioned Sines thermal power plant into a renewable hydrogen plant using solar and wind energy with the installation of a 100-MW electrolyzer. In Spain, EDP designed the Asturias Green Hydrogen Valley project for the site of the Abono thermal power plant.
