EDP invests €2.5 billion in distributed solar generation globally
- Strong track record in 17 of EDP markets and recent boost in distributed solar installations steered EDP to a leading position in this business. Group has already installed 1.6 GWp worldwide.
Singapore, 7 August 2023 – Solar distributed generation (DG) has become one of EDP's fastest growing business segments – which is expected to represent close to 50% of all new solar additions globally in the coming years. The group is committed to investing €2.5 billion up to 2026 to install an additional 4 GWp in solar projects behind or in front of the meter, for families and businesses, thereby ensuring a decisive contribution to the energy transition.
EDP already has a global leading position in solar DG and is a leader among European based players. With more than a decade of experience, the group has installed to date around 1.6 GWp of solar DG capacity with business and residential clients worldwide, of which 0.9 GWp through the Asa-Service model (in which EDP secures 100% of the initial investment and contracts a long-term PPA with the client).
Operating solar DG in 17 markets worldwide, the group has a strong track record and dedicated teams that have already deployed 127 thousand installations in residential houses (in Europe) and in small businesses to large-size corporate companies, across Europe, Asia Pacific, North America and Brazil. This achievement showcases EDP's solid ability to secure clients globally, while contributing to a more sustainable planet for all.
“Solar distributed generation represents a tremendous opportunity to accelerate the energy transition alongside our clients. 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”, states Miguel Stilwell d’Andrade, CEO of EDP.
In APAC, EDP plans to grow its solar DG presence by three times until 2026, supported by rising decarbonization targets and strong manufacturing presence in the region. The company already has approximately 1.2 GWp of installed and under construction solar capacity in the APAC region. Recently, in China, EDP developed and built its biggest DG project worldwide with a 19 MWp capacity.
In Europe, EDP’s solar DG installed capacity is expected to grow ~5x in 2023-26. The recently announced partnership with Navigator for a 17 MWp solar project showcases EDP’s ability to be an important partner for companies’ addressing the challenge of the energy transition.
In the US, there is a strong potential to develop DG projects in large commercial and industry clients, and to develop remote energy communities. EDP is expected to deliver a 5x growth in the next 3 years, through key corporate partnerships such as the largest yet corporate partnership for distributed generation signed between EDP Renewables and Google or the recent partnership with Lufthansa to develop a DG project in Puerto Rico.
In Brazil, where EDP is already a top 3 player in solar DG, with a total of 205 MWac between plants in operation and under construction, the company is expected to grow 6x by 2026, comparing to 2022, with focus on remote solar communities.
At the same time, EDP is increasingly being chosen by global companies to develop multi-site and multi-country solar projects. Faurecia, a multinational automotive component group, chose EDP to develop DG projects simultaneously in Europe, Asia, and the United States, in up to 60 locations.
The group is confident that this global growth will be supported by short time to market, flexibility in grid connection, permitting and supply chain, and long-term price predictability, while addressing clients’ increasing concerns with energy independence and delivering a competitive solution for their energy needs.