Solar distributed generation (DG) will be one of the major avenues for growth in the coming years. We at EDP—together with our partners, customers, and communities—have been leading the way in this segment for the last ten years.
EDP saw a world in which every rooftop could become a producer of clean energy, contributing to a more sustainable world. EDP’s largest single solar distributed generation project to date was installed this year—and in just five months—in the Chinese province of Anhui, by EDP Renewables APAC. It consists of 35,000 solar panels, capable of generating 22 GWh of electricity per year and avoiding the equivalent of 19 metric tons of CO2 emissions. It is a clear example of both our ability to meet the needs of our partners and of our focus on this emerging business, which brings energy even closer to consumers and accelerates the energy transition.
Distributed solar generation is expected to account for around 50% of new solar generation in the world, making it a strategic business area for EDP. By 2026, the group is investing another €2.5 billion to install 4 GWp in residential and corporate solar projects, making a decisive contribution to the energy transition.
With more than a decade of experience, the EDP Group has so far installed around 1.6 GWp of solar distributed generation capacity for residential and business customers around the world, 0.9 GWp of which under an as-a-service model (in which EDP provides 100% of the initial investment and establishes a long-term contract with the customer).
The advantages of solar distributed generation:
- Promotes price stability and greater energy independence;
- Enables services like energy storage and electric mobility;
- Provides customers with 100% green energy;
- Contributes to the company’s or country’s emissions targets;
- Gives access to national or regional public incentives;
- Reduced energy costs for the customer;
- Installation time in 12 months giving immediate access to savings.
We demonstrated our vision when we decided to turn our entire production to renewable energy and commit to the energy transition. It was in 2012 that the company embarked on this journey, in Portugal, carving out a solid path that grew to Spain and Brazil and quickly expanded to several other markets with new projects and acquisitions. We are now at the forefront of solar distributed generation with 1.6 GWp of installed capacity worldwide—a staggering increase on the 53 MWp (less than 5% of current capacity) we had in our portfolio in 2019.
The group’s solar distributed generation business is already present in 17 countries on four continents. And it is still growing, accounting for most new installations in the last two years—with 0.8 GWp in 2022 alone. Today, we are increasingly becoming a strategic partner for families and companies in their energy transition.
Growth potential of distributed solar energy in the world:
Over the next few years, solar distributed generation is expected to steadily increase in EDP’s portfolio as a result of the growing interest from private customers and the development of the major projects the company has in the pipeline. This includes multiple installations for Google with a total of 650 MWp, which represents EDP Renewables’ largest agreement with a single corporate customer.
There are numerous advantages to decentralized solar, whose potential continues to grow as the technology develops. In addition to the benefits in terms of consumption and energy efficiency for consumers, there is the versatility of the system, short payback periods for investors (9 -11 years) and also the environmental component and contribution to the energy transition.
EDP is a global leader in the Distributed Generation (“DG”) market with over 1,6 GWp of installed capacity. With a distinctive value proposition, EDP offers an extensive DG offering with a variety of products, customized business models and personalized value-added services.
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