EDP set to invest €24bn in energy transition in new strategic plan
EDP expects to be totally coal-free by 2025 and all green by 2030, anticipating its carbon neutral targets by 20 years. EDP’s goal is to have more than 50 GW of renewables additions before 2030, moving production from 74% renewables as of today, to 100% in 2030.
EDP has announced its Strategic Update for the period 2021-2025, reinforcing its position as a leader of the energy transition, with an unprecedented €24bn plan for investment in the energy transition. 80% of this investment will be in renewables, improving its portfolio across technologies – wind, solar, hydrogen and storage, with a commitment to deploy 4GW per year and double solar and wind capacity by 2025. The new plan will pave the way for the company to become carbon neutral by 2030.
The plan is underpinned by three strategic axes – accelerated and sustainable growth; a future-proof organization, powered by increased investment in innovation and digital transformation; and the delivery of ESG excellence and attractive returns.
Miguel Stilwell d’Andrade, CEO of EDP commented, “This plan is a bold and ambitious commitment and an unprecedented acceleration of growth in renewables building on our strong track record. The global challenge presented by climate change requires a different mindset, ambition and, above all, measurable action. For EDP, it’s not just about powering communities, it’s about empowering our communities, to live more sustainable lives”,
A bold and ambitious strategic plan for 2021-2025
Through accelerated and sustainable growth, EDP will keep improving its portfolio, while ensuring a low-risk profile and aiming towards a solid investment grade rating (BBB) : EDP is accelerating its investment focused on renewables in Europe and North America, building on its track record as a renewables leader. The company plans to invest €24bn to 2025, of which 80% in Renewables, 15% in Networks and 5% in Client Solutions & Energy Management.
In wind & solar, EDP will double installed capacity in the next 5 years, from 12 GW to 25 GW in 2025, representing an average of 4 GW additions per year. In solar generation, EDP aims to grow its global presence tenfold. With this ambition, EDP is setting a commitment to continue leading the energy transition from the front: EDP expects to be totally coal-free by 2025 and all green by 2030, anticipating its carbon neutral targets by 20 years.
EDP will also step-up investment on its digital and innovative profile: €2bn will be invested in the digital transformation of the business and in innovation by 2025, to deliver new solutions across hydrogen, storage, smart grids, energy communities and e-mobility and further empower and connect a global and flexible team of diverse talent.
Strategic plan in numbers:
- Coal-free by 2025 and all green by 2030
- €24bn investment in energy transition;
- 80% investment in renewables; 15% in networks; 5% in client solutions and energy management;
- additional 4 GW/year in renewables;
- 2x solar and wind capacity by 2025;
- 20GW of renewables deployed by 2025;
- €2bn investment in innovation and digitalization
- Ambitious growth will drive EBITDA to €4.7bn in 2025