Circular economy

Circular economy for a Regenerative business

An efficient management of natural resources demands a change in the economic model in which we live

Materials have been a key driver of human progress and prosperity over the past century, powering rising living standards and economic growth. However, this progress has come at a significant cost. The linear "take-make-waste" model of the modern industrial economy is not sustainable, and it is largely powered by fossil fuels.

According to The Circularity Gap Report 2024, material handling and use are responsible for 70% of global greenhouse gas emissions. Yet, the impacts of material extraction and use go far beyond emissions. They also drive over 90% of global biodiversity loss and water stress, threatening the planet's life support systems.

The Circular Economy presents a promising solution to this challenge and plays a significant role in supporting the energy transition and ensuring the well-being of present and future generations while respecting the boundaries of our planet.

Integrating Circular Economy principles into our business model
Simply relying on renewable energy and improving efficiency is not enough. That is why we not only believe that the entire life cycle of products and processes must be rethought (extraction, production, use, and closure), but we are committed in promoting the efficient use of natural resources in our activities, with a special attention to the sustainable management of water.

At EDP, the Circular Economy approach is extended beyond our activities, and throughout the value chain, contributing to the reduction of greenhouse gas emissions.

For us, this is the right way forward.

Total recovered waste % per year

96%

Perfomance in 2023

96%

Water withdrawn discharged

78,15%

Total recycled waste in 2024

1.1t/GWh

Total waste generated

87%

Total recovered waste

61%

Hazardous waste recovered

The circular economy strategy

Our Circular Economy Strategy is built on the principles of reducing, optimizing, and recovering resources throughout our operations. The strategy emphasizes the efficient use of natural resources and integrates circular design into the business model to minimize material extraction and consumption, while enhancing waste recovery and promoting material reuse across our value chain.

Development

During the development phase, we take into account circular opportunities when designing the facilities. The search for circular solutions in this phase allows EDP to design facilities that are as circular as possible, taking advantage of rainfall resources and taking into consideration future waste treatment and collection.
In this phase, we also have meetings with suppliers and analyse their corporate policies, targets, strategies or other documents to understand their alignment to EDP's ESG priorities, and we are
introducing ESG clauses in contracts regarding Circular Economy, such as recyclability commitments.

Construction

The construction phase is essential to the circularity of the Company and our operations by promoting the efficient use of natural resources and maximizing the recovery of waste and resources, as well as their reintroduction into the economy as by-products. An example of this is the Company's use of earthworks to backfill and level the wind and solar facilities.
In addition, the environmental monitoring and surveillance of the construction works ensures a sustainable use of resources, as well as the correct management of the waste generated, in line with the requirements made to suppliers mentioned in the development phase.

Operation & Maintenance

We are committed to promoting sustainable and rational resource usage, along with encouraging the reuse of components whenever feasible.

Dismantling / Repowering

In the context of our dismantling and repowering activities, circular economy principles are being applied to optimize resource use and minimize waste generation. Through careful planning and execution, components from decommissioned assets are being repurposed, recycled, or reintegrated into new projects, contributing to a more sustainable approach to the lifecycle management.
This approach not only reduces environmental impact but also aligns with our commitment to promote a circular economy and minimize the use of virgin resources in our operations.

EDP’s seven axes of action to accomplish a circular economy

Efficiency in the use of resources and materials

Promote the reduction of inputs of resources and materials and reduction of waste outputs.

Product longevity

Promote solutions that extend the product lifecycle, including modular design solutions.

Digitalisation

Integrate digital solutions that allow dematerializing processes and reducing the consumption of materials and resources

Resource valorisation

Promote the valorization of waste materials at the end of life, creating symbiosis with other sectors of activity.

New business models

Promote business models with various circularity levels in products/services, like life cycle extension and efficiency.

Circular supplies

Promote circularity practices: replacing materials, recycled, reused: identifying circularity’s labells.

Influence and awareness

Ensure the company's responsibility for its products/materials. Influence the value chain to enhance circularity.

This is how we do it

Our goals take place in accomplishments we set our energy and hearts on.

R3FIBER: Recycle wind blades

The company has signed an agreement with TRC to develop viable, maximum - efficiency alternatives for recycling wind turbine blades that are no longer in use. This pilot initiative will apply to faulty or damaged wind turbine blades that need to be replaced, and, in the future, blades from EDPR wind farms that have reached the end of their life cycle. The management of wind energy waste is a growing concern. This waste does not yet stand at significant volumes as the wind energy business has only been developed recently. To address the situation of managing this non-hazardous waste going forward, EDPR has partnered with TRC to create a new, sustainable system that allows wind turbine blades to be put to use.

Transition to vegetable oils

In the distribution networks, the substitution of mineral oils by vegetable oils has been encouraged, with low toxicity levels and better biodegradability, with satisfactory results in the mitigation of environmental impact. In 2020, more transformers containing plant-based insulators were purchased for a pilot project to replace mineral oil, but their introduction into the grid was delayed due to the Covid-19 pandemic. As an alternative to SF6, vacuum equipment and equipment with solid insulators are already being used in the medium voltage network. The refurbishment, repair and reuse of assets (e.g. transformers) and the purchase of equipment as a service are also currently underway.

Second life of batteries

EDP has created a battery from used car modules. Currently, the system consists of 7 serially connected modules, resulting in a small battery. The performance and decay of the whole set, comprised of modules, battery management system and inverter, is being compared with a standard battery. The project provides the EDP Group with significant knowledge on the limitations of this technology, allowing for a better vision of and positioning in the energy storage area. In the future, these batteries may have the same applications as current new batteries. Moreover, this technology makes it possible to produce batteries at a lower cost while also reducing waste, as it increases the life cycle of batteries and prevents recycling after first use.

Single use plastic elimination

To eliminate 100% of single use plastics in EDP Group, following the EU Directive (2019/904)Single use products to eliminate: Packaging; cups; branding material; office material; protection material. Through the distribution of reusable bottles to all employees in Portugal: Reduction of 59% of disposable cups at EDP’s facilities.

Digitalization of processes

NEW PROJECT Monitoring of equipment by 'machine learning' to predict possible malfunctions/failures that do not limit the use. These initiatives make it possible to extend the useful life of existing assets, such as improvements in their remote operation, maintenance, automation, detection and management.

Close the Loop Program - End of life of solar panels

EDP Renewables North America (EDPR NA) has announced the launch of its Close the Loop Program, which is focused on keeping the environment front and center through more efficient use of resources and materials, promoting solutions that extend product lifecycle, and ensuring responsibility for product materials and assets. The program, in partnership with SOLARCYCLE, an advanced technology-based solar recycling company, involves recycling materials during and post-construction of renewables projects. EDP Renewables hopes to reduce its environmental impact and contribute to a more circular economy. Highlight: Recycle and recover over 95% of the valuable material from a solar panel.

Working together towards a common goal

A key component of our circular economy approach is to work closely with our wide range of stakeholders. We actively engage with local communities, suppliers, NGOs, and industry experts, to understand their concerns and needs. In addition, we participate in collaborative platforms, that facilitate knowledge sharing and collaboration with other organizations, helping us to stay informed about best practices and identify potential impacts and opportunities for improvement.

Core to our strategy, we also work closely with our business partners to increase the circularity levels of the materials and equipment's used in the company activities. By enhancing supplier assessments and promoting sustainable practices within the supply chain, we can ensure that circular economy principles are embedded in the sourcing, production, and end-of-life management of materials.

Joining industry initiatives, forums and pilot projects with partners

Collaboration with Thermal Recycling of Composite (R3FIBER), RECICLALIA, the LIFE REFIBRE project.
Pilot project with the Associação Portuguesa de Energias Renováveis (APREN).
Member of the Global Alliance for Sustainable Energy.

Circular economy