Energias de Portugal (EDP) SA is embarking on a substantial investment of $2.75 billion (EUR 2.5 billion) by 2026 to establish an additional four gigawatts (GW) of solar distributed generation (DG) projects on a global scale.

With a presence in 17 markets worldwide, EDP has already successfully deployed approximately 1.6 GW of solar DG capacity for both business and residential clients across the globe. Notably, 0.9 GW of this capacity was executed under a model where EDP secures the entire initial investment and subsequently enters into a long-term power purchase agreement with the client, as highlighted in a recent press release.

Solar distributed generation encompasses various technologies that generate electricity directly at or near the point of use, including solar panels and combined heat and power systems. This segment has rapidly emerged as one of EDP's fastest-growing business sectors and is projected to contribute nearly 50 percent of all new global solar installations in the upcoming years, EDP reported.

EDP's CEO, Miguel Stilwell d'Andrade, emphasized the potential of solar distributed generation in driving the energy transition alongside their clients. He underlined how this segment is conducive to providing substantial energy cost savings to clients due to its shorter permitting and development timelines and quicker payback, in contrast to larger utility-scale renewable projects. Furthermore, the CEO noted how these projects align with the growing desire for energy independence among clients.

EDP anticipates that its solar DG installed capacity in Europe will witness an approximately 500 percent growth over the next three years. In the United States, the company envisions robust potential for DG initiatives in the realm of large commercial and industrial clients, as well as remote energy communities.

The Asia-Pacific region also holds significant promise for EDP's solar DG expansion, with plans to triple its presence within the next three years. This growth will be supported by escalating decarbonization goals and strong manufacturing capabilities in the area. EDP boasts a pipeline of more than 1.1 GW and has secured or is currently constructing over 150 megawatts (MW). Notably, EDP completed its largest DG project globally in China, featuring a 19 MW capacity.

In Brazil, EDP is a prominent player in the solar DG sector, boasting a total alternating current capacity of 205 MW across operational and under-construction plants. The company aims to achieve a 600 percent growth by 2026 compared to 2022, with a particular focus on developing solar communities in remote areas.

Simultaneously, the European Commission has chosen two of EDP's green hydrogen initiatives to receive funding from the European Union Innovation Funds. EDP's GreenH2Atlantic project in Sines, Portugal, and the Asturias H2 Valley plan in Spain are set to benefit from this program, designed to support innovative technologies that align with the European Union's decarbonization goals.