Sustainability Consulting
EDP, Sustainability
Full Credential Description
EDP, a leading electricity generator and supplier in Portugal, Spain, and Brazil, faced significant challenges in the rapidly changing electricity sector, particularly regarding decarbonization. Recognizing the urgent need for a transition to a low-carbon economy, EDP set ambitious science-based targets to reduce its greenhouse gas emissions. The company aimed to clarify its commitment to investors and stakeholders, aligning its goals with climate science through the Science-Based Targets initiative (SBTi).
To implement these targets, EDP focused on expanding its renewable energy portfolio, committing to increase its installed renewable capacity by at least 700 MW annually until 2020. The company invested heavily in energy efficiency, particularly through the installation of over 1.5 million smart meters in Portugal, with a goal of achieving 90% smart meter usage in Iberia by 2030. EDP also allocated approximately EUR 72 million towards innovation in clean energy and energy efficiency since 2015. One of the notable initiatives, Save2Compete, launched in 2012, has resulted in energy savings of 170 GWh, bill reductions of EUR 18 million, and the avoidance of 70,000 tons of CO2 emissions.
As a result of these efforts, EDP achieved a 57% reduction in CO2 intensity compared to 2005 levels, with a target of 75% reduction by 2030. The company also reported customer energy efficiency savings of around 200 GWh, with aspirations to exceed 1 TWh by 2020. The establishment of these science-based targets has enhanced EDP's reputation, providing visibility and credibility both internally and externally, and fostering positive reactions from stakeholders, including large corporate power customers.
Despite facing political and regulatory uncertainties, EDP has not encountered negative impacts from its initiatives. The company recognizes the importance of setting clear, ambitious targets to inspire other sectors to follow suit in their decarbonization efforts. EDP's commitment to reducing direct and indirect greenhouse gas emissions by 55% per TWh by 2030, alongside a 25% reduction in absolute value chain emissions, underscores its leadership role in the energy sector and its dedication to facilitating a broader transition towards sustainability.