Innovation

As part of the sustainable program of the company, which contributes to eight out of the seventeen of the Sustainable Development Goals, the company keeps its focus on achieving excellence in the three fundamental principles of Sustainability, namely economic, environmental and social. EDPRenováveis (EDPR; which in English means ‘EDP Renewables’) is a subsidiary company of EDP and one of its biggest projects. EDPR is not only the worldwide leader in the renewable energy sector but also the fourth largest producer of wind energy. With a wide and strong portfolio of developing projects, EDPR has registered an exceptional development in the past years and aspires to represent more than 60% of the energy supply in Europe by 2030.

In order to achieve this goal, to give one step forward in the renewable energies world and in accordance with the company’s commitment to protect the environment, EDPR leads environmental activities such as the implementation of several wind farms spread all around the world. The most recent construction will be located in Sivry-Rance (Hainaut province) in Belgium in 2018 and it will have four wind turbines with a maximum total of 10MW of installed capacity. This facility joins the 71 MW that the company already operates in Belgium.

There are 4 stages in the construction of a wind farm: 1) Development Phase: where several environmental, cultural and historic specific studies are made before the construction; 2) Construction Phase: it is ensured that all the main contractors are committed with the fulfilment of the environmental conditions and best environmental practices. Once construction has finished, the affected land is restored, the reseeding progress of disturbed areas is overseen; 3) Operation Phase: during this process, environmental legal compliance and the proper management of the environmental aspects are ensured through EDPR Environmental Management System; 4) Decommissioning Phase: the wind farms are planned to operate during many years but even when the useful life comes to an end, they may be re-powered and their useful life extended.

Wind turbine works the opposite of a fan. Instead of using electricity to make wind, like a fan, wind turbines use wind to make electricity. The wind turns the blades, which spin a shaft, which connects to a generator and makes electricity. With a simple and easy explanation about a 100% green alternative (wind) to create electricity that nobody can object, and a sedulous participation in debates that count with the presence of the Minister of the Environment, this is the way how EDPR reaches more and more “followers” everyday.

Inspiration

Becoming a leader company in the energy sector not only requires intense hours of daily hard work but also needs an inspiration that makes everyone inside the company move in the same direction. With the evolution of technology, the last centuries were the background of manufacturing and another sectors evolution. However, this development has not always come from the most ecological decisions. That was the time when EDP stop to think: while many lives were being positively transformed by this new stage of industrial revolution, these same lives and also others were being negatively affected by an unmeasured hunger of having always more. Hence the reason EDP created EDPR and started to make this planet a place more livable. The entire Group EDP states that it is time to celebrate energy and while the world changes, the energy changes with it through the art of reinventing, innovating, revolutionizing and transforming the future. Through the creativity that fuels the engine of technology. “We look at the past as a gallery of memories that inspire us to new creations in the future. There is, in energy, an infinite narrative that is built every day as an inexhaustible and inspiring work of art. Energy as the new Art”.

Overall impact

Looking to the financial side, every year has been better than the previous one. Regarding 2017, revenues increased to 988€ million while EBITDA reached 719€ million (both increased 11% year over year). EBITDA had this development due to higher year over year production. This was mainly a consequence of the higher capacity now in operation. Depreciations and amortizations decreased by 12% thanks to EDPR’s change in depreciation schedule from 25 to 30 years, which offsets the negative impact from the higher capacity in operation.

Having a closer look to the most important part, the environmental side, the aims are also being reached. Between January and June of 2017 EDPR’s supplied 14.5 TWh of green electricity, which is an increase of 9% year over year, and avoiding 12mt of carbon dioxide.

Business benefit

Within the renewables energy industry, wind onshore is clearly the leader. The most remarkable recent development is that in an increasing number of markets, wind power is the least cost option when adding new generation capacity to the grid, and prices continue to fall. Wind is today one of the biggest, cheapest, and fastest ways to reduce emissions of carbon dioxide and other harmful air pollutants, and simultaneously uses no water. There are now commercial wind power installations in more than 90 countries with total installed capacity of close to 370 GW by 2014.

Social and environmental benefit

EDP believes that promoting citizenship is an active way of involving communities and an additional contribution to the development and improvement of their well-being. The company promotes and embraces cultural and social initiatives with the purpose of contributing to sustainable societies, based on a citizenship exercise shared by all. The EDP group has a Social Investment Policy where it is established the four priority goals of the activity:

· To promote the access to culture and art, and to protect cultural heritage

· To promote social inclusion and the practice of sustainable lifestyles, giving greater value to energy inclusion and the access to energy.

· To protect natural heritage and biodiversity

· To promote the energetic efficiency, renewable energy and decarbonisation

EDP also invested in promotion of volunteer work, social business and initiatives that embrace sustainable lifestyles from 2015 until the current days.

The company is committed in protecting the environment over a proactive environmental management of its wind farms in operation, as it is written in their Environmental Policy. The operation phase of wind farms, with a useful life of 25 years, is the spotlight of this company’s business.

Interview

Vitor Fernando da Conceição Gonçalves, EDP interview