EDP commits over EUR-1bn green energy investment to Galicia region, Spain

Portuguese utility EDP - Energias de Portugal SA (ELI:EDP) on Monday announced that it has committed to investing over EUR 1 billion (USD 1.23bn) in the Spanish region of Galicia over the next decade, to develop renewables and support the local economy as it transitions to a new energy and economic model.

The group will dedicate the funds to technologies ranging from onshore and offshore wind power to energy storage and green hydrogen, it said. The money would be sourced from EDP’s own pot under the business plan and from the Next Generation EU post-COVID-19 recovery instrument.

The EDP group has been running business in Spain’s northwest region since 1996. Through its renewables arm EDP Renovaveis SA (ELI:EDPR), the company operates 264 MW of installed capacity across nine wind farms. It also serves as electricity distributor via Viesgo Distribucion and Viesgo-owned entity Begasa.

EDP said that it is working on projects with several Galician entities who want to contribute to the transition to a more sustainable and fairer model, focusing on reviving the territories that have been affected by the decarbonisation.

The Portuguese group does not own or operate coal-based power plants in Galicia, but some of its Spanish utility peers, such as Naturgy Energy Group SA (BME:NTGY) and Endesa SA (BME:ELE), do and both of them have renewable energy plans for the area once they abandon coal.

EDP has two coal-fired power plants in the neighbouring Asturias, where the group intends to pour EUR 470 million to add renewable energy systems to the sites. The company plans to fully exit coal by 2025.

(EUR 1.0 = USD 1.225)

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