EDP Renewables is advancing the energy transition in Europe with an ambitious €17 billion investment plan focused on wind, solar, storage, hydrogen, and electricity grids. Rafael Solís Hernández, Director of Public Affairs, Stakeholders, and Brand at EDP Europe, emphasized that the company’s goal is to be 100% green by 2030, aligning with the European Green Deal and the EU’s target of 45% renewable energy penetration by that year.

“We have two strategic priorities: prioritizing revenue over volume and continuing to invest in our key markets. In this regard, 80% of our investment will be directed to the United States and Europe, which are our main markets,” Solís Hernández stated during the first panel, Expanding Energy Transition Strategies of Energy Companies in Europe, at the Storage, Renewable and Electric Vehicles Integration Forum, a virtual event organized by Strategic Energy Corp (SEC).

He emphasized: “We are in a competitive environment, but we trust in our ability to continue growing and leading the energy transition.”
Watch the event here:

The first event of the year organized by Strategic Energy Corp was a two-part virtual session hosted by Mobility Portal Europe and Strategic Energy Europe. Strategic Energy Corp partnered with the Future Energy Summit (FES) to organize this event, as FES is the leading platform for renewable energy discussions in Spanish-speaking countries. It provides forums that facilitate debate and networking among major global and regional companies to drive the energy transition.

It is worth noting that on June 24, the third edition of FES Iberia 2025 will take place at Colegio Caminos (Betancourt Auditorium, C. de Almagro, 42, Chamberí) in Madrid. (Rewatch the previous edition here). The event will feature companies such as Iberdrola, Nextracker, Engie, Grenergy, Statkraft, Acciona Energía, Red Eléctrica, and EDP Renewables, along with prominent representatives from Spain’s autonomous communities and Latin America. Key discussion topics will include solar and wind energy, energy storage, green hydrogen, distributed generation, PPAs, auctions, and new projects.

Energy Storage: A Strategic Focus for EDP in Europe

As part of its growth strategy, EDP has placed a strong emphasis on energy storage, with pioneering projects in the UK, Portugal, Spain, and Poland. These projects aim not only to ensure supply flexibility and stability but also to strengthen European energy security in a challenging geopolitical context.

“At EDP, we are already investing in storage. We have two projects in the UK, each around 100 MW, operating independently,” Solís Hernández explained.

Additionally, in Portugal, EDP is leading the installation of the largest co-located storage system (BESS) near a combined cycle power plant, recently awarded with European Commission funds. This project reinforces the importance of integrating storage into traditional energy infrastructure, optimizing the use of renewable sources and improving grid stability.

In Spain, EDP has developed the first hybrid project that combines wind, solar, and storage in a single facility near Madrid. This hybrid approach maximizes energy efficiency by merging multiple renewable sources into one grid connection point.

“And in Poland, we have also been awarded a contract to build a co-located system,” the EDP Renewables representative added.

United Kingdom: A Leader in Energy Storage

The UK has become a benchmark market for energy storage in Europe, thanks to its advanced market design and favorable public policies.

Solís Hernández highlighted three key factors behind the UK’s success:

• Enhanced Frequency Response Auctions, allowing storage operators to sell grid stability services.
• Capacity markets, providing investment return predictability and encouraging low-carbon technologies.
• Flexible participation in ancillary services, such as Dynamic Containment, which optimizes battery use by absorbing excess frequency in the system.

“The UK is at the forefront of this technology, it remains a European reference, and we must learn from its example,” Solís Hernández emphasized during the event organized by SEC.

Although the UK market is performing well for many investors, Solís Hernández pointed out challenges related to grid connection and ancillary service saturation. However, he expressed confidence that regulatory authorities are working to address these barriers.

“Investors need some visibility on returns. Otherwise, it is not an easy market to invest in,” he noted.

He stressed that having capacity payments for at least 15 years provides stability for investors. Additionally, he underscored the need to prioritize low-carbon technologies for BESS systems to make sense and to allow hybrid project options across all European markets.

He also emphasized the importance of avoiding double taxation. In some European markets, both energy injection and withdrawal are taxed, which is illogical, especially when increasing flexibility and storage capacity in the system.

Challenges of the Energy Transition in Europe

Despite progress in the renewable sector in Europe, Solís Hernández pointed out critical challenges in the energy transition. One of the most pressing issues is that Europe’s grid infrastructure is insufficient to integrate renewable energy, making it necessary to update and expand the electricity system. Solís Hernández suggested that “storage can play a key role in improving and upgrading the grid system.” He also proposed allowing private investment in electrical infrastructure to accelerate this process.

Another challenge lies in electrification. Currently, only 25% of the energy consumed in Europe comes from electricity, highlighting a low electrification rate, particularly in industrial and commercial sectors. To speed up this transition, EDP advocates for tax incentives targeting companies that adopt electric technologies in their operations, making electrification more attractive and feasible.

Permitting and bureaucracy also represent significant obstacles, slowing down the development of renewable energy projects. Solís Hernández emphasized that there is a disconnect between EU directives and their implementation at the national level. “There is a gap between European guidelines and national reality. We need to harmonize permitting processes,” he stated, calling for more efficiency in regulatory frameworks.

Lastly, local content requirements and supply chain flexibility are factors limiting the scalability of renewable energy projects. Solís Hernández stressed the importance of “being pragmatic” with these requirements to meet growth objectives efficiently. He argued that adjusting these demands would allow for more agile and effective project development without compromising expansion goals.