EDP leads the way

EDP

Economic and social development is driven by market signals which, so far, have been distorted. A clean atmosphere, one of the scarcest resources on Earth, has not been properly valued. Thus CO₂ and other emissions responsible for its deterioration have a disproportionately higher impact than their costs would suggest.

Fig 1

This has led to a tremendously inefficient outcome for society, with exceedingly high emission levels and insufficient investment in energy conservation and emission reduction. We have not come together as a society to collectively address this, and instead have created unilateral economic incentives where some countries and regions do not share in the costs of CO₂ abatement, but benefit from the mitigation efforts. We should make this journey together towards a balanced solution of Man and Nature.

To meet the climate change challenge, while maintaining economic growth, we need to multiply carbon productivity – gross domestic product generated per ton of CO₂ emissions – by a factor of 10 between now and 2050. In the Industrial Revolution, United States labour productivity was multiplied by 10 between 1830 and 1955. The challenge is replicating this ten-fold productivity growth…three times faster!

These economic and environmental issues can only be solved if all stakeholders are involved in a robust coordinated global agreement. It is essential the Copenhagen UN Conference on Climate Change results in a global, stable and strong enough carbon abatement mechanism that creates the right incentives to ensure the risks are averted.

Opportunity, not cost

Consensus takes on an even more significant role in today’s setting, against the backdrop of uncertainty from the largest economic crisis since the Great Depression. Fortunately, the investments needed to convert our society into a low-carbon-emitting economy will clearly contribute to generating faster economic growth over coming decades. They will help create jobs, foster technological innovation and ensure that this growth, together with an improvement in quality of life, will be truly sustainable.

The European Union (EU) has been the most active regional group, establishing ambitious targets for 2020 for emissions reductions, renewable energy and energy efficiency in the 20-20-20 policy.

As an EU-member, Portugal has been a leader in the development of renewable technologies and an active promoter of economic and sustainable growth. With a clear objective to attract the most advanced industries in the renewable arena, Portugal has launched a major wind development effort to reach 5,700 MW of installed capacity by 2012. Its National Hydro Plan aims to reach 5,575 MW of installed capacity by 2010 and 7,000 MW by 2020. To help achieve this, 10 specific projects are identified that will increase hydropower installed capacity by 1,096 MW by 2020. EDP is also leading in wind in Portugal. As the leader of the consortium for the development and operation of 1,200 MW of new wind capacity by 2012, EDP will create around 6,200 new jobs (direct and indirect). EDP is also building and developing approximately 3,000 MW of added hydro capacity, which will create more than 30,000 new jobs (direct and indirect).

Fig 2

EDP – feel our energy

EDP is the largest Portuguese company and a global player in renewable energy (Figure 1). Since 2005, the share of renewables in our power generation capacity mix has grown by 13% to 61%. By 2012, this will grow to 66% while our CO₂/MWh emissions factor will have fallen to 0.27 from 0.6 (metric tonnes/MWh) in 2005 (Figure 2).

EDP has now become the second largest renewables company worldwide in market capitalisation and the fourth largest wind operator, present in eight different geographies, with more than 5 GW of installed capacity at the end of 2008, and more than 10.5 GW expected by the end of 2012.

EDP is also actively participating in multiple projects to harness the enormous potential of the oceans. We are part of the world’s first commercially operating wave energy project, off the Portuguese coast, and of a consortium tendering for offshore wind generation licences in the UK.

However, renewable energy by itself is only part of the solution. In the transportation sector, EDP is a key player in the development of an infrastructure to support the mass use of electric vehicles in Portugal. Additionally, through its InovGrid project, EDP is developing a state-of-the-art smart grid in Portugal, crucial to effectively monitoring and managing power demand and promoting behavioural changes in consumers.

These initiatives represent the seeds of how we will shape the future. Join EDP in facing this challenge to leave a better planet for future generations.

W: www.edp.pt