The CEO of EDP, Miguel Stilwell d’Andrade, emphasized the necessity of ensuring adequate returns on investments in electrical networks due to increased integration of renewable resources. Speaking during a conference call with analysts on the company’s first-quarter results, he highlighted the significance of modernizing infrastructure to support this transition.
EDP’s E-Redes, the national electricity distribution network operator, has proposed a 50% increase in investment, raising the total to 1.6 billion euros for the period from 2026 to 2030. This plan, part of the Electricity Distribution Network Development and Investment Plan (PDIRD-E), was submitted to the regulator last year and has received a favorable opinion from the Energy Services Regulatory Authority (ERSE), a first without any reductions in the proposed investment.
Stilwell d’Andrade observed that there is a widespread consensus within the industry regarding the need for additional network investment, noting it as positive news for the company’s network business.
The proposed plan allocates around 45% of the investment toward network modernization, 15% to digitalization, and approximately 20% to electrification and decarbonization. In light of the significant power outage on April 28, which brought attention to these issues, 20% of the investment is designated to enhance reliability and ensure robust, continuous service as renewable energy integration increases.
Stilwell d’Andrade noted the regulator’s assertion that this investment’s impact on tariffs is negligible, translating to a cumulative 0.7% increase in electricity tariffs by 2030, which is a marginal component of household electricity bills. He remarked that this cost is minor within the broader context of system expenses, affirming the company’s commitment to investing heavily in network improvements.
Looking ahead, EDP is awaiting the new regulatory periods that will dictate tariff updates in both Portugal and Spain. ERSE is expected to announce its decision by December 15 this year, while the new regulatory framework in Spain will be established in 2026. However, Stilwell d’Andrade mentioned that investment conditions in Spain could be more favorable. He pointed out that the return on asset base (RAB) in Spain is currently 5.6% with no adjustment for inflation and an investment cap of 0.13% of GDP, which restricts sector growth.
This limitation, he noted, has been acknowledged by the Spanish government, which has admitted the need for reform.
EDP reported a first-quarter profit of 428 million euros, marking a 21% increase from the same period last year.
