Reflecting on 2023: Leading the transition to a sustainable, net zero future
Author: Gustavo Monteiro, CEO, EDPR NA Distributed Generation (EDPR NA DG)
Distributed generation is driving the pace of the energy transition and the transformation to a decarbonized, decentralized grid of the future. That progress is reflected in some of the critical milestones the EDP Renewables North America Distributed Generation (EDPR NA DG) team achieved in 2023. Together with our customers and partners, we unveiled innovative new projects in local communities, scaled up generation and operational capacity, and increased the adoption of distributed generation and supporting technologies like energy storage across the continent.1
I am extremely proud of the EDPR NA DG team and the hard work and commitment that has gone into tripling EDPR NA DG’s energy generation since our founding two years ago from 89MW across 200 sites spanning 16 states to 290 MW across 537 sites spanning 20 states. This is a testament to a strong operations culture, alignment on the core values that drive us, and unity on EDPR NA DG’s shared vision and ambition for a net zero future.
Reflecting on 2023
Distributed generation represents an essential pathway to enabling energy access, equity, and affordability in communities across North America. At EDPR NA DG, we are committed to delivering these key outcomes for our customers. Continuing to enhance renewable capacity will be critical to meeting our growing clean energy needs while ensuring grid stability, parity, and reliability.
Reliability also depends on individuals and companies understanding the cost, community, and sustainability benefits that come from adopting onsite solar, storage, community solar, and other distributed energy resources – a market that is projected to double in the U.S. alone between 2022 and 2027.2
Overcoming Challenges and Gaining Momentum
One of the reasons distributed energy resources will carry on growing beyond 2023 is that the supply chain challenges that permeated 2022 should continue to soften in 2024. This was a welcome development, with availability and reliability of supply improving and delivery times decreasing.3
In addition, the bold climate action spurred by the Inflation Reduction Act continued this year, contributing to momentum and enthusiasm for building a 21st-century energy system. With more incentives for local production, more vendors with aggressive growth plans continue to be a positive signal for the market.
Similarly, the residential, smaller utility-scale, C&I, and community solar segments all demonstrated growth in 2023, although permitting and interconnection challenges continue to create obstacles to more robust deployment.4
Continuous reforming of these processes, permitting and interconnection, is critical to unlock the full potential of clean energy and provide the momentum needed for the EDP Group to deploy more than 4 GW of new operating assets per year by 2026 to power our shared energy future.
Building the Workforce of the Future
To be sure, this progress toward energy security and independence cannot be sustained without a growing, skilled, next generation workforce to support a grid-connected future in communities across North America.5 EDP Renewables North America (EDPR NA) recognized the critical need for leadership to meet this transformational need and invested in a technician training facility this year, located close to seven of EDPR NA’s Illinois wind farms.
This knowledge and innovation hub not only develops new frontline careers in solar and wind that are needed to support the energy transition, it also empowers the communities where we live and work – it allows us to invest and hire locally to advance a just and equitable transition in a rapidly growing industry.
Partnering to Amplify Our Impact through Environmental Justice
Also key to EDPR NA DG’s mission to advance the energy transition is our April agreement with Google to partner on a solar development project that will benefit over 25,000 families in communities across the U.S., from New Jersey to Ohio. Not only does the focus of this project align with EDPR’s values and social impact ambitions, the Clean Energy Financial Benefit Sharing Program is a tangible way to reduce the energy burden on low-to-moderate communities that need relief the most.
We are proud to partner with Google on this robust 500 MWAC effort and lead the way with an innovative ImpactREC™model that demonstrates how the energy transition can benefit all of us.
A Bright Future for Solar + Storage
EDPR NA DG’s agreement with Mohave Electric Cooperative (MEC) represents another pathway toward ensuring access to clean energy in local communities. This milestone announced in October is a great example of how to accelerate on-site generation, reduce emissions, and make local communities more energy independent thanks to innovations in adding energy storage technology to solar solutions.
With 23 MW of solar capacity and an additional 15 MW of battery storage that will assist in stabilizing energy costs for MEC’s 36,700 members, the Mohave Solar Energy project is the largest storage capability EDPR NA DG has developed to date, thanks to the hard work of our team, our partners and MEC. The flexibility that storage can provide will continue to deliver on meeting power demand while ensuring grid reliability and affordability.
Flying High in New Market Segments
Growth will also be driven by continuing our record of excellence in collaborating with key partners in new market segments, both new geographies and new industries. I was thrilled to announce our agreement with Lufthansa Technik Puerto Rico this July to help this aviation leader decarbonize and reach its sustainability goals. This model framework will contribute to the energy industry transformation in Puerto Rico through on-site distributed generation.
Looking Ahead to 2024
From regulatory developments at the state level to community solar projects emerging across North America, the next several years will be truly transformational. Thanks again to everyone working across the EDPR NA DG enterprise to transform the energy landscape and reinforce our commitment to sustainability across the entire value chain, from development to decommissioning. Working alongside our partners, customers, and side by side in our communities, we will continue to work and invest in achieving a net zero future powered by renewable innovation.