Electricity production down 7% in H1

EDP’s electricity generation fell 7% year-on-year in the first half to 29,098 gigawatt-hours (GWh), in a period in which thermal generation decreased 48%, the company announced to the market on Friday.

“Thermal generation decreased 48% yoy (-51% coal vs. 1H22 [first half of 2022], decreasing the proportion in the total generation to 5.6%), which results from the hydro recovery and increase in renewable generation in the Iberian Peninsula. In Brazil, coal generation remained at zero in the first half of 2023 due to good water resources,” the note sent to the Portuguese Securities Market Commission (CMVM) said.

The document, which presents EDP’s forecast operating data for the first half of the year, added that total renewable energy generation in the period increased by 6% year-on-year, “representing 87% of total electricity generation”.

Hydro generation in the first half of the year increased 68% year-on-year, although it was lower than expected by 0.3 terawatt-hours and in the face of a dry second quarter.

According to EDP, hydro reservoir levels “remained at 80%, eight percentage points above the historical average, which supports the outlook for hydro generation for the following months”.

Wind and solar generation increased by 1% year-on-year, as a result of higher installed capacity, with Europe and North America being the largest contributors to this generation, accounting for 33% and 52%, respectively.

In the year ended 30 June, EDP added 2.1 gigawatts of renewable projects, “reaching an installed wind and solar capacity of 15.4 GW (EBITDA + Equity) in June 2023, +10% or +1.4 GW” year-on-year. There are 5 GW under construction.

Between January and June, the volume of electricity commercialised decreased by 8% compared to the same period of the previous year as a result of the decrease in volumes sold to business customers in Spain.

Within the gas field, volumes sold decreased by 34% compared to the first half of 2022.

Electricity distributed in the first half of the year decreased 1% in the Iberian Peninsula, despite a 1% increase in Portugal, and rose 2% in Brazil compared to the same period last year.

In the note ahead of the presentation of the company’s first-quarter results on 27 July, EDP also notes that following the successful takeover bid for EDP Brasil on 11 July, it is “moving forward with EDP Brasil’s exit process, which should result in a significant reduction of non-controlling stakes in EDP DR in the second half of 2023”.