Heavy rainfall in Q1 helps swell renewables to 91% of EDP output

Renewable energies accounted for 91% of the electricity generation of Energias de Portugal (EDP) in the first quarter of this year, at a time when heavy rainfall contributed to an increase in hydroelectric generation, according to a statement to the market.

In the note, released via Portugal’s Securities Markets Commission (CMVM), in which it reported on forecast operating data for the first three months of this year, the group said that “EDP’s total electricity production increased by 5% in the first quarter of 2025, to 18.3 TWh [terawatt hours], with renewable energies accounting for 91% of total production.”

According to EDP, “hydro generation in the Iberian market totalled 4.2 TWh” in the first quarter, “0.5 TWh higher than expected.”

The company pointed out that “the quarter was marked by strong hydro resources, 42% above the historical average” in the quarter, compared to 38% in the same period last year.

“On 31 December 2024, reservoir levels stood at 59% vs. 78% at the end of 2023,” it said, noting that “the high levels of rainfall recorded in the first quarter of 2025 contributed to the recovery of reservoir levels to 88% at the end of March 2025 vs. 94% at the end of March 2024.”

As a result, “hydro production from pumping increased by 5% year-on-year to 0.6 TWh,” driven by “volatile hourly prices on the electricity market,” it explained.

The company said that “average electricity prices on the Iberian market almost doubled from 45 euros/MWh” – that is, per megawatt hour – in the same period last year to €85/MWh in the first quarter of this year.

Meanwhile, “electricity generation from gas-fired power stations increased by 1 TWh compared to the same period last year, representing 8% of EDP’s total electricity generation” in the first quarter, compared to 2% in the same period last year, “providing the electricity system with flexible and complementary energy to increase the penetration of renewable energies.”

In the last 12 months, “the EDP Group added +3.5 GW [gigawatts] of wind and solar capacity,” he said.

“The evolution of EDP’s installed capacity in the last 12 months was impacted by asset rotation transactions in Europe (0.5 GW), mainly in Italy in June (0.2 GW) and in Poland in September (0.2 GW),” he said, revealing that “regarding the asset rotation strategy, EDP currently has 2 transactions already signed in Spain and the USA, while most of the execution of the asset rotation plan for 2025 should be concentrated in the second half of the year.”

In turn, wind and solar generation rose 11% to 11.1 TWh, “supported by strong growth in solar installed capacity, mainly in North America.”

The company also reported that “the decline in the number of EDP electricity customers on the liberalised market in Portugal slowed” from 71,000 fewer in the first quarter of last year to 47,000 fewer in the first quarter of this year “following a 5% increase in new customer acquisitions and a substantial 10% reduction in customer exits.”

In Brazil, “electricity distributed increased by 7% year-on-year, due to high temperatures and a 2% increase in the number of customers connected to the network” year-on-year.

In the Iberian Peninsula, “electricity distributed increased by 3% year-on-year and the number of customers connected to the grid increased by 1% year-on-year,” it stated.

“Particularly in Portugal, there continues to be strong growth in connection requests associated with the energy transition, particularly for new renewable energy connections, with an increase of 16% year-on-year, and for new electric mobility points, which saw an increase of 30% year-on-year,” the statement adds.