By Sergio Goncalves
LISBON (Reuters) -Portugal’s largest utility, EDP, wants faster licensing and higher returns on assets to expand its electricity grid, which is crucial for the country to carry out its planned multibillion-dollar green industrial projects, its CEO said.
“Without more electricity grids, there is no energy transition. The difficulty in accessing the grid is creating uncertainty about the viability of (industrial green) projects,” CEO Miguel Stilwell de Andrade told reporters late on Tuesday.
A huge blackout that hit Spain and Portugal on April 28 reignited debates about investments in power networks – and their remuneration – to make sure they can cope with increased electrification, power demand growth from AI and data centres, and renewables integration.
Stilwell de Andrade said the government must “simplify procedures and shorten licensing periods,” which can often take several years.
The regulator ERSE must also allow “adequate remuneration” on EDP’s asset base in Portugal, which is low compared to its European peers, he said.
The rate of return on its asset base is now around 5.5%, and EDP wants it to be in line with other European countries where investments are rewarded with returns as high as 7.5%.
EDP owns the largest Portuguese distribution grid in high, medium, and low voltage, with over 228,000 kilometers (142,000 miles) serving more than six million domestic and industrial customers.
It plans to invest 3.1 billion euros ($3.67 billion) in its grid between 2026 and 2030, up 50% from 2 billion euros in 2021-25, to address high demand for electricity connections from green industries and renewables spread across the country.
According to the state agency that promotes investment, AICEP, in the Sines region alone, south of Lisbon, there are several projects, such as lithium batteries, green hydrogen, decarbonisation of refineries, planned or in early execution, totalling over 9 billion euros in investment.
Environment Minister Maria da Graca Carvalho said investment in grids was a “high priority” and the government was working on a decree law to streamline grid connection procedures and environmental licensing, “which will simplify the creation of high-demand (electricity) zones”.
(Reporting by Sergio Goncalves.Editing by Mark Potter)
