Adaptation is one of the five main priorities of EDP’s climate action. It aims to improve the resilience of EDP’s infrastructures to climate change. Climate change became a reality and its effects are already being felt across the globe. Under the adaptation priority, EDP is assessing the level of exposure of EDP’s infra-structures to climate physical risks, considering the short, mid and long-term IPCC scenarios downscaled when possible to regionalized scenarios. The Commitment:
To have adaptation plans in place in its business units by 2025
For this purpose, a common corporate methodology supports Business Unit Plans already on- going. Risk information is consolidated at corporate level according the EDP’s risk taxonomy, aligned with TCFD Recommendations.
EDP’s Adaptation Plans consider the following international references:
- EU Taxonomy, with most of EDP’s assets eligible, EU taxonomy principles set under the “do no Significant Harm” criteria for Adaptation are followed
- Taskforce on Climate-related Financial Disclosures (TCFD), is used to set the physical risks taxonomy, integrated in the overall EDP’s risk taxonomy
- EU Strategy on Adaptation to Climate, for better alignment with public priorities
- Brazilian National Plan for Adaptation to Climate Change (PNA)
- ISO 14090:2019 and ISO 14091, to work under a recognized international global standard and better align this process with another ISO standards in place.
Additionally, each geography adds local instruments when available and applicable.
Main physical Risks assessed
Risks assessment occurs at business unit level and is periodically reviewed, as more information is collected and analysed.
Aggregated potential business impacts from physical risks, aligned with TCFD taxonomy:
Chronic Physical Risks
Potential business impact
Temperature Increase
- Increase in refrigeration and maintenance costs
- Rise of energy peaks/ losses
- Decrease in quality of service
Sea Level Rise
- Damage to physical assets
- Operations interruption
Water Availability
- Operations interruption
- Loss of efficiency
- Decrease in hydroelectric generation
- Reduction of river basins
- Share of water competitive use
Wind Availability
- Operations interruption
- Loss of efficiency
- Increased operating costs
Acute Physical Risks
Potential business impact
Extreme Event: Wind
Extreme Event: Rain
- Delays in assets construction
- Damage to physical assets
- Operations/sourcing interruption
- Rise in accidents
Extreme Event: Wildfires
- Delays in assets construction
- Damage to physical assets
- Operations/sourcing interruption
- Rise in accidents
Extremely Hot Days
Extremely Cold Days
- Increase in refrigeration and maintenance costs
- Decrease in quality of service
Chronic Physical Risks
Potential business impact
Acute Physical Risks
Potential business impact
Temperature Increase
- Increase in refrigeration and maintenance costs
- Rise of energy peaks/ losses
- Decrease in quality of service
Extreme Event: Wind
Sea Level Rise
- Damage to physical assets
- Operations interruption
Extreme Event: Rain
- Delays in assets construction
- Damage to physical assets
- Operations/sourcing interruption
- Loss of efficiency
- Resources variability
- Rise in accidents
Water Availability
- Operations interruption
- Loss of efficiency
- Reduction of river basins
- Share of water competitive use
Extreme Event: Wildfires
- Delays in assets construction
- Damage to physical assets
- Operations/sourcing interruption
- Rise in accidents
Wind Availability
- Operations interruption
- Loss of efficiency
- Increased operations costs
Extremely Hot Days
Extremely Cold Days
- Increase in refrigeration and maintenance costs
- Decrease in quality of service
EDP’s Group climate physical risks disaggregated at technology/activity level for medium-long term (2030-50):
(Scroll left for more information)
Business Activities
Physical Risks
Thermal Generation
Hydro Generation
Wind and Solar Generation
Transmission / Distribution
Chronic
Temperature increase
Iberia
Brazil
Sea level rise
Portugal
Portugal
Spain
Iberia
Water availability
Spain
Iberia
Brazil
Wind availability
EDPR Worldwide
Acute extreme events
Hot days
Iberia
Iberia
EDPR
Iberia
Cold days
EDPR
Iberia
Wind
Iberia
Iberia
EDPR (mainly USA)
Iberia + Brazil
Rain
Iberia
Iberia
Iberia + Brazil
Wildfires
Iberia
Iberia
EDPR (mainly Iberia)
Portugal
High level risk, followed at corporate level and with need of mitigation measures being planned and implemented at business unit level
Low level risk, being followed and revised periodically at business unit level
Not applicable or negligible to the business workstream
Examples of initiatives in place
Hydro and thermal generation:
- Reinforcement of emergency response, including greater involvement with the authorities and security forces, to improve the response to extreme phenomena.
- Revision of the dam safety plan to ensure the safety of assets and neighboring populations (Brazil).
- Investment in downscaling climate data, to increase knowledge and better assess the impacts of climate change on hydroelectric power.
Investment in water efficiency programs for assets located in water-stressed regions. - Development of real-time flood forecasting systems.
- Development of landslide risk maps to better define priority interventions.
- Promoting nature-based solutions through forest planting to correct slopes and regulate the hydrological cycle.
- Improving the response capacity of the protection equipment of the hydraulic circuits of the generator sets to the increased intensity and frequency of extreme phenomena (e.g. rainfall and greater intensity of fires).
Renewable generation:
- Adapting the design of EDPR's facilities to suit existing conditions, in order to adapt assets to specific weather situations.
- Reinforcement of emergency response measures, such as fire walls, water collection and self-protection measures.
- Installation of geomembranes in some facilities to protect the soil, in order to control the level of erosion and prevent landslides caused by heavy rainfall and flooding.
- Greater involvement with suppliers to ensure the resilience of assets, through the analysis and selection of specific models.
- Strengthening the resistance of equipment to cope with extreme events:
Protection system on turbines against ice formation;- Protection measures for turbines against extreme winds, through the tilting system and braking and stopping systems;
- Improvement of the turbine cooling system to allow it to operate at higher temperatures or installation of insulation in the nacelle for better performance during cold days;
- Lightning protection systems in the turbines to avoid fire situations;
- Mitigating the impact of hail on solar panels: adjusting the thickness of the panels and positioning the structures to protect them from the direction of impact.
Networks:
- Engagement with local authorities to promote climate change adaptation initiatives, aligned with local priorities, capable of protecting/strengthening electricity grid infrastructure.
- Increased investment in vegetation management strips for infrastructure protection, compatible with forest management, to reduce the risk of fire.
- Replacing conventional grids with compact grids and replacing wooden poles with conventional power poles to reduce their exposure to extreme events and increase the resilience of grid infrastructures. (Brazil)
- Identification of new materials and construction solutions that improve the resilience of networks to critical climate variables (strong winds and snow).
- Strengthening emergency response through the implementation of contingency plans and the use of meteorological information to support the management of operational teams and ensure their safety.
- Investment in smart grids to improve the response to extreme weather events (fires, lightning strikes, strong winds).
Sustainability commitments
We value international agreements and initiatives
EDP's commitment to the world is to achieve cleaner and greener energy. In addition to decarbonization, we are implementing measures to fight climate change, following the recommendations of the report by the Task Force on Climate-related Financial Disclosures (TCFD) and adhering to numerous international initiatives that promote sustainability.
