Improve energy efficiency of EDP's customers

Improve energy efficiency of EDP's customers

  • Overview

    Summary

    EDP is actively promoting energy efficiency solutions in the B2B market, seen as an opportunity for businesses to increase competitiveness and a way for EDP to strengthen its relationship with its customers. To support energy efficiency projects, EDP launched Save: to Compete program in 2012, in partnership with CIP (Confederation of Portuguese Business). With this innovative business model EDP invests in the project, guarantees the energy savings and gets the project paid by the real savings obtained. This way, EDP makes energy efficiency projects more attractive for companies, differentiates its approach and reinforces the partnership with clients in an increasing deregulated market environment. In Portugal, Save: to Compete already sums 21 M€ invested in projects, 70 GWh of energy savings which corresponds to more than 8 M€ and 35 kton of CO2 emissions avoided. The program success led to the establishment of 10 partnerships with other Portuguese industrial associations and was scaled up to Spain, where it is ongoing since 2013.

    EDP will keep promoting B2B energy efficiency and set an ambitious goals to reach 1 TWh of cumulative energy savings and 500 kton of CO2 emissions avoided until 2020, with projects involving 100 M€ investment. The S2C project typologies vary significantly, but usually include one or several of the following measures: Variable speed drive (60% of the measures); Efficient lighting (50%); Fuel switching (25%); High efficient motors (25%); Thermal recovery (20%); Compressed air systems (20%); Voltage level increase; Medium to High voltage (15%); Thermal Optimisation (15%); Command & Control (5%). With this initiative, EDP contributes actively to the European targets on Energy Efficiency and clearly aligns with the new Sustainable Development Goal 7 – where the world states the willing to double the global rate of improvement in energy efficiency by 2030.

    Commitment Target(s)
    • 2020 – Provide customers with continuous access to energy efficiency products and services to reduce overall consumption by 1 TWh before 2020 (against 2014 levels);

    • Details

      The Save: to Compete (S2C) programme is a different approach than EDP’s standard business operations. Differentiators include the fact that it is (a) based on a partnership with industrial confederations and (b) an innovative, win-win approach for the development of energy efficiency services to b2b customers, where EDP acts as a strategic partner for customers, providing simultaneously technical solutions for improving energy end-use efficiency, financing and elimination of the risk associated with the project. S2C promotes Energy Efficiency Integrated Projects in companies, using an innovative business model where EDP assures total or part of the initial investment, guarantees performance and energy bill reduction and the project is paid by the achieved savings.

      Two project examples are highlighted below.

      1) Leroy Merlin
      - Objective: Reduce energy bill in their facilities, while maintaining / improving lighting levels
      - Scope: Retrofitting of existing lighting with last generation LED; Demonstrating the effective performance of the solution
      - Activities: Procurement and installation of LED lighting; Integrated project management (turn-key solution)
      - Results: 67% annual savings ($)

      2) Celtejo
      - Objectives: To reduce the energy bills, contributing to the sustainability of the company’s business in the medium and long term; improve its image and awareness among key stakeholders and consumers; and reduce the environmental footprint of the industrial facility
      - Scope: Energy optimization of compressed air production systems; Improving the efficiency of pumping and ventilation systems; Increase the efficiency of the motive power equipment; and Replacement of the existing lighting by more efficient technology

      Supporting resources

      The cumulative energy savings and CO2 emissions avoided were estimated using the following assumptions:
      - Conservative roll out of the programme: 24 new projects each year, average yearly savings of 700 MWh per project.
      - Fuel switching initiatives: difference in primary energy use and corresponding CO2 emissions avoided – default IPCC or EU-ETS factors.
      - Appliances and electric equipment technology improvement (e.g, high efficient motors, variable speed drives, efficient lighting, heat pumps, etc.): global national emission factors.
      - For integrated projects under the S2C programme, the emission intensity equals the average emission intensity of the projects carried out so far (0,5 tCO2/MWh).

      Progress on S2C projects is assessed online through a savings and CO2 (avoided) meter (https://energia.edp.pt/corporate/servicos/save-to-compete-en). Results for all b2b services, as well as for other energy efficiency initiatives, are reported in either EDP’s Annual Report or CDP Climate Change or sustainability indexes such as the DJSI.

      Sustainable Development Goals
      7. Affordable and clean energy; 11. Sustainable cities and communities; 12. Responsible consumption and production; 13. Climate action; 14. Life below water; 15. Life on land
      Issue areas
      Biodiversity; Climate Change; Energy; Principle 7; Principle 8; Principle 9
      Industry sector(s) that apply to this commitment
      Electricity
      Country(s) where this commitment will be implemented
      MULTIPLE

      Partners

      Names of committing organisations

      Note: All organisations listed above are accountable for the commitment made. These organisations are required to complete an annual communication on progress for the duration of the commitment, either jointly or individually, as laid out in the accountability section of the submission form.