Portugal's EDP CEO: Data centre boom in Iberia to be supplied by EDP
EDP, Portugal's largest utility, is stepping up to meet the demand for data centres in Iberia. The company was attracted by electricity prices that will remain low in comparison to other parts of Europe.
He said that over 18 gigawatts in data centres in Portugal and Spain are in development or pipeline, "supporting the strong electricity demand in Iberia", driven by structural factors, not temporary ones.
At a conference for analysts, the CEO said: "EDP has clearly engaged with many of these project."
He said that Iberia had a distinct advantage from which we hoped to?benefit - affordable, structurally structured power prices.
EDP and Start Campus, a consortium consisting of Britain's Pioneer Point Partners, U.S. Fund Davidson Kempner, signed a contract on Wednesday to supply renewable energy to the 1.2 GW data centre being developed in Sines, 150 kilometres south of Lisbon.
Stilwell de André said that the electricity demand in Portugal and Spain is expected to grow by 3.6% and 2.8% respectively in 2025. This growth rate exceeds that of most EU markets where the average growth rate is only 0.4%.
EDP projects a 2% growth per year in Iberian Demand through 2030. This is supported by "electrification beyond data centers, including transport and industry," said Stilwell deAndrade.
The EDP CEO stated that electricity prices for industrial customers are 17% lower than the EU average due to the large number of wind and solar farms in Iberia.
He said that Portugal and Spain both have "several factors" which will keep electricity costs low, such as the repayment of all electricity system tariff debt by 2028, which had weighed down on consumer bills.
He said, "This means that there will be significant reductions in cost structure moving forward."
Stilwell de André said that the new regulatory frameworks will guarantee returns on investments in electricity networks of 6.7% before tax in Portugal until 2029 and 6.58% for Spain until 2031. "This gives EDP clarity and security for the next investment cycles," he added.
(source: Reuters)
