EDP’s perspective within STOR-HY
The EDP Group participates in the STOR-HY project through two complementary entities: EDP Produção and the EDP R&D Centre, combining operational expertise with strong innovation capabilities.
EDP Gestão da Produção da Energia, S.A. (EDP Produção) is a leading utility in Portugal, operating more than 60 hydropower plants and two thermal power plants. As the branch of the EDP Group responsible for electricity generation in Portugal (excluding wind), EDP Produção plays the role of both a utility and an end user of the technologies and business models developed within the project.
As a key partner and major hydro operator, EDP Produção brings the perspective of a large-scale storage investor and asset owner, contributing to the development of specifications, integrated management systems, demonstrators, and business models.
The EDP R&D Centre, established in 2015 and part of EDP Innovation, focuses on research and development activities supported by laboratory facilities and a dedicated technical centre. It currently manages more than 40 European projects, with a strong focus on renewable energy technologies, electrification of heat, and energy storage solutions.
Contribution to STOR-HY
Within STOR-HY, EDP is actively involved in key technical developments, including:
- Vilarinho das Furnas hydropower plant, located on the Homem River in northern Portugal. This facility includes a 94-meter-high dam and a power station equipped with two generating units: one Francis unit and one reversible unit, both rated at 80 MVA.
- Alqueva, the first triple hybrid system in the European Union, combining:
- Hydropower plant (4 × 130 MW)
- Photovoltaic system (5 MW)
- Battery Energy Storage System (BESS; 1 MW)
In this context, STOR-HY will develop an innovative energy management tool designed to optimise asset response to market conditions. This tool will incorporate operational constraints such as equipment wear and tear, as well as market limitations. Additionally, a BESS sizing analysis will be carried out to assess the added value of higher-capacity storage systems.
Challenges and opportunities for hydropower in Europe
Hydropower faces several critical challenges in the coming decades. One of the most pressing is the aging of infrastructure: by 2030, around 20% of hydropower units worldwide are expected to be over 50 years old.
At the same time, climate change is increasing hydrological variability, with more frequent and intense extreme events, such as prolonged summer droughts (e.g., 2022) and severe winter floods (e.g., 2026). These dynamics reinforce the role of hydropower as a critical infrastructure within the energy system.
Despite these challenges, hydropower also represents a major opportunity. In energy systems with high penetration of variable renewable sources such as wind and solar, hydropower plays a central role by:
- Providing around 95% of the world’s energy storage capacity, effectively acting as the “battery” of the power system
- Delivering flexibility and reliability through ancillary services
- Supporting grid stability and enabling higher integration of renewables
Conclusion
EDP’s participation in STOR-HY reflects its long-term commitment to accelerating the energy transition through innovation and integration of renewable technologies. By combining large-scale hydropower assets with emerging solutions such as battery storage and advanced energy management systems, EDP is actively contributing to a more flexible, resilient, and sustainable energy system.
Looking ahead, the company sees hydropower not only as a mature technology, but as a strategic cornerstone for future energy systems. Through projects like STOR-HY, EDP aims to unlock new value streams, optimise asset performance, and reinforce the role of storage as a key enabler of a carbon-neutral Europe.
