The French energy giant EDF earned 723 million euros, in the first half of the year, from its investments in renewable energy sources. The profit of 723 million euros indicates a pronounced growth trend, compared to the same period in 2021 when the profit amounted to 544 million euros.
According to its strategy, EDF plans intensive investments in the development of renewable energy projects. To meet its goals, the company plans to double its installed renewable energy capacity by the end of the decade. Now EDF has installed capacities of 28 GW in more than 20 countries, and the goal is to increase the installed capacity to 50 GW by 2030.
The growth in profits during the first half of the year is mostly due to an increase in the production of solar energy and wind energy. The production of solar and wind energy in the first half of 2022 increased by almost 21% and represents serious growth, which is mainly due to the capacities of renewable energy in the United States and South America. Concrete moves and the start of future projects herald a new investment cycle that is important not only in terms of investments but also of investments in infrastructure, which will accelerate the energy transition.
The agreement between the company and the European Investment Bank for a loan of 800 million euros will open a new development stage in the European energy transition and the implementation of policies for greater representation of green energy.
This loan agreement is also a positive signal for investors because it is realized in conditions of energy crisis and uncertainty in the European markets. In times of uncertainty, a specific agreement involving the EIB is a positive signal for other investors who are on the stand.
The funds from the loan will be directed towards the partial financing of Enedis, the operator of the electric network and in raising the technical capacities for connecting the decentralized producers of renewable energy. The investment plan also includes charging stations for electric vehicles in Paris.
Within the framework of the investment plan is the construction of about 11,500 km of the distribution network which will be connected with transformers. This should contribute to accelerating investments in renewable energy sources and increasing the percentage of green energy in the total energy production in France. Considering that almost all wind and solar energy produced in France is connected to Enedis’ distribution network. The upgrading of this network will also be significant in terms of expanding the infrastructure of chargers for electric vehicles. About 50,000 stations and over 100 parking spaces are connected to Enedis, and their increase is planned in the next ten years.
The total value of this significant investment project is estimated at 1.6 billion euros, and half of it is secured through this loan. This project is also significant in terms of the potential it has to encourage and accelerate the energy transition in France which is not at the planned level. By 2020, the production from renewable energy sources amounted to 19% of the total energy produced in the country. In order to fulfill the plan for 45% of electricity to be from renewable sources by the end of 2030, these types of projects are of great importance because they will directly contribute to the intensification of investments.