To determine the appropriate extent of hybrid bond utilization for EDP, S.A., we must evaluate its financial position based on the 2022 annual report and the provided rating methodology.

**1. Financial Performance and Leverage:**
- **Profitability:** EDP showed growth in revenue (20.65B EUR in 2022 vs 14.98B EUR in 2021) and a solid net profit, despite significant increases in finance costs.
- **Debt Profile:** The entity has substantial financial debt. Long-term borrowings increased to 15.78B EUR, and current borrowings rose significantly to 4.24B EUR, signaling increased refinancing pressure.
- **Capital Intensity:** EDP operates in the energy sector with massive capital requirements (Property, Plant, and Equipment of 24.22B EUR). The "Cash Flows Used In Investing Activities" of 3.23B EUR and significant acquisition activity (e.g., Sunseap, EDPRenováVeis SA capital increase) demonstrate a large and ongoing capital expenditure and M&A pipeline.

**2. Strategic Rationale:**
- **Market Environment:** Interest rates, as evidenced by the 2022 swap curves, have risen sharply compared to 2020-2021. The cost of traditional debt is increasing.
- **Leverage Metrics:** With total liabilities of 44.98B EUR against an equity of 13.83B EUR, the company is highly leveraged. Maintaining an Investment Grade rating while funding energy transition projects requires significant capital structure optimization to avoid credit metric deterioration.
- **Hybrid Rationale:** Given the significant acquisition pipeline and the need to fund high-Capex renewable energy initiatives without disproportionately stressing the balance sheet, hybrid bonds provide necessary "rating headroom."

**3. Assessment:**
EDP fits the criteria for a significant utilization of hybrid bonds. The company faces high capital intensity and requires capital structure optimization to preserve its rating amidst an environment of rising interest rates and high investment needs. While 15% is the absolute maximum allowed, the guidelines for 11.25% align well with EDP's "High capex intensity OR large acquisition pipeline" and the need for "Investment grade preservation strongly dependent on capital structure optimization." A 15% level would be reserved for companies facing "material downgrade risk" or "transformational M&A," whereas 11.25% provides the necessary flexibility for EDP’s ongoing growth strategy.

<answer>11.25%</answer>