To determine the extent to which EDP, S.A. should utilize hybrid bonds relative to the S&P Global Ratings cap, we must analyze the company's current capital structure, the cost of capital environment, and the strategic benefits of hybrid instruments.

**1. Analysis of Capital Structure and Leverage:**
First, we calculate the company's leverage ratios using the 2022 annual report data.
*   **Total Equity (2023-01-01):** 13,834,608,000 EUR
*   **Total Liabilities (2023-01-01):** 44,981,803,000 EUR
*   **Total Capital (Debt + Equity):** Approximately 58,816,411,000 EUR (Total Assets). Note: For rating agency purposes, "Debt" usually refers to interest-bearing debt.
    *   Long-term Borrowings: 15,782,604,000 EUR
    *   Current Borrowings: 4,239,869,000 EUR
    *   Other Noncurrent Financial Liabilities: 5,159,496,000 EUR
    *   Other Current Financial Liabilities: 3,600,893,000 EUR
    *   Institutional Partnerships (often treated as debt-like or equity-like depending on structure, but here listed under liabilities): 2,212,162,000 EUR.
    *   Approximate Interest-Bearing Debt: ~28-30 Billion EUR.
    *   Debt-to-Capital Ratio: ~30B / (30B + 13.8B) ≈ 68%.

EDP operates in the utilities sector, which is capital intensive. A debt-to-capital ratio of ~68% is moderate to high for a utility seeking an investment-grade rating (typically BBB/Baa). S&P Global Ratings allows equity credit for hybrid bonds (typically 50% equity credit for senior hybrids) to improve these ratios.

**2. The S&P Global Ratings Cap:**
The prompt specifies a cap where equity credit on hybrids is limited to a maximum of 15% of total adjusted capital.
*   Total Adjusted Capital ≈ 58.8 Billion EUR.
*   Maximum Equity Credit Allowed = 15% * 58.8 Billion ≈ 8.82 Billion EUR.
*   Since hybrids typically receive 50% equity credit, the company could issue up to ~17.6 Billion EUR in hybrids to hit this cap. Currently, there is no explicit mention of significant hybrid debt in the liability breakdown (though "Institutional Partnerships" might have hybrid features, standard hybrids are distinct). The company has substantial room under this cap.

**3. Market Environment and Cost of Capital:**
*   **Interest Rates:** The swap curves show a dramatic increase in rates from 2021 to 2022. The 10Y swap average went from 0.053% in 2021 to 1.927% in 2022. This indicates a rising rate environment.
*   **Credit Spreads:** The iBoxx EUR Non-Financial IG spread increased from 1.298% in 2021 to 2.295% in 2022.
*   **Hybrid Bond Appeal:** In a rising rate environment, the cost of straight debt increases. Hybrid bonds, being subordinated and perpetual (or long-dated), carry a higher coupon than senior debt but offer equity credit. For a company with high capital expenditure needs (CAPEX for 2022 was ~3.5 Billion EUR, plus acquisitions), maintaining financial flexibility is crucial.
*   **Strategic Utilization:** Utilities often target the maximum allowable equity credit from hybrids to optimize their Weighted Average Cost of Capital (WACC) and maintain investment-grade ratings without issuing expensive pure equity. Issuing hybrids allows them to treat a portion of the instrument as equity for rating purposes (lowering reported leverage) while paying a tax-deductible coupon (unlike dividends).

**4. Determining the Extent:**
*   **0%:** Incorrect. The company has high CAPEX needs and would benefit from the equity credit to protect its rating.
*   **25% / 50%:** These represent partial utilization. Given the significant rise in borrowing costs (swaps and spreads up), optimizing the capital structure is more important. However, hybrids are more expensive than senior debt.
*   **100%:** This implies utilizing the *full* extent of the cap. For a large utility like EDP, targeting the maximum equity credit allowed by rating agencies is a standard strategic move to maximize leverage efficiency while staying within rating thresholds. The "cap" is a constraint, not a target to be avoided. If the company needs capital (which it does, given the CAPEX and acquisition activity like Sunseap), and the rating agency allows up to 15% of capital to be counted as equity via hybrids, the company should utilize this facility to its fullest extent to minimize the dilution of existing shareholders (compared to issuing new shares) and to manage leverage ratios effectively in a high-rate environment where issuing pure equity might be undervalued or difficult.

However, we must look at the specific phrasing: "To what extent should this company utilize hybrid bonds **relative to S&P Global Ratings' cap**".
If the cap is 15% of adjusted capital, utilizing "100%" of the cap means issuing enough hybrids to reach that 15% equity credit limit.
Given EDP's size, investment grade status, and the need to fund the energy transition (high CAPEX), it is standard practice for such utilities to fill their hybrid allowance to optimize their credit profile. The market data shows rising costs, making the tax shield of hybrids (vs equity) and the rating benefit (vs debt) highly valuable. There is no indication of distress that would prevent issuing hybrids, nor is there an indication that they are over-levered to the point where hybrids would be punitive compared to equity. Therefore, maximizing the available regulatory/rating headroom is the optimal financial strategy.

<answer>100%</answer>