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EDPR nets 328 million euros with sale of wind assets to China Three Gorges, expands in Vietnam

Cash-rich Portuguese investment company spreads its wings in Asia, looking to accelerate its growth prospects in the region.

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Cash-rich Portuguese investment company spreads its wings in Asia, looking to accelerate its growth prospects in the region.

ARTICLE BY

PUBLISHED

UPDATED: 22 Dec 2023, 4:43 am

Portugal’s EDP Renováveis (EDPR) has sold a 181 MW wind portfolio in Spain to China Three Gorges (CTG), for 328 million euros, and is investing in solar power in Vietnam.

EDPR, whose parent company EDP is majority owned by CTG, said that the portfolio consists of 12 wind farms “already in operation and which are under Spain’s 20-year regulated remuneration scheme. The average age of the portfolio is 12 years”.

The total consideration of the transaction corresponds to an Enterprise Value (100 per cent) of 328 million euros, which translates into an Enterprise Value of 1.8 million euros/MW.

EDPR has also acquired two solar PV projects for US$284 million from Vietnamese developer Xuan Thien Group.

“This transaction is expected to establish a long-term relationship between Xuan Thien Group and EDP to jointly explore additional opportunities in the region contributing to accelerate EDP growth prospects in APAC,” the company added.

The new projects in EDPR’s portfolio started operating in 2020, under a 20-year power purchase agreement (PPA) at a price of US$93.5/MWh.

EDPR, which was established in 2000 and focuses on investing in electricity production and cement, has been active in the Asia-Pacific region since 2021 and gained a strong local presence in February 2022, when it acquired Singaporean Sunseap for 600 million euros.

 

UPDATED: 22 Dec 2023, 4:43 am

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