EDP sells Douro hydro dams for €2.2Bn to Engie
Electricity giant EDP has completed the sale of six active hydroelectric power stations to a consortium led by the French power company Engie.
The consortium also includes Crédit Agricole and Mirova – Natixis Group. The selloff totalled €2.2Bn — €200 million above the estimated market value.
The deal is part of a non-strategic assets selloff over the next three years. “EDP – Energias de Portugal S.A. has agreed the sale of a portfolio of six hydroelectric power stations to a consortium of investors formed by Engie (40%), Crédit Agricole Assurances (35%) and Mirova – Natixis Group in a transaction of €2.2Bn said EDP in a communique to the Portuguese markets supervisor CMVM.
The hydro-electric power stations in question totalled 1.689 megawatts (MW) of installed capacity on the Douro (Miranda, Bemposto and Picote) with 1.2 GW of installed capacity in three other stations (Foz Rua, Baixo Sabor and Feiticeiro) with 0.5 GW of installed capacity.
“The completion of the transaction is foreseen for the second half of 2020 on approval by the companies boards and regulatory authorities” adds EDP which after the transaction will be left with a 5.1 GW hydro-electric installed power capacity.
António Mexia, CEO of EDP said that the operation would have a positive impact on profits since it would reduce exposure to energy market prices in terms of volatility, thereby reducing EDP’s risk profile.