EDP ​​sells hydroelectric plant in Brazil for 243 million euros

EDP ​​Brasil, 57.5% owned by EDP, announced this Tuesday the sale of Energest, the company that owns the Mascarenhas hydroelectric plant, in the state of Espírito Santo, in Brazil. The buyer is VH GSEO UK Holdings Limited, a subsidiary of Victory Hill Global Sustainable Energy Opportunities.

In a statement to the Securities Market Commission (CMVM), EDP reveals that the estimated value of the transaction is 1.22 billion reais, equivalent to 243 million euros, of which 800 million reais (159 million euros) will be paid on the date of completion of the transaction and the balance later.

“The operation is subject to other possible post-completion adjustments and obligations customary in this type of transaction”, underlines EDP in its statement to the CMVM. The Mascarenhas plant has an installed capacity of 198 megawatts (MW).

“This transaction reduces the weight of conventional generation and, in particular, of water exposure in Brazil, in line with the 2021-2025 strategic plan presented to the market in February 2021”, adds EDP.

Within the scope of this plan, the Portuguese electric company has carried out a series of divestments, through the sale of stakes in various projects and companies, which aim to raise capital to reinvest in new renewable-based capacity.

At the end of July, EDP also announced the sale of its 50% stake in a hydroelectric project in Peru (which will have 209 megawatts of capacity). The buyer was China Three Gorges, which already held the remaining 50% and is EDP’s largest shareholder.

In the hydroelectric business, EDP had an operating capacity of 7.1 gigawatts (GW) in June, of which close to 5.1 GW in Portugal, 1.6 GW in Brazil and 0.45 GW in Spain.

Globally, the EDP group’s installed capacity in June amounted to 25.6 GW, of which 11.6 GW wind, 7.1 GW hydro, 1.2 GW solar, 2.9 GW gas and 2, 5 GW of coal-fired power stations (in Spain and Brazil).

Source: Expresso by expresso.pt.

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