EDPR sells Italian wind farms for €420M

  • Lusa
  • 29 July 2022

The transaction comprises seven operational wind farms with an average age of 2.8 years, which benefit from a stable remuneration framework for 20 years.

Portuguese utility company EDP, through EDP Renováveis, has reached an agreement to sell a portfolio of seven wind farms in Italy with 172 MW (megawatts) to ERG, for €420 million, the company announced on Friday.

In a statement sent to the Portuguese Securities Market Commission (CMVM), EDP said that “EDP has entered into a Sale and Purchase Agreement with ERG, S.p.A. (“ERG”) under which EDPR sells to ERG an entire 172 MW operating wind portfolio located in Italy, for an Enterprise Value of approximately €420 million (as of 31 December 2021), which will be adjusted with a finance charge until the closing date of the transaction”.

The transaction comprises seven operational wind farms with an average age of 2.8 years, which benefit from a stable remuneration framework for 20 years.

With this transaction – still “subject to the usual regulatory and other conditions precedent for a transaction of this nature” – EDP says it has already secured €3.1 billion in proceeds from operations of this type.

These operations, it says, are “included in the €8 billion asset rotation programme for 2021-2025, announced on EDP’s Capital Markets Day in February 2021, allowing it to accelerate value creation and recycle capital to reinvest in growth”.