EDP sells Hydro Power Plant in Brazil for €240 million

The company said the operation is "in line with the 2021-2025 business plan targets presented to the market in February 2021."

EDP Brasil on Tuesday announced the sale of the Mascarenhas Hydro Power Plant (HPP), located in the Brazilian state of Espírito Santos, to Victory Hill Global Sustainable Energy Opportunities for BRL 1.2 billion (€240 million).

The company will receive BRL 800 million (€156.2 million) after closing the deal and the remainder will be paid according to conditions established in the process to renew the hydroelectric plant’s concession. According to EDP Basil, the operation is subject to the verification of precedent conditions and usual adjustments.

EDP Brasil also stressed that the deal is “in line with the 2021-2025 business plan targets [to reach 1 gigawatt (GW) of installed photovoltaic capacity in Brazil] presented to the market in February 2021.”

The Mascarenhas Hydro Power Plant has 198 Megawatt (MW) of installed capacity and is located on the Doce River in the state of Espírito Santo. As of June 2022, it had net assets of BRL 263.5 million and generated cashflow of 176.5 million.

“We are happy to announce this transaction, which is aligned with our strategic commitment to balance our generation portfolio, enabling us to reduce our exposure to hydro risk and expand our investment in solar energy,” said João Marques da Cruz, CEO of EDP Brasil.

Victory Hill Global Sustainable Energy Opportunities has BRL 2.4 billion in asset value spread across Brazil, the US, UK and Australia, and manages 18 solar generation projects in Brazil.