EDP will sell 6 hydropower plants in Portugal (1.7 GW) for €2.2 bn

The Portuguese energy group EDP has agreed to sell 6 large hydropower plants totalling 1.7 GW in the Douro river basin in Portugal to a consortium of Engie (40%), Crédit Agricole Assurances (35%) and Mirova – Natixis Group (25%) for €2.2bn. EDP will divest three run-of-river power plants with a combined capacity of 1.2 GW, namely 369 MW Miranda, 440 MW Picote and 431 MW Bemposta, and three pumped-storage power plants with a combined capacity of 0.5 GW, namely 261 MW Foz Tua, 189 MW Baixo Sabor and 36 MW Feiticeiro.

EDP has been investing massively in the construction and repowering of hydropower plants in Portugal over the last 12 years, adding 2.6 GW of hydropower capacity. Some of the power plants included in the transaction have been expanded recently (Picote and Bemposta in 2011, Miranda in 2014), while some have been commissioned since 2016 (Baixo Sabor in 2016, Foz Tua in 2017).

However, EDP is seeking to reduce its exposure to concentrated hydro volatility and merchant prices, leading to the sale of some hydropower assets. Once the transaction is completed - by the second half of 2020 - EDP will still dominate Portugal's hydropower generation capacity with 5.1 GW and will remain the second largest hydropower operator in the Iberian peninsula.