EDP has announced it has closed an agreement with Total for the sale of two combined cycle Spanish power plants, its Spanish B2C commercial business for residential customers, and a 50 per cent stake in CHC Energia for a combined total of €515 million.
Under the terms of the deal, Total acquires: two combined cycle gas turbines (CCGT) power plants (Castejón I & III), with 843 MW of installed capacity, located in Navarra, Spain; the Spanish B2C business, with 1.2 million clients; and a 50 per cent stake in CHC Energia, a joint venture with CIDE to sell energy.
The sale of these assets, which should take place in the second half of 2020 if approved by regulators, has been conducted in accordance with EDP Group’s strategic plan, which “foresees a reduction in thermal generation assets and exposure to price volatility in the wholesale market”.
António Mexia (pictured), CEO of EDP, said: “This is an excellent operation for EDP which, once again, enhances the quality of our assets, but also our solid execution capacity, as we continue to create significant value with the portfolio optimization strategy defined in our business plan. After this agreement, EDP will maintain more than 95 per cent of EBITDA in Spain, which is one of our strategic markets and where we will continue to invest in the generation, networks and supply of renewables, both in the B2B segment and in the new downstream segment".
King & Wood Mallesons advised EDP on the deal – the team was led by Roberto Pomares, and included Gonzalo Olivera, Gonzalo Fernández, Enrique Murillo, Alberto Artés, and Fernándo Jiménez.
In Spain, EDP has more than 4,600 megawatts of installed capacity and 668,500 supply points. With regard to the sale of electricity, natural gas and services, EDP has a portfolio of 14 terrawatt hours TWh (not including B2C). In total, the company employs more than 1,550 people in Spain.