EDPR to sell 172-MW Italian wind portfolio to ERG

Renewable energy company EDP Renovaveis SA (ELI:EDPR) has inked an agreement to sell a 172-MW wind farm portfolio in Italy to local energy company ERG SpA (BIT:ERG).

The parties announced today that the deal has an enterprise value of around EUR 420 million (USD 425.1m) as of December 31, 2021. The value will be adjusted with a cost of carry until the closing date, EDPR said.

ERG, through one of its subsidiaries, will take over a 100% stake in the firms that hold the seven operational wind parks located in Basilicata, Campania and Calabria. Under the terms of the agreement, one minority stake will be directly purchased by a third-party investor, ERG pointed out.

The wind parks have been online since 2018 and the end of 2021, and benefit from a 20-year contract-for-difference (CfD) with the Italian network agency Gestore dei Servizi Energetici GSE. Together, they are capable of generating some 400 GWh per year.

Following this latest transaction, EDPR has secured EUR 3.1 billion of proceeds under its EUR-8-billion asset rotation programme for the 2021-2025 period, it added.

Earlier today, EDPR announced the acquisition of a 70% interest in German developer Kronos Solar Projects GmbH, marking its entry into the German and Dutch solar markets.

(EUR 1.0 = USD 1.012)

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