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EDP Renovaveis establishes a new type of institutional partnership structure for 101 MW in the US

EDP Renovaveis establishes a new type of institutional partnership structure for 101 MW in the US

Horizon Wind Energy LLC (“Horizon”), a fully-owned subsidiary of EDP Renováveis, S.A. (“EDPR”) in the US, has executed an agreement to secure $101.9 million of institutional equity financing from JPM Capital Corporation in exchange for a partial interest in its 100.5 MW Rail Splitter wind farm project installed in June 2009 in Illinois.

The institutional equity investment will provide the investor with access to the accelerated asset depreciation (MACRS) benefits and to the cash grant, which the Rail Splitter project will apply for pursuant to the American Recovery and Reinvestment Act of 2009.

The Rail Splitter transaction will represent EDP Renováveis’s first institutional equity transaction that incorporates the cash grant in lieu of production tax credits and through it EDPR will improve the project’s economics and the company’s fiscal efficiency.