EDP Renováveis is awarded long term contracts for 120 MW at the Brazilian energy auction
Madrid, December 20th 2011: EDP Renováveis, S.A. (“EDPR”), through its subsidiary EDP Renováveis Brasil, S.A. (“EDPR Brasil”), has secured four 20-year Power Purchase Agreements (“PPA”) at the Brazilian energy A-5 auction, of December 20th 2011, to sell
electricity in the regulated market. The four PPA are related to the equivalent renewable energy produced by four wind farms totalling 120 MW, to be installed in the State of Rio Grande do Norte, in Brazil.
The projects are located in one of the windiest locations of Brazil and in the region with the highest number of awarded PPA in previous auctions. Given the high quality projects and the predefined bidding strategy that enhanced the projects’ investment competitiveness in the process, EDPR was able to sell 57 average MW in the A-5 auction, for a period of 20-years to start in January 2016. The price of the long term contract was set at R$97/MWh, indexed to the Brazilian inflation rate.
The successful outcome from this auction enables EDPR to clearly reinforce its presence in a market with a low risk profile through the establishment of long term PPA, attractive wind resource and strong prospects for the wind sector in the medium and long term, and definitely establishes its subsidiary EDPR Brasil as a long term player in the Brazilian market.