EDP Renováveis, S.A. (EDPR), a unit of Portuguese power provider EDP, announced that its Brazilian subsidiary EDP Renováveis Brasil, S.A. has secured a 15-year PPA from an unidentified client in Brazil for the sale of power from a 199 MW solar park it is planning to build in the municipality of Pereira Barreto, in the state of Sao Paulo.
EDP said that PPA will come into force in 2022, without providing additional details on the deal. “EDPR now has 1 GW in renewable energy projects under construction and development in Brazil, whose expected start dates for operations range from 2018 to 2024, all with guaranteed long-term contracts,” the company said in its statement.
EDPR, which has invested mostly in wind power over the past years, announced in recent months a stronger commitment to solar energy. In March, it completed a 3.3 MW wind and solar PV hybrid demonstration project near Cadiz, Andalucía, in southern Spain, in partnership with Danish wind turbine manufacturer Vestas, while in April it secured a contract to build a 200 MW solar plant in the U.S. Later in August, EPD also announced that it adopted a new blockchain technology, developed by Austrian company, Riddle&Code, to measure how much power owners of distributed generation PV systems in Brazil self-consume or inject into the grid under net metering.
EPDR and its parent company have attracted the interest of several international big energy companies over the past year, with Engie and China Three Gorges Corporation (CTG) being reportedly listed among possible buyers. The French energy group, however, issued a press release in late June to clarify that it was not preparing the launching of any takeover bid over shares issued by EDP Renováveis, S.A.
A takeover bid, however, was submitted by GTC, which offered to buy EDPR at a price of €3.26 per share offered (which would have resulted in a US$10.8 billion bid, according to Reuters), an offered that was considered too low by EDP.
EDP’s total installed generation capacity stood at around 26.8 GW as of the end of last year. Of this capacity, 39% comes from wind power plants, while another 34% is represented by hydropower. Combined cycle gas turbine (CCGT) plants account for 14%, while coal has a share of around 12%. All other energy sources, including solar, still represent a minimal share of just 1%.