EDP duplicates its business in distribution after an agreement with Macquire, which includes the creation of a society for electricity networks and the purchase of 100% of Viesgo Renovables and Viesgo Generación
The partnership in electricity distribution (75.1% EDP and 24.9% Macquaire) will have 50 000 km of networks and 1.3 supply points
EDP has reached an agreement with the Australian investment fund Macquaire for 100% of Viesgo’s assets. This agreement, subject to the pertinent regulatory approvals, includes all the company’s assets of Cantabrian origin, among which are electricity distributors with more than 695 000 supply points, 0.5 GW of renewable generation and two thermal power plants, in the process of being dismantled, with an expected closure before 2021 and with almost 1 GW of potential grid access rights.
After this agreement, EDP will integrate renewable assets in its EDPR subsidiary, will manage the rights of connection after the thermal power plants’ closure and will form, together with Macquaire, an alliance for the electricity distribution businesses of Viesgo, Begasa and E-Redes.
Moreover, this operation frames within Group EDP’s Strategic Plan 2019-2022, presented in March last year, that expected a growth in renewable energies and electricity networks, as well as reducing its exposure to market’s risks and increasing the importance of long-term regulated activities. With this operation, EDP reinforces significatively its presence in Spain and its position in the forefront of energy transition.
This operation, with a total value of 2 700 million euros, shows the strategic importance and the commitment of the company and the stockholders with this transaction.
“This is a strategic operation. Because of its dimension, because of our presence’s reinforcement in a core market, and because, when investing in networks and renewable energies, we make a relevant contribution to accomplish with our leadership vision in Energy Transition. In EDP we keep creating value through our investments, at the same time that we keep a strong commitment with our great clients and the new downstream products and services, that will enable us to accomplish our strategic plan and build a more sustainable future”, highlights Rui Teixeira, managing director of EDP Spain.
