EDP enters deal to acquire 198 MW hydropower plant in Espirito Santo

Energias de Portugal SA (EDP) has entered into an agreement to sell its entire stake in Energest SA, the owner and operator of the 198 MW Mascarenhas hydroelectric power plant (HPP) project located in Espirito Santo, Brazil. 

The deal is signed between a unit of EDP and VH GSEO UK Holdings Ltd, a subsidiary of Victory Hill Global Sustainable Energy Opportunities. The transaction is valued at BRL1.22 billion (US$235.37 million), of which BRL800 million (US$155.2 million) will be paid upon closing.

The sale will be subjected to customary regulatory approvals. The project has a remaining useful life of 45 years with over 60% of the project's revenue secured under long-term power purchase agreements (PPAs) with local utilities.