EDP Renováveis sells 137 MW Babylon wind project in Brazil

EDP Renováveis (EDPR) has signed an agreement with a subsidiary of the private equity firm Actis for the sale of all of its shareholding in a onshore wind project in Brazil with an installed capacity of 137 megawatts (MW) for an amount total of about BRL650 million (US$172 million), in an operation that is part of its asset turnover plan.

With a capacity of 137 MW, the Babylon wind farm is located in the State of Bahia (Brazil) and has been operational since the fourth quarter of 2018 The project, which belonged entirely to EDPR, was awarded a 20-year power purchase and sale contract in a 2015 Brazilian tender.

The operation, subject to the usual regulatory and other authorizations, is scheduled to be completed in the last quarter of 2019.

The agreement is part of the company’s asset rotation strategy, which involves the sale of majority interests in projects in operation or in the development phase in order to accelerate the generation of value and recycle capital to invest in opportunities with potential to generate additional growth.