EDP sells thermal power plant and commercial portfolio to Total

EDP closed an agreement with Total for the sale of two groups of the combined cycle plant in Castejón (in the Navarra region), with 843 MW of power, and the B2C commercial business (residential customers) in Spain, which has 1.2 million customers in the liberalized market. The deal, valued at EUR 515 million (US$ 557.18 million), also involves the sale of the 50% stake in CHC Energia, a joint venture with CIDE to sell energy in this segment.

The sale of these assets - which should take place in the second half of 2020, after due approvals from regulatory authorities - is part of the EDP Group's Strategic Plan 2019-2022. The plan, presented in March last year, foresees a reduction in thermal generation assets and exposure to price volatility in the wholesale market.

This operation reinforces EDP's low-risk profile, helping to reinforce the weight of long-term contracted and regulated activities in EBITDA and accelerating financial leveraging, thus allowing for an improvement in results. Just one year after the presentation of the Strategic Plan, EDP has already fulfilled 65% of the total asset sales and rotation target with a positive impact on the company's net debt.