The transacted projects comprise two wind farms located in the state of Rio Grande do Norte, which is situated in the extreme Northeast region of Brazil. The projects secured 20-year inflation-indexed PPAs in Brazil's A-6 renewable energy auction in 2017, at a tariff of $30/MWh and $29/MWh. The transaction represents an enterprise value (EV)/MW metric of 1.33, marking one of the highest deal multiples for operational onshore wind assets in the country during the last 24 months. The high valuation is believed to be influenced by the remaining contractual life of the portfolio.
With this transaction, EDPR has already secured €3.4bn of Asset rotation proceeds within the context of the €8bn Asset rotation program for 2021-25 announced in February 2021, allowing the company to accelerate value creation while recycling capital to reinvest in accretive growth.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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