Renewable Energy M&A: EDPR's wind portfolio sale achieves a valuation of $1.91mn/MW, a 48% rise from their 2020 acquisition multiple

published on 27 July 2023

EDP Renewables (EDPR) sold a 257 MW wind portfolio to Verbund for $491mn, at a multiple of $1.91mn/MW, reflecting a ~48% increase over the multiple at which it acquired the assets from Viesgo in Jul'20.  

Pre EDP’s acquisition in 2020, day-ahead prices averaged ~$54/MWh over five years. Subsequent global events have caused significant disruptions, leading to a surge in prices to ~$140/MWh since 2021. This significantly boosts earnings for the acquired portfolio, with 7 out of the 9 assets operating under Spain's nationally funded regulated regime (RECORE) for the next 7 years. Moreover, all portfolio assets are sub-50 MW, facilitating a smooth permitting process in Spain and thus increasing the attractiveness of repowering and hybridization.

Enerdatics identifies these factors as key drivers that make the assets highly appealing to Verbund as an investment opportunity.

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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