Spanish multinational energy company EDP Renewable Energy has closed a transaction that would enable the company to expand its footprint within the UK renewable energy market.
EDP Renewables has acquired a portfolio of 544MW of solar and wind energy capacity in two separate deals worth £71 million ($96.7 million). The deals were reached with Vento Ludens and Wind2.
The portfolio consists of a 5MW operating wind farm commissioned in 2012 with a 20-year feed-in tariff, 47MW of projects under development, including 229MW of wind and 118MW of solar, as well as 192MW of wind projects under advanced stage of development, which will be participating in the upcoming CfD rounds and in the UK private PPA market, aiming to enter in operation until 2025.
Miguel Stilwell d’Andrade, CEO of EDPR, said: “Entering the UK onshore market opens up a new range of possibilities to continue to diversify our business. This is a key market for us and we will continue to explore opportunities that add value and strengthen our leadership position in the renewable energy sector”.
EDP Renewables seeks to grab the anticipated opportunities within the UK renewables market as the country amplifies its transition to net-zero. Massive investments are expected to be made to help expand the UK’s clean energy market to meet the government’s 2050 net-zero goal. For instance, from 2021 onwards both onshore wind and solar will be able to participate in the CfD rounds, which are expected to occur every two years until 2030. In addition, the UK is a very liquid market and has one of the most developed PPA markets in Europe, providing multiple routes to market for the portfolio.
In addition to expanding its business in the UK’s renewables sector, the investment will help EDP Renewables to reduce its carbon emissions in line with the company’s new target of a 98% reduction in emissions by 2030 from 2015 levels.
The energy company has also set a target to reduce indirect CO2 emissions by 50% by 2030. This ambition is supported by the growing production of energy from renewable sources – which, in this first semester, already represents 81% of the electricity generated by EDP. Find out more about EDP Renewables’ carbon emissions reductions goals.