edp announcement

EDP Group awarded with contracts for new renewable capacity in Brazil

Friday, 13 December 2013

Within the scope of the Brazilian A-5 auction carried out today by the Brazilian Electricity Regulatory Agency (ANEEL), EDP Group was awarded the following renewable energy generation projects.

Pursuant to the terms and for the purposes of article 248 of the Portuguese Securities code, EDP - Energias de Portugal, S.A. ("EDP") provides the following information to the market and general public:

Within the scope of the Brazilian A-5 auction carried out today by the Brazilian Electricity Regulatory Agency (ANEEL), EDP Group was awarded the following renewable energy generation projects:

1. The Terra Nova Consortium, constituted by EDP – Energias do Brasil ("EDP Brasil") and Companhia Furnas Centrais Elétricas S.A. ("Furnas"), obtained the concession for the São Manoel hydro plant. This hydro plant, with an installed capacity of 700 MW will be built on the border of the Mato Grosso and Pará states, in the Teles Pires river.

The conditions of the contracted Power Purchase Agreement ("PPA") in the electricity auction include the sale of 409.5 average MW for a 30-year term starting in May 2018 and at a price of R$83.49/MWh, price at Dec-2013, being updated at Brazilian IPCA index inflation rate.

This project will represent an expected capex of R$2.7 billion with a projected allocation of 10% in 2014, 30% in 2015, 32% in 2016, 19% in 2017 and 9% in 2018, and should be financed with up to 66% of long term debt.

2. EDP Renováveis, S.A. ("EDPR"), through its subsidiary EDP Renováveis Brasil, S.A. ("EDPR Brasil"), secured four 20-year PPA to sell electricity in the regulated market. These PPA are related to the equivalent renewable energy produced by four wind farms totaling 116 MW, to be installed in the State of Rio Grande do Norte, in Brazil.

These wind projects are adjacent to other wind farms under development by EDPR in Brazil. EDPR was able to sell 45 average MW in the A-5 auction, starting early 2018, with more than 75% of the expected capex to occur in 2017. The price of the long term contract was set at R$109/MWh, indexed to the Brazilian inflation rate.

With the new projects awarded in this auction, EDP Group secures its medium term growth in the renewable energy generation Brazilian market, through low risk projects.

EDP – Energias de Portugal, S.A.