EDP has signed an agreement with Empresa de Desenvolvimento e Infra-estruturas do Alqueva, pursuant to which EDP Producao will manage, for a period of 35 years, the Alqueva 240MW and Pedrogao hydro power plants, under market regime and special regime rules, respectively.
EDP Producao will also hold the rights for the privative use of the respective public hydro domain.
As consideration, Energias de Portugal (EDP) Producao shall pay to Empresa de Desenvolvimento e Infra-estruturas do Alqueva (EDIA) an initial amount of E195 million and a subsequent annual rent of E12.6 million during the life of the agreement.
EDP Producao has also undertaken to perform additional investments in the amount of approximately E156 million for the repowering of the hydro power plants of Alqueva and Pedrogao, thus maximizing the use of these assets’ power generation ability.
The integration of Alqueva and Pedrogao power plants in EDP’s generation portfolio represents another step towards the implementation of the strategic guidelines defined in terms of investment in renewable energies and reduction of the company’s exposure to CO2 emissions.