The first round of cash grant awards approved confirms the success of the new grant program for the renewables (alternatively to the previous tax credits mechanism) and wind power, and constitutes a major positive development in the US wind energy market.
EDP Renovaveis establishes a new type of institutional partnership structure for 101 MW in the US
Horizon Wind Energy LLC (“Horizon”), a fully-owned subsidiary of EDP Renováveis, S.A. (“EDPR”) in the US, has executed an agreement to secure $101.9 million of institutional equity financing from JPM Capital Corporation in exchange for a partial interest in its 100.5 MW Rail Splitter wind farm project installed in June 2009 in Illinois.
The institutional equity investment will provide the investor with access to the accelerated asset depreciation (MACRS) benefits and to the cash grant, which the Rail Splitter project will apply for pursuant to the American Recovery and Reinvestment Act of 2009.
The Rail Splitter transaction will represent EDP Renováveis’s first institutional equity transaction that incorporates the cash grant in lieu of production tax credits and through it EDPR will improve the project’s economics and the company’s fiscal efficiency.
EDP Renováveis earns 66 million Euros in the first half of 2009, a 32% increase
EDP Renováveis (EDPR), the fourth largest wind power company in the world and subsidiary of the Grupo EDP-Energías in Portugal, obtained a net profit of 66 million Euros in the first half of 2009 and increased its EBTIDA by 19% reaching 271 million Euros. EDPR is quoted on the Euronext stock market.
By June, EDP Renováveis had achieved 5,301 megawatts (MW) of installed wind energy capacity. This keeps EDPR in fourth position in the world ranking. The company, which has offices in six European countries, in addition to the United States and Brazil, has 1,261 MW in construction and a project portfolio of 28,304 MW.
Thus, EDP Renováveis now manages a portfolio of over 5.3 GW as of the first half of 2009. In terms of installed capacity, EDP Renováveis added 1,455 MW over the last 12 months, with an increase of 38% in relation to the first semester of 2008. The production of electricity delivered reached 5,253 GWh, 33% higher than the same period in 2008.
In addition to the 5,301 MW of wind energy already in operation, EDP Renováveis has 1,261 MW in construction, of which 760 MW are located in Europe and 501 MW are located in the United States. The company plans to increase its wind capacity to 10,500 MW by 2012.
The leading world market for EDPR is the United States, which has an installed capacity of 2,358 MW. In addition, it has 501 MW under construction and plans to add up to 17,785 MW. Spain is the second leading country with 2,109 MW of installed capacity, 477 MW under construction and 4,999 MW in development. Currently, Brazil has 14 MW of installed capacity, and ranks third in terms of potential power capacity given EDPR plans to develop up to 1,544 MW.
EDP Renováveis achieved one of the highest EBITDA margins in the wind energy industry, a total of 76%. This was particularly due to the progress made in the United States where the EBITDA increased by 56%.
The company’s balance sheet is very solid. Its net debt represents only 20% (1,900 million Euros) of the company’s value which shows its reduced financial risk.
EDP Renováveis Secures 532 MW in Brazilian Wind Energy Projects
EDP Renováveis, renewable energy company member of the Portuguese Group EDP-Energías, has acquired through is affiliate EDP Renováveis Brasil several wind energy projects that amount to a total power of 532 MW. The operation was made through the purchase of 100% of the shares of the Brazilian company Elebrás Proyectos, subsidiary of the of the Germany company InnoVent.
The purchase of Elebrás, for some 2 million euros, is in line with the strategy of the EDP Group, fourth ranked wind energy operator in the world, which is determined to also be a notable renewable energy company in Brazil, especially in the area of wind energy.
EDP Renováveis initiated its expansion in the Brazilian wind market last year when it purchased Cenaeel, with 14 MW of operating power, in the state of Santa Catalina. Now it is taking another step toward the consolidation of its strategy. Elebrás has a project portfolio totalling 532 MW, 70 MW of which belong to the Proinfa Project. The remaining 452 MW are in different stages of development.
The projects are located in Rio Grande do Sul, one of the most favourable regions for the development of wind energy. With this operation, the Group expands its presence in the Brazilian market, increasing 532 MW to its portfolio, which added to the 14 MW from Cenaeel (SC), and to the projects under study (70 MW in Santa Catalina and 216 MW in Espiritu Santo), a total of 832 MW can be summed up for wind energy generation projects.
In addition, EDP Renováveis Brasil continues, to maintain alliances with Cemig and Petrobras for the joint development of wind energy studies. The term of the operation is pending administrative y regulatory approvals.