EDP Renewables (“EDPR”) has established an agreement with Industrias Peñoles, a leading Mexican mining company, for an Electricity Supply Agreement under self-supply regime for the energy produced by a wind farm currently designed for 180 MW, expected to be installed in 2016 by EDPR. The contract is set in USD and for a 25-year period. The project, located in a region with very strong wind resource in the State of Coahuila in the North of Mexico has an expected load factor above 40%.
This agreement with Industrias Peñoles, a company with solid financial position and creditworthiness, provides EDPR with an attractive and low-risk opportunity to enter the Mexican market in a sizeable and robust way.
EDPR considers that Mexico meets its required criteria for investment and potential future growth, namely due to its attractive renewable resources and low risk profile looking for competitive energy costs with long-term stability.
The success of EDPR on securing new long term energy supply agreements reinforces the low risk profile and provides solid visibility on the company’s growth prospects.
EDP Renewables (Euronext: EDPR), headquartered in Madrid, Spain, is a global leader in the renewable energy sector and the world’s third-largest wind energy producer. With a sound development pipeline, first class assets and market-leading operating capacity, EDPR has undergone exceptional development in recent years and is currently present in 11 markets (Belgium, Brazil, Canada, Spain, the US, France, Italy, Poland, Portugal, the UK and Romania). Energias de Portugal, S.A. (“EDP”), the majority shareholder of EDPR, is a global energy company and a leader in value creation, innovation and sustainability. EDP is Portugal’s largest industrial group and the only Portuguese company to form part of the Dow Jones Sustainability Indexes (World and STOXX).