EDP is to sell hydro assets in Portugal totalling 100MW to alternative investment fund manager Aquila Capital for an undisclosed price.
The 21 operational projects comprise 14 run-of-river units and seven reservoir plants located in the north and centre of the country. They represent about 25% of Portuguese small-scale hydropower capacity.
The investment marks Aquila Capital’s first step into Portugal’s hydropower market.
Aquila Capital already owns 170MW of solar capacity in the country.
Aquila Capital co-founder and chief executive Roman Rosslenbroich said: “Portugal’s renewable energy market is grossly underestimated by general opinion and investors alike.
“The country is highly attractive to our investors for several reasons, including the predictability provided by feed-in tariffs, the stability of the binational energy market and the absence of currency risks.
“In particular, Portuguese hydropower is an ideal addition to our institutional investors’ portfolios because it offers diversification both regionally and by asset class.”