EDP agreed to sell an 80% stake in a California solar and storage portfolio. Its 71.4%-owned subsidiary, EDP Renováveis, is executing the deal. A fund managed by Ares Infrastructure Equity is purchasing the 384 MW portfolio.
The transaction is valued at approximately $450 million. This sale price is equivalent to 395 million euros. The deal implies an enterprise value of $800 million for the total assets.
The portfolio includes a 200 MW solar project. It also features a 184 MW battery energy storage system. Both assets are secured by 20-year long-term revenue contracts. EDP expects the sale to generate a high return on invested capital.
The divestment follows an asset rotation strategy to fund new renewable developments. EDP disclosed the agreement to the Portuguese Securities Market Commission. Shares of EDP Renováveis fell 2.81% on the day of the announcement. The stock closed at 13.82 euros. The deal underscores the strategic importance of the U.S. market for EDP.