02/06/2018

Endesa boosts its wind capacity by 132 MW with the purchase of five wind farms

Endesa, through its renewable energies division, Enel Green Power España (EGPE), has signed the purchase of five wind farms in Galicia and Catalonia from Gestinver for €178 million (including debt repayments) / This deal brings Endesa’s renewable generation capacity to 1,806 MW in Spain, comprising 1,749 MW of wind power, 43 MW of small hydropower, and 14 MW of other renewable energy sources

Endesa, through its renewable energies division, Enel Green Power España (EGPE), has signed the purchase of 132 MW of wind power capacity through the acquisition of five wind farms located in Galicia and Catalonia.

The deal was agreed with Elawan Energy and Genera Avante for a price of €178 million, including debt repayments, and brings Endesa’s share of the Spanish wind power market to almost 8 percent.

According to Endesa CEO, José Bogas, “This latest acquisition reinforces our commitment to renewable energies in Spain, following the two main allocations in last year’s auctions. These new, high-quality assets are already operational and therefore have a direct and significant positive impact on out EBITDA”.

The two Catalan farms (Les Forques, 30 MW, and Montargull, 44 MW) are located in the Province of Tarragona, and have a combined capacity of 74 MW. The other three Galician farms (Farrapa, 20 MW; Peña Revolta, 14 MW; and Pousadoiro, 23.5 MW) are in the Province of Lugo, and have a combined capacity of 57.5 MW. The average capacity factor for the five plants is above 28%. The closing of this operation is foreseen in the next months, once they fulfill the conditions foreseen in this type of operation.

Endesa will integrate the new plants into its own structure, given that the assets acquired require no additional investment and it is not necessary therefore to increase costs, adding value through economies of scale. Operations and maintenance improvements, as well as the integration in its energy management system, made the deal even more attractive.

Following the sale, Endesa now manages more than 1,806 MW of renewable capacity in Spain: 1,749 MW of wind energy, 43 MW of small hydro, and 14 MW of other renewable energy technologies. EGPE’s farms currently generate around 4 TWh of emission-free energy per year.

The new acquisitions

SPANISH	ENGLISH
Galicia	Galicia
Cataluña	Catalonia
#4 plantas – 57,5 MW	Four wind farms – 57.5 MW
#2 plantas – 74 MW	Two wind farms – 74 MW

Other projects

As well as the wind farms and renewable generation facilities already in operation, a further 879 MW of new renewable capacity will be added, which Endesa was allocated in the two solar and wind capacity auctions held by the government last year, signifying an investment of around €870 million.

The allocation consists of 339 MW of solar capacity in Murcia and Badajoz and 540 MW of wind capacity in Aragon, Andalusia, Castile-Leon, and Galicia.

The new projects under development will come on stream in 2019 and will generate approximately 1,750 GWh from wind and 640 GWh from solar sources.

All will sell their energy on the Spanish market and the government will offer incentives through annual capacity payments, securing ongoing returns over the 25-year working life of the farms.

This deal is part of the 2017-2020 Strategic Plan unveiled by Endesa on 22 November, in which the company reaffirmed its support for full decarbonisation of its mix by 2050 and further investments in renewables, in line with the strategy of the Enel Group to which it belongs.