This Annual Report concerns the events and performance of 2013; however, the following subsequent events are relevant.
EDPR EXECUTES PROJECT FINANCE FOR ITS FIRST PROJECT IN CANADA
On 16 January 2014, EDPR executed a project finance structure agreement for its first wind farm in Canada. The South Branch project located in Ontario has an installed capacity of 30 MW remunerated based on a previously secured 20 year Feed-in Tariff awarded by the Ontario Power Authority.
The long-term contracted debt facility amounts to 49 million Canadian Dollars and the funding is expected to occur during the first quarter of 2014. EDPR’s financing strategy is to contract long-term debt in local currency at competitive prices in order to mitigate the refinancing risk and to reduce the foreign exchange risk by having a natural hedge between revenues and costs.
With the successful execution of its first wind project in Canada, EDPR adds to its portfolio a market with a low risk profile and attractive wind resource and extends its geographical diversification to 11 markets around the world (US, Spain, Portugal, France, Belgium, Poland, Romania, UK, Italy, Brazil and Canada).
EDPR REACHES AGREEMENT WITH AXPO
EDPR reached an agreement in October 2013 with Axpo Group, to sell a 49% non-controlling equity stake and outstanding shareholders loans in a wind farm portfolio of 100 MW located in France. These wind farms currently benefit from a feed-in tariff remuneration scheme. The settlement of the asset rotation transaction signed with Axpo Group occurred during the first quarter of 2014.
EDPR secures PPA for new 200 MW wind farm in the united states
In the US EDPR signed a 20-year Power Purchase Agreement (“PPA”) with Kansas City Power & Light Company to sell the renewable energy produced from its 200 MW Waverly wind farm project to be installed in the state of Kansas and expected to start selling electricity under the PPA in 2016.