EDP Renováveis and China Three Gorges invest in North Sea wind farm

EDP Renováveis, of the EDP – Energias de Portugal group, signed an agreement with the China Three Gorges Group to carry out a joint investment in a wind farm project in the North Sea, off the coast of Scotland, the company said in a statement to the market.
In the announcement issued through the Securities Market Commission (CMVM), the company said that under the cooperation agreement signed between its subsidiary in the United Kingdom and China Three Gorges Europe, the project could attract other potential investors.
“China Three Gorges EU intends to acquire up to 30 percent of the shareholding directly or indirectly held by EDP Renováveis UK in Moray Offshore Renewable Limited, to participate in the investment, development and operation of the Moray offshore wind project,” the statement said.
The transaction will occur in two phases, with China Three Gorges investing between 10 and 20 percent after the announcement of a new auction for the allocation of a “Contract for Differences” (CFD), an agreement stipulating that differences to what was contracted will be paid in cash, and an additional investment of up to 10 percent subject to successful granting of that CFD by Moray Offshore Renewable Limited.
In January 2010 Moray Off-­shore Renewable Limited was granted, under the program for development of offshore wind farms in the UK conducted by “The Crown Estate,” the right to develop wind power at sea.
The China Three Gorges Group is the largest shareholder of EDP – Energias de Portugal, with a 21.35 percent stake. MDT/Macauhub