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China Three Gorges agrees €242m Portuguese wind swoop

The state-owned power company continues its partnership with Portugal’s EDP Renováveis which has seen it invest in over 3GW of European wind projects.

China Three Gorges has agreed a €242 million deal that will see it acquire a 49 percent share in a 422MW wind portfolio owned by EDP Renováveis.

The deal, which provides the portfolio with an enterprise value of €707 million, covers 33 percent of EDPR’s total 1.2GW installed capacity in Portugal. The assets forming the portfolio have an average age of six years.

The transaction builds on a partnership formed back in 2011 when China Three Gorges purchased a 21.35 percent stake in the wind developer, which included a deal with an unnamed Chinese financial institution to provide corporate funding of up to €2 billion over two decades. A year after this agreement, China Three Gorges bought a 49 percent stake in EDPR’s Portuguese division for €359 million.

The Chinese state-owned power company purchased the same share in a 548MW portfolio across Poland and Italy in October last year. It is also a 30 percent shareholder in EDPR’s 1.1GW Moray offshore wind farm in the UK, for which the pair are looking to secure funding in the next Contracts for Difference auction.

Last year China Three Gorges was the first Chinese firm to become the majority owner of an offshore wind farm in Europe when it bought Blackstone’s 80 percent stake in the 288MW Meerwind project.

The company, a hydropower champion with over 50GW installed in its domestic market, began investing in wind and solar power in 2007 and 2011 respectively.