Aquila Capital to acquire Portuguese hydropower portfolio from EDP

Aquila Capital to acquire Portuguese hydropower portfolio from EDP
09.11.2018 10:21 am

Aquila Capital to acquire Portuguese hydropower portfolio from EDP

Investment Management

The alternative investment specialist Aquila Capital has agreed with EDP, Portugal’s biggest energy company, to acquire a portfolio of 21 operational small-scale hydropower plants located in Northern and Central Portugal with a total capacity of approximately 100 MW. The investment marks Aquila Capital’s first step into Portugal’s hydropower market. 

Aquila Capital is already active in the Iberian Peninsula’s integrated energy market, operating from its Madrid office. This latest transaction follows Aquila Capital’s first investment in Portugal’s renewable infrastructure, which was the acquisition of a PV portfolio with a capacity of 170 MWp at the end of 2017.

The new hydropower portfolio consists of 14 run-of-river units and seven reservoir plants. It is diversified across 10 river systems and all plants have been in operation for several years. Approximately half of the portfolio’s annual energy production stems from plants with attached reservoirs, whose importance and economic potential is increasing as the share of renewable energy grows steadily. The assets also benefit from attractive feed-in tariffs financed by end-consumers, improving the predictability of investors’ returns.

Roman Rosslenbroich, Co-founder and CEO of Aquila Capital, comments: “Portugal’s renewable energy market is grossly underestimated by general opinion and investors alike. The country is highly attractive to our investors for several reasons, including the predictability provided by feed-in tariffs, the stability of the binational energy market and the absence of currency risks. In particular, Portuguese hydropower is an ideal addition to our institutional investors’ portfolios because it offers diversification both regionally and by asset class.”

Dr. Tor Syverud, Head of Investment Management Hydropower at Aquila Capital, comments: “This new portfolio, representing about 25% of Portuguese small-scale hydropower plants, can benefit from potential savings identified through our in-house expertise. To achieve synergies for our institutional investors, we plan further expansions on the Iberian market while following our active asset management approach.

We are continuing to implement our acquisition strategy and with over 100 plants in Norway, Aquila Capital is the largest independent operator of small-scale hydropower plants in Europe.”

Related News

SEDCO Capital's Islamic investment strategy is basis for CFA Institute partnership

SEDCO Capital, a leading global asset manager, has partnered with the CFA Institute to provide a best-practice case study on its fully Shariah-compliant Prudent Ethical... Read more »

BANKEX, Fusion Foundation to Provide Digital Funding Platform for SMEs

... Read more »

SIX and Eagle Investment Systems Expand Alliance to Include Global Sanctions Data

Eagle clients can now source sanctions data directly from SIX for use within Eagle solutions. The alliance will help to streamline efforts by clients to source, validate, and... Read more »

Investment app tickr marks major growth milestone with crowdfunding campaign

Investment app, tickr, is today launching its crowdfunding campaign on leading investment platform Seedrs. Funds raised will be used to accelerate user acquisition, while... Read more »

BlueBay chooses Alpima to equip its sales, product and multi-asset teams for fund data

BlueBay has chosen Alpima to further equip its sales, product and multi-asset teams to intelligently visualise fund data and product characteristics across its full fixed... Read more »

KKR Becomes Founding Signatory to Impact Investing Principles in Effort to Create Alignment across Industry

KKR announced that it has become a founding signatory to the Operating Principles for Impact Management, a new market standard for impact investing introduced by the IFC, a... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel