China Three Gorges acquires hydroelectric project from EDP in Peru

EDP is planning to give its largest shareholder, China Three Gorges (CTG), a 50 per cent stake in the $500 million San Gaban III hydroelectric project in Peru. As per the reports, CTG already owns the other 50 per cent of San Gaban, and will acquire the sole shareholder of this hydroelectric facility. San Gaban dam has a capacity of 206 MW. This hydropower plant received a $365 million, 19-year financing from the China Development Bank at a cost of $560 million. A 30-year concession for the San Gaban III power station was awarded to the Hydro Global consortium, which is jointly owned by EDP and CTG, in November 2017.

Following a review of its strategic relationship with CTG at the end of 2021, EDP will sell the 50 per cent of this project that it currently owns as part of its asset rotation strategy to expand worldwide. In several of the markets where EDP conducts business, CTG, which owns 20.2 per cent of EDP, has expressed interest in renewable energy assets.

In February 2022, EDP Renewables invested $1.1 billion for a 91 per cent stake in Singapore-based solar manufacturer Sunseap. The agreement was initially announced in November 2021, and it was finalised when all regulatory requirements were completed. EDPR has also announced plans to invest S$10 billion by 2030 in Singapore to build a clean energy hub that will serve the Asia-Pacific (APAC) region. This investment is part of the company’s APAC market strategy.

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