ENGIE, Crédit Agricole Assurances and Mirova announce the completion of the acquisition of a 1.7 GW Portuguese hydroelectric portfolio from EDP

December 18 2020

Further to winning the competitive bidding process conducted by EDP in December last year, ENGIE, Crédit Agricole Assurances and Mirova, an affiliate of Natixis Investment Managers, announce the completion of the acquisition of a hydroelectric portfolio in Portugal, valued at EUR 2.2 billion.

ENGIE owns 40% of the consortium, while Crédit Agricole Assurances and Mirova, through managed funds, own 35% and 25%, respectively. A net debt impact of c. EUR 650 million is anticipated for ENGIE. ENGIE will not consolidate the investment.

With this strategic move, ENGIE, together with its partners, further strengthens its growing presence on the Iberian renewable market, one of the most promising and innovative in Europe.

The acquired assets consist of the second largest hydroelectric portfolio in Portugal, located in the Douro valley, with 1.7 GW capacity and a weighted average concession term of 45 years. This portfolio includes three recently commissioned pump storage units along with three recently renovated run-of-river plants.

The consortium will run its activities under the newly created brand MOVHERA. It will promote a fair and transparent dialogue and cooperation with the various users of the water resources and with all local stakeholders. The assets will be operated and maintained by an ENGIE subsidiary incorporated in Portugal, with a significant part of its engineers and technicians who were working on these plants before.

Paulo Almirante, ENGIE Group Chief Operating Officer, said “With this acquisition, we strengthen our presence in Portugal and the Iberian market, increasing our capacity to supply green energy to our clients. This comes in addition to our target to build 9 GW renewables over the period 2019 – 2021.”

The acquisition of the hydroelectric portfolio is instrumental to the deployment of ENGIE’s carbon-neutrality strategy, bringing flexible renewable capacity which complements

“This operation forms part of Crédit Agricole Assurances’ long-term institutional investor and diversification strategy on behalf of its clients. A strategy that is fully incorporated into Crédit Agricole Group’s climate commitments and underpins our action in favor of the energy transition and in support of a low carbon economy. We are proud of this partnership with Engie and Mirova in Portugal, through which we can consolidate our contribution to Europe’s energy transition”, said Jean-Jacques Duchamp, Deputy Managing Director of Crédit Agricole Assurances.

Raphael Lance, Head of Energy Transition Infrastructure at Mirova, comments “This deal represents a landmark in our long-term relationship with Engie, that we deeply value and learn from. We are certain that Engie is the right partner to manage this operation that gives us access to a large hydroelectric portfolio and strengthen our footprint in Portugal. We are also very thankful to all the co-investors that trusted us for this deal, namely Banca March, Natixis Assurances, Groupama, EB Sustainable Fund, LHI and Merseyside Pension Fund.”

Mirova is an asset management company dedicated to sustainable investing, which energy transition infrastructure team has been active in the market since 2002. This investment has been made combining Mirova 4th generation fund closed in November 2019, and a dedicated investment vehicle created for the transaction. It is major step for Mirova’s portfolio diversification in terms of technology and geography and reinforces a long-lasting and fruitful collaboration with Engie.