EDP Renováveis (EDPR) has signed an Investment Cooperation Agreement with China Three Gorges (CTG), allowing the latter up to a 30% stake in the up to 1.1GW Moray offshore wind project in Scotland.
CTG will be entitled to 30% of the equity and shareholder loans directly or indirectly owned by EDPR in the Moray Offshore Renewable (MORL), according to the agreement.
Signed by the firm’s subsidiary, EDPR UK, the deal furthers the strategic partnership between EDPR’s principal shareholder, Energias de Portugal (EDP), and CTG.
Following the deal, CTG will be involved in the investment, development and operation of the offshore wind project in the North Sea along with EDPR and other potential investors.
The CTG investment for the project is planned to be done in two stages.
The firm will initially invest 10%-20% when the UK Government announces a new Contract for Difference (CfD) auction allocation round.
An additional investment of up to 10% will be put forward by the Chinese firm once the project secures a CfD.
The Scottish Government has given its consent for the offshore wind project, which is expected to have a capacity for up to 1,116MW, in March 2014.
EDPR is likely to divide the project into a number of phases to allow ‘a proper bidding strategy’ for CfDs.
This equity sharing deal with CTG is subject to regulatory and third party approvals, and other precedent conditions.