Portugal’s EDP has agreed to sell two Spanish combined-cycle gas turbine (CCGT) plants with a combined 843 MW of capacity and a portfolio of residential power and gas customers to Total.
The €515 million deal includes the 425 MW Castejon 1 and 418 MW Castejon 3 CCGTs in Spain’s northern region of Navarra, and a business-to-consumer (B2C) portfolio with 2.5 million contracts, of which 1.2 million are in the Spanish power and gas liberalised markets.
The asset sale is expected to take place in the second half of 2020 and is part of EDP’s 2019-2022 strategic plan, which targets a reduction in thermal generation assets and exposure to price volatility in the wholesale market.
After the deal, Total will become the fourth-largest supplier of gas and power in Spain’s B2C market. The French company will also enhance the flexibility of its generation portfolio with the addition of the CCGTs, it said.