EDPFY Energias De Portugal SA (PK)

--EDP anticipates an extraordinary cost of around EUR100 million in 2020 due to the closure of coal plants in Iberia

--The decision takes into account the deterioration of market conditions that occurred in 1H

By Giulia Petroni

EDP-Energias de Portugal SA said Tuesday that it expects to book costs of around 100 million euros ($113.5 million) before taxes this year following a decision to shut down its coal power plants in the Iberia region.

The Portuguese energy company said the decision takes into account the continuing deterioration of market conditions for these plants in the first half of the year.

In December, EDP had already assessed the lower competitiveness of coal plants in the region due to the higher cost of carbon dioxide emissions, lower gas prices, and the planned faster pace of growth of renewable installed capacity.

EDP added that it is developing projects related to the energy transition in the regions where the coal plants are located.

In Portugal, the company has submitted a generation license waiver for the Sines power plant to be effective in January 2021 and is developing a project to produce green hydrogen at the site.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

July 14, 2020 05:38 ET (09:38 GMT)

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