EDP and Sakthi Portugal have just signed a long-term (18-year) Power Purchase Agreement - the largest agreement ever signed by the Group in Portugal. Power Purchase Agreements offer greater price stability and significant price cuts, resulting in savings of about 20% in electricity costs compared to short-term contracts. The energy to be supplied under this agreement will consist of renewable energy produced in the Iberian Peninsula.

Sakthi Portugal, the largest foundry in Portugal, has an annual energy consumption of about 150.000 MWh, a rate that has been growing due to increased production levels in the company's three units (Maia, Águeda and Trofa), where about 700 people are employed. The company's partnership with EDP dates back to 2009, with an efficiency plan that has allowed Sakthi to reduce its consumption/produced unit ratio through measures such as the installation of efficient lighting, the installation of technical energy infrastructures on a new plant, or the construction of an Extra-High Voltage Substation to supply one of its factories directly.

This long-term agreement will now provide Sakthi, a company held by Indian investors, with a very significant portion of its energy consumption, thus ensuring stability and a significantly lower price than it would with a regular one- or two-year contract. For this reason, PPAs are an increasingly popular solution in several markets.

"This agreement represents a paradigm shift for EDP and is part of the strategy of building strong and lasting partnerships, with a clear focus on energy efficiency - an area in which the Group has made significant investments in articulation with its clients. On the other hand, this new paradigm will allow us to boost the production of renewable energy, which means that it is fully aligned with the sustainability commitments made by the Group," said EDP Director Vera Pinto Pereira. 

Sakthi Portugal has been operating in Portugal since 2007, although its origin dates back to Eurofer, established in the 1970s. Its core business is the design, development and production of critical safety components (brakes, suspension, transmission, engine, and steering) for the automotive industry - a very competitive market. With BMW and Volkswagen among its main clients, the company exports its entire production - 70% to European markets, 20% to the US, and 10% to Africa.