Investors

& Analysts`

Briefing

Reuters: EDPR.LS

Spain published the interim regulatory revision for wind energy assets

nd

Bloomberg: EDPR PL

Madrid, February 22

2017: The Spanish Government published today, in Boletín

Oficial Del Estado, the Order ETU/130/2017 which includes theinterimrevisionof

the parameters to remunerate the renewable energy assets, under the remuneration framework that was approved by the Royal Decree 413/2014 ("RD 413/2014") of June 2014.

According with the Order IET/1045 approved in 2014 the remuneration was structured in order for a standard asset to receive a pre-tax return of 7.4% in the first regulatory period, from 2013 to 2019.Toachievethedefinedpre-taxreturn,thestandardassetreceivesaremunerationtoinvestmentinadditiontotheelectricitymarketprice.

The 3 year interim revision period (2017-2019) of the parameters includes:

  • Wind profile coefficient: from previous 11.11% to 14.79%

  • 2014-2016 regulatory adjustments: difference between actual market price and forecasted market price and reference caps and floors for the standard production envisaged in Order IET 1045/2014

    €/MWh

    2017

    2018

    2019

    ≥2020

    High Cap

    49.81

    48.30

    48.68

    60.00

    Low Cap

    46.33

    44.92

    45.28

    56.00

    Central Scenario

    42.84

    41.54

    41.87

    52.00

    High Floor

    39.35

    38.16

    38.46

    48.00

    Low Floor

    35.87

    34.78

    35.06

    44.00

  • Market price (€/MWh): forecasted pool prices with defined caps and floors for the standard production, such that:

Investor Relations Department

Rui Antunes, Head of IR Maria Fontes

Pia Domecq

Paloma Bastos-Mendes

Phone +34 902 830 700

Fax +34 914 238 429

ir@edpr.com www.edpr.com

Standard production (MWh):

  1. is exposed to prices fluctuations when the wholesale price is between the "High Floor" and the "Low Cap"

  2. benefits 50% when the wholesale price is between the "High Cap" and "Low Cap" and are 50% protected of the price between "High Floor" and "Low Floor"

  3. isn't exposed to prices fluctuations when the wholesale price is higher than the "High Cap" or below the "Low Floor"

Investors

& Analysts`

Briefing

Reuters: EDPR.LS Bloomberg: EDPR PL

As a consequence of the above, remuneration to investment (see Annex I) for EDP Renováveis ("EDPR") will increase from €158 million per year, in place from 2014 to 2016, to €182 million per year from 2017 to 2019. The €182 million per year includes

€2 million per year from regulatory adjustments already accounted in the 2014-2016 period.

Annex I - Remuneration to Investment

The remuneration to investment depends on the entry into service of the asset and is definedbasedonastandardassetforeachyear,suchthat:

Date

Remuneration to Investment (€ thousand/MW)

0

2004

22.8

2005

33.8

2006

55.0

2007

86.7

2008

119.2

2009

127.2

2010

136.1

2011

120.1

2012

115.8

2013

111.9

EDP Renováveis, S.A.

Investor Relations Department

Rui Antunes, Head of IR Maria Fontes

Pia Domecq

Paloma Bastos-Mendes

Phone +34 902 830 700

Fax +34 914 238 429

ir@edpr.com www.edpr.com

EDP Renovaveis SA published this content on 22 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 February 2017 19:51:02 UTC.

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