Engie Brasil, which is one of the largest power utilities, has signed a deal to acquire two hydroelectric power stations in northern Brazil for approximately $523.2 million. The acquisition forms part of the company’s long term and revenue generating assets investment strategy.
The deal consists of the Amapá state based Cachoeira Caldeirão plant and the Santo Antônio do Jari plant, located on the border of Amapá and Pará states. The concessions for the two plants run through 2048 and 2045, respectively. With a total installed capacity of 612 megawatts, the assets will add to Engie Brasil’s renewable energy portfolio.
The plants were formerly held by China Three Gorges Energia and EDP Energias do Brasil. Engie Brasil CFO Eduardo Takamori emphasized the strategic significance of the deal, noting, “This acquisition enables us to invest capital in operating assets with secure, long term revenues, in a way that provides the best possible balance between returns and risks.”
The transaction, subject to shareholders approval of Engie and Brazilian regulatory approvals, comprises 2.3 billion reais of equity value and 672 million reais of net debt. The finalization of the investment will once again position Engie Brasil within the hydropower segment with a stronger grip on sustainable energy growth in Brazil.
