Engie Brasil Energia has signed a contract for the purchase of two hydropower plants in Brazil in a deal worth almost R$3bn (US$523m).
The company will acquire the 393MW Santo Antônio do Jari plant, located in the states of Amapá and Pará, and the 219MW Cachoeira Caldeirão plant in Amapá.
“We remain committed to sustainable and responsible growth of our portfolio,” said chief executive of ENGIE Brasil Energia Eduardo Sattamini.
“The acquisition of these two assets is fully aligned with the strategic focus of strengthening our position in the electricity sector, increasing the weight of hydroelectric plants in our generating complex and extending the average term of concessions with fully contracted capacity in the long term in the regulated market.”
Engie’s total capacity will now reach 11.3GW across 115 plants, including 11 hydroelectric facilities and 104 from complementary sources such as biomass, small hydro plants, wind and solar sites.
Chief financial and investor relations officer Eduardo Takamori added: “The operation will create value for shareholders by allowing us to allocate capital in assets that are already operational and with safe and long-term revenues, with a good balance between risks and returns, where we can also apply all our recognised expertise in hydroelectric operations.”