VH Global Sustainable Energy Opportunities plc (GSEO) has completed the acquisition of the 198MW Mascarenhas Hydro Electric Facility in the state of Espírito Santo, Brazil.
The final amount paid on completion was Brl708m (€130m) versus the Brl800m which was subject to adjustments as highlighted in the Company’s announcement of the signing of the purchase agreement on 31 August 2022.
The hydro facility has been acquired from EDP Energias do Brasil, one of Brazil’s largest electric utility companies and a subsidiary of EDP.
Mascarenhas has been in operation since 1974 and has a peak capacity of 198MW.
Since being first commissioned, the hydro facility has been managed and maintained to a high standard and offers a strong and sustainable cashflow potential for GSEO with an estimated remaining useful life of 45 years.
Over 60% of the revenues are secured under long-term power purchase agreements (PPA) with local utilities which are adjusted with local inflation with no caps.