Canadian developer Brookfield Renewable Partners has entered into a binding agreement to acquire a 1200MW solar photovoltaic project in Brazil.
The transaction is expected to close in the fourth quarter of 2020.
The photovoltaic project is slated for completion in early 2023.
Approximately 75% of the project is contracted under long-term inflation-linked power purchase agreements.
Brookfield Renewable said it intends to “leverage its deep power marketing expertise” to contract the remaining generation prior to beginning construction.
Total equity required to complete the project is expected to be approximately $200m (€172m).
Brookfield Renewable chief executive Sachin Shah said: “This acquisition represents a unique opportunity to invest in one of the largest solar development projects globally.
“This investment aligns with our ongoing strategy of acquiring late-stage development projects at attractive valuations and leveraging our construction and energy marketing capabilities and longstanding experience to achieve attractive returns.
“More broadly, the investment further enhances our technologically diverse 15GW global development pipeline and continues to position Brookfield Renewable as a global leader in renewable power investing and a partner to governments and businesses in the decarbonization of global electricity grids.”
Brookfield Renewable Partners operates one of the world’s largest publicly traded, pure-play renewable power platform, comprising hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia.
The portfolio includes over 19GW of installed capacity as well as a 15GW development pipeline.