Engie Brasil Energia has finalized a deal to acquire two hydropower plants in Brazil, valued at nearly R$3 billion (US$523 million). The transaction includes the 393-megawatt Santo Antônio do Jari plant, located in the Amapá and Pará states, and the 219-megawatt Cachoeira Caldeirão plant in Amapá.
The acquisition, which expands Engie’s renewable energy portfolio, reflects the company’s ongoing strategy to strengthen its presence in the electricity sector and increase its hydroelectric capacity. With this deal, Engie’s total capacity now stands at 11.3 gigawatts across 115 plants, including 11 hydroelectric facilities and 104 plants from complementary sources like biomass, small hydro plants, wind, and solar energy.
Engie Brasil Energia’s Chief Executive Officer, Eduardo Sattamini, commented on the deal, stating, “We remain committed to sustainable and responsible growth of our portfolio. 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.”
The plants, which are already operational, are expected to contribute to long-term revenue streams with their fully contracted capacities. Eduardo Takamori, Engie Brasil’s Chief Financial and Investor Relations Officer, emphasized the value creation aspect of the deal, noting, “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 recognized expertise in hydroelectric operations.”
This acquisition further positions Engie as a leader in Brazil’s renewable energy sector, where hydropower remains a significant part of the country’s electricity mix.
