European utility Suez has expanded its presence in the Brazilian power generation market with the acquisition of two small hydropower plants.
Suez Energy International’s Brazilian subsidiary Tractebel Energia has signed a share purchase agreement for the two plants, which are located in Mato Grosso state and which have a combined installed capacity of 50.3 MW.
Suez, which is about to merge with Gaz de France, has earmarked Brazil as a key target market largely due to strong economic growth and rising electricity demand. It recently won the concession to construct the 3.3 GW Jirau hydropower plant in Brazil.
The two recent purchases are already in commercial operation and are contracted to sell their electricity to Eletrobras under 20-year power purchase agreements (PPAs). The PPAs are part of Brazil’s PROINFA renewable energy initiative.
Tractebel Energia has paid a total of R$314 million (EUR125.6 million) for the two plants – the 26.6 MW Rondonópolis plant and the 23.7 MW José Gelázio plant.
The sale is expected to close by the end of 2008.
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