EDP Brazil agrees to sell 198 MW hydropower plant

Brazilian energy company EDP Brazil has agreed to sell Victory Hill Global Sustainable Energy Opportunities (GSEO), its Mascarenhas hydropower plant. The 198 MW hydropower project will be sold by the firm for $235 million. The run-of-river asset Mascarenhas, which is situated in the Brazilian state of Esprito Santo, has been in use since 1974.

More than 60 per cent of the hydroelectric facility’s income comes from long-term power-purchase agreements (PPAs) with local utilities. Its sale is a component of EDP – Energias de Portugal, the parent company of EDP Brazil, to enhance solar energy generation investments. According to GSEO, the Msacarenhas plant is expected to provide “strong and sustainable” cash flow throughout the course of its anticipated 45-year useful life. The deal must get usual regulatory clearances in order to be completed. For the transaction, GSEO was advised by Victory Hill Capital Advisors.

In August 2022, EDP Renováveis invested $256 million to acquire a 70 per cent stake in Kronos Solar Projects, a company based in Germany. Currently, Kronos’ portfolio of solar projects totals 9.4 GW, and they are spread out across the UK, Germany, France, and the Netherlands. The solar portfolio includes projects in Germany that make up about 50 per cent of the total and are in various phases of development.