ENGIE Brasil Energia has signed an agreement to acquire two hydropower plants, adding 612MW to its energy portfolio. The Santo Antônio do Jari Hydropower Plant, located in Amapá and Pará, and the Cachoeira Caldeirão Hydropower Plant, in Amapá, were purchased for approximately R$2.9 billion, which includes R$2.3 billion in equity and R$671 million in net debt. Both plants operate under long-term contracts in the regulated energy market.
“We remain committed to the sustainable and responsible growth of our portfolio. The acquisition of these two assets is fully aligned with our strategic focus on strengthening our position in the electricity sector, increasing the weight of hydropower plants in our generator park and extending the average term of concessions with fully contracted long-term capacity in the regulated market environment,” said ENGIE Brasil Energia’s CEO, Eduardo Sattamini.
With this acquisition, ENGIE’s generation portfolio now includes 115 plants with a total installed capacity of 11.3GW. This includes 11 hydroelectric plants, with the remainder consisting of biomass, small hydroelectric plants (SHPs), wind, and solar energy sources.
“The business will create shareholder value by allowing the Company to allocate capital to assets that are already operational and have secured long-term revenue flows, with a good balance between risks and returns, and where we will also be able to apply all our recognized expertise in operating hydropower plants,” added Chief Financial and Investor Relations Officer, Eduardo Takamori.
The Santo Antônio do Jari Hydropower Plant is located on the Jari River between Laranjal do Jari (Amapá) and Almeirim (Pará). It has an installed capacity of 393MW and a commercial capacity of 211MW average. The plant began operations in 2014, with a concession lasting until October 2045. Its energy output is fully contracted under two agreements: 190MW average from the 11th New Energy Auction in 2010 at R$230.42/MWh (adjusted to October 2024 prices) and 20.9 MW average from the 15th New Energy Auction in 2012 at R$161.43/MWh.
The Cachoeira Caldeirão Hydropower Plant is located on the Araguari River in Ferreira Gomes (Amapá). It has an installed capacity of 219MW and a commercial capacity of 123MW average. Operations began in 2016, with a concession running until August 2048. The plant’s 130MW average output was contracted at the 15th New Energy Auction in 2012 at R$187.63/MWh (baseline October 2024).
This acquisition strengthens ENGIE’s presence in Brazil’s renewable energy market and reinforces its focus on hydropower as a key part of its energy generation strategy.
