The Mascarenhas hydropower plant in Brazil has earned Gold certification under the Hydropower Sustainability Standard (HSS), recognizing its alignment with international best practices in environmental, social, and governance (ESG) standards. The 198MW facility, which has been operational for over 50 years, is a key renewable energy source for Espírito Santo State.
The certification follows the plant’s 2022 acquisition by VH Global Energy Infrastructure plc (ENRG), managed by Victory Hill Capital Partners LLP, in partnership with Paraty Energia, which now operates the plant. The new ownership aimed to bring the project in line with the HSS, showcasing a commitment to sustainability.
“Victory Hill is incredibly proud of the Mascarenhas Hydropower Plant’s achievement in securing the Gold certification under the Hydropower Sustainability Standard,” said Eleanor Fraser-Smith, Head of Sustainability at Victory Hill Capital Partners LLP. “This certification is a testament to Victory Hill and its partners’ commitment to not only invest in renewable energy but to ensure that these assets operate at the highest standards of environmental, social, and governance (ESG) performance.”
The assessment highlighted the plant’s strong environmental management programme, improved labour relations, and community engagement efforts. Joerg Hartmann, the assessment lead, noted: “The Mascarenhas power plant shows how even older projects operating in mature markets and regulatory frameworks can benefit from new ownership, a review of environmental and social management issues, and commitments that reflect modern best practices.”
Key improvements under Paraty Energia’s management include strengthening community outreach, addressing land ownership issues around the reservoir, and initiatives to enhance aquatic and terrestrial habitats. Hartmann added: “It is remarkable what a motivated owner can do with an older project.”
The certification underscores the role of financial institutions in advancing sustainable energy practices. “The Mascarenhas project demonstrates that financial institutions can and should play a crucial role in driving the energy transition, and that sustainable operations can be achieved while delivering reliable renewable power,” Fraser-Smith said. “This certification not only validates our approach but also sets a benchmark for responsible investment in the hydropower sector.”
With over half a century of operation, the Mascarenhas Hydropower Plant continues to provide low-carbon electricity while supporting regional economic growth. The Gold certification positions the project as a model for integrating sustainability into renewable energy investments.
