Brazilian renewable power producer AES Tiete has signed a 650 million real (US$205 million) acquisition deal for the 180-MW Guaimbę solar project in the south of the country. The project is at an “advanced” stage of construction and should become operational in May of next year, the firm said in a press statement.
The deal for the complex, which is being built in S?o Paulo State, will see investment take place across two phases, AES said.
During the first phase, AES Tiete will invest up to 470 million reais (US$147 million) in debentures that will be issued between September 2017 and March 2018. That will be used to finance the continued construction of the plant, which is currently at the stage of installation of the metal structures, AES said.
In the second phase, the company expects to invest an additional 180 million reais (US$56 million) after the work has completed. This can only take place after all the regulatory approvals have been obtained and all parties have fulfilled contractual conditions, it added.
The acquisition forms part of the firm’s strategy to generate 50% of its EBITDA from non-hydro renewable sources by 2020, AES said.
“It’s an interesting project. With the new plant we are going to increase our installed capacity by 6% in the state of S?o Paulo,” said the company’s president, ?talo Freitas.
Brazil opened up its solar power sector in earnest less just two years ago, awarding contracts for the construction of 31 solar parks at the country’s first solar power auction. The country is trying to diversify away from hydropower into solar and wind, following severe drought in the last few years, which has caused energy shortages.
AES Tiete, which is a unit of US-based AES Corp, also said this week that it had completed the purchase of all the shares in the Boa Hora solar complex, in a deal worth 75 million reais (US$23.5 million). The acquisition was first announced last month.
The project, which is still being built, has a total projected capacity of 91 MW, the firm added. It is located in Pernambuco State in the far north of the country.