Hydropower is raging: Hydropower generation, which accounts for about 80% of Brazil's power production, costs less than other forms of energy once the plants are built. Insufficient water reserves mean utilities must meet demand by using more expensive coal, natural-gas and oil-burning generators.
Brascan Energetica Acquires Itiquira Hydropower Plant in Brazil for $120 Million, an Industrial Info News Alert
Tractebel Energia SA (TBLE3 BS): The Brazilian power generator controlled by Suez SA agreed to buy hydropower companies Tupan Energia Eletrica SA and Hidropower Energia SA for 203.9 million reais ($126.7 million) and will assume 110 million reais of the companies' debt. Tupan operates a 26.6 megawatt hydroelectric dam, and Hidropower runs a 23.7 megawatt dam, Tractebel said in a filing posted yesterday on Brazil's securities regulator Web site. Tractebel fell 1.5 percent to 22.60 reais.
Statkraft Unit to Invest 2 Billion Reais in Brazil, Valor Says
By Joao Lima
June 23 (Bloomberg) -- Statkraft AS, a Norwegian utility, plans to invest 2 billion reais ($1.2 billion) in Brazil through 2010, Valor Online reported, citing Ricardo Martins, director of business development of Statkraft's SN Power unit in Brazil.
SN Power wants to have about 500 megawatts of hydropower plants and 100 megawatts of wind energy projects, the Brazilian newspaper said. The company is only interested in generation from renewable energy sources and is not interested in electricity transmission or distribution, Valor said.
SN Power now has projects around the world with 580 megawatts in operation and aims to generate 4,000 megawatts of energy from renewable sources in emerging markets by 2015, Valor reported.
To contact the reporter on this story: Joao Lima in Lisbon at jlima1@bloomberg.net
Energias do Brasil to Swap Assets With Grupo Rede (Update4)
By Anabela Reis and Joao Lima
June 19 (Bloomberg) -- EDP-Energias do Brasil SA, a unit of Portugal's biggest power company, agreed to swap Brazilian assets with Grupo Rede as it seeks to generate more electricity in Latin America's biggest economy.
Energias do Brasil will give up its stake in power distributor Empresa Energetica do Mato Grosso do Sul SA, known as Enersul, parent EDP-Energias de Portugal SA said today in a regulatory filing. In exchange, it will get interests in companies including the operator of a hydroelectric plant in Tocantins, northern Brazil.
The Lisbon-based utility plans to produce more power from dams and wind to meet rising demand while emitting less carbon dioxide. It agreed to buy Brazilian wind-energy company Cenaeel last week and is studying new hydropower projects in the country, whose economy grew 5.8 percent in the first quarter after a 6.2 percent gain in the last three months of 2007, the fastest pace in more than three years.
The transaction provides ``growing exposure to generation in Brazil,'' Banco BPI SA analyst Bruno Almeida da Silva said today in a research note. He has a ``reduce'' rating on EDP shares.
EDP fell 8.5 cents, or 2.3 percent, to 3.60 euros in Lisbon trading, the lowest close since December 2006. The stock has declined 20 percent so far this year for a market value of 13 billion euros ($20 billion). Exane BNP Paribas today cut EDP's rating to ``neutral'' from ``outperform.''
Tocantins Dam
Energias do Brasil jumped the most in 15 weeks in Sao Paulo trading, adding 6.4 percent to 32.39 reais. Increasing the company's holdings in generation will improve its asset portfolio, Raymond James & Associates Inc. analysts including Ricardo Cavanagh wrote in a note to clients.
The Lajeado dam in Tocantins has an installed capacity of 902.5 megawatts and a concession period that runs through December 2032, EDP said. After the transaction, Energias do Brasil will hold 73 percent of the voting stock in Investco, the manager of the hydropower plant.
Energias do Brasil said March 6 it will study hydro and wind projects with a combined capacity of about 1,534 megawatts with Brazilian companies Cia. Energetica de Minas Gerais, or Cemig, Andrade Gutierrez SA and Concremat Engenharia e Tecnologia.
Hydropower generation, which accounts for about 80 percent of Brazil's power production, costs less than other forms of energy once the plants are built. Insufficient water reserves mean utilities must meet demand by using more expensive coal, natural-gas and oil-burning generators.
EDP said May 8 it's studying energy-generation projects in Brazil with a total capacity of 4,000 megawatts, including gas- fired units.
To contact the reporters on this story: Anabela Reis in Lisbon at areis1@bloomberg.net; Joao Lima in Lisbon at jlima1@bloomberg.net.
Last Updated: June 19, 2008 16:23 EDT
Suez unit buys two plants in Brazil, wins Estreito appeal
10 July 2008
A subsidiary of Suez Energy International has bought two hydro power plants in Brazil with combined installed capacities of 50.3MW for US$198M, and has won its legal appeal over river diversion works for the Estreito project in the country.
Tractebel Energia has signed an agreement to buy the 26.6MW Rondonopolis and the 23.7MW Jose Gelazio plants in Mato Grosso state. The two plants have 20-year power supply agreements to 2027, and are near the company's recently acquired 176MW Ponte de Pedra plant.
Almost two-thirds of the purchase price was paid as equity and the balance is a net financial debt denominated in local currency. The plants have been owned by a company that is family-controlled and its strategy is to invest in other activities, IWP&DC was told.
Suez said the sale process began in April and it was notified of having the winning bid on 30 June. Subject to approval by Eletrobras, the state electricity regulator Aneel and lenders (Caixa Economica Federal, Bradesco and Banco do Brasil), Suez hopes the deal will be closed by the end of the year.
Separately, at the 1,087MW Estreito project, the Suez-led joint venture developing the scheme has secured clearance for its contractor to proceed with diversion works after winning its appeal against a legal suspension. |
