Engie buys 605 MW Brazilian wind project from Renova
Engie Brasil Energia, a unit of French utility Engie, has signed a deal to acquire the 605 MW Umburanas wind complex project from Brazilian firm Renova Energia. The BRL15m ($4.8m) deal includes the 355.5 MW Umburanas I Project and the 108.9 MW Umburanas II, as well as the remaining wind potential in Brazil’s Bahia state region. Renova said the move will reduce its capex requirements for the next 18 months, but does not affect its negotiations with Brookfield Energia Renovavel, a unit of Canadian asset manager Brookfield Asset Management.
Renova Energia SA (BVMF:RNEW11) announced on Wednesday it has signed a deal to sell the rights to the 605-MW Umburanas wind complex project in Brazil’s Bahia state to a unit of France’s Engie SA (EPA:ENGI).

The Brazilian renewables company said in a statement it will assign the project-related rights, obligations and other covenants to Engie Brasil Energia SA in exchange for a payment of BRL 15 million (USD 4.8m/EUR 4m), subject to adjustments. The deal includes the rights to the 355.5-MW Umburanas I Project, the 108.9-MW Umburanas II and the remaining wind potential in the region.

Renova noted that the sale of the scheme will reduce its capital expenditure (Capex) requirements for the next 18 months, during which period the company was supposed to invest in the Umburanas II Project. That scheme was scheduled for completion by January 2019 under a contract won in an energy auction in 2014.

The company once again stressed that this development does not affect its ongoing discussions with Brookfield Energia Renovavel SA, a unit of Canadian asset manager Brookfield Asset Management Inc (TSE:BAM.A). Last month, Brookfield Energia Renovavel won a 60-day exclusivity period to conduct due diligence ahead of a possible stake buy in Renova.

(BRL 1.0 = USD 0.318/EUR 0.270)

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