AES Tiete, Renova talks for 1.8 GW wind collapse

Renova Energia said talks with AES Tiete Energia covering a BRL516m ($125.4m) 1.8 GW wind project have collapsed after the two failed to agree commercial conditions. Renova said it will continue to seek an extension to a BRL993m loan from the Brazilian Development Bank, initially slated for the 743 MW Alto Sertao III complex, part of the doomed scheme.

Brazilian energy firm AES Tiete Energia SA announced on Thursday it has ended negotiations with Renova Energia SA (BVMF:RNEW11) to acquire the roughly 743-MW Alto Sertao III wind power complex plus a 1.1-GW wind project pipeline.

The deal, valued at BRL 516 million (USD 125.4m/EUR 113.5m), was terminated as the parties failed to reach an agreement regarding the commercial conditions, Renova said in its filling.

Тhe Alto Sertao III project is divided into Phase A (438 MW), already in pre-operational stage, and Phase B (305 MW). National power watchdog Aneel had previously blocked the planned transfer of Phase B to AES Tiete.

Although this deal has fallen apart, Renova has reiterated that it is negotiating with the Brazilian Development Bank (BNDES) to extend for three more months the maturity of a BRL-993-million bridge loan, currently scheduled for October 15, 2019. The financing was initially provided by BNDES for the execution of the works on the Alto Sertao III wind power complex.

(BRL 1 = USD 0.243/EUR 0.220)

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