Sunday , February 28 2021

Three groups compete for a renovated wind farm of R $ 700 million



AES Tietê, Alliance Energy and Rio Energy are in dispute for Renova Energía's Alto Sertão III Wind Complex. About $ 700 million, the business involves a 400-megawatt project (MW) in the interior of Bahia – it's enough energy to supply a city of 1.6 million people. O State It determined that the sale of the project or a capitalization in the holding company to complete the project should be closed later this year.

Founded in 2001, Renova has as partners the state-owned mining company Cemig; Luz de Rio de Janeiro; the National Bank for Economic and Social Development (BNDES) and RR Participações. Until August of this year, Alto Sertão III was being negotiated with Canadian Brookfield, named as a favorite to complete the transaction. But the agreement was not closed after the name of Renova was cited in a civil police investigation in Minas Gerais. The manager had an interest in the goods that would complement his renewable energy projects, but he abandoned the once State with people familiar with the subject. Search, Brookfield does not comment.

A source linked to the Renova partners said that, in addition to the total sale of parks, there are other alternatives in analysis. The entry of a partner through the capitalization of the holding company would be one of them. In that case, the company would be completed and could be sold later for a more attractive price, said a source.

Today the project has 87% of investments made. In total, R $ 2,100 million have been spent so far, of which R $ 900 million in debt to BNDES – originally, this amount was R $ 650 million referring to a bridge loan that was renewed at high interest rates. To complete the project, it lacks R $ 325 million, the State.

The company is in a hurry to define the future of the wind farm. With the shutdown of the works, the company was forced to buy energy in the spot market every month to comply with the contracts signed in the market. Renova has about 100 MW of energy from Alto Sertão III sold under contract.

The project is part of a group of three wind farms built by Renova in Bahia. The first two, with almost 700 MW installed capacity, have already been sold. The first was acquired by Brookfield and the second by AES Tietê, who now evaluates the purchase of the third complex.

The Alto Sertão II complex was acquired by AES Tietê for R $ 600 million last year. The purchase of Alto Sertão III would represent a gain in scale and efficiency for the company controlled by the US group, which sold Eletropaulo this year and has already said that it wants to opt for renewable energy in Brazil. AES Tietê has written in writing that the company "is attentive to all opportunities in the sector, but does not comment rumors about the market."

Another company that has an interest in the wind farm is the Energy Geração Alliance, a joint venture formed in 2015 by Cemig e Vale. The group has seven hydroelectric plants, with a capacity of 1,158 MW and a wind farm of 98.7 MW. I wanted to, the company said I would not comment on the matter.

Rio Energy, of the international director Denham Capital, has wind farms in the same region where Alto Sertão III is. In demand, the company did not return the interview requests.

History

Renova was one of the first companies to bet on wind power in Brazil. In 2010, with a portfolio of solid projects in the Northwest, the company opened the capital on the Stock Exchange of São Paulo, now B3, and attracted the attention of several investors, such as Cemig and Light. Later, the company closed a frustrated partnership with SunEdison. The business forced the company to perform a rigid restructuring, with new partners contributions and asset sales. The debt of the holding company is R $ 1.3 billion, of which 65% are with the partners.

At present, the company has three small hydroelectric power plants, 41.8 MW; and 51% of the SHP of Brazil, which has 13 plants distributed throughout Brazil, with a capacity of 148.4 MW. I wanted to, Renova would not talk.

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