The company said that about 75% of the energy generated by the solar project is contracted under long-term inflation-linked power purchase agreements
Brookfield Renewable to acquire 1.2GW solar project in Brazil. (Credit: Grégory ROOSE/Pixabay)
Brookfield Renewable Partners (BEP) and its institutional partners have agreed to acquire a 1.2GW advanced solar development project in Brazil.
The company, which signed a binding agreement to acquire the solar project, said that the project would need equity of about $200m for the completion.
About 75% of the energy generated by the solar project is contracted under long-term inflation-linked power purchase agreements.
The company expects to contract the remaining 25% of power generation prior to the start of the construction works on the project.
The solar project is targeted for completion in early 2023.
Brookfield Renewable expects to close the deal in the fourth quarter of this year
Brookfield Renewable CEO Sachin Shah said: “This acquisition represents a unique opportunity to invest in one of the largest solar development projects globally.
“This investment aligns with our ongoing strategy of acquiring late-stage development projects at attractive valuations and leveraging our construction and energy marketing capabilities and longstanding experience to achieve attractive returns.
“More broadly, the investment further enhances our technologically diverse 15GW global development pipeline and continues to position Brookfield Renewable as a global leader in renewable power investing and a partner to governments and businesses in the decarbonisation of global electricity grids.”
Subject to customary closing conditions, the deal is expected to be concluded in the fourth quarter of this year.
In March this year, Brookfield Renewable signed a definitive agreement to acquire the remaining 38% interest in TerraForm Power (TERP) that the company does not already own in TERP.
The company’s portfolio consists of hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia, with a total more than 19GW of installed capacity and a 15GW development pipeline.