Duke Energy International (DEI) of North Carolina in the US has acquired a controlling 38.7% interest in Brazil’s eleventh largest electric generating company, Companhia de Geracao de Energia Eletrica Paranapanema.

DEI’s successful bid at the privatisation auction held recently was priced at US$688M — 90% over the base price set by the government. DEI will assume operational control of the company in late September.

Paranapanema is one of three companies formed by the disaggregation of the Sao Paulo Energy Company, Cesp, and is the first to be privatised.

Located in the State of Sao Paulo, Paranapanema has a total installed capacity of 2307MW and includes eight hydroelectric generation facilities located along the Paranapanema river. Together these produced approximately 14,120GWh of electricity in 1998.