The Latin American arm of Italian power giant Enel has signed an agreement to acquire some 100 MW of mini-hydro capacity in Brazil.
The deal with Brazilian company Rede Empresas de Energia Eléctrica will see Enel pay some BRl 450 million (€155 million) for the entire share capital of 11 companies in the Rede Group that hold concessions for 22 mini-hydro plants with a total installed capacity of 97.68 MW. Rede is an integrated operator in electricity generation, distribution and trading in Brazil, currently serving about 3 million customers.
The 11 companies are located in three Brazilian states: six with 11 plants and a total capacity of 42.88 MW in Mato Grosso; three with 8 plants and 50.14 MW in Tocantins, and two with 3 plants and a capacity of 4.66 MW in São Paulo state.
Enel expects the assets to contribute about €30 million a year to earnings
The transaction requires regulatory approvals from Aneel the Brazilian electricity authority.