CTGC purchases $1.2 billion of hydropower assets from Duke Energy-Brazil

• 8 years ago (2016-10-13)
• David Flin

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China Three Gorges Corporation (CTGC) has purchased Duke Energy’s 2.09 GW hydropower in Brazil for $1.2 billion, making CTGC the second largest electricity producer in Brazil. In addition, CTGC agreed to assume Duke’s Brazil debt. This was the completion of Duke Energy’s exit from the Latin American market. The sale will help service Duke Energy’s debt.

Duke Energy-Brazil’s power generation facilities include eight hydroelectric plants on the border between the states of Sao Paulo and Parana, with a total installed capacity of 2.05 GW, and two small hydroelectric plants, each of 16.5 MW capacity, located on the Sapucai Mirim River in northern Sao Paulo.

CTGC now has an installed capacity of 8.1 GW in Brazil, greater than French group Engie’s 7.3 GW and state-run Petrobras with 6.2 GW. Only state-run Eletrobras has more, with 29 GW in its subsidiaries Chesf, Furnas, and Eletronorte.

The deal strengthens China’s presence in Brazil’s electric power sector following September’s $1.9 billion acquisition by Beijing-based State Grid of a stake in CPFL Energia. State Grid already owns a number of projects in Brazil, including two ultra-high-voltage power lines linking the 11.2 GW Belo Monte Hydroelectric complex to heavily populated southeast Brazil. State Grid’s Brazilian asset portfolio could swell further with the possible acquisition of projects belonging to debt-laden Spanish group Abengoa.