AES Tiete ends negotiations with Renova for big wind buy
Wind park in Brazil. Author: Fotos GOVBA. License: Creative Commons, Attribution 2.0 Generic
Brazilian energy firm AES Tiete Energia SA announced on Thursday it has ended negotiations with Renova Energia SA (BVMF:RNEW11) to acquire the roughly 743-MW Alto Sertao III wind power complex plus a 1.1-GW wind project pipeline.
The deal, valued at BRL 516 million (USD 125.4m/EUR 113.5m), was terminated as the parties failed to reach an agreement regarding the commercial conditions, Renova said in its filling.
Тhe Alto Sertao III project is divided into Phase A (438 MW), already in pre-operational stage, and Phase B (305 MW). National power watchdog Aneel had previously blocked the planned transfer of Phase B to AES Tiete.
Although this deal has fallen apart, Renova has reiterated that it is negotiating with the Brazilian Development Bank (BNDES) to extend for three more months the maturity of a BRL-993-million bridge loan, currently scheduled for October 15, 2019. The financing was initially provided by BNDES for the execution of the works on the Alto Sertao III wind power complex.