CADE okays Brennand's buyout of wind JVs with Eletrobras

Brazilian wind farm. Author: Carla Wosniak. License: Creative Commons, Attribution 2.0 Generic

December 19 (Renewables Now) - Brazil's Administrative Council for Economic Defense (CADE) has approved without restrictions the acquisition by Brennand Energia of the stakes it does not already own in 254.5 MW of wind power capacity.

The seller is Brazilian electric utility Centrais Eletricas Brasileiras SA (BVMF:ELET3), better known as Eletrobras.

According to CADE, this transaction is not expected to cause damage to competition due to the low participation of Brennand in Brazil's wind energy market.

The deal was struck in September when Eletrobras sold its interests in 64 special purpose entities (SPE) that held wind and transmission assets. At the time, Eletrobras unveiled that the value of its deal with Brennand amounts to BRL 232.6 million (USD 59.5m/EUR 52.4m).

In all, Brennand is taking full ownership of eight SPEs that represent wind farms forming three wind power complexes. The table below gives more details about the SPEs and the assets. 

Name of SPE Wind park capacity Eletrobras' interest
Baraunas I Energetica SA 32.9 MW 49%
Morro Branco I Energetica SA 32.9 MW 49%
Mussambe Energetica SA 32.9 MW 49%
Pedra Branca SA 30 MW 49%
Sao Pedro do Lago SA 30 MW 49%
Sete Gameleiras SA 30 MW 49%
Baraunas II Energetica SA 32.9 MW 1.5%
Banda de Couro Energetica SA 32.9 MW 1.7%

The wind assets in question form the Sento Se I, Sento Se II and Sento Se III wind farms.

(BRL 1 = USD 0.26/EUR 0.23)

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Lucas is based in Brazil. He joined Renewables Now to expand coverage of the Ibero-American market, a highly attractive destination for green energy investment.

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