New CPPIB, Votorantim JV to acquire 565 MW of wind capacity in Brazil

Canada Pension Plan Investment Board (CPPIB) will create a joint venture with Votorantim Energia to invest over time more than BRL 3 billion (USD 904m/EUR 766m) in Brazil’s power sector, specifically in wind energy.

The new JV will start with the acquisition of the 359-MW Ventos do Araripe III wind farm in Piaui and Pernambuco from project developer Casa dos Ventos. The plant’s committed investments amount to BRL 1.8 billion.

At the same time, Votorantim Energia will contribute to the JV its 206-MW Ventos do Piaui I wind park in the state of Piaui. The asset has BRL 1.2 billion in committed investments.

Almost all of the two plants’ production is contracted in the regulated market.

CPPIB has agreed to initially contribute to the JV some BRL 690 million in equity. The new firm will actively pursue power generation investments and acquisitions across the country, it said.

“The renewable energy sector is an attractive, expanding market that will require major investments from the private sector now and in the coming decades. By joining with a strong partner such as CPPIB, we have expanded our capacity and accelerated our growth plan in this segment with an investor that shares our vision for the business,” said Fabio Zanfelice, president of Votorantim Energia.

(BRL 1 = USD 0.301/EUR 0.255)

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