AES Tietê buys 180 MW PV plant in Brazil

Brazilian energy supplier AES Tietê, a division of AES Brazil — which is itself a subsidiary of US-based power company AES Corporation — has announced that it plans to acquire a 180 MW solar installation. The project was selected by the Brazilian government in the sixth reserve energy auction, which was held in October 2014. The company said it has closed an agreement with Cobra Brazil for the acquisition of the plant, which is located in the municipality of Guaimbê, in the state of São Paulo.

AES Tietê said the total value of the agreement is BRL 650 million ($764.8 million) and that the negotiations will be concluded in two phases. In the first stage, the company will issue BRL 460 million of bonds, which will be used to finance the construction of the plant. In the second phase, the company will invest another BRL 180 million after obtaining a series of authorizations.

The PV power plant, which will sell electricity to the Brazilian grid at a price of BRL 218.85/MWh for a period of 20 years, is the second large solar project that AES Tietê has acquired in recent months. In early August, the company had announced the acquisition of another solar project that had been selected by EPE, a Brazilian government-run energy agency, in a reserve energy auction in December 2015.

The company said it was also trying to move its 91 MW Tacaimbó project from the eastern state of Pernambuco, where it was originally planned, to an area near one of its hydroelectric power plants in the state of São Paulo. “If this request is not accepted, the project will remain in Tacaimbó,” AES Tietê said at the time.

AES Tietê is a hydroelectric power producer with eight power facilities in the state of São Paulo. Currently, the company has an installed electrical generating capacity of more than 2.6 GW. The Água Vermelha Power Plant, located in southwestern Brazil, is the company’s largest power plant, with a capacity of around 1.4 GW.