Gas Natural Fenosa enters Brazilian solar market with 83 MW acquisition

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Spanish gas and power provider, Gas Natual Fenosa has announced that its unit Global Power Generation (GPG), which specializes in developing and operating hydro, wind, and fossil fuel power plants, has agreed to acquire two PV power projects in Brazil with a combined capacity of 83 MW.

The company said it acquired the two projects, both to be located in the Brazilian region of Minas Gerais, from Chinese-Canadian solar manufacturer, Canadian Solar Inc. for approximately €95 million.

The two facilities, named Guimarania I and Guimarania II, are expected to start delivering power to the Brazilian grid in the fourth quarter of this year, Gas Natural explained.

Canadian Solar acquired the rights to build the two projects in September, which were granted a 20-year PPA at an average rate of around €97/MWh in one of Brazil’s recent reserve energy auctions including PV.

The entry of the Spanish energy giant in the Brazilian solar market comes a few months after the company was able to secure a big chunk of the solar projects awarded by the Spanish government in last summer’s auction.

In the competition, Gas Natural Fenosa was awarded contracts for 250 MW of large-scale PV plants. In these projects, the company said at the time, around €165 million will be invested.

Later, early last November, the group’s Chilean unit, GPG Solar Chile was selected as second-lowest bidder in Chile’s power auction. The company offered $24.80/MWh for one of the blocks in question.