AES increasing stake in Brazilian hydro, wind & solar

The AES Corp. will significantly up its stake in a Brazilian renewable energy co-venture, the U.S. power generation company announced Wednesday.

Subsidiary AES Brasil will acquire an additional 18.5 percent interest in AES Tietê. Estimated price tag of the transaction with BNDES Participações is $246 million U.S. The financing is primarily secured through Brazilian banks.

AES will then own nearly 43 percent of the shares in AES Tietê. The move strengthens the company’s renewable portfolio as AES moves toward its decarbonization targets.

Tietê has a portfolio of numerous hydropower plants, wind and solar facilities, including Nova Avanhandava, Mogi Guaçuand UFV Guaimbê. The Brazilian power generation firm’s mix consists of 2.7 GW of hydro, 708 MW of wind and 310 MW of solar.

“By increasing our ownership in AES Tietê’s 3.7 GW platform of renewables, we are reinforcing our commitment to reduce our total generation from coal to less than 30 percent,” said Andrés Gluski, AES President and Chief Executive Officer.  “Following this transaction, we plan to move AES Tietê’s listing to the Novo Mercado, the highest corporate governance segment of companies listed on the Brazilian stock exchange, which is expected to further unlock the value of AES Tietê for the benefit of all shareholders.”

AES plans to reduce its coal portion of the generation mix to 10 percent in 10 more years. It sold an Oklahoma coal-fired plant to OG&E last year and last month announced the sale of several coal-fired power stations in India.

The company upped its mix of renewables last year with wind and solar PPAs in the U.S., Chile, Colombia, Mexico, Dominican Republic, Panama and Brazil. It also completed its own projects in India and Mexico.

AES Corp. owns and operates power generation in 14 nations. On the conventional side, it is helping develop a combined cycle gas turbine plant in Vietnam and is working on liquefied natural gas projects there and in the Dominican Republic.


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