Italy’s Enel completes buy of 22 Brazil hydro plants

Italian power generator Enel completed acquisition October 6 of 22 small hydropower projects totaling 95.03 MW from Brazilian holding company Rede Empresas de Energia Eletrica S.A. (Grupo Rede).

The purchase, totaling 464 million reais (US$215 million), concluded a deal first announced in June. (HNN 6/12/06) It includes acquisition of 11 small hydropower operating companies holding concessions for the 22 projects. The operating companies had been owned by Grupo Rede affiliates Rede Power do Brasil S.A. and Tocantins Energia S.A.

In a statement, Enel said it expected the new assets to contribute about 27 million euros (US$34.3 million) to earnings before interest, tax, depreciation and amortisation in 2007.

Companies being purchased, their hydro plants, and location cities are:
o Alvorada Energia S/A, 480-kW Bagagem in Natividade, 680-kW Corujao in Araguaina, 1.776-MW Lajeado in Lajeado, 2.07-MW Lajes in Wanderlandia, 280-kW Ponte Alta in Ponte Alta do Bom Jesus, and 1.75-MW Taguatinga in Taguatinga;
o Apiacas Energia S/A, 3.52-MW Casca 2 and 12.42-MW Casca 3 in Chapada dos Guimaraes;
o Braco Norte Energia S/A, 5.18-MW Braco Norte in Guaranta do Norte;
o Cuiaba Energia S/A, 1.344-MW Alto Paraguai in Alto Paraguai;
o Isamu Ikeda Energia S/A, 29.064-MW Isamu Ikeda in Ponte Alta do Tocantins;
o Juruena Energia S/A, 800-kW Aripuana in Aripuana and 2.648-MW Juina in Juina;
o Primavera Energia S/A, 8.12-MW Primavera in Poxoreu;
o Quatiara Energia S/A, 720-kW Laranja Doce in Martinopolis and 2.6-MW Quatiara in Rancharia;
o Socibe Energia S/A, 14.04-MW Agro Trafo in Dianopolis;
o Vale Energetica S/A, 1.344-MW Pari in Candido Mota; and
o VP Energia S/A, 800-kW Alto Araguaia in Alto Araguaia, 1.794-MW Culuene in Paranatinga, 1.2-MW Poxoreu in Poxoreu, and 2.4-MW Sao Domingos in Torixoreu.

The projects, located in the states of Mato Grosso, Tocantins, and Sao Paulo, had to be sold by Grupo Rede under a recent Brazilian law requiring utilities to separate their generation holdings from their distribution systems.

Enel said the acquisition of another Brazilian company with capacity of about 6 MW should be completed by March 2007.

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