CTG Brasil promotes auction to sell energy

On April 6th, CTG Brasil will promote an energy auction in Brazil to sell the energy produced in Jupiá and Ilha Solteira Hydropower Plants.

For more details, in Portuguese, click here.

CTG Brasil’s first energy sales auction was successfully conducted

CTG Brasil’s first auction in the country for the commercialization of part of the energy produced at the Jupiá e Ilha Solteira plants was successfully conducted on March 1, 2016.

As expected, there was interest from the main players in the energy market, confirming that the acquisition was an important step in CTG Brasil´s plans to become a significant company in the Brazilian clean energy market. CTG Brasil met the desired sales volumes for this auction.

CTG Brasil promotes auction to sell energy

On March 1st, CTG Brasil will promote its first energy auction in Brazil to sell the energy produced in Jupiá and Ilha Solteira Hydropower Plants.

For more details, in Portuguese, click here.

CTG wins award for the acquisitions of Brazilian projects

On January 12, the 4th Economic and Financial Forum of BRICS Countries was held in Beijing. Themed “New Horizons for the BRICS: Intergrowth and Integrated Development”, the forum brought together over 200 authorities, experts and scholars from the political and business circles of the BRICS countries.

Zhu Guangyao, Vice Minister of Finance; Guo Weimin, Deputy Director of the State Council Information Office; Roberto Jaguaribe, Brazilian Ambassador to China; Zhang Shaogang, Director of the Department of International Trade and Economic Affairs, Ministry of Commerce; Leslie Maasdorp, Vice President of New Development Bank BRICS; Dolana Msimang, South African Ambassador to China; Tomikhin Evgeny Yurievich, Minister Counselor of the Russian Embassy in China; Namgya C. Khampa, Trade & Commerce Counselor of the Indian Embassy in China; Rui Wanjie, Deputy Director of the United Nations Development Programme; Wang Guangtao, former Minister of Construction and other leaders delivered speeches at the forum.

China Three Gorges Corporation (CTG) was granted the “Award for Best Overseas Investment Project of Chinese Enterprises” for acquiring the concession of Ilha Solteira and Jupia Hydropower Plant in Brazil. Sha Xianhua, Executive Vice President of CTG, received the award on behalf of CTG and delivered speech. “This is the full recognition of CTG’s overseas operations, the “globalization” of Chinese enterprises, and the BRICS countries’ efforts in vigorously developing clean energy and green hydropower”, said him.

Ilha Solteira and Jupia Hydropower Plant have a total installed capacity of nearly 5000 MW. CTG’s investments in Brazil will make a positive contribution to the development of Brazil’s low carbon cyclic economy and the improvement of its capacity for energy safety, further deepen the economic, commercial and technological contacts between the two countries, and promote the exchange and cooperation between the two sides.

CTG Brasil signs the concession of Jupiá and Ilha Solteira

CTG Brasil signed on Tuesday (05/01), at a ceremony with the presence of the interim Minister of Mines and Energy, Mr. Luiz Eduardo Barata, the Chairman of the China Three Gorges Corporation, Mr. Lu Chun and  the Chinese Ambassador Mr. Li Jinzhang, the concession agreement of the hydropower plants (HPPs) Jupiá and Ilha Solteira for the next 30 years. CTG Brasil will be the first foreign company alone to take over the management of a hydroelectric plant in Brazil.

During the ceremony, Mr. Barata said that the country values ​​the participation of foreign investors in infrastructure projects, such as the energy sector. “Despite the great challenges we are facing at this moment, Brazil, in particular the energy sector, remains one of the main destinations for international investment,” he said.

In his speech, Mr. Lu Chun, said that large hydro are part of China Three Gorges DNA and, although the company is only two years in the country, it is already present in ten Brazilian states. “We want to expand our presence in the country by investing in clean energy,” he said.

Mr. Lu Chun also recognized the importance of the two plants to the Brazilian generation park. “CTG will comply with all requirements of the concession agreement. We are a responsible company “, he added.

CTG Brasil won the two plants concession in the auction held on November 25, 2015 and the total concession fee is R$13.8Billion. The company has paid 65% of it and the remaining 35% will be paid in 180 days.

Jupiá and Ilha Solteira has an installed capacity of 4,995 MW. With this acquisition, CTG Brasil becomes the second largest generator of energy with private capital in the country.

CTG Brasil completes acquisition of three Triunfo companies

CTG Brasil has completed the acquisition of three companies from Triunfo Participações e Investimentos (TPI), two hydroelectric plants in Rio Canoas (Santa Catarina) and Rio Verde (Goiás), as well as the energy trading company TNE (Triunfo Negócios de Energia, based in Curitiba).
Under the transaction CTG Brasil is paying R$ 966,7 million upon closing, in addition to the assumption of net debt of the three companies, which on September 30, 2015 stood at R$ 758,1 million, representing a total of R$ 1,72 billion. There are potential additional payments to be made, subject to the achievement of certain events that will benefit both CTG Brasil and TPI. This acquisition is another important step in CTG Brasil’s plans to become a relevant player in Brazil’s clean energy market.
This transaction is in line with CTG Brasil´s strategy of strengthening its footprint in the country through acquisitions and greenfield developments. Brazil is a priority market for CTG due to its vast hydropower capacity and potential for construction and operation of large-scale plants. CTG Brasil wants to be a relevant clean energy company in the country and aims to invest in renewable energy sources with a lower impact on global warming. CTG Brasil’s portfolio has a net installed capacity of 1.0GW, including the assets acquired from TPI.
“We are very pleased to have completed this acquisition,” commented Li Yinsheng, CEO of CTG Brasil. “This acquisition, as well as our successful bid for Jupiá and Ilha Solteira hydroelectric power plants on November 25th, are clear demonstrations of our intention to invest and grow in Brazil, which is a key market for CTG’s international expansion strategy.”
On November 25th, CTG Brasil successfully bid for Jupiá and Ilha Solteira hydroelectric powerplants for R$ 13.8 billion in the auction organized by the Brazilian government. The company bid R$2.38 billion without a discount over the Annual Revenues (“RAG”) for the 70% contracted on the Regulated Market.

CTG Brasil successfully bids for Jupiá and Ilha Solteira hydroelectric plants in auction

CTG Brasil has successfully bid for Jupiá and Ilha Solteira hydroelectric power (“HPP”) plants for R$ 13.8 Bn in the auction organized by the Brazilian government, which  included 27 HPPs whose concessions were not renewed after the implementation of Provisional Measure nº 579 (“Auction”). CTG bid R$2.38 Bn without a discount over the Annual Revenues (“RAG”) for the 70% contracted on the Regulated Market.

Located in Paraná River on the border between the States of São Paulo and Mato Grosso do Sul, the HPPs for which CTG Brasil successfully bid have total installed capacity of approximately 5 GW. These assets were built and formerly operated by CESP, a Brazilian utility company that operates power assets mainly in the state of São Paulo.

The auction was the first in Brazil featuring an award payment (Total R$17 Bn), since Brazil implemented a new model for the power sector in 2004. The new model allows generation companies to sell 30% of the energy they produce on the free market. The 70% commercialized on the regulated market was sold under a Quota System without any hydrologic exposure.

The acquisition is another important step in CTG Brasil’s plans to become a relevant player in Brazil’s clean energy market. It comes after the recently-announced acquisition of three assets of Triunfo Participações e Investimentos (TPI), two hydroelectric plants in Rio Canoas (Santa Catarina) and Rio Verde (Goiás), as well as energy distribution company TNE (Triunfo Negócios de Energia, based in Curitiba). That transaction is still pending final closing, and today’s acquisitions are still subject to regulatory approval.

CTG’s recent transactions in Brazil are in line with its strategy of strengthening its footprint in the country through acquisitions or Greenfield development. Brazil is a priority market for CTG due to its vast hydropower capacity and potential for construction and operation of large-scale plants. CTG Brasil aims to invest in renewable energy sources with a lower impact on global warming.

“We are very pleased that our bids for Jupiá and Ilha Solteira were successful,” commented Li Yinsheng, CEO of CTG Brasil. “These acquisitions are a clear and tangible demonstration of our intention to invest and grow in Brazil, which is a key market for CTG’s international expansion strategy. Our experience in building and operating large-scale plants should allow us to achieve our aim of being a relevant player in Brazil’s clean energy sector and making a significant contribution to the Brazilian power sector.”

Combined with Triunfo’s assets, CTG Brasil’s installed capacity will reach 6GW, making it the second largest private generation company in Brazil.

 

CTG Brasil acquires companies from TPI

China Three Gorges Brasil Energia (CTG Brasil) signed, with Triunfo Participações e Investimentos, a contract for the purchase of interest in Rio Verde Energia, Rio Canoas Energia and Triunfo Negócios de Energia subsidiaries. The amount to be paid by CTG Brasil was divided into three parts: R$ 970 million at closing, R$ 770.4 million in assumed debts, and the potential payment of R$ 148.5 million conditioned upon the achievement of certain events.

Rio Verde Energia is responsible for operating Salto hydroelectric plant (116MW) located in Rio Verde basin, Goiás. Rio Canoas Energia manages the hydroelectric power plant of Garibaldi (192MW), in Santa Catarina, and Triunfo Negócios de Energia is responsible for the commercialization of this energy produced.

With its own installed capacity of 687 MW, CTG will grow to about 1,000 MW.

CTG Brasil changes its name

As part of its brand strategy, CTG Brasil completed the change of its corporate name to “CWEI (Brasil) Participações Ltda.” to “China Three Gorges Brazil Energia Ltda.”.

The change was registered through the 7th Amendment of Articles of Association by the Board of Trade and the IRS – CNPJ. There were no changes in other registration details of the company.

CTG Brasil acquires 49% of EDP Renováveis

The Administrative Council for Economic Defense (CADE) approved the acquisition of 49% of the wind farms in operation and under development in Brazil for EDP Renováveis ​​Brasil, by CWEI (Brasil) Participações, a subsidiary of China Three Gorges Corporation (CTG Brasil).

The purchase includes 11 companies of EDP Renováveis ​​Brasil, which currently operates 84 MW of wind power and has parks in development with long-term contracts awarded through auctions from 2011 and 2013.

In order to obtain a proper participation, CTG Brasil expects to invest approximately R$ 364.8 million, including estimated capital contributions of R$ 100.8 million in projects under development.