CTG Brasil today took over the operation of the Ilha Solteira and Jupiá hydropower plants, both located on Paraná River, on the border between the States of Mato Grosso do Sul and São Paulo. The company acquired both concessions in an auction organized by the Brazilian government in November 2015, with an award payment of R$ 13.8 Bn.
The acquisition of the Ilha Solteira and Jupiá hydropower plants, which have a combined installed capacity of 5 GW, makes CTG Brasil the second largest private energy generation company in Brazil, with an installed capacity of 6 GW. The company entered the Brazilian market in 2013 with the aim of combining Brazil’s and China’s expertise to generate green energy solutions.
On June 30, Rio Paraná, a 100% subsidiary of CTG Brasil, which owns the Ilha Solteira and Jupiá hydropower plants, paid the remaining 35% of the concession’s value. The first tranche of R$ 9 Bn was paid in January this year. The award payment was made through a combination of equity and debt.
CTG Brasil’s teams in Ilha Solteira and Jupiá will be mostly formed by professionals who have worked in these plants, which were previously operated by Companhia Energética de São Paulo (CESP). CTG Brasil has made its best efforts to hire the employees of both hydropower plants, presenting job offers to everyone. So far, 84% of the plants employees have accepted to join CTG Brasil’s team.
During the transition period, CTG Brasil identified areas requiring investments in operational improvements and outlined social and environmental programs involving the surrounding communities. In addition to complying with all the applicable laws and regulations, the company intends to build a close relationship with the communities around the plants.
“We are very happy that we have successfully completed the six-month transition period and are proud to be assuming the operations of two landmark projects in the Brazilian energy generation market,” commented Li Yinsheng, CEO of CTG Brasil. “The talent of our teams will help CTG Brasil become a relevant player in Brazil’s energy market, generating green energy solutions for the future”.
China Three Gorges
China Three Gorges Corporation (CTG) is a clean energy group focused on large-scale hydropower development and operation. CTG is also engaged in renewable energy businesses including wind and solar power.
Present in 40 countries, CTG is the world´s largest producer of hydroelectric power with an installed capacity of about 100 GW, both under operation and construction.
In 2015, CTG produced 200.98 TWh of electricity and posted operating revenues of US$ 10.12 billion and net income of US$ 4.63.
CTG began as the company responsible for building and operating the world´s largest hydropower plant: the Three Gorges and other large plants in the Yangtze River, China.
China Three Gorges Corporation has chosen Brazil as a priority country in its international growth strategy. Since it arrived in the country, in 2013, it formed strategic alliances with recognized industry players with strong local presence.
To grow sustainably, CTG Brasil has steadily increased its investments to become an ever-more relevant clean energy company. It currently is the second largest private power company in the country, with installed capacity of 6 GW.
The company relies on the dedication of its local teams and is guided by its long-term commitment to contribute to the Brazilian energy matrix, acting in a socially responsible manner and and respecting the environment.