ENGIE announces acquisition of photovoltaic complexes with a total installed capacity of 545 MW
On October 27, 2023, ENGIE Brasil Energia (EGIE3) signed an agreement to acquire the entire shares of Atlas Energia Renovável do Brasil S.A. and Atlas Brasil Energia Holding 2 S.A. The operation includes photovoltaic complexes in Juazeiro (BA), São Pedro (BA), Sol do Futuro (CE), Sertão Solar BA) and Lar do Sol (MG), which together reach a total of 545 MW of installed capacity.
The total acquisition value will be approximately R$ 3,240,000.00 (three billion, two hundred and forty million reais), divided between the purchase price for the amount of up to R$ 2,269,000,000.00 (two billion, two hundred and sixty-nine million reais), and the net debt of Atlas, in the amount of approximately R$ 971,000,000.00 (nine hundred and seventy-one million reais), which shall be consolidated.
The values involved may be modified (earn-out), in accordance with the meeting of certain conditions enshrined in the Agreement, being subject to adjustments up to the date of closing the operation. It is also necessary to obtain the approval by the Brazilian anti-trust authority (Conselho Administrativo de Defesa Econômica – CADE), among other usual suspensive conditions for operations of this nature.
The transaction reinforces a movement which began in 2015: with a strategy rigorously planned and executed, over the past six years the company has invested more than R$ 20 billion in the energy transition including investments in clean energy and the implementation of transmission lines.
“This is one more step aligned to the execution of ENGIE Group’s strategy of continuing to grow in renewable energy in Brazil. The way we conduct our acquisitions is based on a comprehensive analysis of risks, taking into account environmental and social aspects, together with aspects of governance as well as our own financial discipline, having as their objective the continuity and generation of positive results in a sustainable manner”, Eduardo Sattamini, the Company’s Chief Executive Officer commented.
With the decision to invest in these assets, ENGIE Brasil Energia will ensure contracted energy compatible with the required return, positively impacting Ebitda margins in the long term. “The acquisition of operating assets, with contracted energy, has become an attractive option for efficiently expanding our businesses at this time in the market”, explained Eduardo Takamori, Chief Financial and Investor Relations Officer at ENGIE Brasil Energia.
Juazeiro
Location: Bahia
Startup of operations: feb-19
Installed Capacity (MWac): 120.0
Commercial Capacity (average MW): 34.8
Contraction: ACR (Reserve Energy Auction) – Regulated Market
Volume sold (average MW): 34.8
Price (~ R$/MWh Base Dec/2022): 433.00
Term: 2018-2038
Authorization until: 2051
São Pedro
Location: Bahia
Startup of operations: nov-18
Installed Capacity (MWac): 54.0
Commercial Capacity (average MW): 15.0
Contraction: ACR (Reserve Energy Auction) – Regulated Market
Volume sold (average MW): 15.0
Price (~ R$/MWh Base Dec/2022): 451.00
Term: 2017-2037
Authorization until: 2051
Sol do Futuro
Location: Ceará
Startup of operations: may-19
Installed Capacity (MWac): 81.0
Commercial Capacity (average MW): 16.2
Contraction: ACR (Reserve Energy Auction) – Regulated Market
Volume sold (average MW): 16.2
Price (~ R$/MWh Base Dec/2022): 429.00
Term: 2018-2038
Authorization until: 2051
Sertão Solar
Location: Bahia
Startup of operations: dec-19
Installed Capacity (MWac): 90.0
Commercial Capacity (average MW): 26.1
Contraction: ACR (New Energy Auction)
Volume sold (average MW): 27.2
Price (~ R$/MWh Base Dec/2022): 181.00
Term: 2021-2041
Authorization until: 2053
Lar do Sol
Location: Minas Gerais
Startup of operations: mar-23
Installed Capacity (MWac): 200.0
Commercial Capacity (average MW): 53.0
Contraction: ACL – Free Marke
Volume sold (average MW): 49.0
Price (~ R$/MWh Base Dec/2022): N/D (1)
Term: 2024-2042
Authorization until: 2054
Totais
Installed Capacity (MWac): 545.0
Commercial Capacity (average MW): 145.1
Volume sold (average MW): 142.2
ABOUT ENGIE
ENGIE is a global reference in low-carbon energy and services. With its 97,000 employees, its customers, partners and stakeholders, the Group is committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by its purpose (“raison d’être”), ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers. Turnover in 2022: 82.6 billion Euros.
In Brazil, ENGIE, leader in 100% renewable power generation in the country, operates in generation, commercialization and transmission of electric power, gas transport and energy solutions. The Company
has in the country an installed capacity of 12,5 GW, originated from renewable sources and with low GHG emissions, such as hydro, solar and biomass power plants, and windfarms.
With the acquisition of Transportadora Associada de Gás – TAG, ENGIE now also owns the largest natural gas transportation network in the country, at 4,500 km and transecting 10 states and 191 cities.
The Group has a complete portfolio of integrated solutions focused on reducing costs and improving the infrastructure for companies and cities, such as energy efficiency, public lighting, energy monitoring and management.
With 2,800 employees, ENGIE’s turnover in Brazil in 2023 was of R$ 11.7 billion. ENGIE trades on the B3 through its energy generation and trading company, ENGIE Brasil Energia, under the ticker EGIE3. In addition to being a B3 Novo Mercado component, the Company is one of the very few companies that have been listed in the Business Sustainability Index since its creation in 2005. In 2021, ENGIE Brasil Energia was included in the Carbon-Efficient Index (ICO2), made up of IBrX 100 companies that are most transparent in terms of GHG emissions reporting and how they are preparing for a low-carbon economy.
The company also received in May 2024 the certification Great Place to Work, a recognition which validates the continuous commitment of the company to create a positive and inclusive work environment for all.
The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris – Europe 120/France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).