UK-based energy infrastructure investor Actis has acquired a 743km transmission line in Brazil from Energias de Portugal (EDP) subsidiary EDP Brasil.
Financial details of the transaction, which represents Actis’ entry into the Brazilian energy transmission sector, have not been disclosed.
The line is the company’s first asset in its new transmission platform in the country.
The platform is a key component of its strategy to invest in long-life infrastructure assets.
The business also intends to make more short-term investments in the Brazilian energy industry.
Actis’ latest acquisition continues its expansion in the country’s power infrastructure, following the purchase of a 100% stake in HRZ Transmissoras in 2021.
This investment supports Brazil’s shift towards renewable energy sources and the nation’s goal of decarbonising its power system.
Actis partner and long-life infrastructure head Adrian Mucalov said: “Brazil’s transmission sector represents an excellent investment opportunity: fully operational assets, providing essential service infrastructure, with world-class regulation, delivering consistent and competitive cash flows for our investors.
“The asset Actis is acquiring is net zero-aligned and critical to meeting the demand for grid expansion and modernisation required for electrification and renewables deployment as part of the energy transition, as well as the general economic growth of the country.
“What is particularly exciting from a value-creation perspective is that we already hold Brazilian transmission assets through HRZ, so we can leverage our existing experience and learnings in this market to deliver value-add on everything from contractor management to community engagement and sustainability.”
Brazil is actively working to revise its climate targets, aiming for a 53% reduction in greenhouse gas emissions from 2005 levels by 2030, and eventual net-zero emissions.
The power transmission sector plays a crucial role in this endeavour.
Renewables currently account for 45% of the country’s energy consumption.
In June 2023, French companies Engie and Meridiam agreed to acquire BTE Renewables from Actis for an enterprise value of $1bn (€921.34m).
Actis established the renewables platform in 2017 with the acquisition of the Kipeto wind project in Kenya. It later expanded it by purchasing BioTherm Energy in South Africa, subsequently rebranding it as BTE Renewables.
