Statkraft signed an agreement with EDP Energias do Brasil to acquire eight operational hydropower plants. Credit: Statkraft.

Norwegian state-owned company Statkraft has agreed to buy eight operational Brazilian hydropower plants from electric utility EDP Brasil.

Financial details of the acquisition have not been divulged by either company. The acquisition of the portfolio is expected to further expand Statkraft’s operations in Brazil.

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Located in the Brazilian state of Espírito Santo, the hydropower plants’ portfolio has a total installed capacity of 131.9MW.

Statkraft executive vice-president Jürgen Tzschoppe said: “This acquisition is a good fit with our strategy to build scale profitably in the markets where we are already present. It also positions Statkraft well for further development in Brazil, a key growth market for Statkraft.”

In Brazil, Statkraft owns an 81% stake of Statkraft Energias Renováveis (SKER), while the Brazilian pension fund FUNCEF owns the remaining 19% stake.

Under the agreement, SKER will acquire 100% of EDP Brasil’s shares in EDP PCH and Santa Fe Energia.

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EDP Brasil said in a company statement: “The total amount of the transaction is R$704m ($193.2m), including an estimated net R$113m ($31m).

“In Brazil, the ambition is to grow by acquiring and improving assets in operation and by developing new generation capacity in hydropower, wind and solar power.”

“Accordingly, the expected value of the reserve is R$591m ($162.2m), which is subject to adjustments between the present date and the conclusion of the operation, as is usual to this type of transaction.”

Of the cluster of eight plants, EDP PCH owns seven operational hydropower plants and the remaining one is held by Santa Fe Energia.

In addition to the new portfolio, Statkraft also owns a minority ownership in four other hydropower plants.

With the latest acquisition of eight Brazilian hydropower plants, Statkraft’s fleet in the country has increased to around 450MW.

Statkraft is one of the largest renewable energy producers in Europe and, according to the company, it aims to increase its footprint in the hydropower, solar and wind power markets across Europe, India, and South America.

Statkraft said in a press release: “In Brazil, the ambition is to grow by acquiring and improving assets in operation and by developing new generation capacity in hydropower, wind and solar power.”

Completion of the transaction is subject to regulatory approvals.