French energy group ENGIE, through its subsidiary ENGIE Brasil Energia, is in late-stage talks with Brazilian renewables developer Renova Energia for the acquisition of a 605-megawatt (MW) wind power project.
Renova said in a security filling Tuesday negotiations for the acquisition of the Umburanas wind complex, in the northern state of Bahia, is “advanced,” but didn’t disclose the transaction’s value, Kallanish Energy reports.
“The company informs that the negotiations with ENGIE cause no harm to the negotiations already in progress with Brookfield Renewable Energy, disclosed by the company in a notice to the market on July 17,” said vice-president of finances Cristiano de Barros.
The executive said the market will be notified of any developments related to the transaction.
Reuters reported Renova asked Aneel, the Brazillian power regulator, to postpone the deadline for the start-up of operations at four of the 22 wind parks included in the Umburanas project.
The report said the acquisition was subject to Aneel’s approval to proposed changes, which include the “friendly” redesign of the project to 360 MW of capacity, to be immediately implemented by Engie. Another 95 MW of the project would be part of ENGIE’s portfolio in Brazil for future implementation.
The companies are expected to sign a contract this month, with construction starting in April 2018.
Renova Energia previously said the complex would feature 355 MW of capacity generated by 127 wind turbines manufactured by Alstom in Brazil. The company also said such capacity was contracted in a 2013 government auction.
Aneel told Kallanish Energy it won’t comment on the matter because a decision hasn’t been made.