Brookfield buying renewable portfolio, including hydropower, in Brazil

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Brookfield Renewable Energy Partners LP is buying a 488-MW renewable energy portfolio in Brazil, including 163 MW of hydropower, from Energisa S.A. for $545 million.

The transaction represents a total enterprise value of about US$935 million, subject to working capital adjustments, the company said. The equity purchase price is US$545 million, net of assumed long-term non-recourse debt. Brookfield Renewable will acquire and fund the transaction with its institutional partners and maintain an economic interest in the portfolio of about 40%.

The transaction, which is subject to regulatory approvals, is expected to close in the first quarter of 2015.

“This is an attractive opportunity to acquire a diversified portfolio of renewable operating assets in a market we know well, and with an average contract duration of 10 years,” said Richard Legault, president and chief executive officer of Brookfield Renewable. “Brazil remains a long-term growth market in need of new supply, and we remain well positioned to find accretive growth opportunities.”

In addition to the above-mentioned hydro, the deal includes 150 MW of wind and 175 MW of biomass. In addition, the deal includes a 55-MW biomass plant expansion in the near term. Brookfield says the plants have expected annual generation of 2.1 million MWh.

Brookfield Renewable Energy Partners (NYSE: BEP) owns, operates and develops renewable power generation facilities across North and South America and Europe. Its portfolio totals about 6,700 MW of installed capacity, predominantly hydroelectric power (85%), according to the website.

Brookfield is active in hydro transactions. In May, we reported the company had acquired the remaining interest in the 417-MW Safe Harbor project in Pennsylvania, U.S.

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