China Three Gorges acquisitive strategy in Latin America has been reinforced with the $1.2bn purchase of Duke Energy’s Brazilian power operations.
The Chinese company has purchased 2,090 MW of the US firm’s hydroelectric power assets. CTGC will also take over Duke’s Brazilian debts.
The assets being sold by Duke include eight hydroelectric plants with a total of 2,057 MW of capacity on the border of Sao Paulo and Parana states, and two hydroelectric plants with a capacity of 16.5 MW each in northern Sao Paulo state.
It increases state-owned CTGC’s overall installed capacity in Brazil to 8,100 MW, making it the country’s second largest electricity supplier.
“This is one more important step towards consolidating our strategy to be an important renewable energy company in Brazil,” CTGC chief executive Li Yinsheng said in a statement.
At the end of 2015, CTGC had 60,000 MW of installed hydro capacity worldwide, and another 28,000 MW planned or under construction by 2021, Moody’s said.
Duke said it was separately negotiating the sale of its other remaining power assets in Central and South America with a total 2,300 MW with another buyer. Those facilities are in Ecuador, El Salvador, Guatemala, Peru, Argentina and Chile.
The deal with CTG is expected to be concluded in 2017.
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