MINNEAPOLIS, Sep 21, 2000 (BUSINESS WIRE) NRG Energy, Inc. announced that on Friday, September 15, it finalized the purchase of approximately 24.4 percent of the common shares of Itiquira Energetica S.A.owner of a 156-megawatt (MW) hydroelectric power generation facility located in the State of Mato Grosso in southwestern Brazilfor 14.5 million Brazilian reals ($7.9 million U.S.).
NRG and the Swedish government-owned utility, Vattenfall ABthrough their jointly-owned Latin American investment vehicleTosli Investments N.V., own approximately 48.8 percent of the common shares of Itiquira. Inepar Energia S.A., the independent power affiliate of Inepar Holdings, NRG’s and Vattenfall’s Brazilian partner in the project, retains an equal ownership level of common shares in Itiquira. Tosli and Inepar Energia also possess certain preferential rights to acquire the remaining 2.4 percent of the common shares in Itiquira from Companhia Energetica de Sao Paulo.
“The Itiquira project will provide a beachhead for possible future development by NRG and Vattenfall in the Brazilian market,” said Jim Bender, NRG’s vice president in charge of South American business development. “Establishing a potential strategic partnership with Inepar Energia is advantageous to us in accessing Brazil’s growing demand for energy.”
The Itiquira facility, which is approximately 30 percent complete, operates under a power purchase agreement with Companhia Paranaense de Energia and a commercialization agreement that gives Itiquira the flexibility to sell power to third parties when prices are more favorable. Full commercial operation is expected in March, 2002.
The Itiquira investment represents the first acquisition directed out of NRG’s recently established South American development offices in Miami.
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