AES Tietê Energia has acquired 386MW Alto Sertão II wind portfolio in Brazil for R$600m ($193m[1] USD), with technical due diligence from K2 Management and TNEI.
K2 Management's specialists delivered technical due diligence across the entire portfolio including reviewing the turbine and balance of plant technology; energy yield assessment review; civil, grid and electrical design review and an O&M contract technical review. The team provided an independent energy yield assessment based on portfolio production data.
Specialist energy consultant, TNEI, supported K2 Management with the delivery of a technical due diligence review focused on grid connection arrangement, electrical design and installation, local transmission infrastructure and generation restrictions.
For Ítalo Freitas, President of AES Tietê Energia: "This project marks an important acquisition in the company's drive towards diversifying our energy portfolio and achieving growth goals by 2020. K2 Management's technical advice was important in identifying commercial opportunities and risks throughout the process."
K2 Management's Latin America Managing Director, Hebert A.M. Nascimento, commented: "Our technical and commercial expertise was fully utilized in this extensive project, adding value to AES Tietê Energia's acquisition. Reporting and advice was underpinned by a sound understanding of the region, its wind resource and the portfolio's potential and we're pleased that the client's successful transaction goal was achieved."
Managing Director at TNEI, Rachel Hodges commented: "We were extremely pleased to be involved in such an interesting project, which highlighted the importance of a thorough and robust due diligence process. Our specialist electrical knowledge and extensive experience complemented K2's expertise, helping the client achieve a successful transaction completion."
The 230-turbine portfolio is spread across 15 sites in Bahia, Brazil and this acquisition represents a positive move in Brazil's energy market, given uncertainty surrounding the cancellation of the energy auction last year.
[1] Exchange rate: 3.108 R$/ USD
Background
AES Tietê Energia is one of the most efficient power generation private companies in Brazil, with a concession agreement valid since 1999 with a 30-year duration.
K2 Management supports its clients in their efforts to develop, improve and optimize wind projects to achieve the best possible return on their investment.
Jo Clarkson | jcl@k2management.com | k2management.com/pt
TNEI is an independent specialist energy consultancy providing technical, strategic, environmental and consenting advice to organisations operating within the conventional and renewable energy sectors.
Hazel Peat | hazel.peat@tneigroup.com | +44(0)141-428-3183
