CPE News (11.1.2023) – CDPQ has entered into an agreement with Equatorial Energia S.A. for the acquisition of Integração Transmissora de Energia S.A. (Intesa), a strategic power transmission network spanning 695 kilometres in the states of Tocantins and Goiás, in central Brazil.
The transaction, valued at up to CAD $108.5 million (R$396.4 million), marks CDPQ’s second power transmission investment in Latin America in the past 18 months, following the acquisition of power lines extending nearly 1,100 kilometres in Brazil and Uruguay, which are now part of Verene Energia, an energy platform founded by CDPQ.
Upon closing of the transaction, Intesa will be integrated into Verene Energia.
The transaction is expected to close by the end of December 2023, subject to customary closing conditions and relevant consents and approval.
Image by Michael Schwarzenberger from Pixabay
News Release
CDPQ acquires a strategic 695-km power transmission network in Brazil
Intesa will be integrated into Verene Energia, CDPQ’s Latin American power transmission platform
A growing number of renewable projects are creating new opportunities for power transmission in Brazil
MONTRÉAL, Nov. 1, 2023 /CNW/ – CDPQ, a global investment group, today announced an agreement with Equatorial Energia S. A. for the acquisition of Integração Transmissora de Energia S. A. (Intesa), a strategic power transmission network spanning 695 kilometres in the states of Tocantins and Goiás, in central Brazil.
The transaction, valued at up to CAD $108.5 million (R$396.4 million), marks CDPQ’s second power transmission investment in Latin America in the past 18 months, following the acquisition of power lines extending nearly 1,100 kilometres in Brazil and Uruguay, which are now part of Verene Energia, an energy platform founded by CDPQ.
Equipped with two substations, Intesa’s transmission network extends across central Brazil, where significant renewable electricity output is generated for consumption in the south and south-east of the country. Intesa has a strong design and operating track record and is well positioned to continue playing a critical role in meeting Brazil’s decarbonization needs.
Emmanuel Jaclot, CDPQ’s Executive Vice-President and Head of Infrastructure, said: “By enabling and accelerating the delivery of renewable energy, electricity transmission assets like Intesa act as real catalysts for the energy transition. This is why they are at the heart of our Latin American investment strategy, particularly in Brazil, as the country aims to connect a growing number of low-carbon energy projects.”
Financial close is expected by the end of December 2023, subject to customary closing conditions and relevant consents and approval.
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