Norway’s SN Power Acquires Brazil Hydropower Stake for $440 Million
SN Power, a hydropower project developer majority-owned by the Norwegian utility Statkraft AS, bought 41 percent of Desenvix SA for $440 million to expand its Brazilian operations.
Through the acquisition, SN Power and Desenvix’s other owners plan to install as much as 1,000 megawatts of renewable energy in Brazil by 2018, focusing on hydropower projects, Oslo- based SN Power said in a website statement.
Desenvix has 162 megawatts of clean energy assets in operation, SN Power Chief Executive Officer Torger Lien said. It also has 176 megawatts under construction and a project pipeline of about 1,600 megawatts, mainly hydropower assets, two wind farms and a biomass plant.
“The development pipeline of Desenvix provides SN Power with enough quality hydropower projects to reach its growth objectives in Brazil in the short term and to create value,” Lien said today by e-mail.
Having a local development organization also enables SN Power to participate in future hydropower auctions, he said. “The auctions constitute the main mechanism by which Brazil assures sufficient growth in its power supply going forward.”
The hydropower development pipeline is in the southern regions of Brazil. The acquisition also includes Sao Paulo-based Desenvix’s 50 percent holding in Enex O&M de Sistemas Eletricos, which focuses on operating and maintaining small and medium- sized hydroelectric power plants.
Jackson Empreendimentos Ltda. owns about 41 percent in Desenvix and Fundacao dos Economiarios de Seguridade Social, or Funcef, Brazil’s third-largest pension fund, the rest. SN Power is also 40 percent-owned by the Norwegian investment company Norfund AS.
To contact the reporter responsible for this story: Louise Downing in London at Ldowning4@bloomberg.net
To contact the editor responsible for this story: Reed Landberg in London at firstname.lastname@example.org
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.