Czech Energo-Pro group to buy seven small hydropower plants in Brazil

The Czech energy group Energo-Pro will buy seven small hydropower plants in Brazil from companies managed by Brookfield Asset Management. The combined installed capacity of these plants is 90 megawatts (MW). Energo-Pro informed the Czech News Agency (ČTK) about the deal today. The companies did not disclose the transaction price, which still requires regulatory approval. According to e15.cz, the Czech group will pay approximately 120 million euros, or around three billion crowns.

Energo-Pro, which focuses on hydropower, is continuing to expand its international portfolio. Brazil will be the company's fifth foreign market. With total installed hydropower capacity of more than 110 gigawatts (GW), the South American country is one of the world's leading hydropower markets.

„By acquiring a high-quality portfolio backed by long-term contracts for the sale of generated electricity, we are entering a country with a large market economy and a long history of hydropower. In recent years, these plants have generated more than 400 gigawatt-hours (GWh) of electricity,“ said Energo-Pro Group CEO Petr Milev.

The plants being acquired are located on the Lambari, Pomba, Grande and Verde rivers. The smallest of them, Cristina, has an installed capacity of 3.8 megawatts, while the largest, the Verde 4A hydropower plant, has a capacity of 28 MW. „All these hydropower plants have reservoirs, allowing their operations to be managed flexibly,“ Milev added.

The company said the plants are mostly relatively new and well maintained, and all were commissioned in the past decade. They have long-term licences with an average duration of 24 years, which can be extended. In addition, the Czech company said, they have contracts guaranteeing electricity purchase prices, which are adjusted annually for inflation.

Energo-Pro will partly finance the Brazilian acquisition by issuing so-called green bonds, which are intended for renewable energy projects. Once the transaction is completed, the Czech group will acquire a 100% or at least a controlling stake in the plants.

Energo-Pro, owned by entrepreneur Jaromír Tesař, was founded in 1994 in Svitavy. It owns and operates hydropower plants in four countries—Georgia, Turkey, Bulgaria and the Czech Republic. The company also operates in Colombia, where it is building the Chorreritas hydropower plant, which it expects to bring online in 2026.

In addition to hydropower, the company distributes and sells electricity and operates distribution networks in Bulgaria and Georgia, serving more than 2.5 million customers. The group also includes Litostroj Group, a manufacturer of turbines and machinery for hydropower. Energo-Pro employs nearly 9,700 people. Last year, the group recorded earnings before interest, taxes, depreciation and amortisation (EBITDA) of 322.8 million euros (around 8.13 billion crowns), an increase of five percent year on year.