Engie Extends Talks to Sell Coal-Fired Thermoelectric Complex in Brazil
July 19, 2021
Share
Engie Brasil Energia has extended its exclusivity agreement with asset manager Fram Capital to negotiate the sale of its Jorge Lacerda thermoelectric power complex (CTJL) in Brazil, a spokesperson for the company told BNamericas. The original deal was signed in February, involving a four-month period for due diligence of the complex in Santa Catarina state. Jorge Lacerda consists of seven generating groups, divided into three plants: Jorge Lacerda A, with two 50MW generating units and two 66MW units; Jorge Lacerda B, with two 131MW units; and Jorge Lacerda C, with one 363MW generating unit, giving an overall total of 857MW. The physical guarantee for sale of its energy is 650MWa and its authorization for operation is valid until 2028. The spokesperson said the progress of the negotiations requires actions to be carried out by the state and federal governments - which are already underway, but have not yet been finalized - to equalize environmental and tax conditions that directly impact the maintenance of CTJL's operations. "If negotiations are successful, the final terms of the transaction will be subject to approval by the management and shareholders of Engie Brasil Energia. In the event that a sale transaction does not materialize, the phased decommissioning of the asset - which is still underway - will be implemented by 2025," the representative said. The spokesperson added that the sale of the plant may qualify the undertaking for future opportunities, which could include the next A-2 energy tender, which local electric power watchdog Aneel plans to hold on December 3, together with the A-1 auction. The date and rules of the tenders will be discussed via a public consultation to be carried out between July 22 and September 9, as approved during a meeting of the agency's board of directors on July 20, 2021.
ENGIE Brasil Energia S.A., formerly Tractebel Energia S.A., is an independent utility concessionaire. The Company is engaged in the business of generation and commercialization of electrical energy. The Company develops and operates power plants. The Company installs and operates plants fired from conventional energy sources, such as hydroelectric, thermoelectric and complementary units, small hydroelectric plants and wind, biomass and photovoltaic plants. The Company's installed capacity, including its stakes in energy generation consortiums, is approximately 7,000 megawatts. The Company's generation facilities in operation consist of 29 plants, of which nine hydroelectric power plants, seven thermoelectric power plants (three coal, three biomass and one natural gas plant), three small hydro power plants (SHPP), nine wind farms and one photovoltaic solar power plant. The Company is controlled by ENGIE Brasil Participacoes Ltda.