Canada Pension Plan Investment Board (CPPIB) and Votorantim Energia have agreed to form a joint venture in Brazil and will acquire two operational wind farms in the country, totaling 565MW.
The joint venture has been formed to invest in the country’s power generation sector, particularly in wind segment.
For this joint venture, CPPIB has committed an initial investment of R$ 690m ($209m). Going forward, the joint venture is expected to invest more than R$3bn ($910m) in operational and development assets in the power sector.
CPPIB managing director and Power and Renewables head Bruce Hogg said: “This transaction enables CPPIB to establish a footprint in the attractive Brazilian power generation market, which fits well with our overall power and renewables strategy and further diversifies the CPP Fund.”
The first acquisition will be the 359MW Ventos do Araripe III (Ventos III) from Brazilian project developer Casa dos Ventos. This wind farm, which is located in Piauí and Pernambuco, has committed investments of R$ 1.8bn ($550m).
The second wind farm is the 206MW Ventos do Piauí I (Piauí I) and it is located in the state of Piauí. This wind farm is being contributed by Votorantim Energia into the joint venture, with committed investments of R$1.2bn ($360m).
Acquisitions of the wind farms are subject to customary closing conditions and regulatory approvals.
Hogg continued: “Brazil is considered among the top renewable energy markets in the world, and as demand in the country grows, wind energy is expected to be one of the largest contributors to this new supply. We look forward to building a long-term partnership with Votorantim, a best-in-class local operator, to expand our joint venture.
“As power demand grows worldwide and with a focus on accelerating the energy transition, CPPIB will continue to seek opportunities to expand our power and renewables portfolio globally.”