Statkraft will expand energy business in Brazil with annual investment of US $ 1.18 billion including acquisitions

Norway’s Statkraft intends to expand its energy business in Brazil in the coming years, a path that includes acquisitions and participation in government auctions for new state projects, a company executive in the country told Reuters.

The appetite for expansion remains strong even after the announcement by the local subsidiary Statkraft Energías Renovables this week of the purchase of eight small hydroelectric plants with EDP Energías do Brasil, in a business of 704 million reais (US $ 189 million).

“We see Brazil as one of the priority growth markets for the company, and that growth will be a combination of mergers and acquisitions and also own development of projects (greenfield) in renewable technologies,” said the CEO of the Statkraft Renewable Energies, Fernando de Lapuerta.

“Our focus has been on hydroelectric power plants, but now we also have an important focus on solar and wind energy,” the executive added.

Statkraft has been in Brazil since 2008, through the subsidiary SN Power, but it expanded its presence in the country in 2012, when it bought a stake in the then Desenvix. In 2015, she assumed control of the company, which changed its name amid the involvement of former controller Engevix in corruption allegations of Operation Lava Jato.

The Statkraft portfolio in the country consists of hydroelectric plants and wind farms with a total capacity of close to 300 megawatts, not including the assets negotiated with EDP Brasil, which have 131.9 megawatts in capacity.

Lapuerta said that, after less intense years, the company must move again in the country, in the middle of a global plan of the Norwegian electricity company for its investments in clean energy.

Statkraft has recently announced that it intends to invest NOK 10 billion per year in renewable energy between 2019 and 2025, or about 4.4 billion reais per year (US $1.184 billion).

The company’s international operations currently extend to Brazil, Peru, Chile, India, Nepal, Turkey and Albania.

“In recent years we had a period without so much growth, and that was reflected in Brazil, we took advantage of that period to organize ourselves, now the company has changed the strategy and the vision is of international growth,” said Lapuerta.

He stated that Statkraft’s energy trading operations in Brazil should also have continuity, with bets on presenting “creative solutions” and “services” to customers.

The executive added that the company has a “long-term” vision for business in Brazil, which reduces the impact of momentary uncertainties on its operations, such as the recent nervousness surrounding the presidential elections in the country.

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