AES Tiete Energia has acquired 386MW Alto Sertao II wind portfolio in Brazil for R$600m ($193m USD), with technical due diligence from K2 Management and TNEI.
K2 Management’s specialists delivered technical due diligence across the entire portfolio including reviewing the turbine and balance of plant technology; energy yield assessment review; civil, grid and electrical design review and an O&M contract technical review. The team provided an independent energy yield assessment based on portfolio production data.
Specialist energy consultant, TNEI, supported K2 Management with the delivery of a technical due diligence review focused on grid connection arrangement, electrical design and installation, local transmission infrastructure and generation restrictions.
For Italo Freitas, President of AES Tiete Energia: “This project marks an important acquisition in the company’s drive towards diversifying our energy portfolio and achieving growth goals by 2020. K2 Management’s technical advice was important in identifying commercial opportunities and risks throughout the process.”
K2 Management’s Latin America Managing Director, Hebert A.M. Nascimento, commented: “Our technical and commercial expertise was fully utilized in this extensive project, adding value to AES Tiete Energia’s acquisition. Reporting and advice was underpinned by a sound understanding of the region, its wind resource and the portfolio’s potential and we’re pleased that the client’s successful transaction goal was achieved.”
Managing Director at TNEI, Rachel Hodges commented: “We were extremely pleased to be involved in such an interesting project, which highlighted the importance of a thorough and robust due diligence process. Our specialist electrical knowledge and extensive experience complemented K2’s expertise, helping the client achieve a successful transaction completion.”
The 230-turbine portfolio is spread across 15 sites in Bahia, Brazil and this acquisition represents a positive move in Brazil’s energy market, given uncertainty surrounding the cancellation of the energy auction last year.