SPIC Brasil, a subsidiary of State Power Investment Corporation of China, is acquiring two solar power generation projects in Brazil´s Northeast region, from Canadian Solar.
As a result of the transaction, the value of which was not revealed, SPIC now has a 70% majority stake in the projects that will be located in the states of Piauí and Ceará, and enters the segment of solar energy generation.
According to a joint statement, the companies will invest more than 2 billion reais (USD 420 million) in the plants, named Marangatu and Panati-Sitiá, which add up to 738 megawatts (MW) of power.
The works will start in the second half of this year, and the forecast is to start operating by the end of 2023.
Approximately 75% of the energy to be generated by the solar parks is already contracted in long-term agreements with consumers, the companies said. The rest of the energy produced will be sold on the free market.
The acquisition marks SPIC’s first solar project in Brazil, according to the company’s CEO, Adriana Waltrick.
With a portfolio of more than 3 GW, SPIC Brasil currently operates the São Simão hydroelectric plant, two wind farms in Paraíba and has a stake in the natural gas complex GNA.
“The company aims to be among the top three private players in power generation by 2025 and growth in renewable sources is one of the main avenues for growth,” said Marcela Pacola, Director of Business Development at SPIC Brasil, in a statement.