Auren Energia set to become one of Brazil’s top electric power companies

Auren Energia is set to become one of Brazil’s top electric power companies. 

Last Friday, the electric power regulator Aneel authorized the transfer of control of AES Brasil to Auren. 

When the transaction is concluded, Auren will be the country’s third largest private electricity generator, behind Eletrobras and Engie, with an installed capacity of 8.8GW and an enterprise value of 30.8bn reais (US$5.5bn).

“The deadline for implementing the operation is up to 120 days from approval, and the concessionaire must send the agency the documents proving the formalization of the activity, which will allow the signing of the terms to amend the concession contracts,” Aneel said in a release. 

AES Brasil participates directly in the following authorizations and/or concessions: the São José, São Joaquim and Mogi-Guaçu small hydro plants; the Barra Bonita, Bariri,Ibitinga, Promissão, Nova Avanhandava, Água Vermelha, Caconde, Euclides da Cunha and Limoeiro hydro plants; and Flor do Sertão 1, 2, 3 and 10 solar plants.

The change in control of AES Tietê Integra Soluções em Energia Ltda. and other conditions precedent for the business combination – which has already been approved by antitrust authority Cade – are still pending validation by the regulatory agency. 

Auren’s power generation portfolio will comprise 4.7GW of hydro, 3.2GW of wind and 0.9GW of solar power, from the previous 2.1GW of hydro, 0.97GW of wind and 0.5GW of solar power. 

“The transaction adds non-replicable hydroelectric capacity, creating a combined portfolio close to the optimal mix defined by Auren, which serves as a mitigation factor and supports greenfield expansion, especially solar,” Auren told an investors presentation in May. 

Auren’s assets in operation include the Porto Primavera hydro plant (1.54GW) on the border of São Paulo and Paraná states; the Ventos do Araripe III (358MW) and Ventos do Piauí I (206MW), II (212MW) and III (207MW) wind plants; and the Sol do Piauí (48MW) and Sol de Jaíba (630MWp) solar plants. 

With the acquisition of AES Brasil, Auren will also become Brazil’s largest power trader, with 4.1GWa (average gigawatts) commercialized and a portfolio of 1,500 clients. 

At the end of August, Auren concluded the acquisition of power trader Esfera Energia. 

“The operation reinforces Auren's strategy in the energy trading segment, consolidating the company as the largest electricity trader in the country, with high expertise and the ability to generate value with the growth of the free market,” Auren said in a statement.