Brazil’s Electra mulls entering the distributed generation market

Brazil’s antitrust authority Cade has approved the purchase of a set of Copel's power generation plants by the Electra Group.

The approval involves 11 small hydroelectric plants, a wind farm and a thermoelectric plant, totaling 118MW. 

The acquisition was made by Intrepid Investimentos e Participações, the group's holding company, through its subsidiary Electra Hydra, at a cost of 451mn reais (US$72.5mn).

The acquisition brings Electra's hydroelectric generation capacity to 186MW across 24 plants. 

CEO Franklin Miguel talks to BNamericas about Electra’s plans, which include a possible entry into the distributed generation market.

BNamericas: Is the Electra Group planning any new acquisitions of hydroelectric, wind or solar assets? 

Miguel: We're always evaluating new hydroelectric assets in operation for possible acquisitions. With regard to wind and solar energy, we have projects in our portfolio that we believe are sufficient at the moment to support our growth and our clients' demand for self-production.

BNamericas: Is distributed generation a possibility?

Miguel: We're evaluating the possibility of entering the distributed generation market through the platform of an already operational company.

As for the acquisition of DG assets, only if they are of the GD1 type, operational and with PPAs [power purchase agreements] signed. In any case, it's something that's not among our priorities at the moment.

[Editor's note: GD1 projects are exempt from the distribution grid usage fee until 2045.]

BNamericas: What are the group's growth projections in terms of installed capacity and investments over the next few years?

Miguel: Regarding growth projections in installed hydroelectric capacity, we don't have anything planned at the moment. It will depend on the commercial operation opportunities that become available on the market. 

With regard to projected growth in solar and wind installed capacity, we're focused on delivering our 161MWp solar park, contracted under a self-production system with Acelem, in the first half of 2025. 

We also have another 509MWp of solar and 122MW of wind in our portfolio, whose PPAs we're negotiating with our clients. 

As to the growth of our trading operation, our projections are for 20% growth in 2025, with the prospect of reaching 1.5GW average of energy traded. 

BNamericas: Will the small hydro plants acquired from Copel require investment in maintenance or modernization?

Miguel: It's natural that, after a long period of operation, the assets will need some kind of intervention. But, as they are Copel assets, they've always been very well looked after and have had excellent technological updates.