TNEI due diligence supports acquisition of 386MW Brazilian wind portfolio

AES Tietê Energia has acquired the 386MW Alto Sertão II wind portfolio in Brazil for R$600m ($193m USD*), with technical due diligence support from TNEI and K2 Management.

TNEI, a specialist energy consultant, supported K2 Management on this project, with the delivery of a technical due diligence review focused on grid connection arrangement, electrical design and installation, local transmission infrastructure and generation restrictions.

K2 Management’s specialists delivered technical due diligence advice across the entire portfolio including a review of the turbine and balance of plant (BoP) technology and performance, an energy yield assessment report review, civil, grid and electrical design review and a technical review of the O&M contracts. The team also provided an independent energy yield assessment based on production data for the portfolio.

For Ítalo Freitas, President of AES Tietê Energia: “This project marks an important acquisition in the company’s drive towards diversifying our energy portfolio and achieving our 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 Tietê Energia’s acquisition. Our 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 goal of a successful transaction 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 project was our first experience in the Brazilian market and has helped expand our international portfolio.”

The 230-turbine portfolio is spread across 15 sites in the Bahia region of Brazil and this acquisition represents a positive move in the Brazilian energy market, given the uncertainty surrounding the cancellation of the energy auction late last year.

*Exchange rate: 3.108 R$/ USD