“This award further strengthens Enel Green Power’s consolidated foothold in Brazil, a country blessed with abundant natural resources, where we are already the leading player in the solar power market. Following the successful completion of twelve out of the 14 projects we have been awarded since 2010 in renewable tenders, this achievement represents yet another important milestone in our growth strategy for Brazil where we are building a well-balanced and diversified renewable portfolio”
Enel will be investing a total of around 1.4 billion Brazilian reais (BRL), equal to approximately 445 million US dollars, for the hydro concession, in line with the investment outlined in the Group’s current strategic plan. The hydro power plant is supported by the 30-year concession awarded with a guaranteed annual generation revenue.
After the signing of the concession, expected this November, Enel’s hydro capacity in the country will increase to 1,270 MW from the current 890 MW. According to tender rules, Enel is expected to take over the facility in January 2018, after which point it will be operated by Enel’s renewable subsidiary Enel Green Power Brasil Participações Ltda.
The 380 MW Volta Grande hydro plant is located on the Rio Grande river, in the states of Minas Gerais and São Paulo. The plant entered into operation in 1974 and has an annual energy production of 2.02 TWh.
In Brazil, the Enel Group, through its subsidiaries Enel Green Power Brasil Participações Ltda and Enel Brasil, has a total installed renewable capacity of around 2,276 MW, of which 670 MW from wind power, 716 MW from solar PV and 890 MW from hydropower, as well as close to 275 MW of capacity currently in construction, of which 172 MW from wind and 103 MW from solar power. In the conventional generation sector, Enel’s subsidiary Enel Geração Fortaleza owns a thermal power plant with a capacity of around 327 MW in Ceará. The Enel Group also operates in the Brazilian distribution sector through Enel Distribuição Rio, Enel Distribuição Ceará and Celg D serving a total of around 10 million customers. Finally, through Enel Soluções, the Enel Group offers energy solutions and energy efficiency products and services, while through Enel CIEN it operates a 2,200 MW transmission line that interconnects Brazil and Argentina.