French oil and gas company TotalEnergies has joined the race to acquire the renewable energy assets of AES Brasil Energia, Bloomberg has reported.

The company is up against competitors such as China Three Gorges and Auren Energia, based in Sao Paulo.

AES, the target of the acquisition, has a market value of 5.6bn reais.

The US company is seeking 7bn reais for its assets, which include a renewable energy portfolio with an installed capacity of 5.2GW.

The portfolio primarily comprises hydroelectric power generation, alongside growing wind and solar capacities.

China Three Gorges already operates in Brazil and TotalEnergies, headquartered in Paris, previously formed a joint venture (JV) with Casa dos Ventos to manage its Brazilian renewable assets.

AES, based in Arlington in the US state of Virginia, is collaborating with Banco Itau BBA and the Goldman Sachs Group to facilitate the sale.

The Brazilian subsidiary of AES has stated that the company is exploring options to finance growth and enhance its capital structure.

In early 2024, TotalEnergies entered an agreement with European Energy to develop offshore wind projects in Denmark, Finland and Sweden.

It also acquired significant stakes in two Danish wind projects and announced a JV to operate wind projects in Sweden and Finland.

In December 2023, the company formed a JV with Adani Green Energy, investing $300m in a 50% stake in Adani Renewable Energy Nine.