ENGIE Brasil Energia has signed an agreement to acquire two hydropower plants in northern Brazil from EDP for 2.9bn reais ($512.1m), which includes 2.3bn reais in equity value and 671,000 reais in net debt.

The 393MW Santo Antônio do Jari hydropower plant in the states of Amapá and Pará, and the 219MW Cachoeira Caldeirão hydropower plant in the state of Amapá will join ENGIE’s extensive generator park and add 612MW of installed capacity.

ENGIE’s total capacity will now reach 11.3GW across 115 plants, including 11 hydroelectric and 104 from complementary sources such as biomass, small hydropower plants, wind and solar.

The Santo Antônio do Jari plant, situated between Laranjal do Jari and Almeirim, has an average 211MW of commercial capacity. Operational since 2014, its concession runs until October 2045.

The Cachoeira Caldeirão plant, on the Araguari River, has an average commercial capacity of 123MW. It began commercial operations in 2016 and has a concession lasting until August 2048.

ENGIE Brasil Energia chief financial and investor relations officer Eduardo Takamori stated: “The business will create shareholder value by allowing the company to allocate capital to assets that are already operational and have secured long-term revenue flows, with a good balance between risks and returns, and where we will also be able to apply all our recognised expertise in operating hydropower plants.”

The completion of the transaction is contingent upon approvals from the Conselho Administrativo de Defesa Econômica, Brazil’s federal antitrust authority and the National Electric Energy Agency, along with other customary precedent conditions outlined in the agreement.