Victory Hill Capital Advisors has acquired a 198MW run-of-river hydropower plant in Espírito Santo, Brazil, benefiting from a robust operational history and long-term revenue agreements.

Information on the Target

The target of this acquisition is a 198MW run-of-river hydropower plant situated in the state of Espírito Santo, Brazil. This facility has been operational since 1974 and has been maintained to a high operational standard, ensuring reliability and efficiency. In recognition of its performance, the energy regulator in Brazil has recently ranked this plant among the top 10 hydro plants across the country based on various operational quality metrics.

The plant benefits from a robust revenue structure, with over 30 long-term inflation-linked Power Purchase Agreements (PPAs) secured with reputable counterparts in the regulated utilities market. These agreements account for approximately 85% of the plant's total revenue, providing a stable financial foundation. Additionally, the plant has opportunities for commercialization of power in the self-consumption segment, targeting large energy consumers.

Industry Overview in Brazil

Brazil boasts one of the largest hydrological resources globally, establishing itself as a preeminent player in the hydropower generation sector. The country's extensive investment in hydropower has transformed it into a robust market characterized by