Chinese may bid for Brazil clean energy assets -letter

SAO PAULO, July 19 (Reuters) – Chinese investors may bid for assets belonging to Brazil’s renewable energy company Renova Energia SA and power generation assets owned by Light SA, according to a letter sent to managers of the firms seen by Reuters. Light and Renova are owned by state-controlled Companhia Energetica de Minas Gerais, which recently announced a divestment plan aimed at reducing debt. The plan announced by the company, known as Cemig, may entail the full sale of both Light and Renova. Cemig declined comment. The Chinese investors could also be willing to inject capital into both companies to continue ongoing projects, advisory firm CIRI International Technology Co said in the letter dated July 10. CIRI said it was representing groups including PowerChina which are seeking to buy renewable energy generation assets in Brazil.
“PowerChina wants to globalize operations and counts on CIRI’s technical and financial support to execute these projects,” the letter said. Interest in Brazil’s renewable power industry is growing, especially among foreign investors, who see potential despite declining electricity consumption and a harsh recession. CIRI’s letter was sent shortly before Light, which partly owns Renova, said it had signed an agreement with Canada’s Brookfield to exclusively discuss a bid for Renova for 60 days. That suggested the assets of both Light and Renova may be sold together. Light distributes electricity in metropolitan Rio de Janeiro and owns about 900 megawatts of power generating capacity. Renova mainly invests in wind farms.

Source:Reuters