The Canada Pension Plan Investment Board is making an initial investment of $272 million as part of a joint venture focusing on investments and developments in Brazil’s power generation sector.
The partnership, with Brazilian energy company Votorantim Energia, a subsidiary of the Votorantim Group, enables the CPPIB to “establish a footprint in the attractive Brazilian power generation market, which fits well with our overall power and renewables strategy and further diversifies the CPP Fund,” said Bruce Hogg, managing director and head of power and renewables with CPPIB, in a news release.
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The joint venture’s initial acquisitions are two wind parks operating in northeastern Brazil, which have a combined installed capacity of 565 megawatts. Over time, the joint venture expects to invest more than R$3 billion in operational and development assets in this sector in Brazil.
“Brazil is considered among the top renewable energy markets in the world, and as demand in the country grows, wind energy is expected to be one of the largest contributors to this new supply,” said Hogg. “As power demand grows worldwide and with a focus on accelerating the energy transition, CPPIB will continue to seek opportunities to expand our power and renewables portfolio globally,” he added.
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