Duke Energy Sells Brazilian Assets to China Three Gorges Corporation

Duke Energy has now sold all its assets, totalling 4.4 GW capacity, in South America, following the October 11 announcement of the sale of its businesses in Peru, Chile, Ecuador, Guatemala, El Salvador and Argentina to I Squared Capital for some $1.2bn. The businesses include hydroelectric and natural gas generation plants, transmission infrastructure and natural gas processing facilities, totaling 2.3 GW.

I Squared Capital is an independent global infrastructure investment manager focusing on energy, utilities, and transport in the Americas, Europe and select high-growth economies.

On October 10, Duke Energy sold its Brazilian assets to China Three Gorges Corporation (CTG) for some $1.2bn in cash and the assumption of debt. The proceeds will be used to reduce the debt. Duke Energy Brazil owns 2.09 GW of power generation facilities. It has eight hydroelectric plants with 2.05 GW of capacity on the border between the states of Sao Paulo and Parana and owns two small hydroelectric plants, each of 16.5 MW, on the Sapucai Mirim River in northern Sao Paulo State. The deal is expected to close in two to three months.

CTG is a clean energy group focused on large-scale hydropower development and operation. CTG is also engaged in renewable energy businesses including wind and solar power.

Duke began the process of selling its international energy business segment in February this year. 

Shardul Sharma