Brookfield has one of the largest pure-play renewable power businesses globally, with a long history of investments in Brazil.
The company has a strong presence in hydroelectric generation in Brazil and has incorporated various new technologies into its portfolio over the last 10 years. Currently, assets under management are BRL 12.5 billion including 42 hydroelectric plants, 19 wind farms and four biomass facilities, and corresponds to an installed capacity of 1,500 MW.
Principal financial indicators
Revenues from the power generation business were BRL 1.8 billion in 2018, a growth of 26% compared to 2017.
On the same comparative basis, EBITDA posted an increase of 32% to BRL 1.1 billion.
Since 2016, Brazil has experienced lower than average rainfall, significantly impacting the operations of hydropower generation companies. 2018 was no different, resulting in substantial volatility in energy prices.
Brookfield’s commercial strategy focuses on selling power directly to commercial and industrial customers as well as contracting with distribution companies, focused on signing long-term inflation-indexed contracts. Today, the renewable group has a commercial portfolio of more than 100 clients, many of which are companies in the retail and agribusiness sectors. In 2018, 17 net new clients were incorporated into the portfolio.
In 2018, Brookfield also completed the integration of all the assets acquired from TerraForm Global, including 14 wind farms in the state of Bahia and 1 solar facility in Uruguay. With this added portfolio, the installed capacity managed at its operations center in Brazil increased to 1,500 MW.
In addition, work on two new small hydroelectric plants in the state of Mato Grosso was completed, increasing the portfolio’s installed capacity by a further 50 MW.
numbers / highlights
of installed capacity
Two factors will remain important in this sector: solid asset portfolios and a stable regulatory environment. The new federal administration has indicated that it supports the modernization and improvement of the country’s regulatory frameworks in Brazil, has respect for existing agreements, and wants to attract new investments.
In the coming years, Brookfield’s growth will be anchored in two areas: the acquisition of high-quality assets at attractive prices, and the development and construction of new projects. The company is actively looking to diversify its generation sources and expects to introduce new clean energy technologies into its operational portfolio with the acquisition and construction of centralized solar projects. In addition, Brookfield is closely monitoring the development of the distributed generation market.