Actis, an investor in sustainable infrastructure, has launched a new Brazilian transmission platform and acquired 100% of one 743 km operational transmission line from EDP Brazil, the fully owned subsidiary of EDP.
Actis will deploy capital in the lowest-risk segment of Brazil’s power value chain to support the country’s transition to renewable energy and a decarbonized power system. Currently, Brazil is revising climate targets to reduce greenhouse gas emissions by 53% by 2030 to achieve net zero.
The transmission line represents the first asset acquired by Actis to create a transmission platform in Brazil, as part of its approach to investing in long life infrastructure, with further capital allocations into the sector planned for the coming years. The momentum behind Brazil’s transmission market remains positive, with the government moving ahead with a $10 billion auction agenda.
“Brazil’s transmission sector represents an excellent investment opportunity: fully operational assets, providing essential service infrastructure, with world class regulation, delivering consistent and competitive cash flows for our investors,” said Adrian Mucalov, partner, head of Long Life Infrastructure at Actis. “The asset Actis is acquiring is net zero aligned and critical to meeting the demand for grid expansion and modernization required for electrification and renewables deployment as part of the energy transition, as well as the general economic growth of the country.”
Actis’ energy and infrastructure teams invest on a global scale in sustainable infrastructure, including power generation, transmission and distribution businesses, supporting the world’s low carbon energy transition and achieving net zero. It has 16 GW of operational renewable energy capacity, with a further 5 GW under construction or contracted.
Bradesco BBI and Mattos Filho were Actis’ financial and legal advisers, respectively, in the process.
