Actis’ Skyline Brazilian transmission platform expands to total 1,404km through two acquisitions
LUXEMBOURG, 31 December 2024: Actis, a leading global investor in sustainable infrastructure, has signed to acquire two projects to diversify and expand its Skyline Brazilian transmission platform, bringing the length of the business’ operational transmission lines to a total of 1,404km.
Launched in February 2024, Skyline already owned and operated two transmission line assets totalling 857km. It is now acquiring 90% of a 435km above-ground transmission line asset in the state of Santa Catarina, southern Brazil, from EDP. This asset benefits from a 30-year concession period, with 23 years remaining.
In addition, Skyline is fully acquiring two assets from Vinci Partners – a 112km above-ground transmission line in the state of Rio Grande do Sul in Brazil’s far south and a substation and its equipment in Minas Gerais state. Both assets have 22 years left on 30-year concessions.
Power transmission is critical to accelerating the energy transition globally, and particularly in a country such as Brazil where renewables, notably hydro but also wind, solar and biofuels, generate 89% of the electricity.[i] This is because renewable energy assets are not typically located near consumption centres, rendering transmission lines essential infrastructure for access to power, and particularly decarbonised power.
In November 2024 at COP29, the Brazilian government announced it was raising its ambition on climate goals, targeting a reduction in net greenhouse gas emissions of 67% instead of 59%, relative to 2005 levels, by 2035.[ii] In this context, continued investment into Brazil’s power sector is of vital importance.
Adrian Mucalov, Partner, Head of Long Life Infrastructure at Actis, said: “I believe the transmission sector represents the lowest risk and highest quality segment of Brazil’s power sector and Actis has enjoyed very positive experiences so far through our investments in this space. Building up the Skyline platform is an exciting prospect and we think it represents a great investment opportunity, with fully operational assets providing key infrastructure in a high-quality regulatory environment, all in the aim of delivering stable and competitive cash yields for our investors.”
Davi Carvalho Mota, Partner, Long Life Infrastructure at Actis, commented: “These acquisitions will really make a difference, helping bring greater scale, new efficiencies, and a diversification of assets in different areas of Brazil to the Skyline platform. We believe this creates a more robust and valuable platform and we’re excited about the quality of the assets being acquired. These transactions also show Actis’ continuing commitment to supporting the energy transition in Brazil, and indeed Latin America, by investing in different segments of the energy sector.”
Actis is a major investor in the Latin American energy sector, having deployed more than US$4.5 billion to the sector over the past 20 years and built or operated c.20GW of installed capacity (operating or under construction), a majority of which was in renewables. In the Brazilian transmission sector, in addition Skyline, Actis owns 100% of HRZ Transmissoras.
Actis was advised by Bradesco BBI and Mattos Filho for the 435km above-ground transmission line acquisition from EDP, and by Astris and Mattos Filho for the two assets acquired from Vinci Partners.
ENDS
[i] https://www.iea.org/countries/brazil/electricity
[ii] https://www.gov.br/planalto/en/latest-news/2024/11/brazil-presents-its-new-climate-target-aligned-with-mission-1.5oc