Chinese power giant China Three Gorges (CTG) is lining up a deal to increase its control of EDP in Latin America as an option to continue growth if a full takeover bid for the Portuguese utility fails, news agency Reuters reported.
Citing unnamed sources close to the deal in Brazil and the UK, Reuters said that the format could be an EDP-CTG joint venture in the region where it has significant wind and hydro assets, mainly in Brazil.
The report said CTG is keen to grow in the region, and that the deal would create a regional power generation giant.
Through EDP Renováveis, EDP and CTG are important players in wind and hydropower in Brazil.
EDP operates in Brazil though EDP Energias do Brasil, a full-blown utility with interests in power generation, transmission, distribution and retail power trading operations, including rooftop solar.
EDPR was one of the main winners in last year's Brazilian power tender, and it told Recharge it could sell operational assets to raise cash for greenfield investments.
Brazil has currently 15GW of wind installed and is expected to reach 28GW by 2027 while solar could rise tenfold for 10GW.
CTG's bid for full control of EDP has dragged on amid apparent regulatory concerns.
