Ludfor expands its renewable energy footprint with acquisition in a Rio Grande do Sul hydropower plant.
Ludfor, a major player in the free energy market, has taken a significant step in its diversification strategy by acquiring a stake in the special purpose entity (SPE) for the Foz do Prata hydroelectric power plant. The deal, estimated between R$ 25 million and R$ 30 million, marks the company’s entry into energy generation under regulated revenue—a segment that offers greater long-term cash flow predictability.
The Foz do Prata hydropower plant, with an installed capacity of 49.36 MW, is being developed by Creral (Cooperativa de Geração de Energia e Desenvolvimento), which holds a 38% stake in the SPE. Located between the municipalities of Veranópolis and Nova Roma do Sul, in the northeastern region of Rio Grande do Sul, the plant is scheduled to begin operations in 2030.
Revenue Assurance and Strategic Expansion
A key driver for Ludfor‘s acquisition is the pre-sale of energy generated by Foz do Prata in the regulated market. Through an auction, the plant secured contracts guaranteeing revenue for a 20-year period, with total capital expenditure (capex) estimated at R$ 420.2 million. This contractual security complements Ludfor‘s operations in the free market, allowing for a more balanced portfolio management.
The stake acquired by Ludfor represents 6% of the plant and is under the leadership of Origem Hidro Participações, a group holding company focused on the acquisition and management of hydropower assets. The strategy aims to capitalize on the growth of renewable sources while hedging against the volatility inherent in the free energy market.
“We are consistently advancing in building a generation portfolio that complements our activities in the free market. Entering Foz do Prata reinforces this strategy by adding an asset with contracted revenue for 20 years, bringing predictability to the business and acting as an important hedge against the natural volatility of the free market,” noted Douglas Ludwig, executive director and CEO of Ludfor.
In-house generation is viewed by the company as a strategic pillar to balance different business models within the energy sector. Foz do Prata aligns perfectly with this vision, serving as a renewable, long-term asset with contracted revenue that strengthens Ludfor‘s portfolio and its ability to capture value across various market scenarios. Currently, the group manages approximately 570 MW in its portfolio, distributed across 24 operational plants.
