Brookfield Renewable Partners and its institutional partners have signed an agreement to acquire a 1.2GW advanced solar development project in Brazil.

Inflation-linked power purchase agreements currently cover 75% of the energy the project. Brookfield Renewable has said it plans to contract the remaining 25% of power generation before beginning the construction works. At this time, the company plans to finish construction in early 2023.

Brookfield Renewable CEO Sachin Shah said: “This acquisition represents a unique opportunity to invest in one of the largest solar development projects globally.

“This investment aligns with our ongoing strategy of acquiring late-stage development projects at attractive valuations and leveraging our construction and energy marketing capabilities and longstanding experience to achieve attractive returns.

“More broadly, the investment further enhances our technologically diverse 15GW global development pipeline and continues to position Brookfield Renewable as a global leader in renewable power investing and a partner to governments and businesses in the decarbonisation of global electricity grids.”

A Brookfield Renewable spokesperson added that it will need equity of nearly $200m to complete the Brazil solar project.

Completion of the deal is subject to customary closing conditions and is expected to take place in the fourth quarter of this year.

Financial details of the acquisition have not been divulged by either company.

In July 2018, Independent power producer Globeleq signed a definitive agreement with an affiliate of Brookfield Asset Management to project stakes from the latter. Globeleq acquired five solar assets and one wind farm from the affiliate’s South African renewable energy portfolio.