The Caisse de dépôt et placement du Québec (CDPQ) has agreed to acquire a major Brazilian power transmission network for $210 million.

Montreal-based CDPQ will make the acquisition through its Brazilian subsidiary Verene Energia, a power transmission platform headquartered in Sao Paolo. Plans call for CDPQ to purchase SPE 7, a “strategic and modern” power transmission network spanning 124 kilometres in the state of Para, in northern Brazil.

“This new transaction reaffirms our commitment to investing in critical assets that unlock the full potential of renewable energy projects and accelerate energy transition, particularly in Brazil, a core market for us,” said Emmanuel Jaclot, CDPQ’s executive vice-president and head of infrastructure, in a news release.

“To this end, we will continue to grow Verene Energia, the driving force for the development and operation of CDPQ’s power transmission assets in Latin America.”

The deal is expected to close in December 2024, subject to customary closing conditions and relevant consents and approval, said CDPQ.

SPE 7 is equipped with two high-tension transmission line segments and one substation. The transmission network connects the northern and northeastern parts of Brazil, an area that predominantly produces renewable electricity.

The proposed acquisition marks CDPQ’s third power-transmission investment in Latin America in two years. CDPQ bought power lines extending nearly 1,800 kilometres in Brazil and Uruguay.