October 2 (Solar) – Brazilian power producer AES Tiete Energia SA announced on Monday it has signed an agreement with the government of Sao Paulo to extend the deadline for the expansion of its installed capacity in the state.
At the time of the company's privatisation, which took place in November 1999, it was agreed that AES Tiete would expand its installed capacity by 15% in Sao Paulo. This is equivalent to 398 MW of new capacity.
As of now, the company has met 80% of the target by adding 317 MW of capacity. More specifically, the Sao Paulo portfolio is currently comprised of 300 MW of solar plants, half of which will be operational in 2019, 10 MW from biomass and 7 MW from small hydropower plants (HPPs). The agreement with the state government gives AES six months to secure the remaining 81 MW.
Once the total expansion is completed, AES will be exempt from paying any penalty for delays, the firm said in the statement.