EDP Brasil Completes Coal Exit with Final R$200 Million Thermal Plant Sale
EDP Brasil finalized its strategic withdrawal from coal-fired energy by selling its remaining 20% stake in the Pecém thermal power plant to Diamante Geração de Energia for R$200 million (€31.15 million).
The May 26, 2025, agreement concludes a two-phase divestment that began in late 2023 with the sale of 80% to Mercurio Asset-led investors. Regulatory approvals now stand as the final hurdle for EDP’s full exit from the 720 MW facility in Ceará’s Pecém industrial complex.
The coal plant, operational since 2012, previously contributed to Brazil’s northeastern grid under a capacity contract set to expire in July 2027. EDP acquired full ownership in 2015 but faced financial pressures after hydroelectric energy undercut coal’s viability.
A canceled 2022 capacity auction triggered a R$1.2 billion asset write-down, accelerating divestment plans. Diamante, a mid-sized Brazilian firm, now assumes control with plans to transition the site toward alternative energy sources post-2027.
EDP retains management of a green hydrogen pilot project at Pecém, which produced Brazil’s first renewable hydrogen molecule in December 2022.
This initiative aligns with broader corporate goals to eliminate coal from portfolios in Brazil, Portugal, and Spain by 2025. The company’s 2023-2026 business plan earmarks €25 billion for global renewables, including €3.5 billion for Brazilian solar, wind, and grid upgrades.
Market analysts highlight Pecém’s dual role as a case study in energy transition. While the coal plant supported grid stability during renewable expansion, its declining profitability mirrored Brazil’s shift toward cheaper, cleaner alternatives. EDP’s exit underscores the economic realities facing fossil assets as investors prioritize decarbonization and regulatory risks. The sale also streamlines EDP Brasil’s structure ahead of its parent company’s 2040 net-zero target.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.