By Brazil Stock Guide – Sabesp (SBSP3) has been granted approval by the Administrative Council for Economic Defense (Cade) for a new consortium with subsidiaries of Engie (EGIE3), enabling the state-run water and sanitation company to generate renewable energy. This partnership will allow Sabesp to produce electricity for its own consumption through a process called self-production, utilizing clean energy sources.
The decision, published in the official federal gazette, outlines that the initiative aims to reduce Sabesp’s energy costs while promoting environmental sustainability. The company emphasized that “self-production of electricity will allow the company to obtain energy from a renewable source, leading to lower electricity costs and additional sustainability gains,” according to its submission to the antitrust authority.
Engie also sees the deal as part of its broader growth strategy in the renewable energy sector. “This represents a business opportunity, aligned with our strategy of developing, implementing, and operating renewable energy generation projects,” stated the company.
However, the deal still requires approval from the National Electric Energy Agency (Aneel) before it can move forward. This isn’t the first collaboration between Sabesp and Engie. In July, Cade approved another similar agreement, which focused on a solar park in Assú, Rio Grande do Norte. This new project is another step in the growing trend of public and private sector companies seeking sustainable energy solutions to reduce operational costs and advance environmental objectives.
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