The Canada Pension Plan Investment Board (CPPIB) has established a new joint venture (JV) with Votorantim Group’s energy subsidiary Votorantim Energia.

The JV will focus on investing and developing Brazil’s electricity generation sector. Initial purchases will include Ventos do Araripe III (Ventos III) and Ventos do Piauí I (Piauí I) windpower parks in Northeastern Brazil.

The two energy projects will have a total installed capacity of 565MW. Ventos III is located in the states of Piauí and Pernambuco, while Piauí I was constructed in Piauí.

“The JV will focus on investing and developing Brazil’s electricity generation sector.”

To be acquired from Brazilian project developer Casa dos Ventos, Ventos III has an installed capacity of approximately 359MW with committed investments of R$1.8bn ($546.02m).

The Piauí I facility has a power generation capacity of around 206MW with committed investments of R$1.2bn ($364.01m).

Under the deal, CPPIB will make an initial contribution of nearly R$690m ($209.3m) in equity.

In the long term, the JV is expected to invest more than R$3bn ($910.04m) in operational and development assets in Brazil’s power generation industry.

Votorantim Energia president Fabio Zanfelice said: “The renewable energy sector is an attractive, expanding market that will require major investments from the private sector now and in the coming decades.

“By joining with a strong partner such as CPPIB, we have expanded our capacity and accelerated our growth plan in this segment with an investor that shares our vision for the business.”