Additional electricity from the 14GW plant on the Brazil-Paraguay border will be used to compensate for falling output from dams afflicted by drought.
The Mexican subsidiary of US firm Sempra Energy says the transaction will involve a total of around US$520mn.
The goal is to reduce the electricity bill of Brazil's largest water utility.
EGE Haina breaks ground on the country's fourth wind farm.
In this first part of a two-part interview, Fernando Flach, founding partner of Flach-Philippsen Associates, spoke to BNamericas about how the Brazilian law firm has moved on from being a law consultancy specialized in the electricity sector to becoming an investor and operator in this market.
The planned development of a hydroelectric plant and transmission line have come into question.
The Spanish company already operates five solar plants in the country which generate a combined 47.5MW.