Using pair trading, you can minimize the risk of directional movements in the market. This means that if Equatorial Energia shares drop, the other equity will appreciate, offsetting losses from the long position.
Comparative valuation techniques use a range of fundamental indicators to determine the current stock value of a company. These techniques are useful in analyzing the current state of the market and determining whether it is a good time to invest.
Electricity
Equatorial Energia is advancing in the consolidation of the Brazilian electricity distribution sector, currently holding 6 concessionaires in the states of Maranhao, Para, Piaui, Alagoas and Amapa. It also operates in the transmission sector and recently entered the sanitation market through its Companhia de Saneamento do Amapa unit.
In March 2019, the Company acquired control of a concessionaire in the State of Alagoas. It distributes electric energy to 1.2 million consumers in 102 municipalities of the State, with an area of operation that covers 27,848 square kilometers. In 2021, its distributed energy increased 3.4% compared to the previous year.
Norton Rose Fulbright’s London and Sao Paulo offices assisted Equatorial Energia in its acquisition of local renewable energy company Echoenergia Participacoes SA, which was the largest ever M&A deal in the Brazilian renewables industry.
Gas
Gas is an alternative to oil and a clean fuel that can provide energy in many ways. Equatorial Energia acquired Companhia de Energia do Alagoas in 2021, which distributes electric energy to 1.2 million consumers in 102 municipalities across a concession area of 27,848 km2.
In the transmission segment, Equatorial Energia operates eight auctioned lots through Redentor Energia, which began operations in 2019.
As part of a spin-off, Equatorial Energia transferred its stake in RME to Redentor Energia. This transaction expanded the Company’s growth strategy and broadened its footprint in Brazil. It is the largest transaction in the Brazilian renewable sector to date. Norton Rose Fulbright’s London and Sao Paulo offices assisted in the transaction.
Renewable Energy
Using renewables to provide energy can enhance the value of indigenous resources and reduce dependence on fuel imports. These facilities also often act as engines for local economic development.
Creating renewable energy plants can be expensive, however, the cost of the investment is offset by tax incentives. Furthermore, it is possible to generate power on-site and sell it to the grid.
Equatorial Energia SA is a holding company, investing in the equity participation of companies, consortiums and enterprises engaged in the electric energy sector or in activities related to it. Its subsidiaries operate in the Distribution, Services / Sale, Generation, and Central segments. The Company was founded on June 16, 1999 and is headquartered in Brazil. In April 2010, the Company was spun off into Redentor Energia S.A.
Energy Storage
Energy storage can complement clean generation and transmission technologies to enable cost-effective deep decarbonization while maintaining grid reliability. It can also be a key component of electricity systems that offer consumers incentives to make their use of power flexible.
Long-duration storage technology can help ensure that renewable energy is available at times when demand exceeds supply. By charging up on days when renewable energy production is high and discharging during periods of peak demand, this technology can allow for greater integration of renewable energy into the electric power grid.
Electric energy storage can also reduce the need to build new transmission lines. By increasing the capacity and resiliency of existing lines, intelligently deployed storage can defer expensive investments in transmission infrastructure while still providing critical ancillary services like frequency regulation and operating reserves.