The partnership between Brazilian reneweable energy firm Renova Energia and local power distributor Light will add value to Light’s generation portfolio and secure a major buyer for Renova’s generated power, Lilyanna Yang, an analyst at investment bank UBS, wrote in a research note.

Over the weekend, Light said it has closed a partnership deal with Renova worth 360mn reais (US$228mn).

Light will now hold 35.1% of Renova’s voting capital and 26.2% of its total capital and will join firm RR Participaзхes in the company’s controlling block.

The agreement also includes a commitment by Light to purchase 400MW of installed generation capacity from Renova’s project portfolio, according to the statement.

In the analyst’s view, Light will have access to different generation projects such as wind farms and small hydros, enlarging the company’s portfolio.

The upside for Renova is that “Cemig and Light have access to an estimated 10GW in special customers who can directly buy from alternative energy sources at attractive prices for project developers,” Yang said.

Light is controlled by the Brazilian utility holding group Cemig (NYSE: CIG).

Renova is currently developing Brazil’s largest wind farm, with an installed capacity of 456MW, and has three small hydros in operation, with a joint installed capacity of 42MW.

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