Mascarenhas plant earns gold certification, showcasing financial institutions' role in sustainable energy leadership
The Mascarenhas Hydropower Plant in Brazil has achieved Gold certification under the Hydropower Sustainability Standard (HSS). The achievement marks a significant milestone following the project’s acquisition by VH Global Energy Infrastructure plc (ENRG), managed by Victory Hill Capital Partners LLP.
ENRG acquired the 198MW Mascarenhas plant from EDP Brasil in 2022 in partnership with Paraty Energia, which was also appointed as the operator of the plant. The new ownership immediately committed to certifying the plant under the HSS, demonstrating how strategic investments can align with global sustainability goals and set new industry benchmarks.
“Victory Hill is incredibly proud of the Mascarenhas Hydropower Plant’s achievement in securing the Gold certification under the Hydropower Sustainability Standard,” said Eleanor Fraser-Smith, Head of Sustainability at Victory Hill Capital Partners LLP. “This certification is a testament to Victory Hill and its partners’ commitment to not only invest in renewable energy but to ensure that these assets operate at the highest standards of environmental, social, and governance (ESG) performance.”
During its assessment, the project demonstrated international best practice across multiple criteria, such as its mature environmental management programme.
The new ownership has also prioritised strengthening labour relations. Regular engagement with employees on safety and operational matters at the plant has fostered a culture of continuous improvement and contributed to high worker satisfaction levels.
Joerg Hartmann, who led the assessment, said, “The Mascarenhas power plant shows how even older projects operating in mature markets and regulatory frameworks can benefit from new ownership, a review of environmental and social management issues, and commitments that reflect modern best practices.
“In particular, Paraty Energia strengthened community outreach and engagement, is clarifying land ownership around the reservoir, and has committed to reviewing operations and improving aquatic and terrestrial habitats upstream and downstream. It is remarkable what a motivated owner can do with an older project.”
The Mascarenhas Hydropower Plant’s Gold certification underscores the critical role financial institutions play in integrating sustainability into renewable energy investments. This achievement highlights the importance of aligning hydropower projects with rigorous ESG standards, setting a strong precedent for the industry.
Eleanor Fraser-Smith further emphasised, “The Mascarenhas project demonstrates that financial institutions can and should play a crucial role in driving the energy transition, and that sustainable operations can be achieved while delivering reliable renewable power. This certification not only validates our approach but also sets a benchmark for responsible investment in the hydropower sector.”
The certification crowns the run-of-river project that completed 50 years of operation in 2024, being a reliable source of low-carbon electricity and enabling the economic growth for Espírito Santo State for more than half a century.
You can find out more on the Mascarenhas Hydropower Plant assessment profile.
Learn more about Paraty Energia - the operator of the Mascarenhas Hydropower Plant.
