Good afternoon. We're now beginning the conference call for ENGIE Brasil Energia, where we're going to discuss the main points regarding the signature of the photovoltaic asset that was disclosed on Monday. I am Adriana Wagner, IR for the company, and I would like to make some announcements before we begin the conference call. Everybody that is connected is in listen only mode. When we open the question and answer session, participants can send their questions to the Q&A icon in Zoom. We would like to remind you that this call is being recorded. Forward-looking statements made during this conference call, referring to the company's business outlook, should be dealt with as forecasts that depend on the economic situation of the company, the performance and regulation of the electrical sector. They are subject to change, therefore, this presentation has been made available at the CVM some minutes ago.
For journalists who wish to pose questions, they can send them to the press department of the company. To speak about this, we have today Eduardo Takamori, the CFO and IRO, and Rafael Bósio, the IR Manager. I would like to give the floor to Eduardo Takamori, and you may proceed, Eduardo.
Good afternoon to all of you. It is a pleasure to be here with you. As Adriana mentioned, on Monday, we launched a material fact regarding the topic that we are discussing today. It is an acquisition of BRL 2.3 billion, totaling an acquisition value of BRL 5 billion. As we have this operation with a somewhat peculiar characteristic in terms of the contracting of the operation, we have decided to open up this space with you for clarification purposes. I'm going to give the floor to Rafael to carry out a review of the assets. Rafael, you have the floor.
Good afternoon, everybody, and thank you, Eduardo Takamori. Thank you very much for your attendance. We're going to briefly revisit the main features of the assets that were part of this acquisition. Firstly, it is important to underscore that the installed capacity is 661 MWp, that is equivalent to 545 MWac. It is important to highlight this because there was some confusion in terms of this and some of the analysis. Of course, this could lead to the impression or sensitivity that the CapEx that we effectively paid for was higher. This is another factor, even if we use this, it is not a good reference. We're speaking of projects that have already been contracted.
The value of the acquisition, of course, depends on several factors besides the CapEx per se, and we don't have a more correct multiple that we can use in this case. Another point, I would like to mention that these are assets in Bahia, Ceará, in the Northeast, very close to other assets that we have. These are assets that have been contracted, and in the material fact, we disclosed the value of the PPAs in the free contracting environment. The reserve is BRL 435 per megawatt hour, and in some cases above BRL 180. Evidently, we can't disclose the price of the project contracted in the pre-contracting environment because of the confidentiality clause of our client. But you can see that this is a project with high production.
Now, these prices are based on December 2022 and will need to be adjusted to the present date. I will give the floor to Eduardo Takamori, who will remark on this and other points to allow for a full understanding for all of you in terms of this acquisition. Thank you, and the next slide. I would like to go back to a point mentioned by Rafael, the synergy with our other assets. You will see a cloud of different colors here, showing you our footprints were disseminated throughout Brazil, and the points in yellow are the assets that we're acquiring at this moment, the photovoltaic assets. And in Ceará, in Bahia and Minas, we also have operations. We have teams as well as assets, of course. And this shows you that we have enormous operational synergy for this operation...
We can also work with the thermoelectric team, alleviating our team, and it's natural that this allows us to work with new assets and operation without burdening our structure with this. Now, Rafael has already mentioned these are fully operational assets with immediate contributions to the company results. The high level of long-term contracting, of course, is very attractive, and this is very aligned with what we have said in the past quarters. On the one hand, we're being somewhat more cautious in the development of projects as of now because of the market situation. But this project makes sense because of the synergy and the contracting, the long-term contracting. Once these long-term contracts end in 2038, 2045, of course, the long time price will strongly relate to the expansion price. Of course, this will be much higher than the prices that we observe here.
We have added a table, which is also a very sensitive topic that generates value in this project. We have contracted the structure with BNP of somewhat more than BRL 1 billion and with IPCA + 2.36, and at the average rate of IPCA + 2.7, an average rate. Now, this is much more efficient than the normal contracting rates we have at present, and naturally, it is impossible to anticipate or foresee what would happen with this. Another point that I would like to remark is the discount. All of these projects are entitled to discounts from the wires, from the generator and the final or end consumer base. And we believe that in the long term, this availability of incentivized projects will be reduced once we have the concession concluded.
Because of this, we should have a tighter balance of availability of projects with incentivized sources and a demand for this. Because of this, the premium will increase. Of course, this will not happen immediately. We have an oversupply of incentivized projects, but in the long term, this will also add value, create value. Another point that we remarked on the characteristic of the present-day debts that have a very interesting characteristic. As these assets are highly contracted, there is space for additional leverage. And of course, we will have an increase in return based on the project that is defined. We will be able to optimize the capital structure additionally. And regarding the leverage, yesterday, there was a communiqué showing that Fitch Ratings has reaffirmed our AAA rating. This is very important, of course.
Finally, I would like to underscore that ENGIE continues to focus once again on discipline, on capital allocation, financial return, risk management, and we would like to confirm that this project has had a double-digit return in BRLs. We have carefully surveyed the scope, the return on risk, and we're extremely satisfied to have this project with such synergy, something that fits in so well with our existing portfolio. Rafael, would you like to add anything else?
No, I think there's very little to add, and perhaps we could already open the floor for questions and answers. It seems we have a question. Adriana, I don't know if we can already answer this question at this point.
Yes. If you could add something additional.
The question is from Guilherme Lima, from Santander: Could you comment on which is the re-leverage potential of the asset and which is the cost of the debt, and how will the schedule of the debt amortization operate with a new debt that has a higher cost?
Well, a very good question, Guilherme, and in truth, we cannot disclose too many details at this point in time, but of course, we're going to do this in terms of the holding company. There are several ways of achieving this. Now, the fact that we're working with an additional re-leverage that is higher than this one is not a problem in terms of the cost of the debt. I do not foresee a problem here with the increase of the debt. Of course, the environment is challenging, but of course, this has been priced in our decision. Thank you, Taka.
We have an additional question now, and once again, should you wish to pose questions, please address them to the Zoom Q&A icon. A question from Naiana Mendes, who asked if this video will be available in our site. Yes, it will, after we have recorded this call. The next question comes from Felipe Moura, who asks if we can remark on the premise of recontracting of the energy after the PPA, which is the implicit cost of energy. Once again, Felipe, we cannot remark on this. I remarked on the rationale of the macro conditions, but we do have a long-term vision, and it's not usual for us to disclose this long-term vision.
The excess of subsidies and the effect of this excess of subsidies, we'll have to see that at some point in time, you will have a demand, and in terms of the operation, it will converse with the price of the project. We know that this is seasonal, but we have been doing this for 25 years here. A good portfolio management, of course, can obtain value, and we'll find the appropriate moment for the contracting. Now, this will become part of the normal operation of our portfolio. Taka, if you allow me to add something and reinforce this issue, there is a contracting for a certain term. There will not be contracting during a certain term, and we will have sufficient time to recontract the commercial capacity of these projects at prices that we believe will be much higher than those we see at present.
We have significant time. It is an advantage that these projects have long-term contracting, and when the moment comes about, we can contract the rest of the commercial production of these assets. Now, you—we can see that the first contract that expires will be in 2037, 2038, 2041, 2042, which means we have at least 15 years for the market to stabilize. The next question come from Luís Mussili from JGP. He's asking about the high price of the contracts, which would be a reasonable EBITDA margin for the assets. Luís , we don't tend to disclose this detail. Now, these projects evidently will become part of our portfolio until the closing, and as the conditions are traditional market conditions, we will disclose it.
So they will become part of our portfolio, and of course, they will cause a variation in the portfolio that we do not tend to disclose. We have people from the sales side on the call, and there have been some reports issued, and they do have some estimates that could perhaps be used as a reference for you. We cannot back any of them, and, well, of course, this could be used against us in the future. And Fitch yesterday also had a reference along the same lines. Once again, we cannot back any of these forecasts that have been made. The next question is from Victor Buchi, from JP. He wants to ask if we could detail on the tax regime of all of these solar plants. Victor, I think it is presumed profit, but I, I truly cannot confirm this. Profit before taxes.
The next question is from Bruno Oyamata, from Morgan Stanley. He has three stages in his question. I will begin with the first. The double digit return in real terms, is this leveraged? And does it include taxes, I believe? Yes. Okay. Bruno's next stage, he asked about the competitive process for this asset, if it had a great number of participants, and which is the outlook of dividends for 2023 and 2024. Well, once again, we cannot refer to the competitive process. What we can say is that ENGIE constantly monitors the market conditions, the market growth, and these assets appeared. We analyzed them with a great deal of attention, with our due diligence, and we were able to take an adequate stance.
The second part, referring to the dividend, we had already anticipated this in previous quarters, that, at this moment of making several investments, it's natural to take a look at our capital structure, and of course, this includes assessing our payout. I would also like to remind you that the level of payout is under management, and this will demand BRL 2.3 billion in capital in the short term. It's natural that we, enhance the management of the company. Now, the coming year is another story. Many things could happen, but of course, we will carry out a more in-depth analysis of the company's capital structure. And we have several people here that will help us work with our commitment for investment. Well, thank you, Taka. The next question is from Giuliano Ajeje from UBS.
How did you consider the mismatch between solar generation at the end of the afternoon and the demand we have in the beginning of the evening? This observation has been important in the last few days, because the gap is covered with thermal generation. And in terms of pricing these assets, have you considered the purchase of energy and at which price? Giuliano, an excellent question. This, of course, is a point of attention, and it is due to the excess of projects that are under implementation. Now, this issue of mismatch has two currents, one, energy, the other, price. The fact that you have an excess of solar generation and a limited demand means that you have a limitation of generation, and this has already been priced adequately, and each company will have an idea of how this will evolve through the years. Our premise is quite reasonable here.
Curtailment of the projects, reasonable, very rational, and the other effect or current is the price. Now, the price is somewhat more difficult to forecast in an asset that is as relevant as this one, because the price of the last days was caused by an excess of maintenance and several characteristics that are due to the situation. They're not structural. We have an excess of solar generation, in fact, but generally, we would not have to have this mismatch covered with thermal generation. It could be done with electrical energy, but in these last few days, of course, there was a great deal of maintenance, and this is a preliminary sign that this could be one of the drivers.
Now, we do have available power in hydroelectric plants, two or three other factors also that were part of this mismatch of price, but I don't believe it is very representative. It seems that we do not have further questions. Thank you, Taka. We don't have any more questions, and I would like to return the floor to Rafael and Takamori for the closing remarks. We would simply like to thank you, and the IR team is at your entire disposal, once again, to dissipate your doubts and to help you enhance your understanding, not only of this deal, but everything that is done in the company. Thank you. First of all, Rafa, I would like to state that our decision of allowing for this channel of conversation was very assertive. When we look at the number, we see that there is interest in this topic.
I think this will calm the hearts of all of the analysts and others. The coming week, we will already be re-releasing our results. We expect to see you all on Tuesday for our call. Thank you, Taka. We would like to thank all of you for your attendance, and have a very good afternoon. Once again, thank you all, and have a good day.