Volkswagen AG's Brazil unit is investing 120 million euros in the construction of two hydropower plants, which will have will have a total output of 48.3 megawatts a year.
The plants will supply almost 40 percent of the electric power required by the company.
VW is the first automaker in Brazil to invest in the generation of clean power from renewable sources, the company said in a statement.
One of the two power plants has already been in operation since March 2010 and the second plant is due to be completed in 2013. Both facilities are located in Sao Paulo, where Volkswagen do Brasil operates three of its four plants.
Source: Bloomberg with contributions from Douglas A. Bolduc