SAO PAULO, March 31 (Reuters) - Brazil's renewable power generation company Renova Energia SA (RNEW11.SA) will finalize the sale of wind farm Alto Serto II to the Brazilian unit of AES Corp (AES.N) for about 700 million reais ($223 million) as early as Monday, two people with direct knowledge of the matter said.

The project sale is a condition for Brookfield Asset Management Inc's (BAMa.TO) plan to enter Renova's controlling bloc in a deal valued at about 1 billion reais, said the people, who asked for anonymity because the matter remains private.

Under terms of the deal, which could be announced in coming days, Canada's Brookfield (BAMa.TO) would purchase the 15.7 percent stake that Light Energia SA has in Renova and then pump fresh cash into the company, said the people. Currently, Light forms part of a controlling bloc that owns about 64 percent of Renova.

Renova units (RNEW11.SA) , a blend of its common and preferred shares, jumped 10 percent on Friday, on top of a 15 percent surge the prior trading day. Shares of Light (LIGT3.SA) shed 1.3 percent, their fourth decline in five sessions.

Renova did not have an immediate comment. Light's press office referred any questions related to Renova to controlling shareholder Cia Energética de Minas Gerais SA (CMIG4.SA) .

Brookfield declined to comment. AES Brasil said it continues to analyze the Alto Serto II transaction, without elaborating further.

Both deals, if successfully concluded, would help Renova overcome a severe cash crunch that has led to investment plan delays and cost cuts. Renova's woes have worsened since a planned partnership with SunEdison Inc (SUNEQ.PK) collapsed weeks before the U.S. company filed for Chapter 11 bankruptcy protection.

By injecting capital, Brookfield would be giving Light a chance to exit the company while diluting the other two members of Renova's controlling bloc, Cia Energética de Minas Gerais SA (CMIG4.SA) and RR Participaes SA.

($1 = 3.1342 reais)

Tags：UPDATE 2-Brazil's Renova to finalize project sale to AES on Monday -sources