On Thursday, Atlas Renewable Energy, the Miami-headquartered emerging market renewables division of $10 billion energy private equity firm Actis, announced that it has received a $150 million loan from IDB Invest, the $13.1 billion investment fund of the multilateral Interamerican Development Bank, along with Norway’s largest bank, DNB, to finance the construction of its Lar do Sol – Casablanca project. The 359MW solar project–Atlas’s second renewable project in Brazil–is being developed to provide clean energy to Anglo American‘s mining operations in the southeastern state of Minas Gerais.
The plant will generate 805 GWh per year, and its Power Purchase Agreement is, to date, the largest contract with a solar project for the supply of clean energy to a private offtaker in Brazil and indexed to the U.S. dollar.
Lar do Sol – Casablanca’s generation will be the equivalent of supplying energy to 390,000 houses per year according to the average consumption of a Brazilian family, preventing some 50,000 tons of annual CO2 emissions per year, roughly equivalent to taking almost 20,000 vehicles off the streets of São Paulo for one year.
The Casablanca solar plant is part of Anglo American’s strategy to use 100 percent renewable energy for its Brazilian operations by 2022, and is integrated into its Sustainable Mining Plan which has a goal of reducing 30 percent of its global CO2 emission by 2030.
This transaction was structured following a similar format used by Atlas Renewable Energy in a recently announced financing for its Jacaranda solar plant, which was also financed by IDB Invest and DNB Bank ASA. It also falls under Atlas’ Green Finance Framework for developing projects that protect and preserve the environment while adhering to the highest standards of social and environmental engagement. 100 percent of the photovoltaic solar modules that will be installed in Lar do Sol- Casablanca will use bifacial technology, increasing project performance while improving the efficiency of solar electricity production.
Diversity and inclusion element
Atlas will also implement social programs in the local community to actively promote diversity and inclusion. Part of this objective (under its “We’re all part of the same energy” program) entails promoting women who opt into relevant training for skilled jobs within Lar do Sol – Casablanca’s construction program. The company has a stated goal of reaching 15 percent female representation in its total workforce, which would mark a fourfold increase in the number of women employed in technical roles in solar projects within the region.
The company will provide working mothers of children aged 0-12 years with financial incentives to cover childcare expenses, to prevent family care obligations from impeding a return to work. Atlas has also mobilized all contractors in the project to prioritize the hiring of minorities at the local level, ensuring diversity and inclusion within the energy industry and promote equalitarian practices by empowering minorities across all its operations.
“We are pleased to achieve another successful financial close alongside IDB Invest and DNB Bank ASA, two institutions that have become important allies in structuring innovative financing solutions to help consumers transition to renewable energy,” said Atlas Renewable Energy CEO Carlos Barrera. “We believe that clean energy should be responsibly sourced, therefore we are committed to tackling social inequalities and cultural biases from our line of work. We look forward to continue accelerating the Brazilian market‘s renewable energy potential in a sustainable manner, while providing the best-in-class solutions to large energy consumers.”
“This financing demonstrates IDB Invest’s commitment to investing in clean energy and for helping companies dedicated to implementing decarbonization programs in their businesses,” said Gian Franco Carassale, Head of Infrastructure and Energy Division at IDB Invest. “In addition, our institution is proud to work together with Atlas Renewable Energy to support programs where the inclusion of women and minorities is a priority. We hope to have more opportunities like this in the future.”
“We are very proud to once again support Atlas Renewable Energy with this new financing in Brazil through IDB Invest,” said Emilio Fabbrizzi, Managing Director and Head of renewables and infrastructure for the Americas at DNB Markets, Inc. “Apart from implementing a long-term and innovative structure for Brazil, we highlight that it is also aligned with Atlas Renewable Energy’s Green Finance Framework, which was executed through DNB Markets, Inc. in 2019.”
