On Tuesday, U.S.-based renewable energy investment manager Energea Global announced a $27 million with Latin America’s largest investment bank, BTG Pactual, to develop and build a portfolio of community solar projects in Minas Gerais, Brazil.
At aggregate peak capacity, the projects are expected to generate more than 28 MW of electricity, which will be delivered primarily to small business customers in the region.
“This transaction shows that some of the largest and most sophisticated investors in the world, like BTG Pactual, are committing significant capital towards low-carbon infrastructure,” Energea CFO Luiz Leão said in a comment on the deal. ” Companies like Energea, who provide the subject-matter expertise in this asset class, are pivotal to the successful allocation of this funding.”
“This is not just a strong investment opportunity, but also a chance to play a crucial role in the global energy transition and improve access to affordable and clean energy for all. BTG Pactual works with businesses like Energea to accelerate Brazil’s transition to cleaner, more affordable electricity,” BTG Pactual Executive Director Rafael Chitarra added.
Bigger Brazil buildout
This high-profile collaboration with BTG Pactual isn’t the first Brazilian foray for Energea. In June, the company received a $63 million capital commitment from VH Global Energy Opportunities (GSEO), a $340 million London-listed investment trust launched by U.K. private equity renewable energy investor Victory Hill in February, to co-invest in distributed solar projects across Brazil.
At the time the joint initiative was announced earlier this summer, the companies said they had already identified 18 ready-to-build projects across 10 Brazilian states (Sao Paulo; Rio de Janeiro; Minas Gerais; Para, Piaui; Rio Grande do Norte; Mato Grosso do Sul; Bahia; Sergipe; and Paraiba.) These pipeline projects will service local commercial and industrial customers, as well as large global corporations with operating divisions in Brazil.
“Brazil is one of the most exciting markets in the world when it comes to renewable power and we are proud to have the backing of the expert team at GSEO to further develop distributed power generation across the country,” Energea Managing Partner Mike Silvestrini said at the time the GSEO deal was announced. “Right now, Brazil has the perfect combination of supportive policy, strong energy economics, foreign exchange, and customer adoption, marking it a prime opportunity for investors looking for attractive returns on investment while helping to slow down climate change.”
Energea’s global portfolio currently plans 70 MW of projects under construction across three continents.
