Brazilian solar and wind have become interesting for their size and potential

Brazil is a country that has always aroused strong speculative interests on the part of international investors, even before industrial ones, finding in it a fertile ground for conquest.

We can recall the indiscriminate exploitation of the Amazon forest for timber, intensive breeding of animals for slaughter, to satisfy the growing demand of meat on the tables of the world and, last but not least, the large-scale cultivation of crops for biofuels and forage.

In such a globalized world, the energy problem has also hit Brazil, which has introduced a series of initiatives in the energy sector renewable.

The vastness of the country and its potential in the field of wind and solar power , have prompted some local energy companies to undertake a step towards collaboration with international companies, equipped with the necessary structures and liquidity to face such a promising challenge.

Indeed, TotalEnergies (TTE) and Casa dos Ventos (CDV), the leading Brazilian developer of renewable energy, announced the creation of a 34% (TTE) / 66% (CDV) joint venture to develop, build and manage the renewable portfolio of Casa Dos Ventos.

This portfolio includes 700 MW of onshore wind capacity in operation, 1 GW of onshore wind under construction, 2.8 GW of wind onshore and 1.6 GW of advanced development phase solar projects (COD within 5 years).

Furthermore, the fledgling JV will have the right to acquire current and new projects, which are or will be developed by CDV as they reach the execution stage. The JV will thus be able to jointly promote its growth by accessing an additional portfolio of at least 6 GW, which CDV will continue to expand.

TotalEnergies will pay a cash consideration of $ 550 million (R $ 2,920 million) and up to $ 30 million (R $ 159 million) to complete the acquisition. In addition, TotalEnergies will have the opportunity to acquire an additional 15% stake in the JV after 5 years.

TotalEnergies will support the JV by accelerating its growth thanks to its global presence in the Corporate PPA market, its purchasing power deriving from its global dimension, its experience commercial suitable for the Brazilian market and its solid balance sheet, which will allow the JV to improve its financing.

CDV, which has developed 25% of the onshore wind assets in operation today in Brazil , will bring its in-depth knowledge of the Brazilian market and a portfolio of the highest quality, moving from a business model from developer to manufacturer.

"After Adani Green in India and Clearway in the United States , I am delighted with this new important partnership in Brazil, with Casa dos Ventos , leader in onshore wind energy.

With this transaction, TotalEnergies acquires a leadership position in the Brazilian renewable energy market, one of the most dynamic markets in the world.

This market fits our strategy of taking advantage of the growth of deregulated energy markets, which is crucial for the energy transition, "said Patrick Pouyanné , President and CEO of TotalEnergies.

"With a total of 12 GW in operation, construction and development, both wind and solar, this transaction is a further step in TotalEnergies ambition to reach 100 GW of renewable generation by 2030, and in its transformation into a sustainable and profitable multi-energy company. ”

" The partnership between Casa dos Ventos and TotalEnergies has been structured to maximize the complementarities and synergies between companies.

In addition to its financial strength, TotalEnergies' global footprint will contribute to the expansion of our customer portfolio and enhance our knowledge in new fields of the energy transition.

We are confident that this partnership places us in a strategic role to lead the sustainable energy agenda in Brazil ", said Mario Araripe, founder and president of Casa dos Ventos.

About Home dos Ventos

Casa dos Ventos is a Brazilian energy company that develops, builds and manages projects from renewable sources.

Responsible for one of the largest wind measurement campaigns in the world, the company has developed one in four wind projects in operation in Brazil.

To continue its leading role in the sector, Casa dos Ventos holds the largest portfolio of wind and solar projects under development in the country, with around 20 GW.

The company is also a leading provider of energy solutions to support consumers in their energy transition.

Casa dos Ventos is a signatory of the United Nations Global Compact and operates in line with the 17 Sustainable Development Goals (SDGs) and ESG best practices, preserving the local biomes, developing social projects in the communities where it is present and contributing to a low-carbon economy.

Automatic translation. We apologize for any inaccuracies. Original article in Italian.

Source: TotalEnergy