Moreover, it marks I Squared Capital’s first direct investment in Brazil where it set foot last month with an office in São Paulo and will give the company a 49% ownership in Órigo Energia, once the transaction is closed, which is expected for the first quarter of 2024.
The distributed generation remains the main driver of solar PV’s growth in Brazil and represents around 70% of all installed solar capacity – with nearly 25GW of distributed generation – as of the end of November 2023, according to data from trade body Absolar. Even though numbers for the entire year have not been disclosed yet, Brazil installed more than 10GW of solar capacity in 2023 (as of the end of November), of which 7GW from distributed generation.
Surya Mendonça, CEO at Órigo Energia, said: “This investment will allow Órigo to accelerate the construction of solar farms, expanding its service to thousands of new customers and over 20 states in the coming years. It will also reinforce our technology and customer experience focus, in line with the purpose of making solar energy accessible to small and large businesses as well as retail customers, while generating savings and driving Brazil to a greener future.”
With this deal the Brazilian distribution generation company will accelerate the growth of its operational assets which currently sit at 300MW across Minas Gerais, Pernambuco, Ceará, Mato Grosso do Sul, Distrito Federal, and São Paulo.
