Exus Management Partners has agreed to acquire 100% shares of Riacho da Serra Energia and the project-related assets, from Decal Renewables and Upside Value Group. Consisting of 20 solar parks situated in Piauí – the epicentre of Brazil’s highest radiation ‘solar belt’ – the development will represent an investment of more than $650 million. The cluster is fully licensed to commence construction, as it as secured grid interconnection and contracts for the use of the transmission system with national grid operator ONS,
The structuring of the project will be finalised in two phases, with commercial operation targeted for the second half of 2024. The deal marks the 4th largest solar asset acquisition in the Latin American (LatAm) region since 2017. Galp, Lightsourcebp and Brookfield lead the major acquirers of large portfolios of utility-scale assets in Brazil.
As per Enerdatics’ research, transaction activity in Brazil’s solar segment is concentrated in the country’s ‘solar belt’ - a region in the Northeast which is the most suitable for solar development. Irradiation levels in this belt can reach 2,400kW/sq meter. Implied enterprise value (EV)/MW multiples for assets traded in the region are generally in the $0.8-1.2 million/MW range, which is largely consistent with valuations observed for assets in LatAm. Further, Enerdatics observes that most of the transacted assets are in the early stages of development, a phenomenon believed to be driven by major cost declines for installation. Preferred power sales arrangements for the projects include a blend of contracts on the regulated and free market - as seen in the assets acquired by Brookfield, Votorantim, Lightsource bp and SPIC Brasil, a unit of China’s State Power Investment Corporation.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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