IFC announced its first financing commitment for a Distributed Generation (DG) project in Latin America and the Caribbean. The financing is directed to Origo Energia, a leading DG player in Brazil with nearly 450 Megawatts-peak (MWp) which serves over 130,000 clients across the country. This project aligns with the mitigation, adaptation, and resilience goals of the Paris Agreement, and will help Brazil meet its climate mitigation goals.
IFC is providing a 10-year BRL-denominated dual-tranche loan financing of approximately $40 million equivalent to a wholly owned subsidiary of Origo to support the construction of a portfolio of 22 small, ground-mounted DG projects across four states in Brazil, with an aggregate installed capacity of 90 MWp. IFC’s financing will include concessional financing from the Clean Technology Fund (CTF), part of a World Bank Group´s initiative that provides large-scale new financial resources to invest in clean technology projects in developing countries. IFC's financing is structured as a green loan, given the climate-related use of proceeds to build renewable energy plants, contributing to climate mitigation.
"We are pleased to partner with Origo in this first IFC financing for a distributed generation project in Latin America. While utility scale solar photovoltaic is the primary driver of Brazil’s solar growth, DG plays a key role in the country’s energy transition as it provides a flexible and efficient approach to solar generation,” said Manuel Reyes-Retana, IFC's Regional Director for South America. "This project aligns well with IFC's strategy in Brazil and the rest of LAC, as it contributes to increasing renewable energy generation and reducing electricity costs for households and small businesses in an innovative manner, helping Brazil achieve its ambitious climate adaptation and resilience goals," he added.
"This investment from IFC represents a significant milestone for our innovative business model, driving sustainable development in Brazil's renewable energy sector, particularly solar photovoltaics," said Surya Mendonça, CEO of Origo Energia. "IFC's support ensures that our projects meet globally recognized socio-environmental standards and contribute positively to global sustainable development goals," he added.
