Norsk Solar AS (NSOL), a vertically integrated, independent solar power producer across emerging markets and focused on corporate and industrial (C&I) and utility-scale solar project has entered into a development agreement for 37 MWp to provide clean energy to Origo Energia. Norsk Solar will finance, build, own, and operate the solar projects portfolio of 12 projects.
“This agreement is a natural next step in the Norsk Solar business plan and focus in Brazil following our recent market entry. The team has done a tremendous job in targeting clients within the C&I space that has a demand for cheaper and more predictable energy. The agreement underlines the interest for the Norsk Solar value proposition and our unique position in this market. These are the first projects out of a fast-growing project pipeline that exceeds our initial ambitions”, says Oyvind L. Vesterdal, CEO of Norsk Solar.
The agreements for the projects are set to 25 years tenor. The overall investment size totals around NOK 250 million. The projects will be built in the State of Minas Gerais and are expected to reach Financial Close after the European summer.
“The Brazilian corporate and industrial market for solar is in rapid growth and we see great potential for our value proposition. We further see that with these first projects in Brazil, we have established a strong local brand and secured a good market entry position. Our ambition is to become one of the leading solar power producers for C&I clients in the Country over the next few years.” says Mauro Benedetti, Country Manager for Brazil in Norsk Solar.
The development and construction of the projects will be done in partnership with GDSolar, a pioneer and leader in the development of solar energy in Brazil with 61 operational plants and 202 MWp installed capacity.
The partnership with GDSolar will enhance NORSK SOLAR's reputation in the Brazilian market and is a strong support for the brand's international positioning. “We will apply all our experience in order to offer greatest sustainable energy efficiency for our customers. They are anticipating the economic recovery movement expected for next year. With this, they will acquire not only clean energy, but also a competitive advantage, considering the scenario that the traditional energy sector is signalling for this period”, says Alexandre Gomes, CEO of GDSolar.
Norsk Solar will be the majority owner of the assets, with a 90% stake while GDSolar will keep 10% and support the operations of the plants along the PPA duration.
The off taker Origo Energia was established in 2010, As pioneer in the Brazilian sector of distributed generation they currently provide clean energy, through the management of cooperatives, to more than 15,000 customers, including households and small businesses. Origo’s shareholders include TPG ART, a global American investment firm with more than USD 91 billion under management, Mitsui, the multi-billion Japanese conglomerate and the Brazilian impacting investment fund manager MOV, will distribute and manage the energy of the new plants.
"This generated energy will be distributed in the form of credits to our customers, in line with our commitment to democratize access to clean energy in Brazil, making it accessible to everyone, especially those at the base of the social pyramid", comments the CEO of Órigo Energia, Surya Mendonca, who adds: “The savings provided by this distributed generation model is quite significant for families, especially in the challenging time we live in and considering the significant rise in the electricity need that the country is facing".
The projects are well aligned to the investment mandate of the financing platform established by Norsk Solar and Finnfund earlier this year, Nordic Impact Cooperation AS.
The signing ceremony between Norsk Solar and Órigo Energia will be facilitated by the Norwegian Honorary Consulate in São Paolo and the Brazil Embassy to Norway in Oslo in respect of the Covid-19 pandemic.