Investment will fund nearly 2GW project pipeline; 300 MW already in operation
I Squared’s first direct investment in Brazil market; opened São Paulo office last month
Consolidates Órigo’s position as market leader; well-positioned to drive the energy transition in Brazil.
I Squared Capital, a leading global infrastructure investment manager, announced it has agreed to invest up to $400 million in Órigo Energia, a leader in distributed energy generation in Brazil.
The investment in Órigo will fund the construction of over 2 gigawatts of distributed solar generation projects in 20 states across Brazil with an estimated capital expenditure of R$ 6 billion. This will be I Squared’s first direct investment in Brazil since it opened its São Paulo office last month and will give I Squared a 49% ownership stake in Órigo Energia. The transaction is expected to close in the first quarter of 2024.
Órigo Energia is the largest distributed generation business in Brazil with over 100,000 customers and 300MWp of distributed generation assets in operations across Minas Gerais, Pernambuco, Ceará, Mato Grosso do Sul, Distrito Federal, and São Paulo. Órigo’s business model offers residential consumers and small and medium sized enterprises easy access to the sustainable benefits of solar powered energy at a discount from regular utilities.
“This is a landmark transaction for I Squared,” said Gautam Bhandari, Managing Partner and Chief Investment Officer, I Squared Capital. “We have ambitious plans for renewables and are leveraging our extensive experience in this space to build a leading global renewables-focused platform consistent with I Squared’s overall approach to investing."
“Órigo Energia has all the hallmarks of an I Squared investment. They have a strong management team, a large customer base with growing demand, and operations in a well-defined regulatory environment,” Mr. Bhandari continued. “In addition, Órigo has industry-leading sustainability credentials consistent with I Squared’s sustainability goals. We are excited about this partnership, and we look forward to working with Surya and his team to capitalize on the opportunities they have in front of them.”
Surya Mendonça, CEO, Órigo Energia, commented: "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.”
Órigo has been recognized for its environmental and social leadership. In 2022, Órigo secured international B Corporation recertification for its commitment to social and environmental impact through its responsible business model. In 2023, it was granted a Customer Experience recognition, the NPS Award, as the best evaluated company in the energy sector in Brazil.
The distributed generation sector in Brazil has been experiencing significant growth due to the well-defined regulation that drives investment in regions and the potential to accelerate the energy transition towards more sustainable energy sources. Solar power is becoming an increasingly affordable energy source for a market that encompasses around 90 million consumers nationwide.
