The development of the Riacho da Serra project entails an investment of $650m and is expected to create around 2,500 direct and indirect jobs, and generate adequate renewable electricity to power 950,000 homes

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Exus to acquire Brazilian solar project. (Credit: Exus Management Partners)

Exus Brasil Investimentos, a company of renewables-focused investor Exus Management Partners, has reached agreements to acquire a 1,058MW solar portfolio in Brazil.

The company will purchase a 100% stake in project entity Riacho da Serra Energia from energy company Decal Renewables and infrastructure developer Upside Value.

Riacho da Serra Energia has a portfolio of 20 solar projects, located in the north-eastern state of Piaui, which is considered the epicentre of Brazil’s high-radiation solar belt.

The acquisition of Riacho da Serra Energia and related assets is subject to regulatory approvals and other customary closing conditions.

The Riacho da Serra project is anticipated to be finalised in two phases, with plans to achieve commercial operation by the second half of 2024.

Exus Brazil partner Pedro Fragoso said: “We are delighted to have secured a deal for a highly significant project in the context of Brazil’s energy mix.

“We are proud to not only be delivering green energy to almost one million homes, but also injecting investment into the country and local communities, creating thousands of new jobs, and significantly reducing CO2 emissions.

“Brazil has an astonishing abundance of renewable energy resources and opportunity, and we look forward to playing our part in both growing the domestic sector, as well as helping to drive the global journey to net zero.”

The development of the solar projects, which entails more than BRL3.5bn ($650m) investment in Brazil, has received all the necessary permits to start construction.

The cluster has been approved by Brazil’s electricity regulatory agency ANEEL, to have a total installed capacity beyond 1GW.

In addition, it is fully licensed to commence construction, with interconnection granted and contracts signed with national grid operator ONS, for the use of the transmission system.

The solar projects are expected to create around 2,500 direct and indirect jobs, and economically empower the communities involved.

In addition, they are expected to generate adequate renewable electricity to power 950,000 homes, reducing around one million tonnes in CO2 emissions.

Finergreen served as an exclusive financial advisor and Tozzini Freire Advogados as legal counsel to the sellers, while Veirano Advogados served as legal counsel to Exus.

Decal Renewables CEO Matteo Fedeli said: “We are proud to contribute towards the energy transition in the country and globally, despite the very challenging conditions affecting the industry.”

Upside Value CEO EnriqueSira said: “We will continue to develop high-quality projects and partner with suitable investors and generators to play our part in the development of renewables infrastructure and in the transformation of the power generation industry in Brazil and the countries where we operate.”