London-based investment company, VH Global Sustainable Energy Opportunities, has announced a $63 million commitment to fund the construction of 18 remote distributed solar generation projects across ten Brazilian states with a total capacity of 75MW.
VH Global is partnering with developer Energea Global LLC to develop and operate the distributed solar PV projects. The solar farms will supply energy via 20-year contracts to commercial and industrial energy users, as well as large multinational corporations with operations in Brazil.
About half of the total production capacity is to be contracted with a multinational telecoms company.
An initial tranche of $4 million will fund the construction of four projects across Rio de Janeiro, which once operational will provide 5MW of energy to a combination of local communities and regional utilities.
The initial tranche will be followed by a second $24 million tranche in June to fund up to eight projects across Sergipe, Rio Grande do Norte, Paraiba, Mato Grosso do Sul, Piaui, Bahia and Para, which will provide 28MW of energy.
The remaining $35 million will be deployed by August 2021 across Rio de Janeiro, Minas Gerais, Bahia and Sao Paulo to build six solar projects, which will generate 42MW of power.
According to VH Global, the investment will support the growth of a sustainable energy system in Brazil by improving and securing localised access to clean energy and helping to lower Brazilian energy prices. The country has a rapidly growing energy market and is a key partner of the Economic Co-operation and Development (OECD), a group of countries encouraging free-market policy landscapes.
Eduardo Monteiro, co-chief investment officer of Victory Hill Capital Advisors and investment adviser to VH Global, said: “As promised to investors, this funding commitment marks the beginning of a very exciting journey for the company in Brazil, where we can support real and lasting improvements in the country’s energy infrastructure. Brazil is experiencing rapid growth in its energy sector and there is significant potential for investors with the right expertise to help contribute to the country’s growth with cleaner and reliable sources of power.”