Global infrastructure investment manager I Squared Capital announced today an agreement to invest up to $400 million in Brazilian distributed energy generation company Órigo Energia, with proceeds from the investment funding the construction of Órigo’s pipeline of more than 2 GW of distributed solar generation projects.
The transaction, expected to close in the first quarter of 2024, marks I Squared’s first direct investment in Brazil, following the opening of its office in São Paulo last month. Brazil is a leading renewable energy market, with the largest electricity market in Latin America, with renewables accounting for over 80% of the country’s electricity mix.
Gautam Bhandari, Managing Partner and Chief Investment Officer at I Squared, said:
“This is a landmark transaction for I Squared. 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.”
Founded in 2010, Órigo Energia is the largest distributed generation business in Brazil, with over 100 solar farms in multiple states across the country, representing 300MW of distributed generation assets already in operation, and serving more than 100,000 customers.
According to I Squared, the investment comes as distributed generation experiences significant growth in Brazil, driven by an accommodating regulatory environment, and as solar power emerges as an increasingly affordable energy source for the market.
Surya Mendonça, CEO of Órigo Energia, said:
“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.”