France's TotalEnergies Partners with Brazil's Casa dos Ventos

Oct 26, 2022 03:05 PM ET
  • The renewable energy portfolio entails 700 MW of onshore wind capacity currently functional, 1 GW of onshore wind which is unfinished, 2.8 GW of onshore wind and 1.6 GW of solar projects under development (COD within 5 years).

Leading power company based in France, TotalEnergies (TTE) has joined hands with Casa dos Ventos (CDV)- Brazil's renewable energy developer. The two will join towards the creation of a 34% (TTE), 66% (CDV) JV for the advancement as well as operation of the sustainable portfolio of Casa Dos Ventos.

The renewable energy portfolio entails 700 MW of onshore wind capacity already functional, 1 GW of onshore wind which is incomplete, 2.8 GW of onshore wind and 1.6 GW of solar projects under growth (COD within five years).

In addition, the newly developed jointed venture will certainly deserve to acquire the operational as well as brand-new projects that have been or will be developed by CDV when they get to conclusion. The JV will jointly aid in its advancement by accessing a portfolio of at the very least 6 GW. CDV will certainly continue to improve this portfolio.

Under the JV, TotalEnergies will pay a cash consideration of $550 million and also as much as $30 million (R$ 159 million) in earn-out for the conclusion of the acquisition. That apart, the French power firm will additionally have the choice for the procurement of an added 15% equity share in the joint venture after a period of 5 years.

Since TotalEnergies enjoys a solid international existence in the company PPA market, it will certainly be able to give assistance to the JV, therefore advancing its development. The company has strong purchasing power because of its globally size, as well as trading know-how that is matched to the Brazilian seller market. Besides, its solid balance sheet will let the JV to improve its funding expense.

On the other hand, CDV, which has established 25% of the onshore wind properties presently in operation, will certainly give the table its knowledge of the Brazilian market. Furthermore, its impressive portfolio will certainly promote the change from a programmer to a producer company model.



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