TotalEnergies to develop 12 GW renewable energy portfolio in Brazil

TotalEnergies (TTE) and Casa dos Ventos (CDV), Brazil’s leading  renewable energy developer, have created a joint  venture (JV) to jointly develop, build and operate the renewable portfolio of Casa Dos Ventos. 

This portfolio includes 700 megawatts (MW) of onshore wind capacity in operation, 1 gigawatts (GW) of onshore wind  under construction, 2.8 GW of onshore wind and 1.6 GW of solar projects under well advanced development (COD within five years). 

The 34%(TTE)-66%(CDV) joint venture will have the right to acquire the current and new projects that  are or will be developed by CDV as they reach the execution stage. The JV will thus be able to jointly foster its growth by accessing an additional portfolio of at least 6 GW, that CDV will  continue to expand. 

TotalEnergies will pay a cash consideration of USD550 million and up to USD30  million in earn-out to complete the acquisition. In addition, TotalEnergies will  have the option to acquire an additional 15% equity share in the JV after five years.  

TotalEnergies will support the JV accelerating its growth thanks to its global presence in the  Corporate PPA market, its purchasing power resulting from its worldwide size, its trading  expertise well suited to the Brazilian merchant market and its strong balance sheet allowing  the JV to improve its financing cost. CDV, which has developed 25% of the onshore wind  assets in operation today in Brazil, will bring to the JV its deep knowledge of the Brazilian  market and a very high-quality portfolio while shifting from a developer to a producer business  model. 

“After Adani Green in India and Clearway in the United States, I am delighted with this new  major partnership in Brazil, with Casa dos Ventos, the leader in onshore wind energy. With this  transaction, TotalEnergies acquires not less than a leading position in the Brazilian renewable  energy market, one of the most dynamic merchant markets in the world. This market fits our  strategy of taking advantage of the growth of the deregulated power markets, which is crucial to the energy transition. “, said Patrick Pouyanné, chairman and CEO of TotalEnergies. “With a total of 12 GW in operation, construction and development, both wind and solar, this  transaction is an additional step in TotalEnergies ambition to reach 100 GW of renewable  production by 2030 and in its transformation into a sustainable and profitable multi-energy  company.” 

“The partnership between Casa dos Ventos and TotalEnergies was structured to maximize the  complementarities and synergies between the companies. In addition to its financial strength, TotalEnergies’ global footprint will contribute to the expansion of our client portfolio and  enhance our knowledge in new fields of the energy transition. We are confident that this  partnership positions us in a strategic role to lead the sustainable energy agenda in Brazil,”  said Mario Araripe, founder and president of Casa dos Ventos.