Fazsol has signed a contract with Órigo Energia to build 17 solar farms with 33.4 megawatts of capacity, in the distributed power generation model, in which the consumer chooses its own supplier.
The investment in the project is about R$150 million. The contract is part of Fazsol’s growth strategy in Brazil. Fazsol is the result of a partnership between Japan’s Shizen Energy and Espaço Y, a Brazilian holding company in the home construction segment. Shizen intends to operate in the country through the joint venture to assist Japanese companies in Brazil to decarbonize their power generation mix.
According to the terms of the partnership, Fazsol will develop the solar farms, while Órigo will be the bridge with the final consumers. The farms will be built in the Federal District, Minas Gerais and Ceará, and will be able to generate enough power to meet the demand of 130,000 homes for a year.
The farms are expected to start operating in November. Bruno Suzart, Shizen Energy’s manager for Brazil, said that the contract will allow Fazsol to increase fourfold the volume of power generated in the country, in addition to tripling the team. “This will help us to find new clients,” he said.
Fazsol boasts 25 renewable power projects in operation in Brazil, with 8.6 MW of capacity. The company intends to invest R$1 billion by 2024, when it expects to have 200 MW of solar plants in operation in the country.
Shizen arrived in Brazil in 2018. The company was founded in 2011 by three Japanese entrepreneurs from the renewable power industry as discussions emerged in the country with the shutdown of nuclear power plants after the Fukushima accident. The company operates in four other countries through partnerships and Fazsol was the chosen one in Brazil.
In the last few months, the company made studies about the potential of renewable power generation in Brazil at the request of the Japanese government. “We want to repeat, with Fazsol in Brazil, Shizen’s successful experience with Japanese companies in other countries. We are able to serve these companies in their own language, and negotiations can occur according to the format they are used to,” Mr. Suzart said.
The fact that Órigo is also backed by Japanese investors helped in the negotiation, Mr. Suzart said. “There is a cultural connection between the companies. Some presentations even took place in Japan,” he said.
Japanese group Mitsui & Co has a 17% stake in Órigo. The remainder is split between investment funds TPG and MOV Investments, and part is dispersed in the Brazilian stock exchange. The company operates a solar power subscription business in which customers receives credit on their electricity bill for power generated in solar power farms.
The plants built by Fazsol will serve these Órigo customers. “The agreement will enhance the company’s mission: to democratize access to clean power in Brazil,” said Rodolfo Molinari, Órigo’s chief business officer.
Based on this contract, Fazsol intends to expand and operate in other markets in which it was not yet present in Brazil. Until then, the company had focused on the development of distributed generation plants. “This is a structuring project, which allows us to look towards expansion,” said Fazsol’s director Nélio Pereira.
The company is considering tapping the free market. “We can help transform the companies that are already in the free market into self-producers; in this case, there is a complementary cost efficiency,” Mr. Pereira said.
Source: Valor International