Victory Hill Capital Partners LLP

Brazilian solar PV assets

16 distributed generation solar plants offering clean and affordable electricity

At Victory Hill, we recognise the value of the continued expansion of the grid system, allowing for more remote locations and consumers to have access to clean sources of energy. In May 2021, we committed $63m to fund the construction of remote distributed solar generation projects across ten Brazilian states.

Brazil is one of the world’s fastest growing energy markets since the market’s liberalisation in 1998, and offers great potential for solar PV developments, given the role that renewable energy can play in the energy mix. The programme of remote distributed power generation projects (“Geracao Distribuida”) is one of the fastest growing segments of the Brazilian power market. This framework allows multinational companies to “sponsor” a remote site on the network and receive a proportional discount to their energy bills.

The impact of this asset is material from both a sustainability and financial perspective. The aim of this investment is to support and accelerate 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. These investments stem from long-term PPAs with investment grade corporates such as a large multinational telecommunication company.

On average, these contracts have a maturity over 20 years, are inflation-linked, and are not dependent on any government subsidies.

The operating partner is Energea, an experienced distributed energy developer with a strong track record in the United States and an established presence in Brazilian "Geracao Distribuida" over the last 6 years.

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Asset Overview

Asset description
Country: Brazil
Technology: Solar PV
Capacity: 50 Megawatts (MW)
Revenue type(s): Fixed Price Corporate PPA
Revenue currency: BRL
Investment summary
Committed capital: USD 63mn / GBP 50mn
Invested amount to date: GBP 38mn
Leverage (D/EV): 0%
Renewable energy generated: 18,023 MWh in H1 2023 (operational sites)
Avoided emissions: 1,683 t CO2 in H1 2023 (operational sites)
Pay back: 16 years on embodied emissions (LCA)

This investment is part of the GSEO strategy – click here to learn more about GSEO