Wind Energy – Brazil
TotalEnergies and Casa dos Ventos (CDV), Brazil’s leading renewable energy developer, announced the creation of a 34%/66% joint venture to jointly develop, build and operate the renewable portfolio of Casa Dos Ventos.
This portfolio includes 700 MW of onshore wind capacity in operation, 1 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 5 years).
Besides, the newly formed JV will have the right to acquire the current and new projects that are or will be developed by CDV as they reach 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 $550 million (R$ 2,920 million) and up to $30 million (R$ 159 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 5 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.