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

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

Additionally, the newly created jointed venture will have the right to acquire the operational and new projects that have been or will be developed by CDV when they reach completion. The JV will jointly aid in its advancement by accessing a portfolio of at least 6 GW. CDV will continue to build on this portfolio.

Under the JV, TotalEnergies will pay a cash consideration of $550 million  and up to $30 million (R$ 159 million) in earn-out for the completion of the acquisition. That apart, the French energy firm will also have the choice for the acquisition of an additional 15% equity share in the joint venture after a period of five years.

Because TotalEnergies enjoys a strong global presence in the corporate PPA market, it will be able to provide support to the JV, thereby advancing its growth. The firm has strong purchasing power because of its worldwide size, and trading expertise that is suited to the Brazilian merchant market. Besides, its strong balance sheet will let the JV to enhance its financing cost.

On the other hand, CDV, which has established 25% of the onshore wind assets currently in operation, will bring to the table its knowledge of the Brazilian market. Additionally, its impressive portfolio will facilitate the transition from a developer to a producer business model.