Brazil's Raizen to form JV for DG renewables

Brazil's Ministry of Defence pilot solar rooftop system

October 8 (Renewables Now) - Brazilian sugar and ethanol producer Raizen SA (BVMF:RAIZ4) and its subsidiary Raizen Energia SA will establish a joint venture (JV) with local energy company Grupo Gera to develop and operate distributed generation (DG) power plants, including based on renewables.

As part of the JV deal, Raizen will invest BRL 212 million (USD 38.6m/EUR 33.5m) to acquire a stake in Grupo Gera companies and also contribute BRL 106 million in capital for new business development.

According to the announcement, the agreement covers 15 plants in four states -- Sao Paulo, Rio de Janeiro, Paraiba and Pernambuco -- with an installed capacity of 23 MW. These assets use solar, hydro and biogas as fuel sources.

The deal also concerns the development of DG projects based on renewables as well as "solutions of technology related to the trade, management and consumption of electricity, and efficiency-focused development and innovation for consumers."

Raizen will assume control over the DG and development segments, while Gera will maintain the control of Solutions, the statement says.

(BRL 1.0 = USD 0.182/EUR 0.158)

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Lucas is based in Brazil. He joined Renewables Now to expand coverage of the Ibero-American market, a highly attractive destination for green energy investment.

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