Solar farm in Brazil. Author: Otávio Nogueira. License: Creative Commons, Attribution 2.0 Generic.
Renewables investor Cubico Sustainable Investments announced on Tuesday it has signed an agreement to purchase a 1-GW solar project in Brazil's northeast which is currently under development.
The deal was inked with local energy company ZEG Energias Renovaveis. Both parties will co-develop the Sobral photovoltaic (PV) project and will negotiate with third parties supply contracts and offtake agreements.
Sobral will be located in the municipalities of Sobral and Santana do Acarau, Ceara state. Once up and running, the asset should be capable of generating more than 2,000 GWh per year, equivalent to the power consumption of around one million Brazilian homes.
The transaction is subject to the approval of Brazilian antitrust regulator CADE. The financial terms were not disclosed.
“This important acquisition consolidates our presence in Latin America and marks the start of our new renewables platform in Brazil after recent strategic divestments in the country," said Francisco Moya, Country Head of Brazil and Rest of Latam at Cubico.
"It’s also our first investment in solar assets in Brazil and we will be actively looking to grow the portfolio through the acquisition and development of other PV and onshore wind projects," Moya added.