Atlas Renovable Energy Plans To Acquire Solar Plants From Soltec In Minas Gerais

Atlas Plans to Invest in the Expansion of the Solar Generation Market and Targets Soltec Solar Plants in Minas Gerais

Atlas Renewable Energy wants to invest in the solar generation market in Brazil and is negotiating the purchase of solar plants located in Minas Gerais. The seller is Powertis, a Spanish company controlled by Soltec Power Holdings, specialized in the manufacture and execution of solar projects.

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According to the Official Gazette of the Union last Friday, September 25, the Council for Economic Defense (CADE) approved the operation without any restrictions. The transaction provides for Atlas to acquire all the companies of Powertis/Soltec in Minas Gerais. The two photovoltaic plants are expected to begin operations in February 2022 and January 2023.

“The applicants informed that the SPEs subject to this operation are not yet in operation and, therefore, do not have exact data on what the potential energy destined for the commercialization of electricity would be. According to them, even considering all their energy potential as possibly commercializable in the future, this value would not be significant,” says the CADE document.

“According to the applicants, if the total currently marketed energy (18,391 average MW in the free contracting environment – ACL, according to the most recent data from CCEE from June 2020) is compared with the total estimated potential of the SPEs in the future (85 average MW), the potential of the SPEs would represent only 0.46% of the current total potential. The applicants also stated that this is an underestimated figure and does not consider new companies that may also start their activities in the future, which would only increase the total marketed, further diminishing the representativeness of the SPEs in the total marketed,” emphasizes the document presented by the Council.

According to public information from Aneel’s website, Powertis controls 21 Special Purpose Companies (SPEs), five of which are in São Paulo (Pedronópolis 1, 2, 3, and Solatio Várzea 1 and 2), the Graviola Complex in Piauí (4 plants), and the Lar do Sol Complex in Minas Gerais (composed of 10 plants). Still in the state of Minas Gerais, the company is developing the Araxá 1 and 2 projects.

The CADE document states that “According to the applicants, as justification for the operation, Atlas Energy believes that the solar energy generation market is expanding in Brazil, so the acquisition of the target companies represents a good investment opportunity. For Powertis, the operation represents an opportunity to raise funds for new businesses.”