Atlas plans to invest in the expansion of the solar generation market and targets Soltec's solar plants in Minas Gerais

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

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

“The applicants informed that the SPEs object of the present operation are not yet in operation and, therefore, do not have exact data on what would be the energy potential destined for the commercialization of electric energy. According to them, even if one considers all its energy potential as likely to be commercialized in the future, this value would not be relevant”, says the CADE document.

"According to the applicants, if the total current energy traded is compared (18.391 average MW in the free contracting environment - ACL, according to the most updated data from the CCEE of June/2020) 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 that it does not consider new companies that may also start their activities in the future, which would only increase the total sold, further reducing the representativeness of the SPEs in the total sold", emphasizes the document presented by the Advice.

According to public information on the Aneel website, Powertis controls 21 Special Purpose Entities (SPE), five of them in São Paulo (Pedronópolis 1, 2, 3 and Solatio Várzea 1 and 2), Graviola Complex in Piauí (4 plants ) and Complexo do Lar do Sol in Minas Gerais (composed of 10 plants). Still in the state of Minas Gerais, the company develops the Araxá 1 and 2 projects.

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