TotalEnergies, Casa dos Ventos Partner to Develop 12 GW Renewable Energy Portfolio

TotalEnergies entered a 34%/66% joint venture with Brazilian renewable energy developer Casa dos Ventos to develop and operate Casa dos Ventos' renewable portfolio, according to a press release on Oct. 26.

The portfolio will be comprised of 2.8 GW of onshore wind, 700 MW of onshore wind capacity in operation, 1 GW of onshore wind under construction and 1.6 GW of solar projects under development.

Additionally, the joint venture will have access to an additional portfolio of at least 6 GW of renewable power, which the partnership will be able to acquire, along with new or current projects under development by Casa dos Ventos.

"With a total of 12 GW in operation, construction and development, both wind and solar, this transaction is an additional step in TotalEnergies ambition to reach 100 GW of renewable production by 2030 and in its transformation into a sustainable and profitable multi-energy company,” TotalEnergies chairman and CEO Patrick Pouyanné commented in the release.

TotalEnergies will complete the joint venture acquisition through a cash consideration of $559 million, plus up to $30 million in earn-out. After five years, the company will also have the option to acquire an added 15% equity share in the joint venture.

Additionally, TotalEnergies will leverage its global presence in the corporate PPA market to support the partnership through the improvement of its financing cost.

"With this transaction, TotalEnergies acquires not less than a leading position in the Brazilian renewable energy market, one of the most dynamic merchant markets in the world," Pouyanné added. "This market fits our strategy of taking advantage of the growth of the deregulated power markets, which is crucial to the energy transition."

Casa dos Ventos has developed 25% of Brazil's onshore wind assets, bringing its extensive knowledge of the Brazilian markets and its quality renewable portfolio to the joint venture. Through the partnership, the company will be transitioning from a developer business model to that of a producer.

“The partnership between Casa dos Ventos and TotalEnergies was structured to maximize the complementarities and synergies between the companies," Casa dos Ventos president and founder Mario Araripe said in the release.

"In addition to its financial strength, TotalEnergies’ global footprint will contribute to the expansion of our client portfolio and enhance our knowledge in new fields of the energy transition," he continued.