Cubico Sustainable Investments Acquires 1 GW Solar Project in Brazil

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Renewable energy company Cubico Sustainable Investments said it has acquired Project Sobral — a 1 GW solar photovoltaic (PV) project in Brazil — from ZEG Energias Renováveis (ZEG).

It is one of the largest solar development projects in the country and is expected to generate more than 2,000 GWh per year, which can power approximately a million Brazilian homes.

Daniel Rossi, CEO of ZEG, said, “Project Sobral will increase our availability of renewable energy to consumers and clients interested in decarbonizing their productive process… ZEG has the potential to strategically allocate this energy in the free market, offering good opportunities for companies committed to ESG goals.”

The transaction comprises a large solar PV complex located in the municipalities of Sobral and Santana do Acaraú in the state of Ceará.

Both parties will co-develop the project, including the negotiation of supply contracts and offtake agreements with third parties.

“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,” Francisco Moya, Country Head of Brazil and Rest of Latam at Cubico, said.

Moya added the partnership provides an opportunity to combine Cubico’s global in-house development capability, construction and operational experience, and financing with ZEG’s expertise in renewable project development and energy commercialization in the local market.

“This transaction reflects our focus on accelerated growth and greenfield development … we look forward to building our global portfolio further as we increase our commitment to driving the energy transition and bringing clean power to people and communities around the world,” Javier Areitio, Head of Origination and Development at Cubico, added.

London-headquartered Cubico’s global portfolio in 12 countries has an installed gross capacity of more than 2.7 GW, with 3.5 GW in construction and under development. The company is backed by the resources of the Ontario Teachers’ Pension Plan, and PSP Investments.

In November 2022, Ontario Teachers’ Pension Plan announced it will invest close to $805 million in a convertible equity portfolio financing with NextEra Energy Partners to help it acquire a nearly 2 GW renewable portfolio.