June 13, 2018
Total Eren – a partnership between France’s Total and Eren – has closed the acquisition of 100% of the Dracena I, Dracena II and Dracena IV photovoltaic solar plants, all operated by Cobra do Brasil and to be installed in the city of Dracena, in the interior of the state from Sao Paulo. Each plant has an installed capacity of 30 MW.
The operation already has a favorable opinion of the authorities (Cade) and the investment will made by a specific purpose company, Eren Dracena. ” The Operation represents an opportunity for Total Eren to expand its electricity generation business in the country,” says Cade’s technical opinion, which recommends approval of the deal.
Total Eren has more than 900 MW installed in wind, solar and hydroelectric power in the world. In Brazil, the company has only 40 MW in solar projects, currently under construction, against 90 MW of the plants being purchased.
Other international oil company investing in solar energy
This is not the first investment of foreign oil companies in Brazil. In October last year, Equinor (Statoil) bought 40% of Scatec Solar’s stake in the 162MW Apodi solar power plant in the municipality of Quixeré, Ceará, for US $ 25 million. The project will provide power to 160,000 homes.
The two companies also agreed on an exclusive cooperation to jointly develop future solar energy projects in Brazil. Equinor will also acquire a 50% stake in the company that will execute the project, allowing it to participate in the design and realization of new solar projects in the future.
“Brazil is and remains a strategic country for the company. We have long-term projects, lasting at least 40-50 years. Statoil’s recent transactions in Brazil corroborate its commitment to business development in a safe and sustainable way in the energy market, “says the company’s president.
And why invest in renewable?
The decision of the oil companies to go to renewable energy and become energy companies is not in vain. The World Bank, for example, has announced that it will stop funding oil and gas exploration and extraction in 2019, while increasing lending to projects that help reduce global warming.
Norway’s sovereign wealth fund may fail to invest in stocks of oil and gas companies to protect the country from price volatility. The Norwegian Finance Minister announced that the final decision will be taken in 2018.