São Paulo – Solar power business mergers and acquisitions (M&A) rose by 92% in Brazil last year compared to 2021, from 13 to 25 transactions. So said Redirection International, a consulting firm that specializes in M&A. The survey encompasses all M&A operations involving photovoltaic energy generation and distribution.
In a statement, Redirection partner and economist Adam Patterson said the good performance results from the growth of the sector, which accounts for 11.2% of all power produced in the country and has recently become the second largest source of Brazilian energy mix, according to Brazilian Association of Photovoltaic Solar Energy (ABSOLAR).
The economist said that the sector is going through a phase of steady growth and will be marked by M&A transactions with local and foreign companies and large investment funds. Patterson pointed out that the search for clean energy is a global trend and Brazil has a large potential for this type of generation.
The factors that boosted the investment attraction to the sector in Brazil include the legal framework for distributed micro and mini generation, in force since early 2022, and tax incentives for the installment of photovoltaic systems. “The current legislation brought legal security for investors and M&A to bring large opportunities to fast-track this energy mix transition,” the executive was quoted as saying in the statement released by Redirection.
The installed capacity of photovoltaic systems increased by 84% in Brazil in the past twelve months, from 13 gigawatts (GW) in January 2022 to 23.9 GW in early 2023, ABSOLAR said. The capacity is expected to grow by 42% in 2023 in the country, to 34 GW.
Translated by Guilherme Miranda
