Omnigen Energy is a clean energy partnership with Detronic to develop a portfolio of easy-to-build, low-risk solar projects
Appian has formed a partnership with Detronic Energia for the development of a portfolio of 20 small-scale solar power plants with a total capacity of 62.4MWp located in Minas Gerais. Detronic has an established track record of developing microgeneration solar projects on time and on budget, having 34 solar farms (40MWp) already connected to the grid and a further 47 under construction.
Developing a solar energy asset base will support Appian’s clean energy and carbon aims on a portfolio level whilst delivering attractive risk-adjusted returns to investors. Additional inside-the-fence solar projects at Appian’s operations will also lead to cost savings. Appian’s goal is to further develop a clean energy supply with Detronic and reach a net zero portfolio to:
- Lower CO2 towards net zero emissions over the portfolio
- Supply clean energy across Brazilian portfolio through a strategic partnership
- Energy price hedge to Appian’s Brazilian portfolio of equity investments
- Improve social status and enhance trust with stakeholders
- Increase country’s clean energy capacity
The partnership has strong fundamentals, including:
- All 20 projects are in the north of the state of Minas Gerais that boasts some of the highest solar irradiation intensities and has attractive fiscal benefits
- Minas Gerais is the largest distributed generation market with 1.5GW of potential customers
- Regulated market with stable prices, expected to increase in real terms (and have done historically) in line with the investment needed to grow and maintain the grid
- Detronic has secured government incentives that provide 1 to 1 tax rebate for each MW sold
- Low risk profile for both the development and operation of the solar plants through repeatable project design, engineering, construction, maintenance, and a degree of certainty around development and operational costs per project
More information on Omnigen Energy can be found on their website.