Description

This is the first microgeneration developed by Recap but the expectation is to develop several of these projects in the upcoming months.

The plants will be built on small properties - farms - whose owners will benefit from leasing the land and from receiving a service fee for cleaning and surveilling the plant. The energy will be directed to an energy trader whose end clients are small businesses.

About microgeneration:

• Solar PV plants with a capacity of <75 kWn are classified as microgeneration according to Brazilian regulations for distributed generation. 
• Due to their size, microgeneration plants require simple permitting procedures, don't impact the grid and are easy to connect, are modular, and are easily scalable.

Such projects are granted with benefits when opposed to larger projects:

• Easy grid access and connection. The grid operator has obligation to grant access to the grid within 30 days.
• No power capacity charges.
• No requirements for an environmental license.
• Fast deployment. A unit can be built in only 30 days.
• Technical simplicity. No substation required
• Flexibility to build up plants in small urban and rural areas as each unit requires a maximum surface area of 2000m².
• Brazilian regulation RN 482/12 for distributed energy (grid-connected, < 5MWac) allows full offsetting of energy credits from distributed renewable generation through a credit system.

It is important to note that the regulation is changing. The government published, in January 2022, Law 14.300 introducing new rules. However, projects that request grid access within 12 months of the enactment of the law will not be taxed under the new rules until 2045. This creates a window of opportunity for developing projects that will still gain full value for the credits generated. A progressive grid fee will go into effect from 2023, through the charging of T&D components. Although the profitability of distributed solar projects is expected to remain high, it will decrease in comparison to projects developed under the current regulation.

The Impact

Direct impact:

• Contribution to the decarbonization in Brazil by avoiding CO2 emissions: The whole operation is estimated to produce 146.3 MWh of clean and renewable energy per year, avoiding the emission of almost 58.5 tonnes of CO2 equivalent annually, equivalent to planting around 2692 trees.
• Cost reduction for the final clients: energy production through renewable sources under the Brazilian distributed energy regulation avoids transmission and distribution costs, making this a more cost-efficient option than the regular energy market. Furthermore, with a fixed discount on the retail price, the end client will always pay less than retail prices. Recap estimates an average reduction of 15% in the cost of the kWh for the clients of these projects.

Indirect Impact

• Promotion of distributed energy in Brazil: with its Solar Funds, Recap enables smaller organizations of different sectors to benefit from renewable energy sources. With the micro-scale generation plants, the solution is easily scalable and allows end clients with no roof area to have similar benefits as they would with rooftop solar systems.
• Generation of income through micro solar plants: the solar panels are installed on leased land, which provides extra income for the small landowners (farm or fazenda owners) in Brazil’s countryside.
• Support local companies: Recap partners with Brazilian EPC companies and energy traders for the development of this project, strengthening the distributed energy sector in the country.

Impact Indicators

58,52 t

CO2 avoided per year

146,3

MWh clean energy

Contribution to the Sustainable
Development Goals

Sustainable Development Goals

Financial viability

Download Key Investment Information Sheet

The Promoter

About Recap Solar Fund III AB

The Recap Solar Fund III is part of Recap Energy AB, an organization founded in 2010 with the mission to provide flexible, customized, and fully financed clean energy solutions to C&I clients.

Since 2016, Recap has been focused on providing solar-based Energy as a Service (EaaS). The company has its headquarters in Stockholm, Sweden, and subsidiaries in Spain (which also serves the Portuguese market), Colombia, Brazil, and India.

Recap has three main business lines:

- C&I – Rooftop Solar: specialized in solar projects for self-consumption.

- Energy storage with batteries (Battery-as-a-Service): providing a series of benefits for C&I clients, such as peak-shaving, increased available capacity, resilience, and UPS and grid services.

- Development of ground-mounted solar PV installations: and providing corporate PPAs to C&I clients.

The company currently has 40 full-time employees. 

Recap has 297 MW developed or under development in rooftop and ground-mounted solar PVs and has recently signed a pioneer energy storage contract for 3,3 MW.

The team

Felipe Borschiver

Country Manager Brazil

Felipe Borschiver is Recap's Country Manager for Brazil, based in Rio de Janeiro, where he manages the development of Recap's national energy portfolio. His experience lies in structured finance, distributed energy, and land-use projects. Before joining Recap, Felipe worked for IP Capital Partners and founded/managed Archipelago Partners, both asset management companies focused on long-term equity investments in Brazil. He has extensive experience in financial analysis and assessment of governance and incentive frameworks and structuring financial products. Felipe holds an Economics degree from the University of Rio de Janeiro and a master in Sustainable Finance from the COPPEAD School of Management (UFRJ).

Marco Berggren

Founder & CEO

More than 17 years of experience implementing and financing clean energy projects globally. Responsible for market strategy execution, partnerships and product development.

Eduardo Rechden

COO

Eduardo holds a Master in Environmental Management and Policy, from Lunds Universitet and a Master in Environmental Management, from Universidad de Sevilla. He is specialized in Solar and renewable energy, CSR and Stakeholder assessments, waste management and urban environmental management.

Business Model

Updates