Microsolar Farm II

A microgeneration solar farm

Investment overview

Impact category

Sustainable energy

Investment type

Loan

Yearly interest

Term

months

Risk level

B-

What will you be financing?

Recap is a renewable energy developer that provides flexible, customized, and fully financed clean energy solutions to Commercial and Industrial clients (C&I).

This is Recap's fourth Goparity campaign to finance their projects in Brazil. The promotor first raised 70.000€ in the two previous campaigns (Recap Brazil I and II) to refinance photovoltaic systems in a shopping mall. Recently Recap launched Microsolar Farm I and raise an additional 72.000€ for their first microgeneration solar plant. Besides the Brazilian campaigns, Recap has promoted several successful campaigns for their projects in Colombia.

The goal of this campaign is to refinance two microgeneration solar plants, to be installed in small properties in the Municipality of Mato Verde, state of Minas Gerais, Brazil.

These are 75 kW plants. The region has one of the best solar irradiation levels in the country and offers tax benefits for distributed energy. Besides the favourable irradiation and fiscal conditions, there are no considerable deforestation or arable land impacts, as the region is dry, devoid of vegetation, and not explored for agriculture.

Recap expects to develop several microgeneration solar 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 kW 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.

What is the impact?

Direct impact:

Contribution to the decarbonization in Brazil by avoiding CO2 emissions: The whole operation is estimated to produce 163 MWh of clean and renewable energy per year, avoiding the emission of almost 65.2 tonnes of CO2 equivalent annually, equivalent to planting around 2964 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
‍

65200

CO2 avoided per year

163000

clean energy

created by our projects

of sustainable

impacted

Contribution to the Sustainable Development Goals
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About the Promoter

About

Recap Solar Fund III AB

Direct impact:

Contribution to the decarbonization in Brazil by avoiding CO2 emissions: The whole operation is estimated to produce 163 MWh of clean and renewable energy per year, avoiding the emission of almost 65.2 tonnes of CO2 equivalent annually, equivalent to planting around 2964 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.

Promoter website

https://www.recapenergy.com/

Team
‍

[{"id":38,"promoter_id":174,"name":"Felipe Borschiver","description":"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.\r\n\r\nBefore 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).","link":"https://www.linkedin.com/in/felipe-borschiver-9664b97/","role":"Country Manager Brazil","member_photo":"https://991934249232-prod-octobercms-public-storage.s3.eu-west-1.amazonaws.com/public/636/3be/2d8/6363be2d81343123215625.jpg","avatar_id":69549},{"id":39,"promoter_id":174,"name":"Marco Berggren","description":"More than 17 years of experience implementing and financing clean energy projects globally. Responsible for market strategy execution, partnerships and product development.","link":"https://www.linkedin.com/in/marco-berggren-1797784/","role":"Founder & CEO","member_photo":"https://991934249232-prod-octobercms-public-storage.s3.eu-west-1.amazonaws.com/public/636/3be/f6f/6363bef6f2d34142539431.jpg","avatar_id":69551},{"id":40,"promoter_id":174,"name":"Eduardo Rechden","description":"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.","link":"https://www.linkedin.com/in/eduardo-rechden/","role":"COO","member_photo":"https://991934249232-prod-octobercms-public-storage.s3.eu-west-1.amazonaws.com/public/636/3c0/8ae/6363c08ae7cd9388721147.jpg","avatar_id":69552}]

Business Model
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