IFC announced today (Dec 11) its first financing commitment for a Distributed Generation (DG) project in Latin America and the Caribbean. The financing is directed to Origo Energia, a leading DG player in Brazil with nearly 450 Megawatts-peak (MWp) which serves over 130,000 clients across the country. This project aligns with the mitigation, adaptation, and resilience goals of the Paris Agreement, and will help Brazil meet its climate mitigation goals.
IFC is providing a 10-year BRL-denominated dual-tranche loan financing of approximately $40 million equivalent to a wholly owned subsidiary of Origo to support the construction of a portfolio of 22 small, ground-mounted DG projects across four states in Brazil, with an aggregate installed capacity of 90 MWp. IFC's financing will include concessional financing from the Clean Technology Fund (CTF), part of a World Bank Group´s initiative that provides large-scale new financial resources to invest in clean technology projects in developing countries. IFC's financing is structured as a green loan, given the climate-related use of proceeds to build renewable energy plants, contributing to climate mitigation.
"We are pleased to partner with Origo in this first IFC financing for a distributed generation project in Latin America. While utility scale solar photovoltaic is the primary driver of Brazil's solar growth, DG plays a key role in the country's energy transition as it provides a flexible and efficient approach to solar generation," said Manuel Reyes-Retana, IFC's Regional Director for South America. "This project aligns well with IFC's strategy in Brazil and the rest of LAC, as it contributes to increasing renewable energy generation and reducing electricity costs for households and small businesses in an innovative manner, helping Brazil achieve its ambitious climate adaptation and resilience goals," he added.
"This investment from IFC represents a significant milestone for our innovative business model, driving sustainable development in Brazil's renewable energy sector, particularly solar photovoltaics," said Surya Mendonça, CEO of Origo Energia. "IFC's support ensures that our projects meet globally recognized socio-environmental standards and contribute positively to global sustainable development goals," he added.
About Órigo Energia
Órigo Energia, a leading distributed generation company, has been a pioneer in the sector in Brazil since 2010. Origo aims to popularize and democratize renewable energy in the country, actively participating in key sector discussions and promoting measures to make renewable energy a simple and accessible alternative for all Brazilians. In 2018, Origo received international certification as a B Corporation for its commitment to social and environmental impact through its business model. In 2022, it joined the UN Global Compact, aligning its operations with the Sustainable Development Goals (SDGs). In 2023, Origo was recognized for Customer Experience, receiving the NPS Award as the highest-rated company in the distributed generation sector in Brazil, an accolade it repeated in 2024, solidifying its prominent position in the renewable energy market and its commitment to customer satisfaction. Key shareholders of Origo include I Squared Capital, Augment Infrastructure, TPG ART- Circularis Partners, BlaO - Blue like an Orange Sustainable Capital, MOV Investimentos, and Mitsui.
About IFC
IFC a member of the World Bank Group is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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