Looking for Investor in a Solar Energy Project Start-Up in Brazil

We are presenting start-up project aiming the production of 200Mw panels’ capacity in the market per year. The facility will operate as a platform for Latin America.

The project implementation will occur within 18 months schedule and it’ll be located in Brazil. Also we will build a 100w solar farm.The project concept is to replicate a business model used by our technology provider with other plants implemented around the world, which aims to set up an industrial plant in the City of Natal - State of Rio Grande do Norte– Brazil. The plant will be able to manufacture solar panels in series, using world class technology.

With the factory implementation will be able also to attend demands of customized project to industries and householders. With the present project we will be able to compete in the area of serial equipment production, taking advantage of the current government fiscal incentives (already aligned), maximizing our operational margins in both custom and serial equipment.

Technological advances mean solar installations are now a practical and cost effective method of securing areas where mains power is either unavailable or impractical. Although solar systems are not a new innovation, the technology used to transfer this resource to an efficient and low maintenance electric fence system. Our technology is based on a Polycrystalline Solar Module

The location of the plant was defined taking into consideration the growth of the economy in the North-eastern region of Brazil, mainly in the metallurgy, mining, automobile and heavy industry sector that is expanding and will demand additional energy to sustain its growth, although, Brazil, as a continental country, represents an open market to be explored.

In the initial phase we intend to maximize the production costs and management of our products, but our plant will have a modular system that will allow diversification of the portfolio with other types of solar equipment.

- Local government supports the enterprise and has already provided fiscal incentives for 15 years;
- First production plant to manufacture solar panels in the northeastern region of Brazil;
- Implementation of a 100MW PV Power Station during the first and the second year to demonstrate that in the worst case scenario the company will be able to secure revenues selling its own energy to the grid;
- Long term PPA aligned for PV power stations to be owned by the company or to our clients;
- We already have a diversified pipeline of projects related to solar farms and street lighting, with direct energy sale to the local utilities or municipalities, representing a potential portfolio of over 1GW;
- It is a competitive product in terms of technology and pricing;
- The plant can be expanded, including portfolio diversification: custom demands and hybrid systems.

An important factor to be considered, the average insolation in the Brazilian or Latin American territory is at least 30% higher than the European in average. This means that the panels will also produce 30% more energy.

Even in Brazil or in Latin America there is not a competition level like the one in the US or in Europe, because there is no local production of any panel. What exists in Brazil is an importer of KYOCERA crystalline panels, which is sold at R$18 to R$22 /W (around US$10.58 to US$12.94/W).

As indicated, the total cost of production of the company will be close to U$1.50/W assuming the total costs of implementation (panels and other costs related to installation).

Objective 1: Pre-operational actions: develop of the procedures regarding the necessary key-points that the funder will require, such as: creating the legal documents of the company (USA and Brazil), initial working capital, securing the land, PPA, fiscal incentives, etc.

Objective 2: Lender’s Due Diligence: The lender will conduct a due diligence regarding the 80% funding;

Objective 3: Project’s implementation: with all the pre-operational aspects covered and funds disbursed, the project will be implemented according to the BP.

We are looking equity investment to start project and give 20% if shares to investor.

The IRR of the total investment amount is 18% in a conservative scenario, second year, reaching the full capacity in the 3rd year. In the worst case scenario, if the company don’t sell the panels in the domestic and/or foreign market, the company will be able to use its production to provide electricity to the grid, and only the revenue of the two solar farms attached to the factory investment (this project) is sufficient to cover all the debt service (interest and principal).

Payback period is 6 years.

Interested investors can establish contact with us on Merar.