Modern Energy and Faro Energy Raise $60 Million to Invest in Solar Energy in Brazil
Capital supports Faro Energy’s development of 150 MW of distributed solar projects
Durham, N.C. and São Paulo, Brazil – January 15, 2021 – Modern Energy and subsidiary Faro Energy have raised USD $30 million in additional equity capital to support the continued rapid growth of its distributed solar project portfolio in Brazil. Capital commitments came from a diverse group of U.S. institutional investors, including non-profits and pension funds. Coupled with Modern Energy’s prior project equity investments, the total amount of capital committed is USD $60 million. Faro plans to use the proceeds to develop, build, and operate 150 MW of new Brazilian distributed solar projects.
Over the past 18 months, Faro brought over 30 MWs online, issued Brazil’s first sustainable bond with several local investors, and launched best-in-class asset management software to report and audit clean energy consumption with the highest integrity, among other milestones. Faro has been in operation in Brazil since 2016, and it was acquired by Modern Energy one year ago.
“Despite the economic downturn, there is ongoing demand from customers and investors alike for clean energy projects, especially in Brazil,” said Mark Laabs, CEO of Modern Energy and co-founder of Faro Energy. “Faro has the right combination of deep local expertise and access to international capital markets required to be effective.”
“This latest capital raise is the capstone to a successful year, showing that international investors believe in Brazil renewable energy potential,” said Pedro Mateus, CEO of Faro Energy. “With Modern Energy’s partnership, we will continue to serve our customers with turnkey and cost-effective clean energy solutions.”
Brazil’s distributed energy industry is becoming one of the largest in the world due to its industry-leading virtual net metering (VNM) rules that have enabled the development of 3.6 gigawatts of installed distributed solar in the last three years, representing more than 18.2 billion reais (USD $3.4 billion) and more than 108,000 local jobs created.
About Modern Energy
Modern Energy is a diversified clean energy company leading the transition to a net-zero carbon economy. Modern Energy partners with clean energy business leaders to scale innovations in energy efficiency, distributed generation, and storage. The firm has offices in Durham, N.C. and Sao Paulo, Brazil, and operations spanning three continents. Modern Energy is a certified B-Corp with a mission to assure sustainable, reliable, affordable energy for all. For more information, visit www.modern.energy.
About Faro Energy
Faro Energy identifies, develops, and finances distributed solar energy projects in Brazil. With projects in operation and under construction in various Brazilian states, Faro helps accelerate Brazil’s transition to a carbon-free economy. Faro is a Modern Energy company and a proud Certified B Corporation. For more information, visit www.faroenergy.com.