The outcome of the Brazilian presidential election is unlikely to put a stop to the rapid growth of Brazil’s renewables market, Victory Hill has told Environmental Finance.
Anthony Catachanas, CEO of Victory Hill Capital Advisors said that neither presidential candidate “seems particularly contentious when it comes to the economy”.
With no candidate winning a majority in the first round of the presidential election yesterday (2 October), incumbent Jair Bolsonaro and Luiz Inacio Lula da Silva will face another round of voting at the end of the month.
Catachanas however praised Brazil’s path to energy sustainability, particularly as a growing renewable energy market.
Victory Hill has invested in more than a dozen solar generation projects across Brazil, including via its London-listed Global Sustainable Energy Opportunities (GSEO) closed-ended investment company, which has an approximate assets under management of £460 million.
“This country has a lot of aspirations to expand renewable power generation,” he said, adding it has put in “accommodative regulation to facilitate greater penetration of solar and wind power generation”.
While he said this is still a small amount of the total energy mix, which is dominated by hydro power, “this is growing extremely fast and has huge scale potential,” he said.
Opening-up energy access to cater for increasing demand and population growth