In the first nine months of 2025, Brazil’s solar sector demonstrated remarkable dynamism with 33 mergers and acquisitions (M&A), representing a total of 3.2 GW of capacity. This activity marks a substantial 65% increase in transacted capacity compared to the same period in 2024, according to a report from Mercom Capital Group.
Brazil Solar M&A Activity Surges
Between January and September 2025, the solar energy sector in Brazil was a hotbed of activity, witnessing 33 M&A deals that amounted to 3.2 GW of capacity. This represents a significant 65% jump in capacity from the 1.94 GW across 27 deals reported during the same nine-month period in 2024. The data, shared by US-based consulting firm Mercom Capital Group, highlights a strong trend of consolidation and strategic investment that reflects a broader surge in energy sector M&A seen since 2024.
In the third quarter alone, Brazil’s solar sector recorded 10 M&A deals, accounting for 1 GW of the total capacity. While this was a decrease in volume from the 1.75 GW across 15 transactions in Q3 2024, the strategic nature of the deals underscores continued investor confidence.
Key Players and Deals in Q3 2025: Brazil solar M&A
Several high-profile deals characterized the third quarter of 2025. Among the most significant, Brazilian renewable energy firm EDP Renovaveis (EDPR) consolidated its position by acquiring the remaining 40% stake in the 254-MW Cajuina solar complex from Canadian Solar, thereby achieving 100% ownership.
Another notable transaction involved the financial powerhouse BTG Pactual, which finalized its acquisition of a 60% stake in Lightsource BP’s 336-MW solar portfolio in Brazil. This impressive portfolio includes the 210-MW Milagres solar complex in Ceara state and the 126-MW Sebastopol solar project in Paraiba state.
In another major move, Brazilian energy company Omega Energia agreed to acquire a 50% interest in the 150-MW Boa Vista solar project from the Spanish renewables developer Fotowatio Renewable Ventures (FRV), further diversifying the ownership landscape of Brazil’s solar assets.
Expansion in Solar Capacity and Financing: Brazil solar M&A
The wave of acquisitions continued with Brazilian utility Equatorial Energia, which acquired a 100% stake in the 250-MW Carcará solar complex in Pernambuco state from the Spanish group Solatio Energia. The deal was valued at BRL 1.4 billion (approximately USD 274.9 million). These large-scale projects are crucial for the country’s energy transition, relying on a complex solar panel manufacturing process to meet demand.
On the financing front, Brazil secured USD 1.4 billion (EUR 1.3 billion) in solar project financing during the first nine months of 2025. This figure was slightly below the USD 1.5 billion raised in the same period in 2024. While a minor dip, it’s important to view this in a wider context; globally, solar funding in Q3 2025 reached an impressive $6.5 billion, indicating a healthy global appetite for solar investments that continues to benefit markets like Brazil.
Future Outlook for Brazil solar M&A
The surge in M&A activity is a clear indicator of the growing investor interest in Brazil’s renewable energy sector. This trend is set to continue as both domestic and international companies seek to expand their portfolios and capitalize on the rising demand for clean energy. The consolidation allows companies to achieve economies of scale and enhance operational efficiency.
The Brazilian solar market remains a key destination for investment, bolstered by favorable government policies and a strong national commitment to decarbonization. This M&A activity directly supports the country’s ambitious targets, including the goal to reach an impressive 40 GW solar capacity milestone by 2025. Furthermore, these developments are part of a larger success story, with renewables like Brazil’s solar and wind power achieving a record 34% share of the country’s electricity supply. For those following this dynamic market, our Brazil Solar News archives provide ongoing updates.
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