Atlas shows the path to how treasury can empower solar ambitions
Published: Sep 2024
Best in Class Treasury Solution in Latin America
Highly Commended Winner
Atlas Renewable Energy
Photo of Ruya Niazi, J.P. Morgan.
Mariana Moraes
Structured Finance Director
Atlas Renewable Energy, founded in 2017, was established by a team of executives with a strong history of leading numerous renewable energy projects across Latin America and Europe, as well as driving industry trends. The company has over 6 GW of contracted projects and specialises in developing, constructing and operating large-scale renewable energy projects, including solar, wind and battery energy storage systems (BESS).
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The challenge
The Vista Alegre Solar Complex in Minas Gerais in south-eastern Brazil comprises 18 giant PV parks. In a flagship green energy development, Atlas Renewable Energy’s latest solar development aims to produce about 2,000 GWh yearly, which is equivalent to supplying more than a million Brazilian homes with clean, renewable energy and preventing about 154,000 tons of CO2 from being released to the atmosphere. Vista Alegre, which has an installed capacity of 902MWp, is considered one of the largest solar plants to be built in Latin America and will supply power to Albras, Brazil’s largest aluminium producer under a 21-year Power Purchase Agreement (PPA), a unique dollar contract. However, the rollout of the ambitious and challenging build was only possible through an energy-saving and robust treasury strategy.
Atlas secured a US$447.8m loan from Brazil’s National Bank for Economic and Social Development (BNDES). However, balancing onshore Brazilian Reais and offshore US dollar flows across 66 escrow and demand deposit accounts (DDAs) behind the facility was a significant project challenge.
Another challenge was managing FX risk and minimising exposure during construction while moving funds across borders, all the while facilitating imports, and the service payments required for project execution.
The solution
Atlas worked with J.P. Morgan and the bank’s ACCESS platform to secure visibility and control over the escrow and DDA accounts network. Treasury was able to access automated reporting, entitlement security and direct disbursement control in USD and BRL currencies.
Moreover, the platform allowed Atlas to navigate currency fluctuations effectively. Strategic trades facilitated the movement of funds across borders, minimising FX risk exposure while facilitating the construction. The platform also allowed the company to integrate escrow and DDA accounts on a single platform, streamlining Atlas’ treasury operations and enhancing overall efficiency. Integrating these pioneering digital treasury tools reinforces Atlas’s position as a leader in the field and sets an example for organisations worldwide.
Best practice and innovation
Atlas has successfully navigated currency fluctuations during the project’s construction, safeguarding its financial integrity while facilitating essential imports and service payments. These efforts, backed by metrics including operational efficiency, transparency and sustainable impact, underscore Atlas’ leadership and innovation in the renewable energy landscape.
Key benefits
Process efficiencies.
Increased automation.
Improved visibility.
Number of banking partners/bank accounts reduced.
Manual intervention reduced.
Increased system connectivity.
Improved key performance indicator (KPI) metrics.
Vitor Rangel
Executive Director, J.P. Morgan Payments
Atlas Renewable developed Project Vista Alegre, a 902MWp solar farm, their largest project yet. It has a USD Power Purchase Agreement (PPA) with Albras; Latin America’s largest PPA Solar company, aiding Albras in meeting sustainability goals. J.P. Morgan supported the project by providing FX, connectivity, cash accounts and escrow solutions in Brazil and the USA, enhancing Atlas’s financial and operational efficiency. J.P. Morgan congratulates Atlas on this significant achievement and is honoured to have collaborated with Atlas on this important transaction.
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