Investing in Brazil’s energy future

Why we’re bullish on Energy-as-a-service

The rise of as-a-service (aaS) models shows how digital transformation – largely thanks to cloud technology – is impacting all sectors of business and life. Just like software as-a-service (SaaS), other “XaaS” models are becoming more prevalent. Energy-as-a-service (EaaS) is another advancement in the XaaS space by giving commercial and industrial clients the ability to commit to an energy service agreement without purchasing an energy system. This model deviates from traditional power purchase agreements (PPAs) and guarantees clients predetermined, locked-in energy costs while removing the upfront capital needed for new equipment installation. Often including a battery storage component, EaaS improves electricity consistency and promotes better environmental health. The battery storage system captures energy from renewable sources, which it can tap into – in place of carbon-emitting diesel energy sources – when electricity demands are high.

 

With the proliferation of EaaS, Siemens Financial Services (SFS) is accompanying Siemens through the transformation of new energy resources and new business models. Recently, SFS invested in a Brazil-based start-up, Micropower-Comerc (MPC), to deliver solar and battery storage to commercial and industrial clients (C&I). Leveraging SFS’s investment expertise and capital resources, Siemens – with MPC – will help shape Brazil’s energy transition to a more decentralized energy network. This also is a major positive for the environment as batteries will replace diesel generators for backup energy.

We have high expectations for transforming the distributed energy resources sector in Brazil along with Micropower-Comerc. The agility of the Micropower-Comerc team in the execution of the business plan, combined with the Siemens brand, software and data capabilities are a winning combination.
David Taff, Senior Investment Manager, SFS Brazil 

MPC has helped introduce Brazil to the battery-storage-as-a-service (bSaaS) model, which provides cleaner, more reliable power at a lower cost to the Brazilian C&I market. Acquiring 20% stake in MPC, this is SFS’s first bSaaS investment and positions SFS to replicate this type of investment elsewhere. 

This innovative business model combines a top-tier team at MPC with the innovative SI product & software and the financing expertise of SFS. We’re proud to provide a breakthrough value proposition for the Brazilian market. This investment shows our confidence in the future growth of both aaS business models and SI battery storage solutions, which – when in operation – will give customers a reduction in electricity bills, fewer electricity interruptions, outages, and less pollution.
Steffen Grosse, CEO, Equity Finance, SFS

Author: Laura Schneebacher