By Brazil Stock Guide – Echoenergia, the energy-solutions arm of Equatorial Energia SA (B3: EQTL3), signed a solar self-generation agreement with Brazilian biodiesel producer Grupo Olfar as large industrial consumers seek more predictable electricity costs and lower carbon emissions.
The transaction covers three solar plants in Barreiras, in the western part of Bahia state: Sertão Solar Barreiras XV, XVIII and XIX. Together, the facilities have about 192.5 megawatts-peak of installed capacity.
Olfar acquired a 48.6% equity stake in the assets, giving the closely held company access to as much as 27 average megawatts of electricity under Brazil’s self-generation-by-equivalence model. The transaction was cleared by Brazil’s antitrust regulator, known as Cade.
The agreement allows Olfar to link part of its industrial electricity consumption directly to renewable generation. The structure is designed to reduce the company’s exposure to swings in market power prices while improving long-term visibility over operating expenses.
Brazilian industrial groups have increasingly turned to self-generation arrangements as electricity costs, supply security and decarbonization targets become more relevant to investment decisions. Under such structures, consumers invest in generation assets and use the output to supply their own operations.
“We have observed growing interest from large consumers in self-generation, especially when it is associated with renewable sources,” Echoenergia Commercial Manager André Breviglieri said. “This model allows companies to better manage costs, achieve greater energy efficiency and advance their sustainability strategies, while also driving the expansion of clean generation in the country.”
For Olfar, the transaction will support energy-intensive operations across its biodiesel, soybean-processing and vegetable-oil businesses. The company said the arrangement will strengthen its competitiveness by combining renewable supply with lower exposure to electricity-market volatility.
“This partnership provides greater cost predictability, energy efficiency and security for our operations, in addition to expanding the use of renewable sources in our energy mix,” Olfar Industrial Director Mateus Andrich said. “It is a move that strengthens the group’s competitiveness and contributes to the advancement of our decarbonization strategy.”
Regulatory changes reshape self-generation market
Brazil’s self-generation market currently operates mainly through two structures: self-generation by equivalence, used in the Echoenergia-Olfar transaction, and consortium arrangements based on asset leasing.
Under the equivalence model, a large consumer becomes a shareholder in a power-generation project and receives electricity in proportion to its participation. The structure is generally used by companies with significant and stable demand that can commit to long-term supply arrangements.
Law 15,269/2025 changed the eligibility requirements for new equivalence-based projects. Consumers must now have individual units with at least 3 megawatts of contracted demand, while the eligible units must jointly reach a minimum of 30 megawatts.
The tighter thresholds have narrowed the pool of potential participants and increased the importance of legal, regulatory and financial structuring. Echoenergia is positioning the model as an option for large consumers seeking supply security, lower emissions and greater control over energy costs.
The Olfar transaction follows a similar agreement involving Paraibuna Embalagens. The packaging producer became a shareholder in Sertão Solar Barreiras XXI, another plant in the same Bahia municipality, through a structure designed to cover all of its electricity consumption.
Echoenergia expands renewable portfolio
Echoenergia has operated in Brazil’s renewable-energy market for nine years, developing, implementing and managing wind and solar projects. Its portfolio includes 74 generation assets, comprising 42 wind farms and 32 solar facilities.
The company has about 2 gigawatts of operating capacity, supported by 484 wind turbines and approximately 1.2 million photovoltaic panels. The combined output of its wind and solar portfolio is equivalent to the electricity consumption of more than 3.3 million homes.
Equatorial Energia acquired Echoenergia as part of its expansion beyond regulated power distribution and into renewable generation and energy services.
Founded in 1988, Olfar is one of Brazil’s largest biodiesel producers. Its businesses also include soybean processing, vegetable-oil extraction, glycerin refining and the trading of grains and agricultural inputs.
The group operates three biodiesel plants in Rio Grande do Sul, Rio de Janeiro and Goiás states, as well as two soybean-crushing facilities in Rio Grande do Sul and Goiás. It also has more than 60 grain-receiving units and a railway-linked logistics network serving domestic and export markets.
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