BlackRock’s Climate Finance Partnership (CFP) has made its first investment in Latin America, acquiring a minority stake in Brasol, a Brazilian renewable energy firm.

“We’re really excited to get a little bit of a beachhead in Latin America and hoping that we’ll find many more great investments,” said Anmay Dittman, portfolio manager at CFP.

The stake, though less than 50%, represents a significant entry into the region, with CFP viewing this investment as a “test case” for potential future transactions, as CFP looks to capitalize on the growing demand for clean energy in emerging markets.

CFP is a public-private fund that targets climate infrastructure in emerging markets. The fund’s investment in Brasol will help the firm to expand its energy generation capacity and support the transition to a low-carbon economy in Brazil.

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“The cash injection from CFP will play a pivotal role in our ambitious one-billion-real ($200.38 million) strategy to expand energy generation capacity,” said Brasol CEO Ty Eldridge.

Brasol operates renewable energy assets, such as solar and wind farms, and leases them to commercial and industrial clients. The firm plans to boost its generation capacity by 200 megawatts in the next 18 months, with a focus on solar and other energy transition technologies, such as electric vehicle charging.

“I can’t tell you where every dollar is going to go,” said Eldridge. “But certainly it’ll go into this broad portfolio of energy transition assets, and it’ll be certainly more than just solar power.”

The investment by CFP in the renewable energy firm is a positive development for the renewable energy sector in Latin America. It demonstrates the growing interest from global investors in clean energy projects in the region. The investment is also expected to create jobs and boost economic growth in Brazil.