Banco Votorantim SA plans to raise 1.2 billion reais ($768 million) for three Brazilian private equity funds that will invest in renewable energy projects as the nation aims to diversify its power supply, Bloomberg reported.

The funds will invest in small hydroelectric projects, biomass plants and wind farms, the financial services unit of Votorantim Group said. Brazil is holding yearly auctions for power contracts with renewable energy developers to help diversify its grid from large hydroelectric dams and fossil fuels.

The fund is considering other technologies like photovoltaic solar energy projects and biogas plants.The funds will be managed by Votorantim Asset Management Distribuidora de Titulose e Valores Mobiliarios  Ltd, a unit of BancoVotorantim SA.Votorantim aims to raise 500 million reais for all three funds.

The offering will be coordinated by the fund-managing arm of Rio de Janiero-based Banco do Brasil SA and Banco Votorantim. It will start on Sep 1 and close on Oct 31, Votorantim said.

About 68% of Brazil’s 115 gigawatts of power capacity comes from large hydroelectric plants while 26% is generated by fossil fuel-powered thermoelectric plants, according to electricity regulator Agencia Nacional de Energia Eletrica.  

Votorantim Group is the largest conglomerates in Latin America, operating in sectors like finance, energy, sideurgy, steel, pulp and paper among others.