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The wind power is the second most desired form of electricity generation in  Finland – Baltic Wind

Enel Green Power, the renewable energy arm of Italy’s Enel, has started to build a 348-megawatt wind farm in Bahia as part of its investment plan in clean power. The plan is to install a solar farm and a battery system in the future so that the venture becomes hybrid. Located in the municipalities of Umburanas, Morro do Chapéu and Ourolândia, the wind farm will have investments of R$2.5 billion and will consist of 81 wind turbines, all already contracted with Nordex Acciona.

Power generation will be intended for the free market. Becoming hybrid, however, still depends on the definition of technical regulations — rules for hybrid farms were approved last year — but Enel is already ready for this step, said Roberta Bonomi, head of Enel Green Power in Brazil. The company is also ready to expand if demand for power in the free market remains high, she told Valor.

Ms. Bonomi pointed out that not only Aroeira, but all the company’s plants are being considered for hybrid operation, with solar plants or storage systems. At the first moment, clean and cheap energy development was the focus in the country, and now, with the possibility of working with hybrid power plants, the company seeks a solution for the intermittency of wind and solar.

“Considering that the country has a large hydroelectric capacity, which is the natural batteries of the electrical system, [systems of] batteries would be the perfect way to achieve stability,” she said. She points out that wind and solar complement each other at the peak of operation — wind generates more electricity at night — and batteries, today more competitive, will add stability. “This will allow us to take even more advantage of the Northeast region’s resources and increase the system’s capacity,” Ms. Bonomi said.

In the free market, it is possible to choose the power supplier, and decarbonization, as a rule, has led many companies to seek renewable generation as a way to meet the goals of reducing greenhouse gas emissions. Even with the effects of war and a more adverse economic scenario, Enel Green Power’s plans for Brazil are maintained. “The energy transition is a movement that cannot stop,” the executive said.

She commented that energy transition, and an eventual acceleration in this process, places more responsibility on the companies in the industry and forces them to have a broader look at issues related to sustainability, especially because they are increasingly seen as driving a less carbonized energy.

Bahia, she exemplifies, is a state where the company has been active since 2011 and is considered key for the company since 40% of Enel Green Power’s total 4.7 GW of installed capacity is in the state. For the implementation of the new farm, the company is negotiating with the authorities so that local professionals keep 50% of the 1,200 direct jobs to be generated. In the world, the company has accelerated the goal of zero carbon, which has to be reached in 2040, 10 years before the initial target, and wants to leave the coal-fired generation business by 2026.

As for offshore wind power, an offshore installation technology that is at the center of debates in the power industry, Ms. Bonomi says that the company is not yet considering entering this segment because it is still more expensive than onshore plants.

She pointed out that wind farms are close to the coast in Brazil, which means a very high cost for the benefits that would be obtained by the source. Another reason is that the country still has large tracts of land and potential for onshore plants, which is not the case in other countries.

For her, the source can make sense in the future, but the ideal would be to let other countries advance in the development of offshore generation, even as a way to reduce implementation costs. “At this moment, it doesn’t make sense to invest in Brazil in a technology that is more expensive. Our main goal is to reduce the bill for the final consumer.”

Source: Valor International

https://valorinternational.globo.com

Enel Green Power | Climate Bonds Initiative

Enel Green Power, the renewable power arm of Italy’s Enel in Brazil, has started commercial operations of the Fontes dos Ventos II wind farm, in Pernambuco. The R$430-million project has an installed capacity of 99 megawatts, with 18 wind turbines.

The power will be sold in the free market, in which large consumers can choose their own suppliers, through the trading company Enel Trading. One client is retailer Lojas Renner.

Fontes dos Ventos II will supply the demand of 170 stores and a distribution center of Renner for 15 years, in a contract with an expected total maximum volume of 11.3 average megawatts. According to Enel Green Power, the contract will allow Renner to reduce the final cost of power by 40% and avoid around 6,200 tonnes of carbon per year in emissions.

Fontes dos Ventos II is installed in the same region where Enel has been operating since 2015 the country’s first hybrid solar and wind farm, which combines the Fontes dos Ventos I wind farm and the Fontes Solar project, with a total installed capacity of 89.9 MW.

“We are expanding our wind installed capacity in a region where we have had a presence for years. Long before the recent resolution of the regulatory agency for the development of hybrid plants in the country, we installed in that region of Pernambuco a pioneering project, with a wind and a solar farm built side by side. It was a project that generated important lessons learned for the company and for other agents in the sector,” said Roberta Bonomi, head of Enel Green Power in Brazil.

Today, in Brazil, Enel Green Power has a total installed renewable capacity of more than 4.7 gigawatts, of which more than 2.1 GW are from wind power, 1.2 GW from solar sources and 1.3 GW from hydroelectric plants.

Source: Valor International

https://valorinternational.globo.com

Renova Energia, the embattled power generation company under protection from creditors, is trying to get back on its feet with Alto Sertão III, a wind farm about to go online. The 432-megawatt complex, with a capacity to supply 1 million homes, is expected to start commercial operation in the coming days and generate an EBTIDA of R$250 million per year with electricity sales, allowing the company to honor its debts.

Marcello Milliet, from the financial restructuring consultancy Integra Associados, took over as CEO of the company in 2019 with the mission of putting the house in order. With the company virtually broke and a debt pile of R$3 billion, the executive needed to raise R$360 million to resume construction works halted almost five years before.

To get Renova out of the hole, Mr. Milliet had to follow a strict schedule of recovery that included the sale of a stake in Brasil PCH and the Serra da Prata hydroelectric complex, which generated R$1.36 billion, to reduce the company’s indebtedness and pay off the loan for the works in the wind farm.

In the meantime, the generation company also resumed investments, ended the arbitration dispute with GE over the supply of wind turbines and signed a partnership with Vestas for the operation and maintenance of Alto Sertão III. “We took over the company with R$3 billion in debt and took more R$360 million. We ended the year with about R$2 billion of debt,” he said.

Since two thirds of the original debt still remain, the executive considers that Alto Sertão III is the hope to settle the rest of the debt in the market, since before Renova could only count on limited funds from dividends from Brasil PCH and with financial support from Cemig, a former partner that injected money in the judicial reorganization.

“With the sale of the assets, the resumption of work on Alto Sertão III and compliance with the execution schedule, the company will be generating resources again by the end of this year, and when the farm is ready, at the end of the first half of 2022, it will generate about R$250 million per year, which is enough for us to meet our commitments,” he said.

In January, 38 wind turbines will start operating, which will inject 113.1 MW into the National Interconnected System (SIN). And by the end of the first half of the year, 155 will be operating with energy directed to the regulated market and to the free market. Part of the Alto Sertão III funds will be used to pay off the company’s debt, and another part will be used for operations.

The company plans to pay the debt with creditors within ten years but expects to shorten this period thanks to 12 preliminary permits from state environmental agencies to build new wind farms in Bahia, Paraíba, Pernambuco and Piauí, totaling 3.62 GW.

“We will sell some of these projects because we don’t have the financial capacity to build all of them. We intend to dispose of about 2 GW,” he said. “Part of the funds will be set aside for debt amortization and part will be injected into the company.”

In November, Angra Partners bought Cemig Geração e Transmissão’s stake in Renova and now holds 30.3% of the company’s voting capital and is part of the control block with the other shareholders. With the entry of the new partner, Mr. Milliet believes that Renova will have more financial capacity to invest in new projects since the fund is specialized in raising resources.

“Angra Partners brings not the expectation of profitability, but also of resuming the capacity to tap the financial market,” the executive said.

Source: Valor international

https://valorinternational.globo.com/