The World's #1 Renewable Energy Network for News, Information, and Companies.

Brazil’s Rio Bravo Seeks Partners to Finance Wind Power Growth

Brazil’s Rio Bravo Seeks Partners to Finance Wind Power Growth

Rio Bravo Investimentos SA, the asset manager founded by former central bank president Gustavo Franco, is looking for new financial partners to help it become one of Brazil’s biggest wind power companies.

Rio Bravo plans to bring its first 503.5 megawatts of wind energy on line by the end of this year and will at least double that by 2017, said Paulo Bilyk, its chief investment officer. The Sao Paulo-based company needs 1.5 gigawatts to 2 gigawatts as it plans to go public within five to six years, he said.

“We’d like to build one of the biggest renewable energy companies,” Bilyk said in a March 6 interview in Sao Paulo. “Brazil needs energy. Even if Brazil’s economy grows at just 1 percent to 3 percent a year for the next five or six years, we won’t have enough energy.”

Rio Bravo is competing with companies such as CPFL Energia SA’s CPFL Energias Renovaveis and Renova Energia SA, which is controlled by Light SA and Cia. Energetica de Minas Gerais. Wind poweris dominating government auctions, with projects totaling 12 gigawatts registered last week to compete in 2014’s first round of bidding, four times that of the second-largest source, natural gas. Rio Bravo isn’t participating in that round.

The company is in negotiations with potential financial partners for its planned expansion, said Cid Resende, Rio Bravo’s head of infrastructure investments. He declined to identify the companies Rio Bravo is talking to.

Growth Forecast

Brazil has 148 wind farms with an installed capacity of 3.6 gigawatts, according to the Brazilian wind power association, known as Abeeolica. The group forecasts that by 2017, the total will reach 8.7 gigawatts.

In two 2011 auctions, Rio Bravo won contracts for its wind farms at an average rate of 120 reais ($52) a megawatt-hour, Resende said. That compares with an average of about 135 reais a megawatt-hour for small hydropower and biomass plants in the most recent government power auction, in December, according to the energy research center, known as EPE. Wind projects in that auction averaged about 119 reais.

Rio Bravo is using turbines built by Spain’s Gamesa Corp. Tecnologica SA, the wind-power unit of Argentina’s Impsa Corp. and Jaragua do Sul, Brazil-based Weg SA, Resende said in a March 19 telephone interview.

Gamesa and Impsa are experienced manufacturers of the equipment, while Weg will be supplying its first turbines to Rio Bravo. Weg is the only Brazilian turbine maker, and foreign companies have faced challenges in getting accredited for financing from the country’s national development bank, known as BNDES.

Weg didn’t respond to an e-mail request for comment.

“Weg has no issues getting accredited for BNDES financing, it has the availability in its factory and it had the best price for us,” Resende said. “We know being first could make for some operational difficulties, but that’s the cost of learning.”

Copyright 2014 Bloomberg

Lead image: Wind turbines va Shutterstock

RELATED ARTICLES

Regional News from the July/August 2015 Digital Edition of Renewable Energy World

Renewable Energy World Editors EcoFasten Solar announced that it launched a new mounting "Rock-It System" that it would be displaying during Intersolar. Product compliance was determined through testing per UL Subject 2703, which reviews integ...

With 1.6 GW of Wind Capacity Installed in Q2, American Wind Power Continues To Ramp Up in 2015

American Wind Energy Association With 1,661 megawatts (MW) of newly installed wind turbines coming online during the second quarter of 2015 and more than 13,600 MW under construction, American wind power continues to increase its contribution to the U.S. ...

Some Hope for US Renewable Energy Tax Credits As Extension Bill Passes Committee

Vince Font In a lopsided 23-3 vote, the U.S. Senate Finance Committee voted yesterday to extend a number of renewable energy production tax credits through the end of 2016. The vote allows developers of wind, geothermal, biomass, lan...

How Solar Energy Zones and Easy Permitting Helped Create 3-cent Solar

Susan Kraemer, Correspondent Warren Buffet's utility NV Energy has signed the lowest price contract for solar ever, at just US $0.0384 for First Solar’s 100-MW Playa Solar project, beating even its own record low price of $0.046 cents for SunPower's 1...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 4
1507REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

FEATURED PARTNERS



EVENTS

Doing Business in South Africa – in partnership with GWEC, the Glob...

Wind Energy in South Africa has been expanding dramatically, growing fro...

StartUp Green

AREI, American Renewable Energy Institute, in partnership with ...

AWEA Offshore WINDPOWER 2015 Conference & Exhibition

Building Up and Trending Forward With the construction of the Block Isla...

COMPANY BLOGS

Fact Check: AWEA represents American wind power

The American Wind Energy Association (AWEA) is proud of its members for ...

Koch Professor drops his Koch title, still makes same errors plus s...

The Koch Professor’s title isn’t the only thing that’s...

SAP for Utilities Blog

The Eventful Group produces the annual SAP for Utilites Conference ...

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS