Boulder, Colorado [RenewableEnergyAccess.com] Econergy International PLC, a renewable Independent Power Producer (IPP), recently signed an acquisition agreement to purchase 100% of the 18 megawatt (MW) Pedra do Sal wind project, in the state of Piaui, Brazil and an agreement with Wobben Windpower to install twenty 900 kilowatt (kW) wind turbines.
The company anticipates that the project will generate approximately 61,000 MWh per year and that the capital cost will be approximately $50 million. A Power Purchase Agreement is already in place with Eletrobrás, Brazil’s government-owned electric company, for a 20-year term at a starting tariff of approximately $114 per MWh. The project is expected to enter into commercial operations by January 2009.
With the addition of Pedra do Sal, Econergy International has three projects in construction and one project in operation. Once fully operational, the total generation from these four projects will be over one million MWh. Together with projects in late stage development, the company remains on target to deliver 1.4 million gross MWh in 2009.
Tom Stoner, CEO at Econergy, said, “this acquisition marks our third renewable energy project under construction in Brazil. This is another significant milestone for Econergy International as both a wind developer in the Americas, and, more specifically, a renewable energy project developer in Brazil.”
“This project also represents the commitment that the government of Brazil has made to incentivise companies to invest in renewable energy,” added Stoner.