Brazil 'planning further wind farm investment'
Date added: 27th May, 2011 at 10:00
(view all articles from May, 2011)
Categories: Natural Resources
Alternative energy firms looking to carry out investment in Brazil could soon be set to benefit from the government's intentions to diversify its sources of power by investing in wind farms.
Bloomberg reports that as much as 4.1 billion reais (£1.5 billion) could be spent on contracts for such farms, which would add to the methods currently used to generate electricity in the country. Presently, around 80 per cent of power comes from hydroelectric sources.
Speaking to the news agency, Jorge Trinkenreich, director of PSR Consultiroa - a consultancy firm based in Rio de Janeiro - explained wind farms can compliment hydroelectric stations.
"The big benefit with wind is that you're producing most energy during the dry season between May and November," he remarked.
A total of three auctions have taken place in the past two years for developers looking to provide renewable energy projects in the country and Antonio Tovar, head of renewable energy at the Banco Nacional de Desenvolvimento Economico e Socia (BNDES) - Brazil's development bank - said the 4.1 billion reais that has reportedly been allocated exceeds the 3.3 billion reais that has been allocated to wind power by the financial institution since the first project got underway six years ago.
During 2010, wind energy developers wanting to invest in Brazil were awarded 69 per cent of contracts that became available in two auctions, with the popularity of the source promoting BNDES to allocate 1.2 billion reais to be spent on wind-related energy schemes.
At present, wind farms producing one gigawatt of power are in operation in the country. In the last three auctions, developers agreed contracts to sell 3.9 gigawatts - the equivalent to three per cent of Brazil's total capacity, according to data from electricity regulator Agencia Nacional de Energia Eletrica.
Further auctions are due to take place this July, however less money could be allocated to wind initiatives as natural gas-fired thermoelectric plants will also be included in the contract-awarding process.
Mr Trinkenreich explained that these sources have advantages over wind farms, with the main benefit being they "can be turned on and off" as and when they are needed.
Investment in ethanol production is also on the rise in Brazil, with sugar cane processor Da Mata SA - Acucar e Alcool recently revealing it intends to construct a second ethanol plant in the country, according to Bloomberg.
Jorge Hatem of the firm said demand for ethanol is currently exceeding supply in the country, as the need for renewable fuel climbs.
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