BRAZIL WANTS MORE WIND

Brazil's Goal: Getting from Wind 10% of All Its Energy in a Decade
26 February 2011 (Brazzil)

"…[N]early 70% of the energy generated in Brazil comes from large hydroelectric plants. The contribution of other sources of energy, such as wind…to the National Interconnected System (SIN…), the country's electric power production and transmission system, is still small…[but] is changing, and will change even further as a result of ongoing and future investment…

"Presently, Brazil has an installed capacity for wind energy of 927 megawatts (MW), equivalent to 0.6% of the country's entire electricity output. By 2013, the rate should be five times as high, at 3.5%, and should grow much more…[by] 2022, it should account for 20%…The rise of wind energy started with the establishment of the Incentive Program for Alternative Sources of Electric Energy (Proinfa) by the federal government, in 2004 [which set a tariff and a 20-year contract]…"

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"It was only in 2009 that the country had its first wind energy auction, which regulated the price of the megawatt sold. There have been three major auctions thus far, two [in 2009 and 2010] for the purchase of backup energy…and one for alternative energy sources, in 2010. In the three auctions combined, 5,250 MW of wind energy were commissioned to be installed by 2013. The average price paid by the government to wind power generating companies at the auctions was 141 Brazilian real (US$ 84) per MW/hour…

"Currently, Brazil has 50 wind farms built…19 planned [and 35 meet the bank's financing requirements, but are still pending analysis]. The bulk of financing comes from the Brazilian Development Bank (BNDES). From 2003 until 2010, out of 4.3 billion reais (US$ 2.5 billion) invested in the industry, [70%, or] 2.7 billion reais (US$ 1.6 billion) were financed by the bank…Lines of financing to the industry last up to 18 years, but the companies only start paying once the plants start operating. Payment usually begins six months after the wind farms enter into operation…"

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"With a potential for installing up to 300,000 MW, Brazil still has a long way ahead before it uses all of the power that its winds can provide. Most of the wind farms in Brazil are in the Northeast and South regions…There is a chance, however, that new areas [not identified by the decade old Brazil wind map] will start being used for wind power generation…

"…[W]ind energy supply works in tandem with hydroelectric plant generation…[and the] growth of the sector is also creating jobs…[and] development of all companies involved in the production chain…[T]he National Electric Energy Agency (Aneel) has authorized the implementation of another 2,700 MW, which now are only pending environmental licensing…"