Oct 4, 2011

The Brazilian Development Bank's Board of Directors have approved R$ 297.4 million in financing to implement five wind farms in Bahia. The units are part of the complex of 14 wind farms, which won the 2nd Reserve Energy Bid in 2009, controlled by Renova Energia S/A. Nine of them obtained BNDES' financing in 2010.

The new plants, installed in the municipalities of Igaporã and Guanambi, will have a total capacity of 98.8MW. The BNDES' will finance 70% of the total value of the project, which is R$ 423.3 million, and will contribute to creating 1,468 jobs, direct and indirect, during the construction and operation of the undertaking.

Investments in wind power have increased in recent years. Including the five new parks in Bahia, the BNDES has already approved projects for 70 wind farms, totaling R $ 4.5 billion and an installed capacity of 1,500MW.

Financing will be provided to five Specific Purpose Companies (SPCs), responsible for the operation of each of the parks. In all, the Renova Group is making investments that will lead to the installation of a total of 294.4MW, with a start-up scheduled for July 2012 in this region of Bahia.

Among the merits of the project is the increase in orders for domestic producers since the five wind farms will have 62 windmills provided by companies established in the country. Moreover, it is a renewable energy source that will benefit the population as it is a priority energy source in relation to others, and it has low environmental impact with no waste production of any kind. The project also reduces the use of inputs, such as natural gas and other petroleum products, minimizing their dependence on diminishing resources and reducing CO2 emissions.

Besides the requirements for environmental licensing, in the amount of R $ 3 million, the SPCs will make social and environmental investments that are fully-financed by the BNDES and which integrate the Bank's policy for sustainable development in the surrounding areas of the projects. These investments include professional training, and courses in local communities to train carpenters, bricklayers, welders and mechanics.

There will also be important contributions to the region, such as an increase in jobs and income, and a boost to local commerce. Wind farms contribute to the security of the electricity supply because they are complementary to hydroelectric power generation, given that the rainfall in the Southeast, Central-west and Northeast occurs in a period when the most intense winds are low, and vice-versa.