Mar 7, 2012

• Four projects in the state of Rio Grande do Norte and one in the state of Bahia, with total installed capacity of 138 MW

The board of directors  of the Brazilian Development Bank (BNDES) approved R$ 389 million in financing for the construction of five wind farms in Brazil’s Northeast. The funds will also finance the respective associated Transmission Systems. The farms, four in Rio Grande do Norte and one in Bahia, will have an installed capacity of 138 MW and will be controlled by both Meoenergia and Iberdrola Renováveis do Brasil.

The projects, both winners of the Alternative Sources Auction in 2010, are part of the Growth Acceleration Program (PAC). The Bank will participate with 67.8% of total investments, R$ 573.6 million, an amount expected to create 1,800 direct and indirect jobs during construction.

The investments in Brazil’s wind energy sector reached R$ 5.1 billion last year, of which R$ 3.4 billion was financed by BNDES. The projects represent an increase of 1,160 MW in Brazil’s energy grid, with 38 wind farms.

For the operation, five Special Purpose Companies (SPC) were built, which will be responsible for constructing and operating each of the wind farms, with partners Neoenergia (50%) and Iberdrola Renováveis do Brasil (50%).

They are: Arizona 1, with R$ 86.9 million in financing from the BNDES; Caetité 3, with R$ 63.9 million; Mel 2, with R$ 65.3 million; Calango 2, with R$ 82.7 million; and Calango 3, with R$ 90.2 million. Two farms (Calangos 2 and 3) are expected to be operational in September 2013, and three (Mel, Arizona and Caetité 3), in January 2013.

The project supported by the BNDES will contribute to reducing greenhouse gas emissions, as well as diversifying Brazil’s energy grid with renewable sources. It will also complement the hydroelectric generation, avoiding the reliance on power plants during periods when water levels are lower, besides the bonus of geographically diversifying farms, spread over six municipalities in two states with different wind regimes.

The farms, whose main features are described below, will be concentrated in four main regions and will require 58 wind turbines from Gamesa, the provider installed in Bahia.

Calango 2 and 3: with 30 MW each, located in Rio Grande do Norte, about 650 meters above sea level, covering the municipalities of Bodó, Santana do Matos and Lagoa Nova.

Arizona 1: with 28 MW, in the coastal region of Rio do Fogo (state of Rio Grande do Norte), adjacent to the Rio do Fogo Park, from the Ibedrola group.

Mel 2: with 20 MW, located in the coastal region of Areia Branca (Rio Grande do Norte), 288 km from Natal.

Caetité 3: with 30 MW, in the municipality of Caetité, situated on a plateau region in Bahia, over 1,000 meters above sea level.