Eletrosul to borrow $84 million for wind energy in Brazil from KfW

Brazil is seeking to diversify its energy sources and will have more than 7 gigawatts in wind power generation capacity by the end of 2014, enough for about 13 million homes, according to Brazilian wind power association Abeeolica.


Eletrosul Centrais Eletricas SA, a Brazilian state-run power company, received authorization from the Planning Ministry to borrow 66.8 million euros ($84 million) from German bank KfW to expand a wind farm.


The resources will be invested in the expansion of its Cerro Chato wind power unit, Eletrosul said in an Oct. 3 statement. The Florianopolis-based company will add 48 megawatts to the wind energycomplex in the southern state of Rio Grande do Sul.

Eletrosul’s total investment in the expansion of Cerro Chato is $118 million and after that, the wind farm will have installed capacity of 216 megawatts.

The financing is part of a 100 million-euro plan from the German bank. The resources may be loaned to Eletrosul for wind and solar energy generation, Karim ould Chih, KfW’s manager for Latin America, said in the statement.