EDP Renewables, S.A. (“EDPR”), through its subsidiary EDP Renováveis Brasil, S.A. (“EDPR Brasil”), secured today 20-year Power Purchase Agreements (“PPA”) at the Brazilian energy A-6 2017 auction to sell electricity in the regulated market. The energy will be produced by two wind farms to be installed in the Brazilian State of Rio Grande do Norte; Santa Rosa e Mundo Novo with registered capacity of 121.8 MW and Aventura with 97.1 MW. The initial awarded price of the long-term contracts was set at R$99/MWh and R$97/MWh respectively. Both tariffs are indexed to the Brazilian inflation rate with commercial operation expected to occur in January 2023.
With this new contract, EDPR has already secured PPAs for 482 MW of wind energy projects in Brazil (currently under construction/development) to start operations in 2017, 2018 and 2023.
João Manso Neto, EDP Renewables CEO, said: “This agreement confirms our commitment and development strategy were the right ones for the Brazilian market, which offers great potential for EDP Renewables’ business. We entered the market in 2010 and currently we have an installed capacity of 204 MW, to be doubled in the near future pursuant to this awarding”.
The successful outcome from this auction reinforces EDPR presence in a market with a low risk profile through the establishment of long term PPA, attractive wind resource and strong prospects for the renewables sector in the medium and long term.