Engie’s to finance Brazil wind farms with ahead gross sales

Engie's to finance Brazil wind farms with forward sales

SAO PAULO (Reuters) – The Brazilian unit of French gasoline and tool workforce Engie SA is in negotiations to arrange contracts forward-selling wind energy that will permit it to construct wind farms with 300 megawatts of capability, its leader monetary officer stated on Friday.

Engie Brasil Energia is negotiating the contracts at the so-called loose marketplace that will permit it to construct new wind farms with out going via Brazilian govt auctions, its CFO Carlos Freitas instructed Reuters in an interview.

“We’re already remaining contracts and intention to succeed in a crucial mass that can make the funding viable,” Freitas stated. “We are hoping to make a press release quickly.”

Fierce festival in Brazil’s regulated power marketplace depressed wind energy contracts closing yr to file lows of 67.60 reais consistent with MWh. However at the loose marketplace, medium-term contracts can also be signed for 170 reais consistent with MWh, in step with the BBCE digital buying and selling platform.

“The costs from the auctions at the regulated marketplace aren’t sexy for us, so we want to concentrate on the loose marketplace the place we’re have the benefit of being the most important participant in Brazil,” Freitas stated.

Huge wind farms that Engie is development already permit economies of scale that carry down prices however require heavy investments, he stated.

The 360 MW Umburanas wind farm advanced within the Brazilian state of Bahia, which has 70 p.c of its long term power output already offered at the loose marketplace, comes to funding budgeted at 1.eight billion reais.

Segment 1 of the Campo largo advanced, additionally in Bahia, will value 1.7 billion reais to construct, with a 160 MW capability, part of which has already been gotten smaller, he stated.

Reporting via Luciano Costa; Enhancing via Sandra Maler

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