Pursuing the development of its international operations EDF Energies Nouvelles announces its first step into South America, by setting up a local subsidiary in Brazil, EDF EN do Brasil. EDF Energies Nouvelles has purchased a portfolio of wind energy development projects from SOWITEC, one of the leading international renewable energy developers, with a total capacity of about 800 MW, including 70 MW already entitled to sign a regulated Power Purchase Agreement (PPA).
EDF Energies Nouvelles enters the Brazilian renewable energy market by setting up EDF EN do Brasil, the local subsidiary based in Rio de Janeiro. With EDF Norte Fluminense, EDF Energies Nouvelles is EDF Group’s second subsidiary to establish itself in Brazil.
Brazil, the 19th country in which EDF Energies Nouvelles establishes its presence, is positioned as one of the world’s key renewable energiesmarkets. Its excellent natural resources, its growing energy needs and the breadth of its territory, make it fertile ground for the development of renewable energies. Indeed, Brazil had 5.9 GW in wind energy capacity at year-end 2014 and aims to increase this to 22.5 GW by 2023. EDF Energies Nouvelles’ subsidiary starts thus its local operations by acquiring a majority stake in a pipeline of about 800 MW wind energy projects from SOWITEC. This portfolio will be developped in partnership by EDF EN do Brasil and SOWITEC which remains involved with a minority stake of 20%. Located in one of the windiest areas of the state of Bahia, the pipeline includes a 70 MW first project due to be commissioned by year-end 2017 whose output will be sold under a 20-year PPA already signed with ANEEL.
“By expanding into Brazil, EDF Energies Nouvelles takes its initial step into the South American continent. We are delighted especially since Brazil has a tremendous wind energy potential and a regulatory framework that is favourable to a massive expansion of renewables in the energy mix. The quality of the projects portfolio combined with SOWITEC’s established local expertise and the professionalism of our brazilian team are many advantages for making EDF EN do Brasil a major player in the market”, commented Antoine Cahuzac, Chief Executive Officer of EDF Energies Nouvelles.