Voltalia signs new 63MW corporate power purchase agreement for wind project in Brazil

Voltalia signs new 63MW corporate power purchase agreement for wind project in Brazil
Published: 1 July 2019 - 1:43 p.m.
By: Baset Asaba

Voltalia (Euronext Paris, ISIN code: FR0011995588), an international player in renewable energies, announces it has won long-term contracts for a new 70 MW wind project in Brazil. Located in Voltalia's Serra Branca cluster, the new Vila Alagoas project will benefit from a 63 MW contract signed with a large company under a "Corporate PPA" and 7 MW won during the auctions held on June 28 and organized by the Brazilian regulator ANEEL.

"Once again, we demonstrate our ability to develop highly competitive renewable energy projects, not relying on subsidies. With two sizeable long-term corporate PPAs signed in Brazil (64 and 63 MW) and France's first two corporate PPAs signed with Boulanger (5 MW[1]) and SNCF (143 MW[2]), Voltalia is uniquely positioned to seize the growth potential of this new market" declares Sébastien Clerc, Chief Executive Officer of Voltalia.

The new project, Vila Alagoas, will be located in Voltalia's Serra Branca cluster, in the State of Rio Grande do Norte (Brazil), just south of the VSM1 (163 MW) and VSM2 (128 MW) projects currently under construction.

The Vila Alagoas project will have a 70 MW capacity, relying on long-term power sales contracts and a 7 MW power sales contract for a period of 20 years with power distribution companies. That contract was won at the June 28 national auctions; and a63 MW power sales contract for a period of 10 years with a large corporate client which will announce the contract in the coming days.

Both contracts will begin at the end of December 2022. As for most Voltalia projects in Brazil, construction will be brought forward and the Vila Alagoas wind farm is expected to start generating power during the first semester of 2022. During this anticipation period, Voltalia will sell the electricity on the free market through short-term contracts already secured, until the beginning of the long-term contract.

The Serra Branca cluster has a total potential of around 2.4 GW. The cluster relies on two high-tension transmission lines developed and built by Voltalia: one with a capacity of 400 MW already in operation and another one with a capacity of 2 GW under construction. The region, which benefits from the trade winds, is known for its exceptional potential. In 2018, Voltalia's operating wind farms in the cluster achieved a 51.5% load factor on average.

Including this new Vila Alagoas wind plant, the total capacity owned by Voltalia and secured by 2023 in its Serra Branca cluster reaches 670 MW, which adds up to the 500 MW partnership with Echoenergia / Actis[3]. With its 2.4 GW potential, the Serra Branca cluster has therefore an as-yet-untapped 1.2 GW[4] further potential.

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