Eletrobras is a major Brazilian electric utilities company. It's also Latin America's biggest power utility company, tenth largest in the world and is also the fourth largest clean energy company in the world. Eletrobras holds stakes in a number of Brazilian electric companies, so that it generates about 40% and transmits 69% of Brazil's electric supply. The company's generating capacity is about 43,000 MW, mostly in hydroelectric plants. The Brazilian federal government owns 52% stake in Eletrobras, rest of shares are traded on BM&F Bovespa. The stock is part of the Ibovespa index. It is also traded on the New York Stock Exchange and on the Madrid Stock ExchangeThe company's headquarters are located in Brasília, however its main offices are located in Rio de Janeiro. Wikipedia.
News Article | April 17, 2017
A U.K. power utility is in talks with two local partners of Brazil’s state-run utility Eletrobras to acquire minority stakes in about 640 MW of operating wind farms. The U.K. company has signed memorandums of understanding to invest in the local operators, in exchange for the right to make a first offer on the wind assets when Eletrobras officially puts its holdings up for sale, according to Paulo Dalla Nora, a partner at FIR Capital, a Brazilian venture capital company that’s structuring the deals.
News Article | May 2, 2017
RIO DE JANEIRO--(BUSINESS WIRE)--Centrais Elétricas Brasileiras S.A. - Eletrobras (the “Company”) informs that it filed its Annual Report on Form 20-F as of and for the fiscal year ended December 31, 2016 (the “2016 Annual Report”). The Form 20-F is a U.S. Securities and Exchange Commission (SEC) reporting requirement. The 2016 Annual Report can be accessed by visiting either the SEC’s website at www.sec.gov or the Company’s website at www.eletrobras.com/elb/ri. In addition, holders of Eletrobras’s securities may receive a hard copy of the Company’s complete audited financial statements free of charge upon request to the Company’s Investor Relations Department through the Company’s website or at +55 21 2514 6333 or by sending an email to: firstname.lastname@example.org.
News Article | April 15, 2016
This story has been updated. It’s just the latest sign of mounting tension over the next stage of development in the threatened Amazon — enormous dams that will generate huge amounts of electricity, but also, inevitably, have major ecological consequences. A report released Wednesday by Greenpeace — which is highly active in the Amazon region — has decried the Brazilian government’s plans for a huge new hydropower project in the Amazon’s Tapajós river basin, questioning both the project’s purported environmental impact and even its legality. The organization has called for the halting of the project and urges the expansion of other clean energy forms instead. But in reality, other experts said, Brazil’s hunger for energy and major reliance on dams (rather than fossil fuels) for generating it seems unlikely to abate any time soon. The new project, known as the São Luiz do Tapajós dam, is shooting for a maximum electricity generating capacity of more than 8,000 megawatts and, at nearly five miles wide, would block one of the last major unobstructed tributaries in the Amazon and flood thousands of square miles in the process. It’s the largest of five dams currently planned for the Tapajós river, according to Greenpeace, and one of about 200 proposed hydropower projects proposed throughout the Amazon basin. Hydropower is particularly favored by Brazil, where hydroelectric plants account for about 80 percent of the electricity generated in the country. But while hydropower is certainly a low carbon form of energy, scientists and activists are growing increasingly concerned about its other environmental impacts. Recent research has suggested that damming is responsible for a myriad of detrimental effects in the Amazon basin, threatening water quality, degrading habitat for wildlife and drawing more humans into remote regions, which can indirectly drive activities like mining and deforestation. This is a major problem both for the natural environment and for the indigenous populations who live in the affected areas. In this context, Greenpeace charges that the environmental impact assessment submitted by one of the consortia expected to bid for the project was “deeply flawed.” Representatives from Eletrobras, a state-run energy utility company and leader of the consortium that submitted the environmental impact assessment, did not immediately respond to requests for comment on the report. A statement from Brazil’s Ministry of Mines and Energy to The Washington Post in response to the Greenpeace report said, “The current Brazilian hydroelectric projects are characterized by the respect for the environment and the population, with previously defined plans for environmental and social compensation, improvements to the local society, and a commitment to international protocols to be followed in relation with society, as in the Equator Principles.” The statement also noted that hydropower is the cheapest energy source available in Brazil. Even beyond the importance of scientifically sound environmental impact assessments for individual projects, though, other experts have also emphasized the need for basin-wide evaluations of the effects of damming. David McGrath, deputy director and senior scientist at the Earth Innovation Institute and a professor at the Federal University of Pará in Brazil, has previously told The Washington Post that this type of large-scale analysis should be one of the highest priorities for scientists and policymakers looking for a more complete view of how all the hydropower projects in the basin may build on one another’s impacts — although he’s also noted that the institutional capacity for such an analysis is still lacking. While damming is widely believed to be a source of havoc in the natural environment, some experts have also pointed out that environmental destruction can feed back and negatively impact hydropower production. This is a point that was not fully conveyed in the Greenpeace paper, said Claudia Stickler, a scientist and Amazon expert with the Earth Innovation Institute, who was not involved with the report. “The bigger deforestation problem in the Amazon as a whole is really also going to affect these hydropower projects,” Stickler said. “For me, that’s one of the most damning pieces of evidence against a lot of these big installations.” Large-scale deforestation in the Amazon can cause trouble with water flow, Stickler explained. With fewer trees in the region to recycle water and return it to the atmosphere, rainfall patterns can actually be disrupted over time. And the landscape changes that come with deforestation can also cause more water to run off instead of soaking into the soil and being sucked up by the remaining vegetation, making the problem even worse. These factors may disrupt water flow in the Amazon’s river systems over time and lower the output of hydropower installations. “That’s something that’s not being taken into account by the engineers that are continually doing projections of hydropower energy generation,” Stickler said. At the same time, the Greenpeace report argues, dams can become an indirect driver of deforestation in the region as well, by drawing workers into remote areas and leading into the construction of new roads and communities. However, all of these complaints having been made, the solutions to the hydropower issue are still unclear. The Greenpeace report has called on the Brazilian government to halt the Tapajós project, as well as plans for other installations throughout the Amazon, and explore alternative energy sources instead. But this may be an unlikely outcome for the time being. “We’re talking about a giant country that really does mostly depend on hydropower production for its energy,” Stickler said. “As much as Greenpeace might not like the idea that they have economic plans that require more energy, the reality is that you’re not going to be able to do away with that.” In regard to alternative energy solutions, Stickler noted that Brazil’s challenges are similar to those faced in much of the rest of the world — mainly issues with efficiency and storage that, while improving, still need more independent analysis in order to evaluate how well they could take over the power that’s currently being counted on from proposed hydroelectric installations. Even so, Stickler and other scientists have noted that the need for alternative solutions is growing greater as the devastating impacts of damming become increasingly clear. And while the São Luiz do Tapajós project will likely continue on for now, it may also become the next symbol of how profoundly human activity is changing the Amazon.
News Article | November 29, 2016
SAO PAULO--(BUSINESS WIRE)--Fitch Ratings has affirmed the Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs) of Centrais Eletricas Brasileiras S.A. (Eletrobras) and its wholly owned subsidiary, Furnas Centrais Eletricas S.A. (Furnas) at 'BB-'. The Rating Outlook for both IDRs has been revised to Stable from Negative. Fitch has also affirmed the companies' Long-Term National Scale Ratings at 'AA-(bra)' with a Stable Outlook. A complete list of rating actions follows at the end o
News Article | December 7, 2016
After passing 1.2GW of installed wind capacity Brazil’s CPFL Renováveis is weighing its options, with opportunities divided between greenfield organic growth and the acquisition of existing renewable assets. “We are appraising 4.3GW of renewable assets that are up for sale in Brazil, many of which are already built with PPAs,” said new business director Alessandro Gregori, adding that the list includes wind, solar and other renewables. CPFL Renováveis, one of two renewable companies traded on the local stock exchange, this week officially inaugurated its 231MW São Benedito and Campos dos Ventos wind complexes, which took it to the top of Brazil’s renewable energy league with 2GW – including 1.26GW of wind, 423MW of small hydro, 370MW of biomass and 1MW of solar PV. Apart from M&A opportunities, CPFL Renováveis has a 3GW renewable project pipeline which includes another 2.2GW of wind, 453MW of solar PV and the rest in small hydro. “We will always look at the rate of return, and of course projects already built don’t carry the execution risk,” said Gregori. CPFL Renováveis accounts for around 11% of Brazil’s 11GW of wind capacity, closely followed by other companies such as Casa dos Ventos, Renova Energia and the subsidiaries of federal power company Eletrobras. By 2018, it should complete construction of the 48MW Pedra Cheirosa wind complex, reinfiorcing its position. Gregori’s comments come days before the country’s only solar and wind tender, in which CPFL Renováveis is among the leading players to try to get a contract this year. With at least six projects with a combined capacity of 165MW, CPFL Renováveis is part of a group of companies that registered a whopping 21GW for the 19 December reserve tender, alongside many large international players such as Iberdrola, Voltalia, Pacific Hydro, Elecnor, Denham Capital, EDP Renováveis, Actis, Enel and several local groups. Although the number of potential bidders suggests strong competition, slowing power demand and the lack of grid connection will make this one of the most uncertain tenders since 2012, when less than 300MW wind was contracted. However, as Gregori considers the R$247 per MWh ($72.8/MWh) cap price for wind adequate for Brazil’s current troubled economy – with rising financing costs, a declining economy, foreign exchange uncertainty and transmission risks – he signalled that CPFL could stay out of solar PV for the moment due to the lack of local module suppliers. “We have to be able to obtain good rates of return with equipment priced in US dollars,” he said. “When there are more manufacturers in the country, we’ll consider solar PV.” With R$1bn in cash and with most of its R$6bn debt coming due after 2020, CPFL Renováveis is in a comfortable financial situation to continue growing, a status that could soon be boosted by the entrance of China’s State Grid as a major shareholder. “The transaction is seen as positive by our creditors,” said CEO Gustavo Souza. State Grid has for R$6bn acquired a controlling stake in CPFL Energia, which owns 51% of CPFL Renováveis, but while the tag-along period is not over and regulatory approvals are not concluded, the renewables company’s plans will not be affected, said Souza. “We have held only due diligence talks with the Chinese,” said Souza. As Brazil moves into another year of consolidation of its wind power sector, CPFL Renováveis remains one of the most important players, reaffirming its strategy to adapt to market opportunities. Since it was created in 2011 – to aggregate all renewable energy assets owned by CPFL Energia – the renewables company has grown more than tripled its renewables generation capacity from a 652MW small-hydro base. Since then, the company has built 1.3GW of greenfield capacity and acquired another 729MW. “We have capacity to more than double our generation to reach 5GW if the conditions are right,” said Gregori.
News Article | November 15, 2016
This report studies Hydropower Plant Construction in Global Market, especially in North America, Europe, China, Japan, Southeast Asia and India, focuses on top manufacturers in global market, with production, price, revenue and market share for each manufacturer, covering Alstom BC Hydro RusHydro Voith China Yangtze Power Eletrobras Hydro-Quebec Market Segment by Regions, this report splits Global into several key Regions, with production, consumption, revenue, market share and growth rate of Hydropower Plant Construction in these regions, from 2011 to 2021 (forecast), like North America Europe China Japan Southeast Asia India Split by product type, with production, revenue, price, market share and growth rate of each type, can be divided into Type I Type II Type III Split by application, this report focuses on consumption, market share and growth rate of Hydropower Plant Construction in each application, can be divided into Application 1 Application 2 Application 3 Global Hydropower Plant Construction Market Research Report 2016 1 Hydropower Plant Construction Market Overview 1.1 Product Overview and Scope of Hydropower Plant Construction 1.2 Hydropower Plant Construction Segment by Type 1.2.1 Global Production Market Share of Hydropower Plant Construction by Type in 2015 1.2.2 Type I 1.2.3 Type II 1.2.4 Type III 1.3 Hydropower Plant Construction Segment by Application 1.3.1 Hydropower Plant Construction Consumption Market Share by Application in 2015 1.3.2 Application 1 1.3.3 Application 2 1.3.4 Application 3 1.4 Hydropower Plant Construction Market by Region 1.4.1 North America Status and Prospect (2011-2021) 1.4.2 Europe Status and Prospect (2011-2021) 1.4.3 China Status and Prospect (2011-2021) 1.4.4 Japan Status and Prospect (2011-2021) 1.4.5 Southeast Asia Status and Prospect (2011-2021) 1.4.6 India Status and Prospect (2011-2021) 1.5 Global Market Size (Value) of Hydropower Plant Construction (2011-2021) 2 Global Hydropower Plant Construction Market Competition by Manufacturers 2.1 Global Hydropower Plant Construction Production and Share by Manufacturers (2015 and 2016) 2.2 Global Hydropower Plant Construction Revenue and Share by Manufacturers (2015 and 2016) 2.3 Global Hydropower Plant Construction Average Price by Manufacturers (2015 and 2016) 2.4 Manufacturers Hydropower Plant Construction Manufacturing Base Distribution, Sales Area and Product Type 2.5 Hydropower Plant Construction Market Competitive Situation and Trends 2.5.1 Hydropower Plant Construction Market Concentration Rate 2.5.2 Hydropower Plant Construction Market Share of Top 3 and Top 5 Manufacturers 2.5.3 Mergers & Acquisitions, Expansion 3 Global Hydropower Plant Construction Production, Revenue (Value) by Region (2011-2016) 3.1 Global Hydropower Plant Construction Production by Region (2011-2016) 3.2 Global Hydropower Plant Construction Production Market Share by Region (2011-2016) 3.3 Global Hydropower Plant Construction Revenue (Value) and Market Share by Region (2011-2016) 3.4 Global Hydropower Plant Construction Production, Revenue, Price and Gross Margin (2011-2016) 3.5 North America Hydropower Plant Construction Production, Revenue, Price and Gross Margin (2011-2016) 3.6 Europe Hydropower Plant Construction Production, Revenue, Price and Gross Margin (2011-2016) 3.7 China Hydropower Plant Construction Production, Revenue, Price and Gross Margin (2011-2016) 3.8 Japan Hydropower Plant Construction Production, Revenue, Price and Gross Margin (2011-2016) 3.9 Southeast Asia Hydropower Plant Construction Production, Revenue, Price and Gross Margin (2011-2016) 3.10 India Hydropower Plant Construction Production, Revenue, Price and Gross Margin (2011-2016) 4 Global Hydropower Plant Construction Supply (Production), Consumption, Export, Import by Regions (2011-2016) 4.1 Global Hydropower Plant Construction Consumption by Regions (2011-2016) 4.2 North America Hydropower Plant Construction Production, Consumption, Export, Import by Regions (2011-2016) 4.3 Europe Hydropower Plant Construction Production, Consumption, Export, Import by Regions (2011-2016) 4.4 China Hydropower Plant Construction Production, Consumption, Export, Import by Regions (2011-2016) 4.5 Japan Hydropower Plant Construction Production, Consumption, Export, Import by Regions (2011-2016) 4.6 Southeast Asia Hydropower Plant Construction Production, Consumption, Export, Import by Regions (2011-2016) 4.7 India Hydropower Plant Construction Production, Consumption, Export, Import by Regions (2011-2016) 5 Global Hydropower Plant Construction Production, Revenue (Value), Price Trend by Type 5.1 Global Hydropower Plant Construction Production and Market Share by Type (2011-2016) 5.2 Global Hydropower Plant Construction Revenue and Market Share by Type (2011-2016) 5.3 Global Hydropower Plant Construction Price by Type (2011-2016) 5.4 Global Hydropower Plant Construction Production Growth by Type (2011-2016) 6 Global Hydropower Plant Construction Market Analysis by Application 6.1 Global Hydropower Plant Construction Consumption and Market Share by Application (2011-2016) 6.2 Global Hydropower Plant Construction Consumption Growth Rate by Application (2011-2016) 6.3 Market Drivers and Opportunities 6.3.1 Potential Applications 6.3.2 Emerging Markets/Countries For more information or any query mail at [email protected]
News Article | October 6, 2016
SAO PAULO (Reuters) - An internal probe at Brazil's Eletrobras is finding signs of corruption in as many as seven large projects at the state-led utility in addition to the two facilities where police have already made arrests in a graft probe, a source with direct knowledge of the situation told Reuters.
News Article | January 8, 2016
An aerial view of the mud which flooded the Rio Doce (Doce River), joining the sea on the coast of Espirito Santo, after a dam owned by Vale SA and BHP Billiton Ltd burst, in Regencia Village, Brazil, November 23, 2015. ANA said in an emailed statement that only one of four hydro plants along the 800 km (497 mile) river, which runs through states of Minas Gerais and Espirito Santo, had requested to power up as the others continue to assess potential damage from the spill. The bursting of a dam at the Samarco iron ore mine on Nov. 5 caused Brazil's worst environmental disaster, releasing between 30 million and 60 million cubic meters (7.9 billion to 15.9 billion gallons) of mining waste. The resulting flood killed at least 17 people, left hundreds homeless and polluted the river. Samarco is a joint venture of Brazil's Vale SA and Australia's BHP Billiton. The flood destroyed one tiny 1.8 megawatt hydrodam run by Grupo AVG and disabled others, which produce a combined 790 megawatts. The dams account for about 1 percent of Brazil's hydroelectric capacity, and their outage, though not a threat to the power supply, adds to an electricity crisis stoked by severe droughts and construction delays on the large Belo Monte dam. Before ANA approves the restarts, further tests of the water quality need to be carried out as well as studies looking at the impact of power generation on other river uses. The river provides drinking water for several cities along its banks. "The analysis has to be careful, so that the restarting of operations does not cause negative impacts on the river basin, which has already been significantly affected," ANA said in an emailed response to questions. EDP Energias do Brasil, whose dam near the Atlantic Ocean is farthest from the accident site, said the accident did not affect its plant and has asked ANA for permission to restart. Aliança Energia, a joint venture of Vale and Brazilian utility Companhia Energetica de Minas Gerais, or Cemig, said it was evaluating the impact of the disaster on its two plants on the river. The Baguari hydrodam, owned by Neoenergia, Cemig and state-run utility Eletrobras' Furnas subsidiary, said it was checking its reservoir and water quality before asking to power up its turbines again.
News Article | October 5, 2016
But as Mexico and Argentina gain the renewables limelight, Brazil has serious challenges to meet before regaining its historical leading position. In inaugural tenders Mexico secured almost 5GW of both solar and wind, while Argentina is expected to surpass the 600MW of wind and 300MW of PV it set out to contract at the beginning of the year. Brazil is trying to get back on track, after being derailed by political and economic turmoil that led to a change in government and a sharp decline in economic activity. Despite praise for the new technical, more market-oriented personnel in the mines and energy ministry and in the National Development Bank (BNDES), the 10GW-wind Latin American giant needs to do more than spell out nice intentions: it needs to stabilise rules. Of course, the ratification of BNDES’ support for wind and solar – the former of which has been raised from 70% to 80% of financeable capex of any project – are welcome first steps after the new Temer administration had cancelled, and then rescheduled solar and wind tenders for December. If anything, the new government has signalled a continuation of the bank’s prominent role in backing the cleaning up and diversification of Brazil’s hydro-thermal power mix, indicating that increasing private or foreign financing will be a more step-wise process. But the problems are far from over. Although political turmoil could be simmering down after municipal elections this week, the economy still faces a bumpy road as the federal government has been slow on delivering its promises of fiscal adjustment. So unemployment insists on rising, retail sales are still down and interest rates are at a record high, reducing appetite for all new investments in the country. What’s worse, power demand is still declining. According to preliminary data, in September, power consumption fell another 1.7% on a year-on-year basis and 0.1% from the previous month. GDP growth of just over 1% is expected in 2017, and 2016 will see another projected 3% decline in GDP. Officially, the government says it will continue to support renewables, especially after ratifying the Paris agreement, which means it will need much more solar and wind to meet its 23% target by 2030. But the changes that are being cooked up in government cabinets with the help of the World Bank and private consultants are sure to bring some nerve-racking moments for the renewables industry before everything gets back on track again. It will be especially hard for the six turbine makers that have invested hundreds of millions of dollars in the country in expectation of a 2GW-a-year market for at least the coming decade. Since taking over, the current mines and energy administration has been holding a debate over whether reserve contracting is a good idea in an environment in which distribution companies are over-contracted. But the renewables industry argues that reserve tenders – in which the government contracts power capacity for a rainy day, independent of demand – could be used to maintain the contracting rhythm and keep the brand-new nacelles assembly lines busy. This strategy would also signal to prospecting solar modules makers a substantial demand to justify investment in local content. As one representative of the wind turbine industry said recently, we are living from the success of three years ago. But no new orders will be coming in without regular tenders that contract power past 2019. Last month, for example, the government dampened expectations. In a reserve tender for small hydro, it contracted 180MW out of a total offer of 645MW for 2020, showing caution in using its clout to guarantee extra capacity for times of need. On the other hand, even with the new energy ministry’s impetus and business community support, a recent transmission tender has failed and the lack of grid connection points are sure to reduce demand at the up-coming tender. To complicate things further, federal power group Eletrobras will be staying out of the tenders to balance its books and to prepare to add its renewables subsidiaries to a long list of renewable energy assets already for sale in the country, so it’s tough to know how much appetite investors will have for greenfield projects in the upcoming tenders. The more optimistic see the government contracting 1GW of wind and 1GW of solar PV in December’s reserve tender. If this is confirmed, then Brazil would be back in the game in 2017. But the ball is now in the government’s court. Developers, utilities and turbine-makers have played their part, preparing over 40GW of solar and wind projects for regulated market tenders. It’s now up to the government to show whether Brazil aspires to retake its position, or whether it will let Argentina and Mexico take the lead in the coming years. In Dispatches, Recharge journalists offer a personal insight into the issues shaping the development of renewable energy around the world.
News Article | November 29, 2016
Casa dos Ventos is set to consolidate its position as one of Brazil’s top-five wind power producers after building 1GW of projects, and now has the cash it needs to keep growing – but is nonetheless taking a cautious position in December’s renewables tender. “In the upcoming auction we can monetise by selling some projects [to other companies]. We imagine growing little by little [and] our aim is to remain an important player as a developer, but increasingly as an operator,” the company’s new business director Lucas Araripe tells Recharge. The company registered just over 700MW with links to the grid for the tender – a fraction of the 4.2GW it had initially short-listed, most of which was barred for lack of a connection. Although Araripe believes that the R$247/MWh ($72.59) cap price set for the tender is adequate to cover financing and construction costs, the company will probably opt to continue its historic strategy of selling projects from its huge 15GW pipeline, which was how Casa dos Ventos started growing in 2006 when it was founded. “We can continue to sell projects to other companies or build them ourselves, now that we have proved we can build and operate wind farms,” says Araripe. This week, the company is starting to commission 156 GE 2.3MW machines at the 359MW Ventos do Araripe III complex in the Araripe mountain range, between the northeastern states of Pernambuco and Piauí, bringing the company’s total installed capacity to around 710MW – or about 7% of Brazil’s total 10GW capacity. The conclusion of the complex put Casa dos Ventos alongside CPFL Renováveis (which has 1GW of wind operational), the federal energy group Eletrobras, which has close to 1GW in operation, and ahead of Renova Energia, which has about 500MW. These are the leaders in a market that has more than 20 developers, utilities and renewable energy building and operating wind farms in Brazil. Casa dos Ventos’ fleet would have been bigger if it had not sold 400MW of completed wind farms to Cubico earlier this year, a move that raised R$2bn. “The fact that we built 1.1GW proved that Casa dos Ventos is not only a developer but a company that can build and operate wind farms without extrapolating costs and keeping to schedule,” Araripe says. Araripe is quick to point out that when all the 14 wind farms of the Ventos do Araripe III are fully commissioned in the first months of 2017, some of them will be operating well before the start of PPAs signed in 2013 and 2014 – an advantage in a country where delays are very common. “For some of the projects – which were contracted at reserve tenders – the regulations allows us to bring forward start of the PPA, so we’ll have cash-flow for more than 20 years. For the ones contracted at the regular tenders we will be able to sell power in the non-regulated market before the start of the PPA in very short contracts, also increasing cash-flow,” he says. The start-date of revenues from completed wind farms is more critical in Brazil than in more developed countries. Under the current macroeconomic situation, financing is scarce and expensive. Even the 16-year loans from the National Development Bank (BNDES) has now slipped into double digits. Renova Energia, for example, is facing financial troubles partly because of delays in the approval of the cheap, long-term BNDES loans, and has been forced to rely on short, expensive bridge loans from commercial banks that are more than 30% more expensive. A closed family group – the latest venture of patriarch Mario Araripe, who invested in textile, construction and auto-making before wind – Casa dos Ventos today has distanced itself from what it was less than three years ago, when it started to bid for contracts in the regulated market as a majority or 100% stakeholder in projects. “We have hired a team of 60 people to oversee the construction of projects and their operations from our control centre in Ceará,” says Araripe. But as money starts flowing into the company’s coffers, Araripe has to weigh his options for growth and financing in the light of the R$5bn he says was invested – including R$900m in equity – to build all the wind farms. He can sell projects that are already developed, sell some of the wind farms to bigger players or bid in regulated market tenders. In terms of financing, Casa dos Ventos relies mostly on a mixture of equity investments and BNDES financing, but it is one of the few companies to venture into the local bond market, selling tax exempt bonds known as infrastructure debentures which in general cover about 10% of the capital expenditures of a wind project. Typically BNDES finances about 60% of projects, while equity investments range from 30% to 40%, so the sale of the bonds is increasingly seen as key to alleviate a company’s available equity for new investments. “We sold some bonds in 2015 and now we plan more issues in 2017, but we are awaiting the approval from the BNDES for a loan for the Casa dos Ventos III complex any time soon,” he says, indicating that the bond issues may range from R$250m to R$300m for Ventos do Araripe III complex and a smaller, private placement for the São Clemente wind complex. But in the future Araripe hopes that he will be able to venture in the international market if the government decides to allow US dollar-denominated PPAs at tenders. “This will allow the financing scenario to be global [and not only Brazilian]. There is already a lot of talk about [US dollar-denominated PPAs], until then we’ll have rely mostly on BNDES,” he says.