Deal details: Linde subsidiary White Martins has partnered with Omega Energia to procure approximately 876 GWh/yr of renewable energy from the Chuí wind complex in Brazil. Enerdatics estimates the power capacity off-taken by White Martin to be ~267 MW, considering the reported average capacity factor for onshore wind projects in Brazil, which stands at 37.5%. The collaboration between the two companies, established last month, will enable the chemical company to reduce its scope 2 emissions in Brazil by 19%.
Asset details: The 583 MW Chui Wind complex comprises three distinct wind assets: the Geribatu wind farm (258 MW), Hermenegildo wind farm (181 MW), and Chui wind farm (144 MW). These projects are situated in the southern state of Rio Grande do Sul and have been in operation since 2015. Initially developed by Eletrobras, the complex was acquired by Omega in December 2020. The projects represent a major part of Omega’s 2.1 GW operational portfolio in Brazil and US.
Other significant deals: The current agreement follows a series of PPAs for large-scale renewable projects announced this year in Brazil. This includes Braskem’s contract with Casa dos Ventos for the 1 GW Rio do Vento and 200 MW Umari wind farms, Albras’ deal with Atlas Renewable for 902 MW Vista Alegre solar farm and Portobello’s agreement with Enel for 353 MW Morro Do Chapeu Sul 2 wind farm. Going forward, Enerdatics expects the number of bilateral contracts in Brazil to increase, primarily due to the emergence of deregulated power markets, which enable developers to bypass fiercely competitive auctions that have resulted in a decrease in renewable power prices. Meanwhile, off-takers can effectively lower their energy expenses by avoiding taxes and charges imposed in the regulated market. Moreover, Brazil's power prices remain consistently low and stable, thanks to favorable hydrological conditions that ensure an ample supply of non-contracted energy is readily available as needed. This favorable scenario serves as a strong incentive for the establishment of long-term PPAs in the country.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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