May 2018
Written by Ivan Suarez, Portfolio Manager – Americas, Energy Council

The top headlines from April 2018 from the Latin America Clean Energy sector. Please contact Ivan Suarez if any specific topic is of particular interest to you so that he can tailor the news feed. 

Business

 ~ Arrowstreet Capital Limited Partnership grew its holdings in Transportadora de Gas del Sur, where the investment firm has an intake worth US$1,910,000

 ~ YPF and ENAP agreed last month to start an offshore gas project that implies an investment of US$354 million

 ~ Genneia acquired 3 utility-scale PV projects (82 Mw). The projects were selected by the Ministry of Energy and Mines from Renovar’s Ronda 1.5

~ Genneia sealed a 10-year wind off-take PPA with Oroplata (Goldcorp). This agreement is the second for the local power generator after its first success with Loma Negra. More private companies look to secure electricity in the country's growing non-regulated market

Investment

 ~ Wind energy brought US$ 4 billion of investment to Argentina as per an update on Renovar by the Ministry of Energy. In order to meet its 20% renewable energy commitment by 2025, the country requires US$ 15 billion over the next 8 years

Auctions

~ During the A-4 Energy Auction, Brazil awarded contracts for a total capacity of 1 Gw. The tender came in a moment when the national economy is recovering and energy demand is on the rise.  Prices fell: the average price for four energy projects belonging to Electricite de France SA was US$ 19.95/Mw

 ~ Canadian Solar won rights to develop three solar farms (364Mw)

 ~ EDF Energies Nouvelles secured a PPA for a 114Mw wind project in the State of Bahia

 ~ Elecnor secured 180 Mw of PV projects. Under Celeo Redes Brasil, the company is part of a joint venture with the Dutch pension fund manager APG Asset Management NV. The partnerships represents an investment of US$ 224 million

Business

 ~ Huawei supplied inverters to AES Corporation for 75 Mw PV project in Brazil

 ~ Canadian Solar closed the sale of its  Guimarania solar energy project (80 Mw) to Gas Natural Fenosa’s GPG Gas Natural unit. The project is being constructed and it is expected to reach commercial operation by the end of this year

 ~ Iberdrola and Enel take their fight to Latin America. Neoenergia (Iberdrola)committed to a US$ 1.7 billion takeover bid for Eletropaulo (Brazilian power distribution company). Enel alternative offer came in only hours later

 ~ Vestas committed to providing operating and maintenance (O&M) services for Queiroz Galvao and Iberdrola’s wind farms

Investment

 ~ The Federal Government authorised a US$ 300 million investment package for renewable energy projects in the Northeast region. Grupo Echoenergia will receive BRL 364.1 million. Enel will also receive BRL 340 million

~ Brazil launched US$ 961 million credit line for DG solar projects which is to be allocated for distributed and centralized solar power generation projects in urban and rural areas

 ~ National Bank for Economic and Social Development (BNDES) and the New Development Bank (NDB) raised US$ 67.3 million for the development of six wind farms in north east Brazil

 ~ Iberdrola informed it will invest US$ 7 billion in Brazil power projects

 ~ Powerchina Group reached an agreement with the state government of Mato Grosso to build large solar power plants over the next few years, the first of which will require an investment of US$ 307 million

Politics

~ Brazil appointed pro-privatization Moreira Franco as the new Minister of Energy

Business

~ LNG imports into Mexico increased 42% in February compared to 2017, according to the Mexican Energy Ministry (Sener)

 ~ Seraphim announced a long-term partnership with REFACSOL for which Seraphim  will supply new-tech solar modules

 ~ Nexus Energia is to buy into Cox Energy‘s Mexican electricity supply arm. Cox Energy has entered into the agreement to sell the minority interest (40%) to Nexus Energia for an undisclosed sum

Investment

~ Eolica Mesa La Paz launched a Green Bond for a 306 Mw wind farm in Mexico. The assets received S&P's top green score

 ~ IEnova declared that Mexico’s Strategic Gas Storage Initiative would mean an opportunity to invest US$ 2 billion

 ~ Actis bought InterGen’s Mexican portfolio for US $1.2 billion. The portfolio will be rebranded as Saavi Energia. Bank of America Merrill Lynch and Barclays provided financial advice. *InterGen is owned by the Ontario Teachers’ Pension Plan and China Huaneng Group

Politics

 ~ Energy Secretary, Pedro Joaquin Coldwell said the country will reach 43% share of renewables in power mix by 2024. The calculation is based on the results of the energy auctions carried out by the government so far

Latin America

 ~ BBVA lead the first green corporate loan in Latin America: a US$ 400 million loan with Iberdrola

~ Chinese firms spent more than US$ 17.7 billion in Latin America on M&A in 2017: the Brazilian energy sector alone received US$ 14.5 billion more from the State Grid Corporation of China and the State Power Investment Corporation

Chile

 ~ Acciona announced it will build 400 Mw in projects (wind and solar) in Chile during the next 3 years. The company will begin construction in 2019

 ~ Gasco will invest US$ 86 million in gas projects

Colombia

~ Colombia declared it will host its first floating PV project (100 Kw). The floating solar array will be deployed at the water reservoir of Peñol-Guatapé, which is owned and operated by local energy and telecommunications utility, Empresas Públicas de Medellín (EPM)