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

The top headlines from July 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

• Senvion announced it has secured an agreement to supply wind turbines to Total Eren (Argentina). The capacity of the project (Vientos Los Hercules) is 50.4Mw

Investment

• FMO extended a US$26 million long-term loan to Genneia for two wind farms (Villalonga  and Chubut Norte)

Auctions

• The Ministry of Energy launched a bid round for a US$750 million hydroelectric project (70 Mw, El Tambolar) in San Juan. The project will take 5 years to complete.
• The Undersecretariat for Renewable Energy signed four contracts for winners of the RenovAr 2 auction (210.32 Mw ni total) – one wind, one biomass and two biogas plants
• (not an official statement) Argentina will hold off-shore natural gas auctions in August 2018

Politics

• BNDES said it would suspend the auction for electricity distribution planned by utility Centrais Eletricas Brasileiras. The reason being a court ruling blocking the sale.
• The Ministry of Energy allowed four PV facilities (112 Mw) to receive financial assistance from the Incentive Regime for Infrastructure Development (REIDI). The approximate total cost is US$142.9 million. The REIDI provides tax incentives to investors in infrastructure.
• Aneel approved six of Enel’s wind power plants (172 Mw) so they were able to start commercial operations. The regulator also gave the green light to four RE power plants (109.98 Mw) to start operating. The companies that benefited were:  Lajari Energetica (hydropower) and Engie (three wind farms, Campo Largo)

Business

• Enel has hired Rothschild & Co to sell two solar farms (450 Mw) and a wind farm (90Mw) in Bahia and Piaui respectively.
• Petrobras signed a MOU with Total Eren to invest in solar and on-shore wind projects in Brazil.

Investment

• Faro Energy received certification (Bureau Veritas) for a Green Bond for solar energy in Brazil. The company will be using the resources to finance DG solar power projects across the country.

Business

• Envision partnered with Bow Power to develop wind projects in the country. Energia Renovable de la Peninsula (JV – Envision and ViveEnergia) closed three PPAs with CFE during the 1^st and 2^nd RE auctions.
• DKRW Energy and AECOM announced that they plan on building an LNG plant in Sonora (Puerto Libertad). The project will source gas from USA and will allow shipments to reach Asia without going through the Panama Canal.

Investment

• In Sonora, Acciona and Tuto Energy signed a financing agreement (US$264 million) for their Puerto Libertad PV farm (404 Mw). Financiers involved are: NADB, Banobras, Instituto de Crédito Oficial of Spain (ICO) and Banco Sabadell.

Politics

• SENER announced that it expects up to 750 Mw of additional geothermal power generation capacity but did not determine a deadline.

• Sterlite announced it plans to invest US$4 billion in Latin America. At least US$2 billion of the investment will be allocate to 23 substations, transmission lines and transformation capacity.
• EDP Energias do Brasil reported 8,5Gw in sales during the first half of the year. Interestingly, the most significant increase in their portfolio was Mexico (+36%, 386 Gw). Generation in Brazil rose by 34% (420 Gw).

Colombia

• Empresa de Energia del Pacifico communicated that it will issue green bonds to finance non-hydro RE generation. IFC and Colombia's National Development Bank (FDN) committed to acquiring green bonds to the value of US$146.5 million.
• JinkoSolar announced that it will supply 86 Mw of solar modules to Colombia's largest PV plant – El Paso Solar.
• Celsia announced the company will be issuing green bonds worth US$145 million to finance its solar PV project's pipeline.

Peru

• Enel opened its largest wind farm In Peru (132 Mw). The project is worth US$165 million and is the result of a PPP between the Ministry of Energy and Enel Peru.

Bolivia

• The Government of Bolivia declared that the country is ready to sell more gas to Argentina, but at a higher price. The reaction comes after Argentina – Chile negotiations to trade gas at higher prices than those traditionally established for Bolivian gas.

Uruguay

• In June, Uruguay recorded that its demand for electricity was completely covered by RE. The UTE said the country’s covered needs reached a record 2,063 Mw.

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