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

The top headlines from June 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

o   Genneia closed the financing of 78Mw in two wind projects. The total amount of investment was US$ 131 million, sponsored by EKF, FMO, CAF and SMBC
o   Equinor acquired its first solar project in Argentina. The company signed an agreement with EPC Martifier to acquire 50% of Guanizul 2A
o   YPF created YPF Luz, a newly branded Generation company to lead Argentina’s electricity growth. General Electric acquired 25% of YPF Luz’s stake

Business

o   Votorantim closed a Joint Venture with CPPIB to invest in renewables in Brazil. The companies are looking into the portfolio of Centrais Eletricas Brasileiras
o   Eletrobras approved the sale of assets valued at US$ 766 million: 970 MW of wind projects and 1,000 km of transmission lines
o   Siemens and Neoenergia (Iberdrola) signed the largest wind deal in the history of Brazil. The technology company will supply Neonergia with turbines for a capacity of 471Mw
o   Nordex also confirmed it will supply the Furnas wind project (Ceara) with 123Mw of capacity
o   Poyry and Vientos Solutions were contracted to develop a 16Mw PV power plant in Bahia
o   Total Eren received the green light to acquire 90Mw of solar projects in Sao Paulo

Investment

o   State Grid Corporation of China reported that it will invest US$ 37.5 billion in Brazil's energy sector within the next 5 years

Auctions

o   Cemig bought 431Mw (wind and solar) under a 20-year PPA during its own auction. The total capacity auctioned earlier this month was 1.2Gw

Business

o   EnerAB (AES Corporation and Grupo BAL) ordered turbines from Vestas for a capacity of 306Mw
o   Soltec announced it will deliver trackers for PV projects in Mexico. A portfolio totalling 90Mw
o   BMW and Invenergy contracted a PPA each from Von Wobeser. The total investment for Von Wobeser was US$ 415 million
o   GES announced it is building a 244Mw wind farm in Mexico
o   Enbridge started the planned construction of a natural gas pipeline between Mexico and the United States. The project will transport 2.6 billion cubic meters per day.  The development of the pipeline is crucial for Mexico’s increasing power needs
o   Compañía de Electricidad Los Ramones (Invenergy) concluded a 15 years PPA  (US$ 250 million) from Cenace
o   Hidrosina opened a 100% solar-powered station, developed by Bright.

Investment

o   IDB Invest communicated it will finance X-Elio’s PV solar plant in Mexico (60Mw). The value of the transaction is US$ 37 million
o   Cenagas and Engie informed it will invest US$ 86 million in gas infrastructures in Yucatan’s province. Cenagas investment will be utilized for compression stations and Engie’s investment will focus on gas pipelines

Politics

o   Mexican authorities announce they will lift 15% customs duties on solar module imports, which the RE industry has celebrated

Colombia

o   Brookfield closed the financing of Gas Natural Fenosas’s business in the country.  Bookrunners, Scotiabank and SMBC were behind the capital raising  (half in US$ and half in Colombian pesos)

Chile

o   Lipigas continued to see losses in Peru and Colombia. The Chilean LPG company is suffering the increasing interconnectivity of Peru’s gas market
o   ENAP articulated the gas export framework that will allow Chile to export gas to Argentina by the end of 2018. The agreement established the conditions for the supply of hydrocarbons during the winter months in the next 3 years