Chinese electricity company SPIC (State Power Investment Corporation) has announced an investment of 780 million reais ($147.41 million) for the construction of two new wind power farms in Northeastern Brazil.
This strategic move aims to diversify SPIC’s portfolio and propel the company into the ranks of Brazil’s top three energy generators, Adriana Waltrick, CEO of SPIC’s Brazilian unit, revealed in an interview with Reuters.
The new wind farms, located in Rio Grande do Norte state, will boast a combined installed capacity of 105.4 megawatts (MW). The energy generated will be sold on the free energy market. Construction is slated to commence by January 2025, with operations expected to begin the following year.
This week, SPIC also inaugurated new solar parks in Piaui and Ceara states, contributing a total of 738 megawatts-peak (MWp) of power. SPIC holds a 70 percent stake in these parks, having acquired them from Recurrent Energy in 2022. Recurrent Energy, a part of Canadian Solar, remains a shareholder and continues to operate the project.
The solar plants received an investment of 2 billion reais, with all the energy produced destined for the free energy market. Approximately 65 percent of this energy has already been sold under long-term contracts, while the remaining 35 percent will be negotiated under shorter-term deals.
“These projects demonstrate the appetite we have for Brazil and for renewable energy sources,” stated CEO Waltrick. SPIC currently has around 3,800 MW of installed capacity in Brazil, solidifying the country as one of the company’s priority markets.
SPIC is also anticipating updates from the Brazilian government regarding planned energy auctions for this year. The company has expressed interest in participating in potential bids for new hydroelectric plants, should the government decide to revive such projects, Reuters news report said.
In addition to wind and solar projects, SPIC is conducting studies on the production of green hydrogen in Brazil, associated with the installation of offshore wind turbines.