The ministry of mines and energy, Brazil, has expanded its National Incentive Regime for Infrastructure Development (REIDI) to include seven wind projects.
The projects of combined capacity of 182 MW represent investments to the tune of BRL 768.7 million ($232.2 million).
REIDI, which was launched in 2007, covers provision of tax incentives to companies investing in infrastructure projects within the transport, energy, sanitation and irrigation sectors.
Earlier this month, the ministry had authorized inclusion of the 13.5-MW EOL Unha d’Anta wind project in the REIDI program.
The five-turbine project is located in Caetite, Bahia state. It uses 2.7 megawatt turbines and is to cost BRL 57 million ($17.7 million). The project is expected to be completed by September 1, 2015.
Similarly, last month the Brazilian ministry had included the 29.7-MW EOL Santa Veronica wind project to enter REIDI program.
The wind farm sited in the municipality of Caldeirao Grande do Piaui, Piaui state, will have 11 turbines and would cost BRL 129.3 million ($419.9 million). The project is scheduled for completion by December 30, 2015.
And in April the Brazilian ministry had included a 22-MW wind project dubbed EOL Aura Mangueira VII in REIDI program.
The BRL 85.3 million ($27.5 million) project is to be built in Santa Vitoria do Palmar city, Rio Grande do Sul state, and will comprise 11 turbines.
The project is scheduled for completion by December 28, 2016.
Brazil has been promoting its wind energy assets in recent times. But the country faces headwinds as developers face higher costs for financing and equipment. It was evidenced when only 90 megawatts capacity was successfully bid for at a recent energy auction.
Developers fear shortage of wind turbines for the next few years, according to Helena Chung, a Sao Paulo-based analyst for New Energy Finance.
The increase in prices of imported components is a result of the fall in value of the Brazilian real. At the same time, Brazil’s development bank BNDES is raising interest rates, making it harder to finance new power projects.
The government had raised ceiling prices for renewable energy to compensate for the difficulties. The measures are hoped to help the country energize interest in wind projects.
Ajith Kumar S