Portugal's EDP Renewables has agreed a 15-year power purchase agreement (PPA) through its subsidiary in Brazil. With this, the company is able to guarantee the viability of the construction of its Monte Verde solar power plant, which will have a capacity of 209 MWac, the company said in a statement on Monday.
The Portuguese company announced the start of the concession granted by the Brazilian government, which will allow the company to strengthen its position as a transmitter and distributor of energy in Brazil, after guaranteeing its viability of connection to the country's interconnection system.
"With the investment in this project we are moving towards our goal, announced in the 2021-2025 Strategic Plan, to increase the size of our solar park in Brazil by more than 25 times compared to 2020," EDPR Brazil president Joao Marques da Cruz announced in the statement.
The Monte Verde solar plant will be built in the municipalities of Pedro Avelino, Lajes and Jandaíra, in the state of Rio Grande do Norte (northeast) and is expected to be operational by 2024. In doing so, EDPR and its Brazilian subsidiary will create the largest solar plant in Brazil and the first of its kind to operate on a large scale.
The solar park will have seven plants, for which a first projection of around 567 million reais (around 86 million euros) is estimated, although the company has not yet provided official figures.
EDPR is increasing solar generation capacity in Brazil to 310 megawatts, one third of the company's target of one gigawatt by 2025.
The Portuguese company, thanks to this new project, will reach a global capacity of 2.7 gigawatts of solar power, meeting progress towards the global target of 7.4 gigawatts by 2025.
The company represents one of the largest private groups in the Brazilian electricity sector and currently has 3.5 million customers in the states of São Paulo, Espírito Santo and Santa Catarina. Its success is due to the various PPAs it has been able to sign, making it a low-risk company that bases its growth strategy on long-term projects.
The Brazilian subsidiary recently inaugurated its largest project to date, with the creation of a 252 MW solar complex in the state of Sao Paulo.
The rapid adoption and deployment of solar power in Brazil has enabled the country to increase its generation capacity to 10.8 GW, avoiding the emission of 12.4 million tonnes of carbon dioxide over the last ten years.
Latin America Coordinator: José Antonio Sierra