SunEdison (NYSE: SUNE) has partnered with Renova Energia S.A. to develop, own, and operate more than 1 gigawatt of utility scale solar power in Brazil.
The joint venture will see 106.9 megawatts of solar PV installed by 2017 as part of contracts awarded by the Brazilian Energy Commercialization Authority.
The company will provide SunEdison solar panels and trackers for the projects, which will be assembled in Brazil. Financing of the solar plants will be provided by the Brazilian Development Bank (BNDES).
“We are proud to partner with Renova, the most innovative and respected renewable energy company in Brazil,” said Jose Perez, SunEdison president for Europe, the Middle East and Africa and Latin America. “Aligning the best partners, financiers, and products in a joint venture like this ensures cost competitive, clean energy for the local utility. This agreement reinforces our leading position in Latin America.”
Renova Energia S.A. is Brazil’s largest renewable energy company, focusing on wind energy generation, solar power and small hydroelectric plants.
“This opportunity to enter the solar energy market has been two years in the making, and we’re excited to see the tremendous support from the Brazilian local and state authorities in developing this and other opportunities for utility scale solar, said Mathias Becker, President of Renova.
Brazil is the 10th largest energy consumer in the world and the largest in South America. The nation is no stranger to renewable energy, which accounts for the majority of domestically produced power. Around 90% of its electricity is generated by hydropower.
However, solar is a relative newcomer to Brazil. Less than 17 MW capacity had been installed by the end of 2012; yet Brazil has solar resources in abundance, ranging from 4.25 to 6.5 sun hours/day.
Solar’s prevalence in Brazil is set to grow rapidly now it has adopted a full regulatory framework to support the technology.
“The Brazilian solar opportunity is only just getting started, but has the potential to be gigantic, on the order of tens of gigawatts by the middle of the next decade,” said Bloomberg New Energy Finance’s Michel Di Capua earlier this month.
Wind power is also set to play a major role in the country’s energy mix. The Brazilian Wind Energy Association and the government have their sights set on attaining 20 gigawatts of wind energy capacity by 2020. The nation had 5 gigawatts capacity by the middle of this year.
