Advance towards the goal of 100% self-production of clean energy by 2030 with predictability and without assuming the risks of constructing new assets
Vale had a strategy to achieve 100% self-production of clean electricity in Brazil by 2030. At the time of the agreement, about 60% of all energy consumed by the company in the country already came from self-production, from renewable sources — Vale owned or operated in partnership with ten hydroelectric plants, three small hydroelectric plants and one wind farm in Ceará.
The mining company sought to take another step in this strategy, with a model that offered predictability in a country with high energy price volatility — and, in the future, the possibility of becoming a shareholder in a new generation asset, without assuming the risks of construction and operation of the venture.
23-year bilateral PPA for the Folha Larga Sul Wind Complex, in Campo Formoso (BA), with R$ 750 million invested by Casa dos Ventos
Casa dos Ventos, one of the pioneers and largest investors in wind projects in Brazil, signed a long-term energy supply contract with Vale S.A. for the Folha Larga Sul wind farm, in Campo Formoso, Bahia. With an installed capacity of 151.2 MW, the project had its energy contracted for 23 years — the longest term ever secured by a wind farm in the country at the time. The entire investment in the plant, of R$ 750 million, was the responsibility of Casa dos Ventos.
The contracting model, a bilateral PPA, allowed Vale to negotiate directly with the generating company. The agreement also provided for the possibility of Vale becoming a partner in the project in the future.
Today, about 60% of all the energy we consume in the country is self-produced, coming from renewable sources.
Says Alexandre Pereira, Executive Director of Business Support at Vale.
The Folha Larga Sul project features 36 state-of-the-art Vestas turbines. Construction began in April of that year and was supported by one of the first financings contracted with Banco do Nordeste (BNB) for the free market.
Folha Larga Sul is the company's first project with BNB financing, demonstrating the bank's strong support for the sector and the evolution of support conditions for the new commercialization reality.
States Ivan Hong, CFO of Casa dos Ventos.
23 years, 151.2 MW, and R$ 750 million invested by Casa dos Ventos
- 151.2 MW of installed capacity at the Folha Larga Sul wind farm;
- 23 years of contracted energy — the longest term ever secured by a wind farm in Brazil, at the time;
- Direct progress towards Vale's goal of 100% self-production of clean energy by 2030;
- One of the first sector financings contracted with Banco do Nordeste for the free market.
We developed a tailor-made model, where we are responsible for the construction and operation of the venture, with our partner having the possibility, in the future, to become a shareholder of the asset, generating their own energy in the self-production modality.
Says Lucas Araripe, Executive Director of Casa dos Ventos.
