Developer AES Brasil has agreed to buy nearly half of Renova Energia’s 620MW Cordilheira dos Ventos wind complex in the north-east of the country for an undisclosed sum, Renova has said.
The deal covers the planned Facheiro II, Facheiro III and Labocó wind projects, all located in the state of Rio Grande do Norte and which are due to have a combined installed capacity of 305MW.
It is the first sale by Renova of a future project as part of the recovery plan approved by Sao Paulo’s Second Bankruptcy Court in December 2020. Funds raised will be used to pay down debts with power firm Cemig and banks BNDES and Citibank. They will also be used to provide working capital.
“We are fulfilling our plan to reduce indebtedness and strengthen the company's cash position,” said Renova CEO Marcelo Milliet.
However, before the deal can close, Renova is required to carry out a competitive tender for the Cordilheira dos Ventos complex in March at which third parties can bid for the project although AES will retain the right to match their offers.
Renova said it has 6GW of onshore wind capacity under development through north-east Brazil, and 12 wind farms with 3.6GW of capacity which have already been granted environmental licences. The company plans to sell part of this portfolio while developing the rest itself.
The company is currently preparing to begin commercial operations at its 432.7MW Alto Serão III - Phase A wind complex in Bahia. It plans to use cash flow from the project to pay down debts totalling BRL 2 billion (US$372 million) over the next decade.
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