GDF SUEZ wins power contracts for 535 MW in Brazil New Energy Auction
GDF SUEZ, through its subsidiary Tractebel Energia, has been successful in securing Power Purchase Agreements for three projects in the New Energy Auction that took place in Brazil on Friday, 28 November. The thermal, wind and biomass power projects that succeeded in the auction represent a total capacity of 535 MW.
The Group will build the 340 MW Pampa Sul thermal power plant, located in the South of Brazil. The plant will be fuelled by mineral coal mined from local reserves and will use Circulating Fluidized Bed (CFB) technology. The energy from the plant will be sold through a 25-year Power Purchase Agreement. The plant is expected to enter commercial operation in 2019. Tractebel Energia will invest approximately BRL 1.8 billion (570 million Euro) in the construction of the plant, which has a potential to increase its installed capacity to 680 MW in the future.
GDF SUEZ will also build 330 MW of the Campo Largo wind complex, located in the Northeast of Brazil. 180 MW will be sold through a 20-year Power Purchase Agreement. An additional 150 MW will be constructed for energy sales into the free market. Commercial operation is expected in 2019 with an estimated total investment of BRL 1.7 billion (540 million Euro).
In addition, GDF SUEZ will expand the existing 65.5 MW Ferrari sugarcane biomass plant by 15 MW. The power from this extension will be sold through a 20-year Power Purchase Agreement. Tractebel Energia will invest circa BRL 85 million (27 million Euro) to expand and modernize the plant.
Gérard Mestrallet, Chairman and CEO of GDF SUEZ commented “These projects represent a good strategic fit for Brazil and are in line with GDF SUEZ strategy. The Pampa Sul thermal Power Plant will contribute to the security of supply in Brazil, particularly in times of drought when hydropower generation can be reduced. The Campo Largo and Ferrari projects will further diversify the Group’s power portfolio”.
GDF SUEZ, a major energy player in Brazil
GDF SUEZ, through its 68.7% subsidiary Tractebel Energia, is the largest independent power producer in Brazil, representing approximately 7% of the country’s total installed power generation capacity. 87% of the 8,750 MW capacity is from renewable resources. GDF SUEZ is currently also constructing Jirau, a major 3,750 MW hydropower plant located on the Madeira river, in the State of Rondônia. The project, which will produce clean and renewable energy to meet the electricity demand of 10 million Brazilian households, was registered with the United Nations under the Clean Development Mechanism. The Group is also present in energy related services and has been supplying the Brazilian market with LNG since 2012.
GDF SUEZ develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take up today’s major energy and environmental challenges: meeting energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: independent power production, liquefied natural gas, renewable energy and energy efficiency services. GDF SUEZ employs 147,400 people worldwide and achieved revenues of €81.3 billion in 2013. The Group is listed on the Paris and Brussels stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20).