BWEC 2016 is a high level conference covering the strategic policy issues supporting wind energy in Brazil and the investment drivers behind the Brazilian wind power industry. The focus on climate change issues at COP 21 in December 2015 has redirected the spotlight back onto renewable energy. Brazil was an influential participant at COP 21 and the Brazilian Government has made a major commitment to renewable energy, in partnership with the USA, which looks set to underpin investment in wind power. Climate change has been classed as a topic of “special interest” to both the US and Brazil:
The Brazilian Government has recognized the necessity for diversification of the energy mix due to over-dependence upon the hydro resources, which can become depleted during periods of drought. This goal is built into the US Brazil bilateral collaboration on renewable energy:
At a strategic level, two interconnected policy strands influence Brazilian Government policy towards wind power. These are:
The related policies driving these two strands – and the implications for investors in wind power in Brazil - will be explored at BWEC 2016.
Join us at BWEC 2016 to learn about the key factors driving the Brazilian wind industry
Climate Change Concerns
Brazil aims to participate actively in COP21 and therefore to embrace the global focus on wind and other renewable energy sources. Although the nation is already a low carbon producer of energy, this is due to an over-dependence upon hydropower – so other renewables, including wind power, are increasingly becoming the focus of attention.
“The best wind in the world”
Brazil has some of the best wind resources in the world and vast expanses of suitable locations for wind projects. This rich resource underpins not only the power generation investment opportunities, but also the opportunities for equipment manufacturing – especially equipment tailored to the unique Brazilian conditions.
Growing Demand for Energy
Economic growth and the expansion of the affluent middle classes is resulting in growing demand for energy, which Brazil’s existing infrastructure is insufficient to supply. Government targets and policy are designed to encourage investment in energy, including wind power.
Brazilian Energy Policy
Brazilian Government policy involves regular power auctions dedicated to renewable energy, including wind power. Winning projects secure a PPA (Power Purchase Agreement) for the supply of energy. The PPA is linked to inflation, thereby reducing the currency risk for international investors.
Brazilian Industrial Policy
Government support to wind power project developers in Brazil comes in the form of guarantees of reduced rate loans from BNDES (the Brazilian development bank) for projects awarded a PPA via the auction system – on condition that they use locally manufactured equipment. This policy has resulted in the emergence of a thriving local manufacturing industry, which is now turning its sights to the export market.