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Company name

Santa Vitoria do Palmar

Project number

12009-02

Category A projects could result in potentially significant environmental and/or social risks and impacts, which are diverse, irreversible, or unprecedented that may extend beyond the boundaries of the actual project site or facilities. In principle, Category A includes projects which have significant impacts on protected or sensitive areas21 and/ or vulnerable groups.

E&S category
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A

Country

Brazil

Sector

Energy

Status

In implementation

Disclosed date

02/13/2017

Projected date at which a project will be put forward for the Board of Executive Directors’ approval.

Projected board date
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05/30/2017

Approval date

06/21/2017

Signed date

07/30/2018

Sponsoring entity

N/A

Investment Operations Department Contact

N/A

Investment type

Syndicated amount

N/A

Financing amount

USD $ 38,975,800

Currency

BRL

Project scope and objective

Santa Vitoria do Palmar wind power project (the “Project” or “SVP”) will add 207 MW of renewable energy to the Brazilian electricity system, thus directly supporting the Government of Brazil’s (“GoB”) priorities to ensure a stable long-term electricity supply and the diversification of its energy matrix with the expected addition of around 10 GW from renewable sources by 2018. The Project consists of the construction of 12 adjacent wind farms totaling 207 MW and its associated facilities in the state of Rio Grande do Sul, located in the South of Brazil.

 

 

The 12 wind farms of the SVP cluster had their energy contracted in the Leilão de Energia Proveniente de Novos Empreendimentos de Geração (New Energy Auction or “LEN”) auction A-5 of 2013 (10 of the wind farms) and A-3 of 2014 (2 of the wind farms). The Project will benefit from a 20-year R$ denominated power purchase agreement (“PPA”) at fixed average price of around R$124.5/MWh (~US$52.8/MWh) as of December 2013, indexed to inflation (IPCA, IGPM), signed with the system distribution companies (“DisCos”). The DisCos pay the generation companies through the Chamber of Electricity Energy Commercialization (Câmara de Comercialização de Energia Elétrica or “CCEE”- Electricity Clearing House) which is the institution that intermediates the energy contracts between the DisCos and the generation companies. Electrical studies were presented to the relevant authorities, which provided a favorable opinion to the Project´s interconnection specifications for the assigned node. The Borrower has entered into turn-key EPC contracts covering civil works, equipment and turbines from first-tier manufacturers and a long-term O&M contract for at least the life of the IDB Group loan. The Project has an estimated 22-month construction period, with construction having started by the third quarter of 2015. Wind resource has been assessed by AWS Truepower and Inova Energy based on a three year on-site wind measurements at 120m hub height. The Project has a capacity factor of over 50% and estimated annual energy production at P90 of 935 GWh/year, with expected 4,516 equivalent hours.

 

 

 

 

Transaction Structure and Financing Highlights. The estimated total cost of the Project is of up to R$1.3 billion, which will be financed through an IDB Group Guarantee for the debentures to improve their risk profile and pricing. It is estimated that the IDBG participation will amount of up to R$162 million. The financial plan will be completed with the participation of two local development institutions, as well as equity contributions for around 65/35 debt-to-equity ratio. The Project will be required to meet the customary debt sizing criteria applied to wind projects, DSCR 1.30x for P9010-years and 1.00x for P991-year. The IDBG Guarantee is expected to have a tenor of up to 12 years. The project will have the security package customary for this type of project finance transactions.

 

 

 

 

Development Impact. The Project will have positive developmental impacts, such as: (i) adding 207 MW of renewable capacity to the Brazilian grid and thus decreasing thermal and hydro generation reliance; (ii) reducing carbon emissions; (iii) assisting a growing private-sector company in the Brazilian power sector, positioned to promote the much needed consolidation of the market segment related to small and medium-sized renewable energy projects; and (iv) improving the sites’ local infrastructure and increasing local income.

 

 

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Environmental and social review

IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.

ENVIRONMENTAL AND SOCIAL REVIEW

33.5 Kb

ENVIRONMENTAL SOCIAL-REVIEW-ATLANTIC SVP.PDF

504.7 Kb

Client files

This section provides the key environmental and social assessment documents produced by the client for this project.

1.CAPA RAS FINAL PRIMEIRO 0.PDF

42.1 Kb

1.CAPA RAS FINAL SEGUNDO 0.PDF

42.1 Kb

1.CAPA RAS FINAL TERCEIRO 0.PDF

42.0 Kb

2.RAS FINAL PRIMEIRO 0.PDF

24.7 Mb

2.RAS FINAL SEGUNDO 0.PDF

24.2 Mb

2.RAS FINAL TERCEIRO 0.PDF

21.2 Mb

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Contact information

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Alternatively, you may also use the following contact information :

Client Contact

EMAIL

N/A

PHONE NUMBER

N/A

POST OFFICE ADDRESS

N/A

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

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