1.0 Executive Summary
Industry Overview:
Brazil’s energy market is robust, with hydropower dominating at over 60% of electricity supply, supplemented by thermal, wind, and solar sources. Government policies promote renewable energy, creating a competitive market for private companies.
Project Overview:
The project involves developing a 160 MW wind energy complex in Brazil’s Ceará/Rio Grande do Norte region, with plans for broader expansion. It is a partnership with a Brazilian firm boasting 70 years of energy engineering experience.
Financing:
Seeking $320 million to fund Project Icapui, a wind farm with a 20-year Power Purchase Agreement (PPA) with Tradener at a minimum $40/MWh (inflation-indexed).
2.0 Project Overview
Project Icapui: A 160 MW wind energy complex in Northeast Brazil, to be developed by a Brazilian entity established upon funding.
Key features include:
01
LAND
Secured via 30-year leases (renewable for another 30 years).
02
CAPACITY
594,216 MWh/year, with a capacity factor of 0.59 (P50).
03
PPA
20-year agreement with Tradener, with flexibility to sell to higher-paying buyers.
04
CONSTRACTION
24-month timeline, managed by an experienced Brazilian EPC firm with a 30-year track record and 1,600 MW delivered.
05
Grid Connection
10.12 km of 69 kV transmission line to the national grid.
06
Financials
Projected $1.348 billion in free cash flow over 30 years, with equipment rated for 45+ years (depreciated at 30 years).
07
Sustainability
Reduces CO2 emissions, supporting Brazil’s clean energy goals.
Location: Ceará/Rio Grande do Norte, known for favorable wind conditions, agricultural economy, and tourism (e.g., Jericoacoara National Park).
Two-Year Objectives:
- Secure funding and contractors, complete construction on schedule.
- Achieve full operational capacity and seamless energy delivery.
- Establish a strong presence in Brazil’s renewable energy market.
Keys to Success:
- Experienced management leveraging Brazilian government PPAs.
- Partnership with a Brazilian firm for local expertise.
- Global financing and talent acquisition capabilities.
- Modern management tools for real-time oversight.
- Strong ESG focus supporting local communities and sustainability.
Challenges: Reducing emissions and improving efficiency.
3.0 Industry OverviewBrazilian Energy Sector
01
SIZE
Valued at ~$103 billion in 2020, with hydropower ($23 billion), wind ($2.7 billion), and solar ($370 million).
02
GROWTH
Installed capacity grew from 118 GW (2011) to 173 GW (2020), with wind and solar CAGRs of 21.8% and 47.6%, respectively.
03
WIND ENERGY
Accounts for >10% of electricity, driven by Northeast winds, government programs (e.g., PROINFA), and a domestic turbine industry. Brazil ranks 6th globally, with >700 GW potential.
04
FUTURE
The 2027 Energy Expansion Plan targets 28% non-hydro renewables.
4.0 Competitor Analysis
Key players include:
CPFL Energias Renováveis:
GW (wind, solar, hydro).
Omega Geração:
1.5 GW (wind, solar).
Casa dos Ventos:
5 GW pipeline (wind, solar).
Enel Green Power:
1 GW (wind, solar, hydro).
EDP Renováveis:
1.4 GW (wind, solar).
AES Tietê:
3 GW (hydro, wind, solar).
5.0 Project Plan
MILESTONES
Mobilization, land preparation, construction of roadways, offices, maintenance facilities, transmission lines, turbine foundations, microgrid, and turbines.
Operation and maintenance of the energy complex.
SCHEDULE
24-month construction timeline starting in Year 1.
TECHNICAL ASPECTS
TURBINES
16 Kohilo Cyclone Vertical Axis Turbines (8 MW each, 180 m hub height), bird/bat-friendly, low-noise, producing 594,216 MWh/year. Capable of generating electricity and hydrogen, with a cut-in speed of 1.5 m/s and cut-out at 56 m/s.
SUB-PARKS
Ventos de Icapui (9 turbines, 72 MW) and São Felício (7 turbines, 56 MW).
GRIND CONENCTION
34.5/69 kV substation, 10.12 km transmission line to Mossoró IV.
ENVIRONMENTAL PERMISSIONS
Licenses valid until August 2026.
MANAGEMENT
Entity: A Brazilian company to be established in Brasília, with a regional office in Mossoró.
Leadership:
Chairman: Executive with 29 years of global project management experience.
Vice Chairman: Retired Major General with sustainability and energy expertise.
CEO: Engineer with 70+ energy projects, including work with the World Bank and Brazil’s Ministry of Mines and Energy.
6.0 Investment Program and Costs
Two-Year Objectives:
- Investment Program:
- Total Funding Required: $320 million, structured as 100% debt at 4.5% interest (adjustable to other debt/equity ratios).
- Use of Funds:
- Cyclone Vertical Turbines: $169,000,000
- Construction & Ancillary Items: $80,000,000
- Project Engineering: $11,000,000
- Technical and Business Infrastructure: $17,000,000
- Maintenance & Inventory Facility: $2,338,000
- Personnel Salaries: $1,470,000
- Office Expenses: $480,000
- Land Lease: $182,000
- Social Actions: $130,000
- Financial Consultant: $6,400,000
- Contingency: $32,000,000
- Financial Strategy: A 20-year PPA with Tradener ensures a minimum $40/MWh, with flexibility to sell at higher market prices. Tradener’s expertise in 500+ energy auctions enhances market access.
- Financial Projections (30 years, 100% debt at 4.5%):
7.0 Closing Remarks
- Project Icapui is a sustainable wind energy initiative contributing to Brazil’s clean energy goals. It leverages strategic location, advanced technology, experienced management, and strong financial projections to deliver clean electricity and foster a greener future.
- Annexes
- Wind Research Report
- Environmental License Ventos de Icapui
- Environmental License São Felício
- Leasing Agreement Ventos de Icapui
- Leasing Agreement São Felício
- Project Icapui Financial Overview
- Tradener PPA
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The Brazilian energy market is a vast and diverse sector, offering investment opportunities in both conventional and renewable energy sources. Hydropower is the primary source of electricity generation, accounting for over 60% of the country’s total supply. The remaining electricity is generated by thermal power plants and renewable sources such as wind and solar. The Brazilian government has implemented policies to promote the growth of renewable energy sources, creating a competitive market that allows private companies to generate, transmit, and distribute electricity.