Casa dos Ventos closes energy sale to Tivit and advances R$2.4 billion wind project

Casa dos Ventos, one of the pioneers and largest investors in the development of wind projects in Brazil, signed a long-term renewable energy purchase and sale agreement with TIVIT, a Brazilian multinational digital solutions company, to supply wind energy to its 30 offices and four data centers spread across the country. The agreement provides for the supply of the company's entire electricity demand starting in 2022 through the Rio do Vento complex, located in Rio Grande do Norte.

With an installed capacity of 504 MW and an investment of R$ 2.4 billion, the Rio do Vento wind complex is made up of eight Special Purpose Entities (SPEs), which allows for the negotiation of contracts in the free market with companies of different sizes and sectors. In addition to energy supply, consumers also have the option to become shareholders of the SPE, becoming self-producers and further reducing their total electricity cost. "It works like a large condominium, where several companies benefit from the economies of scale of the project as a whole," explained Lucas Araripe, New Business Director at Casa dos Ventos. In this way, the executive highlights, Casa dos Ventos aims to facilitate access to wind power and the self-production model for non-energy-intensive companies.

"We brought unprecedented innovation to the Free Contracting Environment (ACL) when we customized the Rio do Vento parks to the different needs of our clients. We innovated by offering a privilege that was restricted to large consumers who could invest in their own plants and become self-producers. In our case, the client has the option to become a self-producer, with mitigated construction and operation risks and benefiting from the scale we brought to the complex," states Araripe.

"Rio do Vento is a unique project. The winds blowing in the region are intense and constant, a climatic characteristic that allows us to work with much more competitive contracts and tariffs with our clients." The predictability of tariffs in long-term contracts is also an attraction for companies, which protect themselves from price volatilities," he adds.

In addition to TIVIT, the Brazilian wind project developer recently signed a partnership with Vulcabras Azaleia, valued at R$ 150 million, which provides for the supply of 7 MW for the footwear company's operations. According to the company, the agreement is expected to provide electricity cost savings of approximately 25% over the contract term when compared to 2019 costs.

Rio do Vento features 120 V150-4.2 MW turbines from Danish Vestas, a world leader in wind turbine manufacturing, and is located in the municipalities of Caiçara do Rio do Vento, Riachuelo, Ruy Barbosa, and Bento Fernandes. Commercial operation of the complex is scheduled for the second half of 2021.

Casa dos Ventos' venture is also preparing for expansion. The Rio Grande do Norte wind complex will become one of the largest in the world by doubling its capacity. In addition to the duplication, the company is studying its hybridization, combining two clean and renewable sources: wind and sun. "In the second phase of Rio do Vento, we will leverage the entire structure of the first phase and have 1 GW in a single, more competitive cluster with optimized operation," concluded Araripe.

In addition to Rio do Vento and its expansion, the company is developing another 350 MW project in Bahia, also targeting long-term corporate contracts.

The viability of renewable projects through corporate contracts is a proven trend in Brazil. A large number of companies are gradually acquiring renewable energy, seeking sustainable development and the decarbonization of their activities. According to a report by Bloomberg New Energy Finance (BNEF) consultancy, in 2019, active corporate clean energy supply jumped 384% in the country, reaching 640 MW. Approximately one-fifth of this volume was the contract signed between Casa dos Ventos and the mining company Vale last year. "In addition to the growing trend of companies with sustainability goals and the implementation of actions towards energy transition to mitigate the consequences of climate change, the cost of wind power has reached a level where this alternative is already the best from an economic point of view as well," concluded Araripe.

Casa dos Ventos is one of the pioneers and largest investors in the development of wind projects in Brazil. With over ten years in the market, it is responsible for developing the largest number of projects that have commercialized energy in regulated auctions and in the free contracting environment in the country. In addition to having developed approximately 30% of all projects under implementation or operation in the country, the company holds the largest portfolio of wind projects in Brazil. The company's wind projects are located in Ceará, Rio Grande do Norte, Pernambuco, Paraíba, Bahia, and Piauí.