Brazil's National Development Bank (BNDES) has agreed to lend Renova Energia R$1.044 billion (US$465 million) to finance the 386.4MW Alto Sertão II wind complex in northeastern state of Bahia, Brazil.
The 16-year loan had been approved by Renova's board of directors on May 29 and later by the BNDES on June 3.
The 16-year, US$465 million loan to Renova Eolica Participacoes SA has a grace period of six months after the wind farm starts operations, which will happen in 2014.
The project involves the design, build, finance, own, operate and maintenance of the wind farm. The PPA is for a period of 35 years. The total investment is estimated at US$717 million.
Renova Energia begun construction of its 386MW Alto Sertão II wind complex in 2012 after winning contracts to sell energy in government auctions in 2010 and 2011. The company already has a complex of wind farms known as Alto Sertao I, a US$536 million 293.6MW wind farm that features 14 wind power plants.
Alto Sertao I is scheduled to begin operations soon with delays.
In early december 2012 Renova signed a contract worth US$394 million for 230 General Electric 1.68-82.5 wind turbines. All 230 turbines have a 10-year operating contract, which will be managed from GE’s services center.
The Alto Sertão II wind farm involves the development of 15 parks with a total installed capacity of 386.4MW, enough to supply power for a city of 1 million people. The Alto Sertão II wind farm is located in the southeast of Bahia state, in Brazil.