Brazil: Harnessing the winds of change

Pacific Hydro aims to become the leading generator of wind energy in Brazil over the next five years.

Since entering the market in 2006 with the purchase of SES, Pacific Hydro has moved quickly to build a wind power business in Brazil and establish a presence on the wind-rich northeast coast.

The Brazilian economy - the 10th largest in the world - is experiencing considerable growth due to strong domestic demand, as well as international demand from China and India for the country's mining and agricultural products.

To keep up with this growth, electricity generation capacity will need to double by 2025, requiring US$250 billion of investment. (Source; www.bnamericas.com)

With demand is predicted to outstrip supply, the Brazilian Government has introduced measures to encourage investment in new clean energy generation - particularly wind power - that can be delivered quickly, cost-effectively, and deployed in regional areas.

Pacific Hydro completed construction of its first project in Brazil, the 10MW Millennium Wind Farm in November 2007.  Located in the state of Paraiba in the northeast of the country, the A$50 million project avoids the emission of around 4,600 tonnes of greenhouse gas pollution each year. The project has a 20-year power purchase agreement with government-owned power company Eletrobrás.

Our second wind project, the 48MW Vale dos Ventos Wind Farm, is commissioned in March 2009. Located near the Millennium Wind Farm, the project comprises 60 Wobben (Enercon) wind generators. Each year we estimate it will save up over 17,000 tonnes of greenhouse gas pollution.

In addition to the 389MW of potential development projects we have identified in the northeast of Brazil, Pacific Hydro will also explore opportunities to invest in both greenfield and operating hydro power projects.

Pacific Hydro's construction projects are managed from our project office in Natal, in the northeast of Brazil and from our recently established corporate office in Sao Paulo, which will serve as an important base from which to identify and assess further clean energy opportunities in Brazil.

Our Aim

To be the largest wind power generator in Brazil

400MW

To have a geographically diverse portfolio of more
than 400MW of wind projects operating by 2013

A$1.1B

Up to A$1.1 billion of capital investment
in new projects by 2013