BRAZIL’S WIND

Will Brazil take the lead on wind energy in the Americas? Blessed with a strong, consistent wind resource that rivals the blustery coasts of Europe and the United States, Brazil is on track to increase its wind energy capacity fivefold by 2013, further establishing the ethanol and hydroelectric giant as Latin America's green energy leader.
Bob Moser, 12 November 2010 (Wind Energy Update)

"For multinational firms…significant questions remain over the country's ability to solve logistical transport issues, develop a regional supply chain and spur public policy that will unleash a steady stream of investment. But with an estimated 350 GW of onshore capacity alone, combined with large unpopulated land areas and a coastline of 9,650 km, Brazil’s wind energy market is difficult to ignore.

"Northern Brazil is home to some of the most consistent easterly wind patterns in the world, which allow for the use of lighter turbines that cost less than those used in the US and Europe. Brazil's wind market nearly doubled its installed capacity between 2008 and 2009 by reaching 606 MW, and as of November this year, installed capacity has reached 864 MW, with another 250-260 MW under very accelerated construction."

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"The country's first wind-only energy auction last December was considered a success, despite the average price of BRL148.3 (US$88.01) per megawatt-hour being lower than expected. This opened the door for multinationals like Vestas, GE, Suzlon and Alstom to announce their own domestic manufacturing within the next two years (Enercon and Impsa already produce turbines in Brazil)."

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"A second energy auction in late August saw wind projects secure more contracts than Brazilian energy staples like small hydroelectric and biomass, though the average price of BRL134.2/MWh fell…Those auctions have placed 3.9 gigawatts of new wind capacity in the pipeline for 2012 and 2013…

"Brazil's deficient transmission grid portends initially high costs for investors and consumers, while poor road infrastructure implies similarly high logistics costs [and there is not yet an adequately trained workforce]…While significant infrastructure hurdles exist, the state and private sector are meeting these challenges head on. As such, Brazil looks set to rival world wind energy markets in the not too distant future."