Far from the nearest flight to Denmark, 21 wind turbines from Vestas are providing renewable energy to the Brazilian grid. The Ouro Branco and Quatro Ventos wind complex has been built by European Energy and is located in the Brazilian state of Pernambuco.
Originally, IFU provided loan financing of EUR 17 million through Denmark’s Green Future Fund, set up by the Danish government to support the green transition in Denmark and abroad. Ouro Branco and Quatro Ventos was the first project to receive financing from the fund, part of which is manged by IFU.
Providing additional loan financing
Due to larger than planned capacity, delays caused by the Covid pandemic, and the global disruption of supply-chain caused by Suez Blockage IFU has provided additional financing of EUR 7 million securing financial sustainability for the project, going forward.
“Our efforts in Brazil not only supports the green transition in the country, and the Brazilian government’s goals of having more renewable energy into the electricity mix but also supports growing the local economy in country. We are happy that additional financing has been secured for the project with the help of IFU.”
Thiago Arruda, Director and Head of Latin America at European Energy.
Originally the windfarm was set to include 21 wind turbines of 4,2 MWp but ended up with bigger winded turbines of 4,5 MWp. The bigger wind turbines produce more energy but needs more space, thus causing the need for an expansion of the site’s capacity.
The wind farm now produces around 400 GWh annually and is expected to reduce CO2 emissions by more than 2.2 million tonnes during the first 20-year lifetime of the project.
Transition to wind energy
By introducing additional wind power, Brazil will be less dependent on hydropower supply that is vulnerable to drought and low water levels becoming more normal due to climate change.
“Ouro Branco and Quatro Ventos wind complex is an important project supporting the green transition in Brazil and securing more reliable power supply also in one of the poorer regions of the country. We are pleased to assisting financing Ouro Branco and Quatro Ventos wind power making it a sustainable and high value project.”
Natalia Svejgaard, Investment Director at IFU.
The installation of the wind farm has also had a positive impact on the local community by providing new jobs and increasing local economic activities. IFU has supported a local project promoting the empowerment of women through a grant from IFU’s Sustainability Facility.