China’s SPIC invests $147 million in Brazil wind farms, launches solar parks

Chinese electricity company SPIC announced on Wednesday a 780 million reais ($147.41 million) investment in construction of two new wind farms in Northeastern Brazil, while making its debut in the country’s solar sector, with two large parks beginning operations.

The company is diversifying its portfolio and aiming to become one of Brazil’s three largest energy generators.

SPIC’s new wind farms, to be built in Rio Grande do Norte state, will have a combined installed capacity of 105.4 megawatts (MW) to be sold on the free energy market. Construction work is expected to begin by January 2025 and operations should start in 2026.

New solar parks were inaugurated this week in Piaui and Ceara states, totaling 738 megawatts-peak (MWp) of power.

SPIC holds a 70% stake of the parks, which the Chinese company purchased in 2022 when they were under development by Recurrent Energy. Recurrent, formerly Canadian Solar, remains a shareholder and operates the project.

The solar plants received 2 billion reais in investments and all energy produced will be sold on the free energy market. Around 65% of the energy has already been sold under long-term contracts, and the remaining 35% will be negotiated under shorter deals.

SPIC has approximately 3,800 MW of installed capacity with assets in operation in Brazil, considered one of the company’s priority markets.

The firm is awaiting news from the Brazilian government about energy auctions already planned for this year and would also be interested in taking part in possible bids for new hydroelectric plants, should the government decide to resume such projects.

The Chinese giant’s projects in the country also involve studies into the production of green hydrogen associated with installation of offshore wind turbines, a generation technology already mastered by the company outside Brazil.