Enel begins construction of 292-MW solar plant in Brazil
Solar farm in Brazil. Author: Otávio Nogueira. License: Creative Commons, Attribution 2.0 Generic.
Italian energy company Enel SpA (BIT:ENEL) said on Tuesday it has initiated construction work on the 292-MW Nova Olinda solar power facility in Brazil, which will be the largest such plant in Latin America.
The project will be executed in Ribeira do Piaui in Brazil’s north-eastern state of Piaui. Enel will use its own resources to finance the construction of the plant, the total cost of which is estimated at about USD 300 million (EUR 271m).
Once completed in the second half of 2017, the solar park will start selling its output to the Brazilian Chamber of Commercialisation of Electric Energy under a 20-year contract. The company won that power purchase agreement (PPA) in August 2015.
Enel Green Power Brasil Participacoes Ltda (EGPB) owns the project through four special purpose vehicles (SPVs). Overall, the subsidiary has 546 MW of installed capacity in Brazil, including 401 MW of wind and 12 MW of solar photovoltaic (PV). It is currently implementing 442 MW of wind, 102 MW of hydro and 807 MW of solar projects.