Why Atlas Renewable Energy is expanding its Brazil portfolio

Despite the challenging scenario for greenfield power generation projects, Atlas Renewable Energy is significantly expanding its installed capacity in Brazil. 

In this interview with BNamericas, the Miami-based company's general manager in Brazil, Luis Fernandez-Pita, explains why its projects remain viable and provides details of the plans.

BNamericas: Greenfield renewable energy projects are pressured by high inflation and interest rates, on the one hand, and low prices in the free market, on the other. How do you evaluate the economic viability of new ventures in this scenario?

Fernandez-Pita: Just two months ago we signed the largest PPA [power purchase agreement] in Latin America [with aluminum producer Albras], with a duration of 21 years. 

Raw materials are more expensive, interest rates are high, and the PLD [free market price index] is low, but companies also want to have sustainable energy, including to be able to develop green products. 

Another important aspect is that there’s demand for self-production of energy, which counts on benefits [tax breaks, for example], besides the possibility of closing PPAs in dollars. 

So, combining all these components, there’s viability.

BNamericas: With which companies has Atlas closed PPAs in dollars?

Fernandez-Pita: We were pioneers in this modality. We’ve signed deals with Dow Chemical, Anglo American and Albras. We really have an expertise in dollar-indexed PPAs.

In addition, we recently got the first disbursement from [development bank] BNDES in dollars.

BNamericas: What’s the status of Atlas' portfolio in Brazil? 

Fernandez-Pita: We have 2GW in operation and 1.3GW under construction that we expect to put into operation later this year. And we have a pipeline of 12GW wind and solar.

BNamericas: What is the expected growth of your installed capacity in the coming years?

Fernandez-Pita: We aim to double our installed capacity in the next five years, adding 3.5GW, always based on renewable energies.

BNamericas: How is the company positioning itself before the opening of the free market?

Fernandez-Pita: We’re developing new products, because there will be many clients with a different profile, and we want to be a relevant player in this market. Our intention is to serve medium and large consumers.

BNamericas: Has Atlas ever faced or does it face difficulties in gaining access for new generation projects to the transmission system? Is there such a bottleneck?

Fernandez-Pita: We follow this very closely. It’s one of the great challenges of the energy sector in Brazil. We try to implement our projects in areas where we assess there is a lower risk of not being able to connect.