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The Neoenergia Renewable Complex Can Generate Enough Energy to Supply the Demand of 1.3 Million Households
Next Wednesday (22), Neoenergia will inaugurate the first Brazilian complex for renewable energy generation with associated energy storage. The Neoenergia Renewable Complex is a unique installation in the hinterlands of Paraíba, where Neoenergia Chafariz and Neoenergia Luzia’s wind and solar energies are combined. Through the Neoenergia Santa Luzia II substation and the respective transmission line, the parks are interconnected to the National Interconnected System (SIN). Approximately R$ 3.5 billion will be spent.
The Neoenergia Renewable Complex generates 0.6 GW of electricity, enough to power 1.3 million households annually. The synergy of the project between the assets of the wind and solar parks and the transmission line and substation makes it unprecedented in the country. This quality, derived from the complementarity of the sources, maximizes the utilization of the transmission network.
With this, Neoenergia meets the demand for the expansion of the SIN, expands its clean energy portfolio, reaffirms its commitment to innovative, efficient, and sustainable development in the Brazilian energy sector, and establishes itself as a leader in the expansion of market liberalization through the commercialization of energy produced in a deregulated market.
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The project exemplifies a holistic plan for the company. It sees the generation of energy from renewable sources integrated through smart grids as the most promising path for a more accessible and sustainable future. Ninety percent of the total installed capacity is already composed of renewable sources, thanks to the Neoenergia Renewable Complex. The CEO of Neoenergia, Eduardo Capelastegui, stated that the company is ready to meet the growing demand from the free market and provide a reliable and safe service to Brazilians. The administration also notes that national and international entities provided financing for the project.
This venture will complement the existing Neoenergia companies that serve all the electricity markets in Brazil. Neoenergia’s distribution network reaches 16 million homes and businesses in the Brazilian states of Bahia, Pernambuco, Rio Grande do Norte, São Paulo, and the Federal District.
About The Renewable Complex Ceremony
Executives from Neoenergia and Iberdrola (the Spanish company overseeing the venture), including Iberdrola’s CEO, Ignacio Galán, attended the launch event in the municipality of Santa Luzia (PB), located about 300 kilometers from the city of Pessoa. President Luiz Inácio Lula da Silva, First Lady Janja Lula da Silva, Paraíba Governor João Azevêdo, and Minister of Mines and Energy Alexandre Silveira were among the government authorities present.
The proposal by Neoenergia was praised on social media by President Luiz Inácio Lula da Silva. Santa Luzia, in the interior of Paraíba, has been transformed by “a renewable energy complex that uniquely blends solar and wind energy,” as he stated.
Ignacio Galán, CEO of Iberdrola, reaffirmed the company’s commitment to Brazil, saying: “Iberdrola and Neoenergia are, more than ever, dedicated to Brazil.” We intend to spend R$ 30 billion by 2025. And we will continue expanding at this pace until 2030 to keep serving you in the best way possible,” he assured.
The Neoenergia Renewable Complex “is just an example of what we can achieve in this country with this initiative,” said Minister of Mines and Energy Alexandre Silveira. To make better use of our National Interconnected System (SIN), our administration will increasingly promote this type of solution,” he continued.
Particularities of This Neoenergia Project
The Neoenergia Renewable Complex is distributed across the municipalities of Santa Luiza, Areia de Baranas, São José de Sabugi, and São Mamede in a leased area of 8,700 ha, of which only 14% is inhabited.
Founded in 2022, Neoenergia Chafariz has an installed capacity of 471.2 MW, composed of 15 wind farms and 136 wind turbines, representing the company’s first foray into centralized solar generation. According to the strategy for positioning in the liberalization of the Brazilian energy market, the generated energy will be distributed to the Regulated Contracting Environment (ACR) and the Free Contracting Environment (ACL).
This venture will complement the existing Neoenergia companies that serve all the electricity markets in Brazil. In the states of Bahia, Pernambuco, Rio Grande do Norte, São Paulo, and the Federal District, Neoenergia distributes electricity to a total of 16 million customers.
This Unique Project That May Have Other Precedents in the Future
A relatively new legislative development in the country, the notion of source hybridization and sector optimization includes the associated generation of various energy sources. The approval of Neoenergia’s project process by Aneel in the second half of 2022 made it a pioneer in Brazil.
With technological advances and the optimization of the transmission network, this plan aimed to maximize the resources of the wind and solar complexes. Together, the plant and the transmission line inaugurate a new approach to doing business that values the synergy between the two in terms of how they allocate resources and how effectively they produce results,” stressed Laura Port, head of the Renewables division.
Neoenergia had a solid year in 2022, with a profit of R$ 4.7 billion – 20% more than in 2021 – thanks largely to the success of its Renewables division. The profit from operations for the year was R$ 314 million, a 1,156% increase compared to the previous year. Additionally, the company’s solar and wind generation increased by 70%, reaching 3,934 GWh compared to 2021. Highlighting the strong performance of its data, the wind matrix recorded a gain of 66.15% at the year-end, or 3,843 GWh. At that time, the solar panels produced 91 GWh of energy.
Operation of the Renewable Complex
The substation and the 345-kilometer transmission line will provide reliable connection to the grid. Working together, the two renewable energy sources can be better managed, costs reduced, and their entire potential, including the transmission system, can be utilized. We can ensure a stable grid using renewable energy sources for power generation. Therefore, expanding transmission is essential to enable the flow of this energy and keep pace with the speed at which the energy transformation must occur,” explains Flávio Machado, president of Neoenergia Network Company. Bravery and Initiative
Neoenergia has a successful track record in completing projects that utilize renewable energy. The company has been at the forefront of renewable energy sources in Brazil since it was one of the first to install onshore wind farms in Rio do Fogo (RN), operational since 2006. The company has also been signing contracts for the development of new technologies, such as offshore wind.
Neoenergia also plans to invest in the expansion of new technologies and in the decarbonization of the economy. Along with the expansion of the renewable energy industry comes the implementation of modern management techniques that uphold the highest standards of environmental, social, and governance performance, as well as create value for society and contribute responsibly to sustainable development in the areas where the company operates.
A Lower Carbon Footprint and Alignment with ESG Standards
When the clean energy generated at the Neoenergia Renewable Complex is used to supply homes and businesses, it will help avoid the release of more than 100,000 tons of CO2 annually, aiding in the fight against climate change. Neoenergia’s commitment to promoting the widespread use of renewable energy sources and energy efficiency is reinforced by these indicators; the company aims to achieve carbon neutrality by 2050, reducing emissions in generation to less than 20 grams of CO2 per kilowatt-hour.
Regarding Society
The Neoenergia Renewable Complex also has positive effects on the economy and society of the region. Nearly 180 people received training in masonry, carpentry, and blacksmithing over more than 680 hours of classes. More than 150 people took classes to learn to assemble metal structures for solar panels. Through these programs, more residents will have access to the job market. Since the installation of the parks and the transmission line, they have directly and indirectly employed over 3,600 people, with about 40% of these positions filled by local residents.
During the Covid-19 pandemic, the implementation of the parks still faced significant hurdles. Neoenergia developed a methodology that is now used as a standard in the Brazilian electricity sector to protect workers and residents. There were over 7 million hours worked with no time-loss accidents, further demonstrating the company’s commitment to safety.
The Local Economic Development Agency (Adel) encourages actions in 14 communities in Paraíba and Rio Grande do Norte through the SER Program, developed by the Neoenergia Institute. More than 3,000 people have benefited from the program since 2020, when it began serving 775 households. Health, education, and income are the three pillars supporting the initiative and also the three axes of the Municipal Human Development Index (IDH) of the regions in question.
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