Dec. 5 (Bloomberg) -- Areva Koblitz, the Brazilian renewable energy developer that focuses on biomass and hydroelectric plants, plans projects worth 584 million reais ($327.3 million) throughout Latin America following a decline in local power prices.
The company is seeking to sign contracts to build facilities with 200 megawatts of installed capacity by 2016 in the region, Commercial Director Jose Romero Rego said in an interview.
Wind farms in Brazil are beating other energy technologies to contracts to sell power in government-organized auctions.
“We’re looking for other opportunities in new markets,” he said.
Areva Koblitz, which may receive 20 percent of its revenues from outside Brazil in 2015, may sign a contract to build a 35-megawatt biomass plant that runs on giant king grass next quarter in Honduras, he said in an e-mail yesterday.
Political stability is a concern for the company, which will focus on Peru, Chile and Uruguay in South America and Honduras, Panama and Guatemala in Central America, he said.
“Honduras will be an experience. We’ll discover how it will work,” he said.
Brazilian electricity distributors signed contracts to buy electricity from 78 wind farms at a rate of about 100 reais a megawatt-hour in the nation’s last two power auctions in August, national energy agency Empresa de Pesquisa Energetica said on its website. None went to small hydroelectric plants, and 11 went to biomass plants, EPE said.
Areva Koblitz, a unit of French nuclear company Areva SA, has developed projects with installed capacity of 3,441 megawatts, according to a presentation by the Recife-based company.
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