Atlas Renewable Energy, a US renewable energy company, has reached a 21-year power purchase agreement (PPA) with Brazilian aluminium producer Albras to supply solar power. Atlas will supply the energy from the 902 MWp Vista Alegre photovoltaic project in the state of Minas Gerais in Brazil.
It is expected to begin operations in 2025 and will produce 2 TWh of clean electricity per annum. This is enough to power a city such as Brasilia, with a population of almost three million. The project will also offset 154,000 tonnes of carbon dioxide emissions annually – equivalent to removing 61,800 cars from the streets.
The latest PPA is said to be the longest-term agreement ever signed in Latin America in the area of corporate renewable energy. Earlier in 2023, Atlas obtained a $210 million loan from Banco Nacional de Desenvolvimento Econômico e Social for its Boa Sorte development, a 438 MW solar project also to be located in Minas Gerais. The project will generate 815 GWh of clean energy annually, enough to power more than 394,000 homes while avoiding more than 61,000 tonnes of carbon emissions.
REGlobal’s Views: There has been a massive rise in corporates and industries switching to renewable energy to meet their power requirements. This recent PPA of Albras with Atlas Renewable Energy will help the company to reduce its operational costs especially with decline in solar prices and increase in prices of fossil fuels. Further, this PPA will help ensure future energy security for Albras.