Brazil's Weg signals wind, solar shift

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Friday, July 25, 2014

Brazilian manufacturer Weg has revealed plans to increase its participation in the country's burgeoning wind and solar power supply chains.

The company has until now focused mainly on producing equipment for local hydroelectric and biomass plants.

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But the emergence of wind as Brazil's fastest-growing energy source and new opportunities for solar growth have prompted Weg to diversify its operations.

"If it is attractive, we will participate more intensively in the wind sector," Weg's investment relations manager Luiz Fernando Oliveira said during an investor webcast.

"We have the capacity to increase our presence. If it isn't so attractive, we will look at other types of machinery."

Weg signaled its interest in wind expansion in April by agreeing to supply 46 turbines for the 97MW Energia dos Ventos complex in Brazil's northeastern state of Ceará.

The Jaraguá do Sul-based firm also provided equipment for Neoenergia's 400kW solar plant on the island of Fernando de Noronha.

Weg's deputy CEO Sérgio Schwartz said the company had also found a niche in manufacturing engines for electric buses. But future investment in the area would hinge on greater government incentives and access to credit, he added.

Weg reported a second-quarter profit of 228mn reais (US$103mn), up 11% on the year-ago period. Net operating revenue hit 1.82bn reais, up 7.2% year-on-year.

BNamericas will host its fourth LatAm Power Generation Summit in Santiago, Chile, on August 13-14. Click here to download the agenda.