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The agreement is for the construction of three new wind farms at the complex: Coxilha Seca, Capão do Inglês and Galpões, Eletrosul said in a statement on Friday.
KfW will finance around 80% of the works with US$90mn in credit.
"Investment will reach about US$118mn, in addition to the US$359mn already spent," Eletrosul said.
The new farms will lift installed capacity at the complex, in Rio Grande do Sul state, to 216MW.
Spanish manufacturer Gamesa will supply G114-model turbines, each with an installed capacity of 2MW.
Power generated from the farms will be connected to the national grid via an 83km underground transmission line linked to an existing substation, Eletrobras added.
No details were given on when work would be completed.
BNamericas will host its fourth LatAm Power Generation Summit in Santiago, Chile, on August 13-14. Click here to download the agenda.