South American countries are actively pursuing renewable energy source exploitation, but recent news about renewable energy projects indicate a more direct orientation towards this kind of energy production in the future.

Brazilian development bank (BNDES) has approved a 20 year loan of 7.2 billion Brazilian reals (about US$3 billion) for the Jirau project, financed by GDF SUEZ, setting a start for the construction of a 3.3 GW greenfield hydroelectric power plant. Brazil has a growing demand for electricity (some 4.5 GW / year), so the Jirau project is going to be a significant contribution to the Brazilian energy industry. Tractebel Energia, a subsidiary of GDF SUEZ and the leading private power producer in Brazil, already outputs 85% power from renewable energy sources like hydro power, wind and biomass. Another ongoing project is going the join the overall picture – the Estreito hydro power plants that will generate about 1 GW of power, once completed, as well as São Salvador, with 241 MW. Smaller hydro power plants are included as well, one with about 20 MW planned for mid-2009, and another with about 26 MW already operational. Wind power is not neglected, as Tractebel Energia has inaugurated Pedra do Sal wind power plant in Piauí. The power plant is going to produce 18 MW of power.

On the other hand, Chile is going to get a wind farm, near Monte Redondo, with installed capacity of 38 MW. The project has been started at the beginning of this year, and is expected to be operational in October 2009. It will cost about US$120 million. 100 GWh has already been sold in advance at an auction organized by a local distribution company, with a contract for 14 years starting in January 2010.