Brazil: Rio Grande do Sul provides credit lines for renewables

The Brazilian state of Rio Grande do Sul, in the south of the country, has launched a program to encourage the development of renewable energies. The central measure of the program, according to the regional government, is that people with licenses will be able to access lines of credit for renewable energy projects.

Specifically, the Regional Bank for Development of the Far South (BRDE), will provide 496 million Brazilian reals (US$153 million) for generation and distribution renewable energy projects. As indicated by the regional government, 179.2 million Brazilian reals have already been contracted from this quota.

Additionally, the Badesul bank will provide 100 million Brazilian reals (US$ 31 million) for renewable energies. It will also evaluate the creation of a line of credit specifically for self-consumption solar energy projects.

Within the frame of Rio Grande do Sol’s renewable project, will be to incentivize wind, solar, hydro, biomass, geothermal and tidal technologies.

Other measures have been introduced as part of the program to reduce the amount of time that it takes to obtain environmental permits for renewable projects. According to the governor José Ivo Sartori , the term to obtain the permits has been reduce from 909 days to 200 days.

Rio Grande do Sul already recently introduced a tax exemption on the distribution and products (ICMS) for the production of renewable energy projects under the net metering scheme as an incentive to promote renewable energy.

Since this measure was put into force, in June this year, solar projects under the net metering scheme in Rio Grande do Sul have increased by 50 percent. In June, there were more than 30 MW net metering PV projects being installed across Brazil.

Translation by Sam Pothecary. The original in Spanish is available on the pv magazine Latinoamérica website.