Brazilian Development Bank BNDES will provide financing for renewable energy projects planned for isolated systems in the state of Amazonas, northern Brazil.
In the country, only 3.4% of electricity production is not part of the national grid, the Brazilian Interconnected System (SIN), and this comes from isolated systems located mostly in the Amazon region.
BNDES has approved special financing conditions for renewable energy projects selected in the frame of an auction, which will take place on May 11. The Brazilian institution said that it will provide low-interest loans for the replacement of power generators based on fossil fuels with renewable energy projects, and that projects from non-renewable power sources will not have access to the scheme.
Overall, the BNDES will allocate BRL 200 million (about $63 million) from the Climate Fund (Fundo Clima) for the financing of projects selected in the auction.
Energy regulator ANEEL intends to deploy approximately 290 MW of renewable energy capacity through the auction and provide with power 55 municipalities. Projects selected in the auction will be granted a 15-year PPA.
The BNDES said that 36 projects have already qualified for the auction. The deadline to submit project proposals is May 3, 2017.
According to BNDES, Amazonas has currently 225 operational diesel power plants with a combined capacity of 683 MW.