Brazil earmarks $0.5 billion for solar, wind

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“The two lines of credit we are opening, managed by @BNDES, allocate significant amounts of resources to stimulate the use of renewable energy.”

With this tweet, Brazilian President Michel Temer commented on the new commitment by the Brazilian development bank to wind and solar energy. The BRL 2 million (around US$497 million) in new funds will be mainly devoted to Brazilian entrerprises willing to improve their energy efficiency, said Temer.

The Finame Energia Renovável credit facility, said BNDES in a seperate statement released, is intended to help companies, communities, cooperatives, rural producers and individuals install solar power generators not exceeding 375 kW in size, and wind turbines with a capacity of up to 100 kW.

Thanks to the new credit line, selected applicants will be able to finance, together with private banks, and public and development agencies, up to 100% of the total sum required to buy to equipment, with payment terms of up to 120 months.

“The equipment to be financed will have to be included in the list of products authorized by BNDES, which requires them to be new, national and complying with local content requirements,” said the development bank.

BNDES announced another BRL 228 million credit line, which will enable the reopening of the Programa Fundo Clima – Linha Máquinas e Equipamentos Eficientes, launched in June. “In addition to photovoltaic systems, the line can finance small wind turbines, biogas power generators and frequency inverters,” said BNDES.

Last December, BNDES and German development bank, Kreditanstalt für Wiederaufbau (KfW) launched a joint $142.7 million credit facility to support renewable energy projects – solar, wind, mini-hydro and biomass – across Brazil. Later in March, it further improved financing conditions for solar and renewable energy projects selected in Brazil’s energy auctions. Here, again, financing is linked to local content requirements.