BNDES finances 1.5GW of renewable capacity in Brazil
Brazilian development bank BNDES has agreed to finance the development of 1.5GW of renewable energy in Brazil.
The bank will deploy a total of R$3.5 billion ($667 million) in loans to support the construction of 2 wind complexes and 1 solar complex, and associated transmission lines, located in the states of Bahia and Minas Gerais.
The first complex to benefit from the financing is Serra do Assuruá developed by Engie. The 24-project complex will have an installed wind capacity of 846MW and will come online progressively starting June 2024 to June 2025. Engie landed a R$1.5 billion loan from BNDES.
Pan American Energy received a R$900 million loan from the development bank for the construction of the Novo Horizonte wind complex. The project comprises 10 wind farms and has a total capacity of 423MW. The energy company will invest an additional R$3 billion in the complex.
The last loan from BNDES, for a total of R$1.1 billion, will go towards the construction of the Boa Sorte complex. A joint venture between Atlas Renewable Energy and Hydro Rein, the complex consists of 8 solar projects with a total capacity of 438MW and is expected to reach commercial operations in January 2025.
Together, the projects will power the equivalent of more than 2.6 million homes. The output generated by the complexes will be sold on the free market with some having already contracted power purchase agreements. Atlas inked a 19-year PPA with aluminum producer Albras for the output of the Boa Sorte complex last year (PFR, 5/2).
"We hope that this will be the first operation of many in which the BNDES can finance companies using the dollar as a reference. This shows how the bank is expanding its range of products and seeking to better serve its customers,” said Solange Vieira, Infrastructure Credit director at BNDES.
Earlier this week, the development bank granted a R$80 million loan to support the development of a waste-to-energy plant in the state of Mato Grosso (PFR, 1/5).