BNDES to finance renewable energy projects in the Amazon

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Wednesday, March 15, 2017

Brazil's development bank BNDES approved special financing conditions for renewable electricity generation projects to be implemented in isolated areas of the Amazon region in partnership with Amazonas Energia, a distribution company controlled by Sistema Eletrobras.

According to BNDES, Amazonas has 225 diesel plants with a total installed capacity of 683MW and which consume about 687Ml/y of fuel. The system emits about 2Mt of CO2, other polluting gases and particulates. Transporting and storing the fuel also presents pollution risks.

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With the measure, the financeable items of the projects – to be tendered in the second stage of the 002/2016 auction of sector regulator Aneel, scheduled for May 11 – may use 15% of resources from the national climate change fund, with an annual rate of 1%.

The Aneel auction has already received registrations for 36 renewable energy projects, state news agency Agência Brasil reported. The climate fund may allocate up to 200mn reais to finance the projects. Developers will have a term of up to 24 months after the date of the auction to use the resources. The purchase and sale agreement will have a term of up to 15 years.