BNDES rules for Brazilian solar financing to ‘restore investor confidence’

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
The bank has increased its share of financing the Long-Term Interest Rate (TJLP) for solar energy projects from 70% to 80%. Credit: BNDES

Brazil’s development bank BNDES has approved new financing conditions for the energy sector, which favour solar.

The bank has increased its share of financing the Long-Term Interest Rate (TJLP) for solar energy projects from 70% to 80%, the highest rate for all alternative and conventional energy sources.

In a release, BNDES stated: “The priority given to solar energy, reflected in better financial conditions, is due to the fact the technology is in early stage of development in the country.”

As a result, the bank is putting in “demand stimuli” to achieve economies of scale and gains associated with technological diffusion and more competitive prices.

BNDES also aims to contribute to the expansion of other alternative energy sources in the Brazilian energy matrix with wind, small hydro, biomass and cogeneration all receiving up to 70% TJLP. However, hydro power saw its TJLP financing percentage from BNDES decline to 50%.

The new conditions come into effect for the next energy auctions in October and December 2016.

Brazilian solar association (Absolar) executive president Rodrigo Sauaia said it would help to restore the confidence of solar investors and domestic entrepreneurs.

“It shows that the bank's commitment is not only in speech but in action,” he added.

Sauaia said the ratification of the Climate agreement in Paris had been a factor in the bank’s decision as well as the fact that 25-30 jobs are created for every 1MW of solar in Brazil, he claimed.

Read Next

PV Tech Premium
January 11, 2022
PV Tech Premium speaks with analysts and experts on the Brazilian solar market to discuss the country's long-awaited new net metering laws
January 10, 2022
Brazil has published its long-anticipated net metering laws that has introduced a new framework for distributed generation in the country and will see any solar PV systems below 5MW eligible for net metering tariffs until 2045.
December 15, 2021
Canadian Solar has completed the sale of a 635MWp solar PV plant in Brazil to renewable energy company VTRM Energia Participações.
December 2, 2021
‘Solar Module Super League’ member JinkoSolar has signed a 2GW module supply deal with Brazilian PV distributor Aldo Solar.
October 4, 2021
Independent power producer (IPP) Total Eren has enlisted asset management software provider Inaccess to monitor the operation of several of its solar PV plants in Argentina, Australia, Brazil, and Kazakhstan.
September 29, 2021
Microinverter supplier Enphase Energy has entered Brazil’s residential and C&I solar market, launching its IQ7+ microinverter in the country.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
January 26, 2022
Free Webinar
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal