Brazilian energy utility company Neoenergia has signed a €200 million (US$221 million) loan from the European Investment Bank (EIB) to finance 715.5MW of renewable projects in Brazil.
The EIB loan will allow Neoenergia to build a solar power plant in the northeast region of Otis as well as support a PV plant in the state of Paraíba with a power generation capacity of 149MW.
The remaining 566.5MW of power generation will be for various onshore wind farms across Chafariz, Paraíba (near the solar PV plant), Piauí and Bahia.
Mario Ruiz-Tagle, Neoenergia CEO, said: “We are going through a time when investment in the energy sector directly impacts a greener future. The financial sector has an essential role in mobilizing the capital needed to develop sustainable projects, as well as ensuring that the company’s activities are responsible and in line with best practices within the ESG dimensions.”
EIB recently launched its development branch, EIB Global and Ricardo Mourinho Félix, EIB vice-president responsible for Latin America, said this will strengthen its activities outside the EU.
“Today’s announcement highlights EIB priorities in Brazil and Latin America, supporting a sustainable and inclusive economic growth by boosting productive investment,” added Mourinho Félix.
This marks the fifth time the EIB has cooperated with Neoenergia over the past decade.
Last February, the EIB provided a €100 million loan to support the addition of 430MW of solar PV and wind projects in Spain and Portugal.