EIB Financing For Renewable Energy In Brazilian State

European Investment Bank Commits €100 Million For Renewable Energy & Energy Efficiency Projects In Minas Gerais, Brazil; BDMG To On-lend To Projects Including Small-Scale Solar PV Plants
10:31 AM (Beijing Time) - 24. October 2019
287bffdf-f059-4e48-b998-2ba8f0352fa7-PNG

Under an agreement with EIB, Banco de Desenvolvimento de Minas Gerais (BDMG) will provide financing of €100 million for various renewable energy & energy efficiency projects of private companies and municipalities in the state of Minas Gerais, Brazil. EIB Vice-President Emma Navarro (left) and BDMG President Sergio Gusmão Suchodolski signed the agreement in Luxembourg. (Photo Credit: European Investment Bank)

Key Takeaways

  • For renewable energy and energy efficiency projects in the Brazilian state of Minas Gerais, the EIB has approved its financial support
  • Projects including small-scale solar PV and run-of-the-river hydropower plants, among others, can expect the €100 million financing from the EIB to cover up to 75% of the final project investment cost
  • EIB will provide the proceeds to BDMG to on-lend for such projects over the next four years up to 2023

The European Investment Bank (EIB) has agreed to finance renewable energy and energy efficiency projects in the state of Minas Gerais, Brazil, including small-scale solar PV plants and run-of-the-river hydropower plants. The €100 million ($111 million) will be provided to Banco de Desenvolvimento de Minas Gerais (BDMG) to invest in such projects.

The EIB financing, backed by a European Union (EU) guarantee, will cover up to 75% of the final project investment cost for projects over the next four years up to 2023. With this commitment, the bank says it is helping the country increase its renewable and clean energy production capacity while securing energy supply.

Private companies, including small businesses wishing to improve their environmental footprint, and municipalities will be able to benefit from the advantageous financing conditions of the bank under the bank’s financing package. It is also hoped projects supported under this financing package will generate 700 jobs during the implementation phase.

In September 2019, the bank approved €150 million institutional credit for EDPR Renewables to produce 1.8 TWh clean power through wind and solar projects in Brazil (see EDPR Raises €150Mn For Brazilian Wind Solar Projects).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

Write, follow the author.
Email

Anu Bhambhani