BNDES - Brazilian Development Bank




BNDES invests in electricity distribution in 10 Brazilian states

Feb 12, 2021

 The Brazilian Development Bank (BNDES) will support the investment plan of nine electric power distributors from the Energisa Group, focusing on improving services, and expanding the distribution network and the number of customers served. In all, these companies serve 10 different states. BNDES’s financing will be of R$ 1.49 billion, of which R$ 965 million by direct financing and R$ 522 million indirect.

 
BNDES’s operation takes place within Finem – Electric Power Distribution, with individual credit granting to each of the nine companies. The project implementation period is up to two years and we expect to create 7,162 jobs during its implementation.
 
The investment plans of the group’s distributors in the states of Acre (EAC), Mato Grosso (EMT), Mato Grosso do Sul (EMS), Minas Gerais (EMG), Paraíba (EPB), Rondônia (ERO), Sergipe (ESE), Minas Gerais, São Paulo and Paraná (ESS) and Tocantins (ETO) mainly involve equipment acquisition and construction aimed at modernizing infrastructure and improving operations. All these investments are essential for economic development in the areas where the companies operate, as to contribute to supplying the growing demand for energy.
 
BNDES’s support also seeks to improve the distributors’ quality and to minimize technical and commercial losses, aspects controlled by the Brazilian Electricity Regulatory Agency (Aneel) and that influence tariff calculation. The project also complies with the National Energy Plan 2030 proposed by the Federal Government, which plans to expand and strengthen the interconnection network, including the power distribution grid.
 
“Improving electricity services, regarding security, reliability and stability of supply, contributes to the quality of life and jobs of the populations served in the concession areas of the supported distributors,” said Petrônio Cançado, Managing Director of Credit and Guarantee at BNDES.
 
“Besides providing clean and quality energy, especially in remote regions of the country, Energisa has been consolidating itself as a complete energy company. To this end, it plays a key role in the transition to the low carbon economy and to a clean energy matrix, with strong performance for the sustainable development of the Legal Amazon,” stated Energisa’s CFO, Maurício Botelho.
 
Distributors – The nine companies are corporations, subsidiaries of the Energisa Group, which operate in the provision of public services for electric power distribution. Based in Cataguases, in the state of Minas Gerais, Energisa is the fifth largest energy distribution company in Brazil, serving about 20 million people in 862 municipalities. Energisa also operates in the segments of generation, transmission, distributed generation and commercialization of electricity.
 
Other investments – In August 2020, BNDES also supported the 2020/2021 investment plan of Coelba, Celpe, Cosern and Elektro – Neoenergia’s electric power distributors. BNDES financed R$ 3.39 billion in resources to improve the services provided to 14.1 million clients in the states of Bahia, Pernambuco, Rio Grande do Norte, Mato Grosso do Sul and São Paulo. The ongoing project foresees serving 750,000 new homes. 
 
BNDES Finem – It is the financing line aimed at investment projects in general. This support extends to practically all economic segments, having as one of its main evaluation criteria the social benefits of these initiatives. The financial conditions offered are also associated with BNDES’s support priorities.
 
About BNDES – Founded in 1952 and currently linked to the Ministry of Economy, BNDES is the main instrument of the Federal Government to promote long-term investments in the Brazilian economy. BNDES’s actions focus on the socioenvironmental and economic impact in Brazil. BNDES offers special conditions for micro-, small- and medium-sized enterprises, as well as social investment lines, directed at education and health, family agriculture, sanitation and urban transport. In crisis situations, BNDES acts in an anticyclical manner and assists in the formulation of solutions for the resumption of economic growth.
 
About Energisa – With 115 years of history, Energisa Group is the largest in the electricity sector with national capital and also the largest in the Legal Amazon. One of the first companies to go public in Brazil, the company controls 11 distributors in Minas Gerais, Paraíba, Rio de Janeiro, Sergipe, Mato Grosso, Mato Grosso do Sul, Tocantins, São Paulo, Paraná, Rondônia and Acre. With annual net revenues of R$ 16.9 billion (2019), the Group serves 8 million customers (representing a serviced population of more than 20 million people) in 862 municipalities in all regions of Brazil, besides generating about 20,500 direct and indirect jobs.
 
With the mission of transforming energy into comfort, development and opportunities in a sustainable, responsible and ethical manner, Energisa works with a diversified portfolio that encompasses distribution, generation, transmission, services for the electricity sector (Energisa Soluções), specialized call center services (Multi Energisa), energy marketing (Energisa Comercializadora) and renewable energy solutions (Alsol) and now fintech Voltz, which operates in the digital accounts market.
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