Oct 23, 2020

 The Brazilian Development Bank (BNDES) approved two projects for the implementation of photovoltaic plants, which generate electricity from sunlight, in the municipalities of Oliveira de Brejinhos/BA and Araxá/MG. The initiatives represent an investment of more than R$ 1.1 billion by the Bank in the production of clean and renewable energy. In addition, the construction of these plants will employ around 3,400 people.

These projects will be directly financed by BNDES, within the scope of the BNDES Finem program.

All these investments by BNDES in solar generation plants align with the efforts of the National Plan on Climate Change (PNMC) aimed at reducing greenhouse gas emissions. The plan also seeks to "maintain a high share of renewable energy in the electricity matrix, maintaining the prominent position that Brazil has always occupied in the international stage."

The Bank's efforts also aligns with the Federal Government's National Energy Plan 2030, which sets strategies for expanding economically viable and sustainable energy generation over the next ten years. Although there is no direct mention of solar energy in the PNE, financing for initiatives such as the photovoltaic plants in Oliveira de Brejinhos (state of Bahia) and Araxá (state of Minas Gerais) increases the share of renewable sources in the Brazilian energy matrix.

"The BNDES's support for the two projects demonstrates the Bank's commitment to the expansion of the electricity matrix with renewable energies through the boosting of the free energy market," explained the superintendent of the BNDES’s Energy Division, Carla Primavera.

Sol do Sertão Photovoltaic Complex – BNDES approved R$ 910 million in financing for the construction of eight photovoltaic plants, with a total installed capacity of 415 megawatts and enough clean and renewable energy generation capacity to supply approximately 580,000 homes. The project will be implemented in Oliveira de Brejinhos/BA and should generate more than 2,000 direct and indirect jobs during its construction. The Sol do Sertão Photovoltaic Complex is an investment by Essentia Energia, a company founded by Pátria Investimentos, and is expected to enter into full commercial operation in the second half of 2021.

Araxá Photovoltaic Plants – With BNDES financing of up to R$ 194 million, the Araxá 1 and Araxá 2 plants will have a total installed capacity of 90 megawatts. Their construction is expected to generate about 1,300 direct and indirect jobs. The conclusion of the works is scheduled for the end of 2021, when 123,000 households will gain access to clean and renewable energy. The project is an investment decision by Powertis S.A., a Spanish company belonging to the same economic group as the tracker manufacturer Soltec Brasil Indústria Comércio e Serviços de Energia Renováveis Ltda.

BNDES Finem – It is the financing line above R$ 10 million aimed at investment projects in general. This support extends to practically all economic segments, having as one of the main evaluation criteria the social benefits generated by these initiatives. The financial conditions offered are also associated with BNDES’s support priorities. The Oliveira de Brejinhos/BA and Araxá/MG projects, for example, contribute to the maintenance of the photovoltaic equipment supply chain established in Brazil, in addition to adding clean and sustainable generation capacity.

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. Its actions are focused on socioenvironmental and economic impacts in Brazil. BNDES offers special conditions for micro-, small- and medium-sized companies, as well as social investments lines directed at education and health, family farming, sanitation and urban transport. In situations of crisis, BNDES takes anticyclical actions and assists in developing solutions for the resumption of economic growth.