The Inter-American Development Bank and the Brazilian Development Bank (BNDES) will provide a total of USD 900 million (EUR 864m) in financing for renewable energy and energy efficiency projects in Brazil’s private sector.
Specifically, IDB will extend a 25-year, USD-750-million loan and BNDES will add a further USD 150 million. This will be done as part of an IDB conditional line of credit for investment projects (CCLIP) of up to USD 2.4 billion.
BNDES will use both its own resources and the IDB loan to diversify and expand its existing financing sources in the private energy sector. It will then transfer resources to accredited financial institutions.
The funds will go for wind, solar, biomass and other renewable energy projects. A portion will also back energy efficiency technologies in sectors with major potential for increasing the efficient use of energy over the short term, IDB said in a statement.
The bank added that in future phases, the line of credit will be focused on projects for small-and medium-size (SME) businesses and infrastructure, all driven by the private sector.