Financing for wind energy, biomass and small hydropower projects will have a maturity of up to 16 years, whereas before it was 14 years.
According to the BNDES, the amendment brings the financing conditions for these projects into line with the terms available for hydroelectric plants with capacities of between 30 and 1,000 MW.
The institution considers that the measure could have positive effects on prices offered in upcoming auctions for wind power, biomass and small hydropower (below 30 MW) projects to be held at the end of this month.
Because funding is considered as a cost element in plant construction projects, the BNDES believes that these new financing terms will increase the competitiveness of projects and will therefore impact on price, thereby favouring a lower end price to the benefit of Brazilian consumers.
By improving the financing conditions for renewable energy projects, the BNDES hopes to contribute to increasing the share of these sources in Brazil’s electricity system, the National Integrated System (Sistema Nacional Integrado).
For additional information:
Banco Nacional de Desarrollo Económico e Social
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