ANNOUNCEMENT 04 Jun 2021

The National Bank for Economic and Social Development of Brazil (i.e. BNDES by its acronym in Portuguese) approved a loan of BRL 189.9 million to Sol do Piauí Geração de Energia Ltda.

 

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

BNDES News Agency. Agência BNDES de notícias. "BNDES financia projeto inovador de geração híbrida de fontes eólica e solar no Piauí" de 04/06/2021. Avaialble at: https://agenciadenoticias.bndes.gov.br/detalhe/noticia/BNDES-financia-projeto-inovador-de-geracao-hibrida-de-fontes-eolica-e-solar-no-Piaui/

Brazilian National Development Bank. Banco Nacional de Desenvolvimento Econômico e Social. Regulamento Geral e Metodologias Específicas. "Regulamento para credenciamento e financiamento de módulos e sistemas geradores fotovoltaicos" Availabe at: https://www.bndes.gov.br/wps/portal/site/home/financiamento/servicos-online/credenciamento-de-equipamentos/normas-aplicaveis-credenciamento/regulamento-credenciamento-financiamento-fotovoltaicos

Brazilian National Development Bank. Banco Nacional de Desenvolvimento Econômico e Social. ANEXO 1 - ETAPAS FÍSICAS E CONTEÚDO LOCAL QUE DEVERÃO SER CUMPRIDOS PELO FABRICANTE. Available at: https://www.bndes.gov.br/wps/wcm/connect/site/10f19d81-33df-4c4c-95e0-d7909975c911/credenciamento_aerogeradores_anexo1.pdf?MOD=AJPERES&CVID=lmylw0v

Inception date: 04 Jun 2021 | Removal date: open ended

State loan

On 4 June 2021, the BNDES announced the approval of a BRL 189.9 million loan (over USD 36.7 million) to Sol do Piauí Geração de Energia Ltda., a domestic company that produces electric energy, controlled by VTRM Energia e Participações S.A.

The objective of the resources is to finance the construction of a hybrid power generation park, that will produce electricity from wind and solar energy. Concretely the project will add a photovoltaic plant that will add 68 MW to the existing wind farm.

The total costs of the projects were estimated at BRL 237.4 million with the BNDES financing 80% of it. These resources were provided via the FINEM instrument which provides funding for projects with social impact. With this investment, the project is expected to generate 340 new jobs.

Notably, during the first six months of 2021, the BNDES provided other loans to other renewable energy projects (please, see related state acts). 


FINEM Lending
FINEM credit lines that provide resources of a minimum of BRL 10 million (USD 2.5 million) for projects with social impact, and have an annual interest rate made of the market value long-term interest rate, plus the credit risk rate plus the BNDES remuneration that ranges between 0.9% and 2.1%, depending on the purpose of the credit line and the social impact.

 

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 04 Jun 2021 | Removal date: open ended

Local sourcing

On 4 June 2021, the BNDES announced the approval of a BRL 189.9 loan (over USD 36.7 million) for the installation of a new photovoltaic generating plant in the existing wind farm at the Ventos do Piauí that was subject to local content requirements. Concretely, the financial conditions of the BNDES for energy projects establishes that in solar energy projects, the photovoltaic cells used in the project must reach a locally-made factor of at least 90%. 

The recipient of the loan from the BNDES was Sol do Piauí Geração de Energia Ltda.