Financing accelerate the energy transition in Brazil


According to consultancy McKinsey, Brazil is positioned to consolidate itself as a power in the energy transition, supporting not only its own decarbonization, but the global, too.

According to the consultancy, Brazil has the potential to become a global leader in renewable energy, bioenergy and carbon markets, sectors that can represent a market opportunity of approximately $ 125 billion by 2040.

The drop in solar panel costs, which occurred in recent years, positions solar energy as a leader in the expansion of power generation capacity in the world and in Brazil.

Both its continental dimension and its geographical location guarantee high indexes of solar irradiation in virtually the entire national territory and low energy production costs, contributing to the large capacity for solar energy generation in the country.

In addition to solar energy, Brazil has a high potential of other renewable sources, such as wind, water and biomass. Renewable sources represent about 89% of the Brazilian electric matrix, including centralized and distributed generation, which confirms the country’s vocation for sustainability and protagonism in the energy transition.

The global energy transition will require high investment volumes in the coming years and decades.

BNDES: Global leader in renewable energy financing

THE BNDES (National Bank for Social Development) It currently stands out as the largest renewable energy financier in the world, with credits that total about US $ 36.4 billion from 2004 to 2023, according to Bloombergnef.

Since 2000, the bank has funded about 65% of the country’s increase in generation capacity, corresponding to additional 82 GW, of which 85% of renewable sources. Only between January and September 2024 their financing contributed to the expansion of energy generation through renewable sources at 1.0 GW, enough energy to meet 1.2 million homes. With relevant participation in the sector since the beginning of the Alternative sources incentive program.

(Proinfa), supporting the structuring of guarantees and funding to projects, BNDES enabled a significant expansion of wind and solar generation in the country. The growth of the Free Energy Market – where large consumers hire directly with generators – also told the support of the Bank, which developed its own methodology to ensure the viability of project financing.

Investments in wind and solar energy help the country meet the UN (United Nations) Sustainable Development Goals (SDGs), which constitute a set of goals that aim to guide the future of humanity and must be achieved by 2030. , the BNDES has already disbursed, between 2015 and 2023, R $ 137.8 billion in activities aimed at reaching ODS 7 – clean and affordable energy.

These numbers show how the bank’s performance has been directly contributing to the expansion of renewable energy and the reduction of emissions in the electricity sector, as well as favoring the attraction of international investments through the emission of green securities. Given the urgency of the Climate Agenda, which has been treated as a cross -sectional theme in BNDES, the institution can act as a “green platform” for fundraising – local and international – intended for decarbonization, neoindustrialization, combating combat to projects projects, deforestation and sustainable infrastructure.

Recent Highlights

Recently BNDES approved financing in the amount of R $ 600 million for the Solar Irapuru complex, which has seven parks with installed capacity of 422 MWP. The project will complement the existing Solar Complex Janaúba, located in Janaúba, Minas Gerais, raising its installed capacity to 1.6 GWP, enough to supply 1.9 million homes.

Expected to be completed for the first half of 2025, Irapuru will have 800 hectares for installation of 750,000 bifacial solar modules, and also includes the implementation of a transformer in the restricted and shared transmission system of the Janaúba Solar Complex.

In addition, BNDES funded, with R $ 418.5 million, the implementation of Solar Irecê 1 Solar Power Complex, located in the municipalities of João Dourado and Irecê, in the Bahian semiarid. The clean and renewable energy capacity installed in the venture will be 161 MWP (Megawatt Pico) with a deduction of approximately 128,000 tons of CO2 per year. The project will be able to meet the demand of the Mataripe Refinery, the second largest in the country, located in São Francisco do Conde (BA), 420 kilometers from the park.

To learn more, access the BNDES News.

This content was originally published in financing accelerate the energy transition in Brazil on the CNN Brazil website.

Source: CNN Brasil

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