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Politics & Regulation

Senate committee approves R$ 343 million in funding for renewable energy.

Resources will be used to modernize systems and allocated to projects in the Northeast region and in the states of Minas Gerais and Espírito Santo.

Senate committee approves R$ 343 million in funding for renewable energy.

Photo: Geraldo Magela/Senate Agency

The Senate's CAE (Committee on Economic Affairs) approved this week a credit operation of up to US$67 million – equivalent to approximately R$343,6 million – to finance renewable energy projects in the Northeast region and in the states of Minas Gerais and Espírito Santo.

The funds will be secured by BNB (Banco do Nordeste do Brasil), with a guarantee from the Brazilian government, in conjunction with the IDB (Inter-American Development Bank) and CIF (Climate Investment Funds).

The proposal, reported by Senator Camilo Santana (PT-CE), will now be analyzed by the Senate Plenary under an expedited procedure. Among the initiatives included are projects for renewable energy generation and modernization of transmission and distribution systems.

Of the total authorized amount of R$ 343,6 million, up to R$ 171,80 million will be financed by the IDB (Inter-American Development Bank) and another R$ 171,80 million by the CIF (Climate Investment Fund).

Both loans will have an eight-year grace period and a 20-year repayment term, with semi-annual payments and no financial contribution from BNB.

The funds may be disbursed over four years. The schedule foresees R$ 34,36 million in 2026, R$ 103,08 million in 2027, R$ 137,44 million in 2028, and R$ 68,72 million in 2030.

With information from the Senate Agency.

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Valentina Sclauser
About the Author
Valentina Sclauser

Journalism student at PUC-Campinas, with experience as a writer and producer at Rádio Brasil Campinas. Works in the creation of journalistic content, with an emphasis on text production and video recording.

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