Brazil is the world’s seventh largest electricity consumer and the largest consumer in South America. It has an energy matrix with an exemplary share of renewable energies (44% in 2011). The Ten-year Energy Expansion Plan, launched in 2012, anticipates an annual growth in national consumption of 4.7%. The National Economic and Social Development Bank (BNDES) is the main financial instrument for Brazil’s development policies. It plays a major role in financing the renewable energies sector in Brazil, by offering long-term loans.
AFD is a partner of BNDES in promoting renewable energies and energy efficiency, in line with the Government’s policy directions for this sector. This project will strengthen the bases of a long-term partnership between the two institutions, beyond the relations they already have in the context of the International Development Finance Club (IDFC).
The project aims to support Brazil’s public policies to develop renewable energies and promote energy efficiency. The objective is to contribute to curbing greenhouse gas emissions and mitigating the impacts of climate change. It is therefore fully in line with AFD’s green and inclusive growth mandate in Brazil.
Consequently, the objective is to support investments in the fields of energy innovation (smart grids and innovative renewable energies, including solar power), energy efficiency (ESCOs – Energy Servicing Companies), and renewable energies (wind energy, small-scale hydropower plants, second generation biomass energy). It is already financing five wind farms in Piaui State (Nordeste) and two projects for cogeneration based on bagasse from sugar cane in Mato Grosso do Sul. This partnership also aims to promote and enhance the expertise in these sectors of the institutions of both countries.
- The project will contribute to curbing greenhouse gas emissions in a country where economic development and the fight against social and territorial inequalities lead to a rapid growth in needs and in power generation.
- It will increase the competitiveness and innovation capacity of public and private enterprises in these sectors, which today account for a significant share of Brazil’s economy.
- It will also contribute to developing the partnership between AFD and BNDES for innovation in the fields of energy and the fight against climate change, as well as to enhancing the Franco-Brazilian dialogue on structuring this sector.
on the same regionInfrastructureSustainable CitiesWater and SanitationSustainable CitiesInfrastructureSustainable Cities
on the same topicEnergySustainable Cities
on the same financial toolEnergyClimateEnergyClimateHealth and Social Protection