Brazil wind set for 20% BNDES boost
Brazil's National Development Bank (BNDES) is likely to increase lending to the wind power sector by 20% in 2014 to R$4.32bn ($1.8bn) from the R$3.6bn it lent in 2013, the bank's alternative energy department said.
The increase represents a recovery in lending by BNDES. In 2012 the bank had disbursed R$3.8bn to the sector.
BNDES is the key body channelling Brazilian government support to the country’s fast-growing wind sector, and is also responsible for enforcing the stringent local-content requirements that turbines must meet to be eligible for the best finance deals.
The projected rise in lending coincides with a record 4.7GW-worth of contracts awarded for new wind power projects at auctions held in 2013.
In 2012, the country contracted only 294MW in new projects. In 2011 BNDES lent R$2.3bn BRL to the sector.
The projection for the 20% increase in loan disbursements in 2014 is based on R$4.7bn in loan applications that are being analysed at different stages at the bank.
The alternative energy department also said it has given preliminary approval to R$2.99bn in loans to 45 wind farms.
It is also analysing another R$1.7bn for financing of 24 projects and a further 30 projects have made initial consultations with the bank.
Total investment for the 99 above-mentioned wind power projects is estimated at R$11.2bn.
BNDES total loan disbursements rose 22% in 2013 to R$190bn compared with 2012.