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 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
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.