Brazil wind set for 20% BNDES boost

BNDES is the key channel for Brazilian state finance to wind

BNDES is the key channel for Brazilian state finance to wind

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.

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