Wind to benefit as Brazil fund aims to spark 5.4GW of new capacity

Brazil's federal government plans to spark R$13bn ($4.2bn) of investment in up to 5.4GW of new generation projects – including wind, biomass and gas plants – through to 2037 under a new initiative designed to supply major industries with cheap power.

24 June 2015 16:02 GMT Updated 28 September 2016 9:38 GMT

By Alexandre Spatuzza in Brazil

The backing will come through federal power company Chesf and its partners via a newly-created fund that will make R$2.5bn of direct investments.

According to mines and energy minister Eduardo Braga, that will open the way for R$13bn to flow to new power plants, with the balance coming from other private investors in the fund and third-party finance.

The Northeastern Energy Fund (FEN) was created yesterday via a presidential decree as a compensation for extending subsidised power supplies by Chesf to several large power- intensive sectors in Brazil’s northeastern region.

The

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