Clean Energy: Brazilian Development Bank approves credit of US$200 mi for five wind farms in Brazil's Northeast

The board of directors of the Brazilian Development Bank (BNDES) approved US$200 million in financing for the construction of five wind farms in Brazil's Northeast. The funds will also finance the respective associated transmission systems. The farms will have an installed capacity of 138 MW. 

The projects, both winners of the Alternative Sources Auction in 2010, are part of the Growth Acceleration Program (PAC). The Bank will participate with 67.8% of total investments, US$ 300 million, an amount expected to create 1,800 direct and indirect jobs during construction.

The investments in Brazil’s wind energy sector reached US$ 3 billion last year, of which US$ 2 billion was financed by BNDES. The projects represent an increase of 1,160 MW in Brazil’s energy grid, with 38 wind farms.

The project supported by the BNDES will contribute to reducing greenhouse gas emissions, as well as diversifying Brazil’s energy grid with renewable sources. It will also complement the hydroelectric generation, avoiding the reliance on power plants during periods when water levels are lower, besides the bonus of geographically diversifying farms, spread over six municipalities in two states with different wind regimes.