Wind power set to grow with investment from BRICS bank

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Most renewable energy projects in Brazil are financed by the Brazilian National Development Bank (BNDES), which now has access to an additional 300 million US dollars from the New Development Bank (NDB) – the BRICS bank for development projects.

The NDB and BNDES announced a 600 million US dollars financing deal for renewable energy projects in Brazil. The banks will each contribute 300 million US dollars under the agreement, which represents NDB’s first loan in Brazil, BNDES said in a statement.

Logo of Brazilian National Development Bank (BNDES) /VCG Photo

“BNDES will use the NDB resources to diversify and expand its financing resources and to promote existing lines of credit for the alternative energy sector,” the BNDES said.

Brazil has long relied on its abundance of powerful rivers and dams to provide electricity. With NDB’s investment, major inroads are being made to harness another natural element: wind. Wind power is burgeoning fast and nearly catching up to hydropower.

This opportunity brings new economic potential to Brazil’s northeast, a region that historically struggles against drought and poverty, but has steady and strong winds.

"Wind energy generation is a great investment from a business point of view and our stakeholders are very satisfied with our investments. But it is also a positive contribution for Brazil's sustainable development," said Pedro Fiuza, CEO of Servtec Energy.

The state of Ceara's development secretary said its benefits went well beyond the generation of energy itself.

Wind turbines in Ceara, Brazil /VCG Photo

"We now have in our state the whole production chain of wind energy projects. We have companies here that can make the towers and the blades for the wind park. We also now have a skilled workforce for this industry," said Alexandre Alves Neto, Executive Secretary for Economic Development at State of Ceara.

So far Brazil has only explored a small percentage of its wind energy potential and has lofty goals for future expansion. That means the need for more investment and close ties with the BRICS' NDB for years to come.

"Even with the current situation in Brazil we have a strong demand for new projects on renewable energy. Of course NDB as a new player in the market, a new development bank, will play along with BNDES a very import role in Brazil in financing renewable energy projects," said Leonardo Ferreira, Head of International Financing at BNDES.