Fresh financing options tops Brazil wind agenda



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As the National Development Bank (BNDES) moves to reduce project financing, the wind sector in Brazil is searching for alternatives that would allow its development boom to continue, industry leaders said at a roundtable organized by Recharge in Rio de Janeiro.

“It’s all about financing. We have gotten used to too much from BNDES and this has moved us away from private banks and from financial markets,” Luiz Barroso, president of EPE, the Brazilian energy planning authority, told 45 industry leaders there.

The roundtable theme was New Financing Opportunities for Brazilian Renewable Energy Projects.

Among them are partial or fully US-denominated PPAs, overseas export agency financing, and public-private lending involving multilateral institutions. 

For the past seven years between 60% and 70% of the wind projects’ capex has been financed by the BNDES at below-market rates, which obliged developers to acquire turbines with at least 70% local content.