The European Investment Bank (EIB) has granted a $213m (€200m) loan to Sicredi, a cooperative financial institution in Brazil, for investments in solar energy.
Sicredi will use the funding to install solar photovoltaic panels in individual homes, small and medium businesses and rural properties in Brazil.
This project will contribute 100% to the country’s climate change initiative while supporting the country’s targets to generate increasing quantities of renewable electricity
According to EIB’s statement, the project will reduce electrical losses and optimise distributed grid usage by supporting a low-size market segment. EIB noted that promoting additional renewable generating capacity would enable investments in renewable energy, which could reduce carbon emissions.
“I am very glad to announce a project that enables the private sector’s investments in renewable energy, reduces carbon emissions and air pollution, and supports additional renewable generation capacity in Brazil,” said EIB vice-president Ricardo Mourinho Félix.
A report by the International Trade Administration (ITA) said Brazil expects to gain continued investments in wind, solar and hydropower capacity. The country uses “auction-based renewable procurement to increase new generation capacity, and contract duration is typically 15 to 30 years”.
Brazil remains the biggest beneficiary of EIB financing in Latin America. The ITA reported a 40.9% increase in utility-scale solar investments in 2021, while distributed generation through solar power increased by 84%. Investments in approved utility-scale solar energy projects are estimated at $20bn, with an additional $1bn in the solar distributed generation since 2012.