The European Investment Bank (EIB) has agreed to provide €150m of institutional credit to EDPR Brazil, a subsidiary of EDP Renovaveis (EDPR) to support the development of wind and solar projects in the country.

With the existing project pipeline in Brazil, EDPR will have the capacity to produce approximately 1.8 terawatt-hours (TWh) of clean energy annually by 2023.

EDPR CEO João Manso Neto said: “This credit line will help us to continue with our establishment in Brazil, a country in the midst of a transition towards a more environmentally friendly energy mix.

“In addition to this, we feel especially motivated by the endorsement of an institution of the EIB’s weight, as it supports not only our business line but all our contributions to progress and development.”

The credit offered by the EIB will also help the country to reduce carbon emission levels and also help in transitioning towards a cleaner energy mix, in line with the environmental objectives established at COP21.

EIB’s funds will be used by the company for developing a series of onshore wind and solar PV plants in Brazil.

Additionally, the investments are expected to create approximately 1,900 new employment opportunities during the implementation phase and would see a reduction in the costs of energy and fuel imports.

EIB vice-president Emma Navarro said: “Today, we are taking a very important step forward in our commitment to support sustainable and inclusive economic growth in Latin America.

“Thanks to this project, the EU Bank is boosting wind and solar power generation in Brazil and therefore contributing to the fight against climate change. Supporting clean and renewable energy, thus helping to reduce CO2 emissions, is a key priority for the EIB in Brazil and in the whole region.”