Last Monday (10/03), the National Bank for Economic and Social Development (BNDES) announced its new financing policy for the electricity sector, prioritizing alternative renewable sources. BNDES determined that it will increase its maximum share in the financing of solar energy projects at the Long-Term Interest Rate (TJLP) from 70% to 80%, reducing the maximum share in thermal energy projects using fossil fuels from 70% to 50%. The Bank's maximum share in the financing of large hydroelectric plants at the TJLP was also reduced from 70% to 50%. The percentages of 80% for energy efficiency projects and 70% for wind, biomass, cogeneration and small hydroelectric plants were maintained.

BNDES also announced that it will subscribe up to 50% of the value of the debentures to be issued by the company taking out the credit. According to the Bank, this proposal opens space for the issuance of infrastructure debentures, whose financing terms are around 10 years.

Leveraging the financing of renewable energy is one of the issues that CEBDS has been defending, as explained in this study by the institution's Council of Leaders: Financing renewable energy: obstacles, challenges and opportunities.

The document contains a series of proposals to improve access to various sources of financing for alternative renewable energy projects in Brazil and was presented to the presidency and board of directors of BNDES at a meeting with the CEOs of the Council of Leaders on August 15. The coordinator of the Thematic Chambers of Energy and Climate Change and Sustainable Finance, Lilia Caiado, highlights “We are continuing this joint work to develop the proposals we made, including the issuance of green bonds. Furthermore, at the global level, with the project Low Carbon Technology Partnership Initiative (LCTPi) , of the World Business Council for Sustainable Development (WBCDS) The renewable energy technology group has been working with a focus on financing.”