EIB and EDPR support the development of wind energy in Brazil

Climate action in Latin America: the EIB and EDPR support the development of renewable energies in Brazil. The EIB grants EUR 150 million to EDPR Brazil to finance wind power and solar energy plants. The agreement will help the country meet the climate objectives established in COP21. Employment: the project will create 1,900 jobs during the execution phase.

The European Investment Bank (EIB) will provide EUR 150 million to EDPR Brazil, the local subsidiary of EDP Renovaveis (EDPR), the world leader in the renewable energy sector, to support the development of wind and solar power plants in Brazil. This loan will help boost the company’s business plan in Brazil, a country in which EDPR has been present during the last decade and in which its project portfolio will allow it to produce about 1.8 TWh per year of clean energy for the year 2023.

Thanks to the support of the EIB, Brazil will be able to reduce its CO2 emissions and accelerate the transition to a cleaner energy mix, in accordance with the environmental objectives set out in COP21.

In addition, the construction of wind and solar power plants will positively influence the country’s economy, reducing energy and fuel import costs, improving its energy security and generating employment. In particular, the global investments supported by the EIB will contribute to creating 1,900 jobs during the execution phase.

This operation, eligible under the Climate Action and Environmental Facility (CAEF), is another example of the EIB’s efforts to finance projects that favor mitigation and adaptation to climate change. outside the European Union, thus contributing to EU policies on renewable energy and the environment. This project will promote the production of clean and renewable energy in accordance with the UN Sustainable Development Goals (SDGs), which guarantee access to affordable, reliable, sustainable and modern energy, while combating climate change.

At the signing ceremony held in Madrid, the EIB Vice President, Emma Navarro, responsible for EIB operations in Latin America and the Bank’s climate action, said: «Climate change is one of the greatest threats to the future of our planet and we must join forces to face it. Today we take a very important step in our commitment to support sustainable and inclusive economic growth in Latin America. Thanks to this project, the EU bank will boost the generation of wind and solar energy in Brazil, thus contributing to the fight against climate change. Supporting clean and renewable energies to reduce CO2 emissions is a fundamental priority for the EIB in Brazil and throughout the region ».

For his part, João Manso Neto, CEO of EDPR, said that “this line of credit will help us strengthen our operations in Brazil, a country in full transition towards an energy mix more respectful of the environment. In addition, we are especially motivated by the support of a leading institution such as the EIB, since it supports not only our line of business, but all our contribution to progress and development ».

Through this framework loan, the Bank will grant financing worth 150 million euros to EDPR Brazil, which will subsequently allocate the funds to a series of photovoltaic wind and solar plants in Brazil. Likewise, EDPR may request long-term preferential debt from other financial institutions to obtain all the necessary financing for the project.

The EIB in Latin America

The European Union is the main partner for the development of the Latin American region, its first investor and its second largest trading partner. As an EU bank, the EIB supports the EU’s relations with Latin America by financing projects that contribute to achieving the EU’s foreign policy objectives: the development of economic, environmental and social infrastructure, the development of the private sector , as well as climate change mitigation and adaptation to its effects.

The EIB began operations in Latin America in 1993. Since then, the EU bank has financed almost 120 projects for a total amount of EUR 8,400 million in 14 countries.

In 2018, the EU bank intensified its contribution to sustainable development and climate action in Latin America, facilitating EUR 640 million to carry out 15 financing operations: a record of operations structured by the EIB in a year in which the region.