The project, in Minas Gerais, adds 422 MW to the Janoba Solar Park, increasing its installed capacity to 1.6 GW, enough to supply electricity to 1.9 million homes.
The project contributes to strengthening the renewable matrix and maintaining the supply chain, in addition to generating about 5,000 job opportunities
The National Bank for Economic and Social Development (BNDES) has approved financing worth R$600 million for the Iraburu Solar Park, which includes seven parks with an installed capacity of 422 MW. The project will complement the existing Janoba Solar Park, located in Janoba, Minas Gerais, increasing its installed capacity to 1.6 GW, enough to supply 1.9 million homes.
The BNDES financing will be signed with Irapuru Holding SA, controller of the seven SPVs, equivalent to approximately 50% of the total investment and will be implemented with resources from the National Climate Change Fund (Climate Fund – R $ 400 million) and FINEM (R$ 200 million). .
Scheduled for completion in the first half of 2025, Iraburu will have 800 hectares for the installation of 750,000 bifacial solar modules, and also includes the implementation of an inverter in the transmission system for the restricted and shared use of the Janoba Solar Park. The project is approximately 70% advanced, and includes 1,000 direct job opportunities and 4,000 indirect job opportunities.
The Janaúba Solar Park was also financed by BNDES for approximately R$1.5 billion. For the Bank’s President, Aloisio Mercadante, with the support, BNDES confirms its role as the world’s largest financier of renewable energy, and shares the government’s commitment to promoting the country’s energy transition.
“In addition to being a suitable investment to promote the energy transition, which is one of the priorities of the Lula government, and avoiding the emission of 38,391.69 tons of carbon dioxide, the Iraburu Solar Park should generate R$ 5 million of increased income for the region and its country,” Mercadante explained. Implementing and reaffirming BNDES’ role as a global leader in renewable energy financing, according to Bloomberg NEF.”
“The sun, which punished northern Minas Gerais so much in the past, has today become a great engine of social and economic development. Solar energy is fundamental to increasing our sustainability, ensuring more and more clean and renewable energy in our system. We have been working,” said Minister of Mines and Energy, Alexandre Silveira. “With BNDES to ensure resources that will attract investments to the state of Minas Gerais and Brazil, generating employment and income for our population.”
“The approval of this financing by BNDES for the Iraburu Solar Park is a major milestone in our path to support Brazil’s energy transition. This project not only increases the installed capacity of the largest solar park in Latin America, but also reinforces our commitment to sustainability and job creation.” We are proud to contribute to the country’s renewable energy matrix and support initiatives that promote decarbonization and regional economic development,” commented Márcio Callocs, CFO of Elera Renováveis, a shareholder in the project.
Energy transmission
According to consulting firm McKinsey, Brazil is positioned to become a force in the energy transition by supporting not only its own decarbonization, but also the global energy transition. In the consulting firm’s view, Brazil could become a world leader in the renewable energy, bioenergy and carbon markets, sectors that could represent a market opportunity worth about US$125 billion in 2040.
The continuing decline in the cost of solar panels in recent years has led solar energy to lead the expansion of electricity generation capacity in the world and in Brazil. The country has a high potential for solar energy generation due to its continental size and geographical location, which ensures high levels of solar radiation throughout almost the entire national territory and low energy production costs.
According to another specialist consulting firm, Aurora, Brazil has the fifth largest solar generation potential in the world, with capacity factors ranging from approximately 19 to 24%, which is twice the average capacity factor of Germany, one of the world leaders in the use of solar energy. . Optical energy. Installed solar generation capacity reached 48 GW as of 09/30/2024, representing approximately 20% of the Brazilian electricity matrix, taking into account centralized and distributed generation.
In addition to solar energy, Brazil has great potential for other renewable energy sources, such as wind, water and biomass. Renewable sources represent approximately 89% of the Brazilian electricity matrix, including centralized and distributed generation, underscoring the country’s call for sustainability and leadership in the energy transition.
Historical support
The global energy transition will require significant amounts of investment in the coming years and decades, and investments in the Brazilian electricity sector are supported by the Brazilian development bank BNDES, other development and multilateral banks and the capital market, especially through catalytic bonds.
Due to the historic partnership in developing the sector, including plants in the Alternative Sources Incentives Program (Proinfa), regulated market auctions and more recently the expansion of the free market, BNDES has become the world leader in renewable energy financing. According to BloombergNEF, BNDES ranks first among clean energy financiers in the past 20 years (2004 to 2023) at $36.4 billion, as shown in the following chart.
McKinsey estimates that the world will need investments ranging from $3 to $5 trillion annually by 2030.(Bendis News Agency)
