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Brazil to launch $6.5 billion renewable fund
- 9 years ago (2015-04-10)
- Junior Isles
The Government of Brazil has announced the launch of an investment fund of $6.5 billion, which will be used to create renewable energy generation projects in the country's northeastern region.
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The move comes in response to increasing interest from larger business groups in the investment of renewable energy (specifically wind energy) to meet the growing needs of industry.
The fund itself will consist of state-owned utility Cia Hidro Eletrica do Sao Francisco, also known as CHESF as well as an assortment of private investors, according to Brazilian Energy Minister Eduardo Braga. Private investors will own 51 per cent of the fund, whereas the state will control the remaining 49 per cent. However, the fund will be managed by the Brazilian National Social and Economic Development Bank and will finance up to 8 GW of new wind and solar projects in the region.
Braga said: “We are on the eve of a major announcement... With the fund, subsidies will no longer be a burden for Brazil's Treasury and become a catalyst for northeast region development."
The fund itself is awaiting approval from President Dilma Rousseff, but Braga was optimistic that the new capacity created by the fund will allow CHESF to supply industrial users with more energy than is currently available through Brazil's hard-pressed power network.