Atlas Renewable Energy Gets $210 million For 438 MW Solar Project in Brazil
- Atlas stated that this marks the first time that BNDES has actually carried out an US dollar-indexed loan to a renewable energy project.
- The solar project will generate 815 GWh of power every year which amounts providing clean energy to 394,000 homes as well as offsets 61,000 tons of CO2 emissions annually.
International renewable player Atlas Renewable Energy has secured a loan of $210 million from Brazil's Banco Nacional de Desenvolvimento Econômico e Social (BNDES) to finance its Boa Sorte solar project which is of 438 MW in capacity.
Atlas claimed that this marks the very first time that BNDES has implemented a United States dollar-indexed loan to a renewable energy project. "We wish that this is the first of numerous procedures in which the BNDES can finance companies utilizing the dollar as a reference," claimed the Infrastructure Credit Director, Solange Paiva Vieria.
The official statement of Atlas pointed out that this funding establishes a new criterion for project financing in Brazil, making it readily available for projects with dollar-denominated PPAs particularly developed for huge Brazilian companies which are huge exporters.
The bargain is additionally especially substantial offered the new guideline under Law # 14,286/ 2021 that allows exporters to become part of USD PPAs with firms that hold authorizations, which is the case of energy trading business, claimed Atlas.
Luis Pita, General Manager for Atlas Renewable Energy in Brazil, claimed, "The fact that BNDES has actually issued this loan is a testament to the expanding significance of renewable energy around the world and in Brazil and also the substantial role that business like Atlas are playing in driving this transition."
"With the introduction of Law 14,286/ 21, known as the Foreign Exchange Law, since December 31, 2022, representatives in the electrical energy field will be able to trade energy with PPAs connected to the dollar. This new framework permits electro-intensive exporting firms to minimize their risk to currency exchange rate changes, given that their products are sold dollars and also the electrical power taken in, being an essential input to produce goods, can likewise be purchased at prices connected to the dollar," claimed Daniel Barreto, superintendent of the BNDES Energy Area.
The Boa Sorte solar power project will be integrated in the State of Minas Gerais of Brazil that will certainly give clean energy to a customer from the Brazilian industrial field, under a 20-year PPA, claimed Atlas. The plant will certainly have an installed capacity of 438 MW, which will generate 815 GWh of power each year. This amounts giving clean energy to more than 394,000 homes and also offsets more than 61,000 tons of CO2 emissions annually.