Sudene Supports 40-MW Solar Project in Brazil

• Brazil's Sudene approves USD 20.4m loan to Jaiba CE Energias Renovaveis for 40MW solar power plant, expected to meet the energy needs of 500,000 households by 2024.

Brazil’s Superintendency for the Development of the Northeast (Sudene) has approved a BRL-100-million (USD 20.4m/EUR 18.6m) loan to Jaiba CE Energias Renovaveis for the construction of a 40-MW solar power plant in the north region of Minas Gerais state. The loan comes from Sudene's Northeast Development Fund (FDNE) and is part of the 516-MW Sol de Jaiba Solar Complex, owned by local energy company Auren Energia SA. The total investment for the solar complex will amount to BRL 166.6 million and the plant will be operational in the first quarter of 2024. When it is running, it should generate enough electricity to meet the demand of more than 500,000 households.

What Is the Cost of Building a 40-MW Solar Plant in Brazil?

• The 40-MW solar power plant is expected to generate over 73.7 GWh per year.
• The total cost of building the solar plant is estimated to be BRL 166.6 million (USD 33.3 million/EUR 30.2 million).
• The loan from Sudene was approved to help finance the construction of the plant.
• The loan agreement stipulates that the plant must be operative by the first quarter of 2024.
• The project is part of the 516-MW Sol de Jaiba solar complex, owned by local energy company Auren Energia SA.
• The Brazilian government has been encouraging the development of renewable energy projects in the country, with a goal of achieving 30% clean energy share in the total energy mix by 2030.
• Other incentives offered by the government include tax breaks, lower financing rates, and support for research and development.
• The Brazilian energy sector regulator, ANEEL, has also proposed a series of incentives to encourage the development of renewable energy projects in the country.