The European Investment Bank (EIB) has granted a loan to Sicredi for investments in solar energy in Brazil.
The company granted a $213 million (€200m) loan for this cooperative financial institution. Brazil is the biggest beneficiary of EIB financing in Latin America.
According to Sicredi, it will utilize the funding to install solar photovoltaic panels in individual homes, small and medium businesses in Brazil. In addition, it will also make installations in rural properties.
It has been expected that the project will contribute to the development of the country's renewable energy.
“The project will reduce electrical losses and optimise distributed grid usage by supporting a low-size market segment,” EIB said in the statement, adding that promoting additional renewable generating capacity would enable investments in renewable energy.
“I am very glad to announce a project that enables the private sector’s investments in renewable energy, reduces carbon emissions and air pollution, and supports additional renewable generation capacity in Brazil,” EIB vice-president Ricardo Mourinho Félix, was quoted in a statement.
It comes at a time when Brazil has been attracting investments in wind, solar and hydropower capacity. It uses “auction-based renewable procurement to increase new generation capacity, and contract duration is typically 15 to 30 years”.