Project in Minas Gerais adds 422MWp to the Janaúba Solar Complex, increasing its installed capacity to 1.6 GWp, enough to supply 1.9 million homes
Project contributes to renewable energy matrix and maintenance of supply chain, in addition to generating around 5 thousand jobs
The Brazilian Development Bank (BNDES) has approved financing worth R$600 million for the Irapuru Solar Complex, which has seven parks with an installed capacity of 422 MWp. The project will complement the existing Janaúba Solar Complex, located in Janaúba, Minas Gerais, increasing its installed capacity to 1.6 GWp, enough to supply 1.9 million homes.
The BNDES financing will be signed with Irapuru Holding SA, the controlling company of the seven SPEs, corresponds to approximately 50% of the total investment and will be made with resources from the National Fund on Climate Change (Climate Fund – R$400 million) and FINEM (R$200 million).
Scheduled for completion in the first half of 2025, Irapuru will have 800 hectares for the installation of 750,000 bifacial solar modules, and will also include the installation of a transformer in the restricted and shared use transmission system of the Janaúba Solar Complex. The project is approximately 70% complete, involving 1,000 direct jobs and 4,000 indirect jobs.
The Janaúba Solar Complex was also financed by BNDES with approximately R$1.5 billion. For the Bank's president, Aloizio Mercadante, with this support, BNDES reaffirms its role as the largest financier of renewable energy in the world, engaged in the Government's commitment to promote the energy transition in the country.
“In addition to being a relevant investment to advance the energy transition process, which is one of the priorities of the Lula government, avoiding the emission of 38,391.69 tons of CO2, the Irapuru Solar Complex should generate R$5 million in increased income in the region and its implementation reaffirms the role of BNDES as a global leader in financing renewable energy, according to Bloomberg NEF”, explained Mercadante.
"The sun that so punished the North of Minas Gerais in the past has now become a great driver of social and economic development. Solar energy is essential to increase our sustainability, ensuring more and more clean and renewable energy in our system. We have been working with BNDES to secure resources that will attract investments to Minas Gerais and Brazil, generating jobs and income for our population," said the Minister of Mines and Energy, Alexandre Silveira.
"The approval of this financing by BNDES for the Irapuru solar complex is a significant milestone in our trajectory of supporting Brazil's energy transition. This project not only increases the installed capacity of the largest solar complex in Latin America, but also reinforces our commitment to sustainability and job creation. We are proud to contribute to the country's renewable matrix and to support initiatives that promote decarbonization and regional economic development," commented Marcio Calux, CFO of Elera Renováveis, a shareholder in the project.
Energy transition - According to McKinsey, Brazil is positioning itself to become a powerhouse in the energy transition by supporting not only its own decarbonization, but the global energy transition. In the consultancy's view, Brazil can become a global leader in renewable energy, bioenergy and carbon markets, sectors that could represent a market opportunity of approximately US$ 125 billion by 2040.
The steady reduction in the cost of solar panels in recent years has led solar energy to lead the expansion of electricity generation capacity worldwide and in Brazil. The country has a high potential for solar energy generation due to its continental size and geographic location, which guarantees high levels of solar radiation throughout practically the entire national territory and low energy production costs.
According to another specialized consultancy, Aurora, Brazil has the fifth largest potential for solar energy generation in the world, with capacity factors of around 19 to 24%, which represents twice the average capacity factor of Germany, one of the global leaders in the use of photovoltaic energy. Installed solar generation capacity reached 48 GW on 09/30/2024, which represents around 20% of the Brazilian electricity matrix, considering centralized and distributed generation.
In addition to solar energy, Brazil has significant potential for other renewable sources, such as wind, hydro and biomass. Renewable sources account for around 89% of Brazil's electricity mix, including centralized and distributed generation, which confirms the country's commitment to sustainability and its leading role in the energy transition.
Historical support - The global energy transition will require high volumes of investment in the coming years and decades and investments in the Brazilian electricity sector are supported by BNDES, other development and multilateral banks and the capital market, especially through incentivized debentures.
Due to its historic partnership in the development of the sector, including the Alternative Energy Sources Incentive Program (Proinfa) plants, regulated market auctions and, more recently, the expansion of the free market, BNDES has become the global leader in financing renewable energy. According to BloombergNEF, BNDES has been the first clean energy financier over the past 20 years (2004 to 2023) with US$36.4 billion, as shown in the chart below.
McKinsey estimates that investments of 3 to 5 trillion dollars per year will be needed by 2030 worldwide.
