Banco do Brasil to Lend $734.5 Million for Wind Farms

Banco do Brasil SA, Latin America’s biggest lender by assets, may disburse more than 1.5 billion reais ($734.5 million) of loans for wind farms this year, up from 1.3 billion reais last year, as the renewable energy becomes cheaper.

The total amount will depend on how many wind developers sign contracts to sell energy in government-organized auctions for new power capacity this year, Renato Proenca, executive manager of the commercial department for Brasilia-based Banco do Brasil, said today in an e-mail.

Construction costs of wind farms have fallen in recent years, making them more competitive with other sources of energy, the bank said Jan. 18 in a statement.

“In the short to medium term, the expectation is that this type of energy will increase its participation in Brazil’s energy matrix by more than 6 percent,” Paulo Rogerio Caffarelli, its vice president of wholesale, international business and private banking, said in the statement.

The bank has lent more than more 1.5 billion reais to hydroelectric projects since 2010, according to the statement.

Wind farms produce about 2 percent of Brazil’s power now, up from 0.03 percent in 2001, Banco do Brasil said.

To contact the reporter on this story: Stephan Nielsen in Sao Paulo at snielsen8@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.