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.