Brazil to create $6.5 billion fund for renewable energy
Addressing the Senate's Committee on Infrastructure Services conference, Brazilian Energy Minister Eduardo Braga said the fund will consist of private investors and state-owned utility Cia. Hidro Eletrica do Sao Francisco, known as Chesf.
In a statement posted on the Ministry's website Braga said: "We are on the eve of a major announcement. With the fund, subsidies will no longer be a burden for Brazil's Treasury and become a catalyst for Northeast region development."
Chesf, which receives government subsidies for power purchases, will not receive such financial assistance.
Managed by the investment arm of the government's National Social and Economic Development Bank (BNDES), the fund will be 51% owned by private investors, while the remaining 49% will be held by Chesf.
Brazil has long been investing and innovating in renewable energy, and allotted $1.5bn in grants and loans to fund research into the sector in 2013, as reported by GreentechLead.com.
The country also launched the Inova Energia program to help companies commercialize technology including solar power and energy-efficient vehicles.
According to the publication, the project secured $1.2bn grant from BNDES and the state innovation agency Financiadora de Estudos e Projetos, with an additional $600m furnished by power regulator Agencia Nacional de Energia Eletrica. ■