BB launches R$2.5bi line of financing for renewable energy in rural areas
Producing your own power has become more accessible for individuals, companies and cooperatives in rural areas under the Agro-Energy Program, launched on the 7th of this month by the Banco do Brasil. It is estimated that up to R$ 2.5 billion will be drawn down by interested takers before the year-end with incentivized conditions: rates vary from 2.5% to 12.75% annually with an average term of 10 years. Financing can go as high as 100% of the project.
“Financing has always been an obstacle to rural producers in opting for photovoltaic panels for example. This program has come at a propitious moment and can represent the start of expansion in renewable energy in rural Brazil. Generating your own energy reduces costs, ensures security of supply in areas suffering from outages and is sustainable”, said Rodolfo de Sousa Pinto, CEO of the company specialized in solar energy, Engie Solar.
According to the Banco do Brasil, the Program will permit the reduction in production costs, self-sufficiency in energy generation, transfer of technology to rural areas, maintenance of income and expansion of businesses in the agricultural sector with the installation of solar, biomass and wind powered plants.
“Support for sustainable electric energy projects with the differentiated conditions of agribusiness recognizes the potential for renewable energy and innovation in Brazilian agricultural-related businesses. The Agro-Energy Program reinforces the Bank’s commitment with sustainability”, states an official announcement from the Banco do Brasil.
Energia Solar
The decline in prices, greater know-how of the technology and the option for renewable energy is driving the installation of solar energy systems in homes and companies in Brazil. The most recent National Electric Energy Agency (ANEEL) data shows that there are already nine thousand photovoltaic systems hooked up to the electricity network with a forecast that by 2024 there will be more than 1.2 million Brazilians producing their own energy.
The expansion of microgeneration of solar energy in Brazil is aligned to a world tendency and as in the case of other countries, the massification of the technology comes pari passu with a reduction in costs.
For example, in a middle class family, it is possible to install a photovoltaic system from R$ 17,000.00, with average annual savings of R$ R$2,200,00 and equivalent to an investment of seven years.
Today, a commercial or rural unit where there is a monthly expenditure of about R$ 2,200.00 in electricity, can achieve annual savings of R$ 18,000.00 with an average investment of R$ 140,000.00 in a photovoltaic solar system. Thus, the average return on the investment is also seven years, bearing in mind that the system has a useful life of longer than 25 years with a guarantee of performance over this same period and at low maintenance costs.
“If you do all the calculations, an investment in solar energy results in major savings. With new lines of finance being launched in the market, such as Agro Energia, this source of energy becomes even more attractive. And not to mention the satisfaction of helping to save the environment by consuming clean and renewable energy”, says Sousa Pinto.
ABOUT ENGIE
ENGIE is a global reference in low-carbon energy and services. With its 97,000 employees, its customers, partners and stakeholders, the Group is committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by its purpose (“raison d’être”), ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers. Turnover in 2022: 82.6 billion Euros.
In Brazil, ENGIE, leader in 100% renewable power generation in the country, operates in generation, commercialization and transmission of electric power, gas transport and energy solutions. The Company
has in the country an installed capacity of 12,5 GW, originated from renewable sources and with low GHG emissions, such as hydro, solar and biomass power plants, and windfarms.
With the acquisition of Transportadora Associada de Gás – TAG, ENGIE now also owns the largest natural gas transportation network in the country, at 4,500 km and transecting 10 states and 191 cities.
The Group has a complete portfolio of integrated solutions focused on reducing costs and improving the infrastructure for companies and cities, such as energy efficiency, public lighting, energy monitoring and management.
With 2,800 employees, ENGIE’s turnover in Brazil in 2023 was of R$ 11.7 billion. ENGIE trades on the B3 through its energy generation and trading company, ENGIE Brasil Energia, under the ticker EGIE3. In addition to being a B3 Novo Mercado component, the Company is one of the very few companies that have been listed in the Business Sustainability Index since its creation in 2005. In 2021, ENGIE Brasil Energia was included in the Carbon-Efficient Index (ICO2), made up of IBrX 100 companies that are most transparent in terms of GHG emissions reporting and how they are preparing for a low-carbon economy.
The company also received in May 2024 the certification Great Place to Work, a recognition which validates the continuous commitment of the company to create a positive and inclusive work environment for all.
The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris – Europe 120/France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).