The European Investment Bank announced on March 16 that it has approved a loan of EUR 200 million (USD 221 million) to Neoenergia for the development of PV and wind power projects in Brazil. Neoenergia is a subsidiary of Spanish multinational energy company Iberdrola and a major utility in the Brazil. The announcement and further details about this event were first reported by other renewable energy news websites.

With the loan, Neoenergia will be developing renewable generation capacity totaling 715.5MW, of which 566.5MW will be based on wind power and 149MW will be based on solar PV.

The specific projects that will be financially supported by the loan agreement are as follows: the Oitis onshore wind complex (566.5MW), the Chafariz onshore wind complex (471MW), and the Luzia solar park (148.3MW). The Oitis wind complex is located between Piauí and Bahia. The Chafariz wind complex and the Luzia solar park are located in Paraíba.

The signing ceremony for the loan agreement was held in Rio de Janeiro and was attended by Ricardo Mourinho Felix, VP of EIB, who was making his first visit to Brazil. Felix said that the sealing of this agreement shows that EIB prioritizes “sustainable and inclusive economic growth” in Brazil and the rest of Latin America, and such growth can be driven by “boosting productive investment”. The latest loan agreement is the fifth one inked between EIB and Neoenergia.

Neoenergia currently possesses 4GW of installed generation capacity, 88% of which is based on renewable energy.