Brazil with more solar energy
IDB Invest finances the expansion of solar energy in Brazil with Sicredi
Sustainable Development and Solar Energy / ENERGIA LIMPIA XXI. Brazil continues to promote solare energy projects. IDB Invest, a member of the Inter-American Development Bank (IDB) Group, has provided a loan in Brazilian reals for the equivalent of $ 110 million to Banco Cooperativo Sicredi SA (Sicredi). The funds will promote access to financing for small-scale photovoltaic solar energy systems, supporting the growth of Sicredi’s solar portfolio and contributing to the expansion of distributed generation of photovoltaic solar energy in the Brazilian market.
IDB Invest financing consists of $ 100 million of its own resources and $ 10 million of blended financing from the Canadian Climate Fund for the Private Sector of the Americas (C2F). The objective is to finance Sicredi customers who install photovoltaic solar energy systems while addressing the main gaps that limit the expansion of photovoltaic solar energy financing for micro and small businesses. A report carried by Energía Limpia XXI states that Brazil has one of the cleanest energy matrices in the world, but the transition to clean energy has been dominated by centralized generation sources and more than 70 percent depends on hydroelectric power. In recent years, the Brazilian government has promoted the incorporation of greater diversification in its matrix and solar energy is one of the options with the greatest potential, since Brazil ranks fifth in the world in terms of solar power. In addition to the photovoltaic solar capacity installed in large-scale plants, the incorporation of smaller generators, with high potential for self-consumption, will allow Brazil to meet the expected increase in demand through distributed generation.
The blended financing from the C2F resources will allow Sicredi to increase its credit to cooperatives that have a smaller penetration in the solar market. IDB Invest’s participation also includes advisory services, which will help identify green assets in Sicredi’s portfolio, train employees and clients on sustainability, and create a green bond framework to prepare for future bond issuances.
The operation potentially contributes to six of the United Nations Sustainable Development Goals: Gender Equality (SDG 5), Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Climate Action (SDG 13) and Partnerships for the Goals (SDG 17).
Sicredi loans increase the financial inclusion of Brazil, through its presence in rural and remote communities. Sicredi is the only financial institution in 202 municipalities across the country. More than 52 percent of its branches operate in rural areas and 87 percent of the municipalities where it is present has less than 100,000 inhabitants.
About IDB Invest
IDB Invest , a member of the Inter-American Development Bank Group (IDB), is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $ 12.4 billion in asset management and 342 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
Sicrediis a cooperative financial institution committed to the growth of its members and the development of the regions where it operates. The Sicredi management model values the participation of more than 4 million members, who play the role of business owners. Sicredi has a broad national presence with locations in 22 states (Acre, Alagoas, Bahia, Ceará, Goiás, Maranhão, Mato Grosso, Mato Grosso do Sul, Minas Gerais, Pará, Paraíba, Paraná, Pernambuco, Piauí, Rio de Janeiro, Rio Grande do Norte, Rio Grande do Sul, Rondônia, Santa Catarina, São Paulo, Sergipe and Tocantins) and in the Federal District and has more than 1,800 branches and offers more than 300 financial products and services.