October 22 (Renewables Now) - The European Investment Bank (EIB) has agreed to provide EUR 100 million (USD 111.4m) to Brazilian state-owned development bank Banco de Desenvolvimento de Minas Gerais (BDMG) to facilitate the financing of renewable energy and energy efficiency projects in the state of Minas Gerais.
The EU-backed pot is to cover up to 75% of the final investment costs of climate-friendly projects undertaken by municipalities and private companies. Small businesses also qualify to apply for the EIB loans, the EU lender said.
The funding will support the local renewables roll-out, including small-scale solar photovoltaic (PV) farms and run-of-the-river hydropower plants (HPPs), and with part of the financing going towards various energy efficiency initiatives.
The implementation of these projects is expected to create around 700 local jobs over the next four years, according to the EIB.
(EUR 1.0 = USD 1.11)