Canadian Solar and EDF Energies Nouvelles have obtained a BRL529m ($163m) in project financing from the Brazilian Development Bank (BNDES) for their 191.5 MW solar power project known as Pirapora I project in Brazil.
Canadian Solar said that the Pirapora I project is the first-ever solar power generation project to be financed by BNDES. The 18-year loan underscores the confidence of BNDES in the long-term growth of renewable energy in Brazil.
The photovoltaic project, which is located in Minas Gerais, is fully supported with a 20-year inflation-linked power purchase agreement by the Brazilian government.
The Pirapora I project is currently under construction in which Canadian Solar owns 20% in partnership with EDF EN do Brasil, EDF Energies Nouvelles' local subsidiary.
The solar power project is expected to reach commercial operation in the third quarter of 2017.
Canadian Solar chairman and CEO Shawn Qu said: "This cornerstone financing from BNDES for the Pirapora I project demonstrates the total commitment from BNDES and the Brazilian government to support companies willing to invest in the long-term development of solar energy infrastructure in Brazil.
“We are extremely pleased to have partnered with EDF Energies Nouvelles in securing this landmark transaction in the solar sector."