IDB Invests in Solar Energy in Brazil
26 May 2011: The Inter-American Development (IDB) is supporting a solar project in Tauá, in Northeast Brazil, that will be the first ever large scale power generation project to connect a photovoltaic (PV) system into the national interconnected system in Brazil.
The two IDB grants, totalling US$700,000, will help provide electricity to 1,500 households, with the possibility of expansion, and catalyze investment in solar power in the Latin America and the Caribbean region. The project, run by MPX Energia S.A., a Brazilian energy corporation, is the largest PV project incorporated to a grid in South America. The IDB grants will cover the investment costs to offset the difference between the higher cost of electricity generated by PV solar plants and the cost of electricity generated by conventional sources of energy.
The IDB grants will also support the preparation and dissemination of a study on solar PV technology and incentive mechanisms for solar generation through utilities, including how local governments can help attract and retain private sector investments in solar energy successfully. [IDB Press Release]