Bloomberg cited Brazilian Energy Minister Eduardo Braga as saying at the Senate’s Committee on Infrastructure Services conference that the fund will include private investors and state-owned utility Cia. Hidro Eletrica do Sao Francisco, known as Chesf.

Braga said in a statement on the Ministry’s website: "We are on the eve of a major announcement.

"With the fund, subsidies will no longer be a burden for Brazil’s Treasury and become a catalyst for Northeast region development."
The investment arm of the government’s National Social and Economic Development Bank, known as BNDES, will manage the investment fund.

Chesf will have 49% stake in the fund while private investors will hold the remaining stake, according to Bloomberg.

Brazil has issued $1.5bn in grants and loans, in 2013, to fund research into renewable energy, reports

Additionally, the country initiated Inova Energia program aimed to help companies commercialize technology including solar power and energy-efficient vehicles.