Canadian Solar and EDF Energies Nouvelles have secured a BRL529m ($163m) project financing facility from the Brazilian Development Bank (BNDES) for the 191.5MWp Pirapora 1 photovoltaic project.

The project is being built in southeastern Brazil in the Minas Gerais state. EDF Energies Nouvelles through its subsidiary EDF EN do Brasil owns 80% stake in the solar plant while the remaining 20% stake is owned by Canadian Solar.

EDF had acquired its 80% stake in the solar project from Canadian Solar in October last year for an undisclosed price.

Pirapora I marks the maiden financing for BNDES in a solar power generation project which will done completely from TJLP (Brazilian Long Term Interest Rate).

Canadian Solar chairman and CEO Dr. 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.”

The modules for the plant have been manufactured in Sao Paulo by Canadian Solar in compliance with the local content requirements of BNDES to grant the 18-year financing facility.

According to the partners, Pirapora I solar plant is fully contracted and has already secured a 20-year inflation-linked power purchase agreement (PPA).

Currently under construction, the Brazilian solar plant is likely to achieve commercial operational stage in the third quarter of the year.  

Upon completion, the Pirapora I solar plant will produce 391,263MWh annually and is expected to contribute towards Brazil’s goal of achieving 23% of its energy from renewable sources by the year 2030.