BNDES changes credit for cogeneration
The Banco Nacional de Desenvolvimento Econômico e Social (BNDES) has made changes in BNDES Finem and renamed BNDES Eficiência Energética. The program also includes the thermal projects fueled by biomass from sugarcane.
But what is the impact of these changes? The JornalCana Portal heard experts in cogeneration and analysts of this market niche of the sugarcane industry.
Know how the BNDES Finem – Energy line was:
1 – The term of payment, previously limited to 72 months (lack plus amortization) has been relaxed, and now may be extended, according to the specificity of each project or group of investments.
2 – The financial cost keeps reference to the Long-Term Interest Rate (TJLP), currently at 6,5% annually, which allocation BNDES reserve for projects considered priority, as the latest Bank operational policies.
3 – The maximum participation of BNDES as financier was maintained up to 70% of the total project.
4 – A new line can be accessed by any company with headquarters and management in Brazil The instrument includes both investments made by the organizations own units as in third units.
5 – Financing operations can be performed either in direct mode (where the project is analyzed directly by BNDES staff), and in indirect mode (where the project is reviewed by a financial agent accredited by BNDES, which acts as an intermediary operation), at the discretion of the credit borrower.
6 – The minimum value for transactions was set at R$ 5 million, significantly below the R$ 20 million minimum level usually set in straight lines from BNDES. To reach the R$ 5 million, the client can group investments in different places in the same operation, it means its investment plan may include a number of energy efficiency projects to be executed in different locations, for example, network hotels, shops or industrial units.
7 – The types of supportable projects are grouped into four categories: repowering mills; smart electricity grids; buildings, focusing on air conditioning, lighting and distributed generation (including cogeneration) for new units or existing (retrofit); and production processes, focusing on cogeneration process as an energy source and other interventions to be prioritized.
Professional of cogeneration area surveyed by JornalCana Portal is unanimous: the “new” BNDES program deserves support because also proposes to attend the sugarcane industry.
But sources also agree: many of the sugarcane industry companies are prevented from getting credit in financial institutions, due to the financial situation.
Check out the views of Humberto Vaz Russi engineer, JornalCana Portal blogger and member of the Associates Engineers Alliance staff:
“I see that the minimum value of R$ 5 million cannot fit all projects of interest in increasing efficiency, but I believe it will be a lever for projects that may compete for the A-3 auction to be held in August 2015 . ”
More: “With regard to applicability in biomass projects, [the program] does not clearly mentions but does emphasis on cogeneration projects and retrofits, focusing on energy efficiency, which fall, yes, sugarcane mills.”
And finally: “The program, in its entirety, rule out investments in fossil fuel projects, except natural gas.”