Canadian Solar has secured BRL225.2 million ($55 million) non-recourse project financing for its 152.4MW Lavras solar power projects from Banco do Nordeste do Brasil (BNB).

BNB will be funding the Lavras solar projects for a period of 21 years across the construction and operation phases of the projects.

The inflation-linked debt tied to the National Consumer Price Index (IPCA) will give enhanced capital and resource alignment with the Brazilian economy, said Canadian Solar.

Dr. Shawn Qu – Chairman and CEO of Canadian Solar said: “We are delighted to close our fifth consecutive project financing with BNB. Sustainable public sector commitment for clean and affordable solar energy infrastructure has transformed Brazil to be the fastest growing renewable energy market in Latin America.

“As a leader in financing infrastructure projects, BNB’s continuing participation in our solar portfolio promotes confidence in the long-term potential of Brazil’s renewable energy sector.”

Since the start of 2019, BNB granted BRL1 billion ($247 million) financing for various solar projects of Canadian Solar.

The Canadian solar power company said that with BNB’s funding, it plans to develop one of the largest high efficiency bifacial solar power projects in Latin America. The solar power projects will be powered by high-efficiency modules from Canadian Solar, which includes the BiHiKu modules.

In April 2018, Canadian Solar won the Lavras solar power project in Brazil’s A-4 federal auction with a 20-year, inflation-adjusted power purchase agreements (PPAs) awarded at a base price of BRY118/MWh ($29/MWh) with the Brazilian Electric Power Commercialization Chamber (CCEE).

The Lavras solar project is expected to break ground in Q2 2020 with an aim to begin commercial operations in 2021.

Lavras is part of the 482.6MW portfolio whose 80% stake was divested to Nebras Power Investment, a Dutch affiliate of Nebras.

  Banco do Nordeste do Brasil, Brazil, Canadian Solar, Dr. Shawn Qu, Lavras solar power projects