IDB and Banco do Nordeste Partner to Boost Renewable Energy Integration in Brazil

WASHINGTON – The Inter-American Development Bank (IDB) approved a financing package for Banco do Nordeste do Brasil S.A. (BNB) to expand the integration of renewable energy of Brazil’s Northeast region with the national grid. The $67 million funding will be provided by the IDB and the other half by the Renewable Energy Integration Program of the Climate Investment Funds (CIF-REI) in equal parts.

This new operation, approved by the IDB’s Executive Board, will allow BNB to increase financing for projects focused on integrating renewable sources into the national electric grid. The initiative aims to strengthen the flexibility and reliability of energy supply amd to promote a more efficient and resilient electric system. Implementation will begin following the completion of procedures required under Brazilian law and the formal signing of the agreement between the IDB and Banco do Nordeste.

By expanding access to credit, the initiative seeks to boost the transmission and distribution capacity of the Northeast’s power networks, support energy storage systems, and encourage the adoption of technologies that enhance the flexibility of Brazil’s electrical system.

With concessional and competitively priced resources from the IDB and CIF, BNB will offer credit lines with attractive interest rates to energy sector investors, supporting modernization and digitalization projects across the Northeast. The program will also finance innovative technologies such as batteries, green hydrogen, smart grids, and automation—key to improving the efficiency and stability of Brazil’s energy matrix.

Funding will be directed to private-sector projects for the acquisition of machinery, equipment, systems, and related infrastructure, with a focus on modernizing renewable energy generation and automating transmission, distribution, and storage processes.

This effort aligns with Brazil’s strategic goals for sustainable energy development. Key beneficiaries include energy companies, which will gain access to increased financing, and the general population, which will benefit from a cleaner, more reliable, and resilient energy supply.

The program was developed based on the CIF-REI Investment Plan, led by the Ministries of Finance, Mines and Energy, and Science, Technology and Innovation, with technical support from the IDB and the World Bank. It complements the Northeast Productive Development Program (PRODEPRO), approved by the IDB in 2023, and reinforces BNB’s role as a catalyst for sustainable investment in the region.