Brazil is starting to exploit its huge solar energy potential

Janaúba, a city of just over 72,000 people, lies in the poor, northern part of the state of Minas Gerais. Poverty has always been part of life in a land historically burdened by drought. But the region’s unceasing heat and its lack of rain could now bring wealth instead of misery.

Janaúba now hosts a construction site that will produce the largest solar energy complex in Latin America. The project is being carried out by Elera Renováveis, the energy arm of Canadian asset management firm Brookfield, which has secured a BRL 1.47 billion (USD 290 million) financing tender from the National Bank for Economic and Social Development (BNDES).

The amount represents 72 percent of the BRL 2.04 billion total investment for the project, which will have the capacity to generate 700 Megawatts, through 14 photovoltaic plants. They will supply the mining towns of Araxá, Coromandel, Várzea da Palma, Janaúba, Arinos, Francisco Sá and Buritizeiro.

These funds will mainly go towards the acquisition of photovoltaic modules, trackers (which guide the angle of solar panels to capture the sun) and inverters (storage and distribution for the energy captured by the panels), according to BNDES.

In addition, the bank noted that the project involves the construction...