Investment in Brazil’s electricity generation sector will surpass $42bn in the next four years forecasts the Brazilian Development Bank (BNDES).

This bold claim comes as the lender outlined new rules for power auctions aimed at stimulating interest in new projects, reports BNAmericas.

The new rules include raising the deadline for repaying loans for wind and thermoelectric projects to 16 years from the previous 14 years.

Projects from other sources will now have up to 20 years to pay off their debt.

BNDES has also relaxed restrictions on credit access and allowed periodic adjustments to repayment terms for thermoelectric plants, according to BNAmericas.

BNDES told BNAmericas: “These changes will help to moderate energy tariffs at public auctions and encourage the issuance of infrastructure”

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