By Abdullahi Lukman
The World Bank has approved a $627.75 million project to expand renewable energy, create jobs and improve electricity access in Legal Amazon, targeting more than one million people currently without reliable power.
The initiative, approved on March 20, 2026, aims to reduce the region’s dependence on costly diesel-based energy while lowering electricity costs and supporting Brazil’s transition to a cleaner energy economy.
The Legal Amazon, which spans nine states and nearly 60 percent of Brazil, has long faced infrastructure and economic challenges despite its vast natural resources.
The project is designed to position the region to benefit from the growing clean energy sector, with millions of new jobs expected across Latin America in the coming years.
Funding for the project combines multiple sources, including $100 million from the World Bank’s IBRD, $400 million from the Brazilian government, $125 million in commercial financing and a $2.75 million grant from the Energy Sector Management Assistance Program.
Implementation will be led by Banco da Amazônia, which will channel financing to private developers and utilities.
A key focus is scaling up renewable energy generation and modernising grid infrastructure.
The programme will support private sector investments in clean power, grid upgrades and energy efficiency, helping to improve reliability and resilience against climate-related disruptions such as droughts.
The project also includes technical assistance to strengthen institutional capacity, expand financing tools and promote inclusive participation, particularly for women and underserved communities.
According to Cécile Fruman, the initiative will help transform the region’s energy systems by attracting private investment, cutting costs and expanding access to sustainable electricity, while advancing Brazil’s broader clean energy goals.
