While not in the limelight as the big photovoltaic markets like China, United States, India or Japan, Brazil could become the future shooting star of overseas markets.
As fifth biggest country of the planet, the potential is enormous. The solar irradiation is between 4,500 and 6,100Wh/m2 per day and hence twice as strong compared to Germany’s. The country’s north-eastern regions register the highest potential.
In comparison to other emerging Latin-American markets like Chile, Mexico or Argentina, Brazil offers decisive advantages, amongst those are:
- High electricity price, when compared to Germany;
- Well regulated energy market with clearly defined structure of federal agencies and organisations;
- Last year’s auctions (Eolic-, Hydro-, Biogas-, and Solar-PV-power) have consolidated the Brazilian auction system;
- Clear political intention to extend the importance of renewable energies;
- Market with rising investments in solar energy.
Brazil’s energy matrix is characterized by its abundant hydropower resources, generating 66% of Brazil´s overall power supply. Despite its gigantic potential, only about 1% of Brazil’s electric energy is produced using solar energy.
After two successful auctions in 2015, summing a capacity of almost 1.8GW, the Brazilian government informs, that about 1.5GW will be operating until the end of 2018.
Despite the critical political and economic situation, the solar business developed strongly over the last years. Especially the Distributed-Generation market will further grow, just as it did last year. Experts expect growth rates of 300% or more. Since the mark of 1,000 grid connections was surpassed in October 2015, the have quickly thrived to 10,150 with a capacity of 78MW by May 2017.
One reason for this quick expansion are favourable legal conditions which have come into effect with the Resolution 687/2015 from March 1st 2016. Among other, it allows facilities of up to 5MW to feed into the grid, the creation of owner’s consortia, and wheeling.
Just last week vovendis, a consulting firm from Hamburg specialized in the Brazilian market, published the second edition of their Market Study on Brazil’s PV-Solar market which is available for free. Inform yourself and take advantage of the chances of Brazil’s growing photovoltaic market and request your free Market Study 2017 here!