For three years Brazil’s cities have been hit by power cuts, hurting business and creating headaches for the government. The reason – Brazil put all its energy eggs in the hydroelectric basket.
65% of its energy has been derived from hydroelectric power, but after three years of drought, it will take years to replenish the depleted reservoirs. In order to increase power capacity quickly and cleanly the country is turning to solar power.
“Solar energy is no longer just a promise in Brazil,” according to Livia Neves, renewable energy correspondent with the monthly magazine Brasil Energia. “In less than a year it has become a market with a potential value of billions of dollars.”
In 2014 the Brazilian solar power market was beginning to open up. In 2015 and thereafter, it could be worth US$1.3 billion annually.
Brazil wants to rapidly expand its solar capacity and China is the major supplier of panels. It remains to be seen how open the market will be for Chinese solar panel producers.
“There has much more interest from all types of Solar consumers – residential, commercial and industrial – since last year, and more also from government” according to Dr Rodrigo Lopes Sauaia, Executive Director of ABSOLAR, the Brazilian Photovoltaic Solar Energy Association.
ABSOLAR represents companies throughout the value chain in Brazil, and negotiates directly with government on better business conditions, such as regulations, incentives, financing, and tax breaks. Since its foundation in 2013 the regulatory background for solar energy producers in Brazil has changed significantly.
“Three new developments are having a big impact on market confidence this year. We have two electricity auctions planned for August and November 2015, where more than 1 GW of solar is expected to be contracted. ”
“Also tax exemptions for up to 20 years from have been proposed in several states. This could allow the supplier to increase the value of each injected KWh by 30-40%. Thirdly, Brazil is now structuring industrial regulation for a local PV value chain. ”
The eight thousand visitors to EnerSolar Brazil reflected this new found optimism throughout the three days.
“We do not have too many customers in Brazil, but we believe the market here is booming, and Mexico also is very promising. ” said a spokesman for Regional Sales Manager James Wang of Ulica Solar.
“The market is very competitive, with many solar panel manufacturers. Our key advantage is price.”
“Our main market has been in Europe and Japan, but the European market is decreasing because of the EU regulatory constraints. Here in Brazil we do not have the same issues.”
Narada utilises a range of lead acid and lithium batteries together with ultra capacitors to provide energy storage systems sold throughout the world.
“The cost of energy in many South American countries is subsidised but that will change” explained Miguel Ermann, Director of Narada in Latin America. “We have a computerised device which can decide when to use battery power or draw power from the grid, and when to feed power back to the grid, as prices vary during the daily cycle.”
These features will function with a Smart Grid. “I have no doubt the Smart Grid will be coming to Brazil. When it does our monitoring and storage system will be invaluable. ”
Suntask is a specialist in solar heat collection systems and solar water heaters. One of its most popular products is an individual home-sized solar water heater using heat pipes or vacuum tubes, which would typically be roof mounted.
“Our main market is in Europe” explained Gracie of Suntask “but we want to expand to South America as Europe is not so good at present. We have customers in more than sixty countries worldwide but this is out first time exhibiting in Brazil.”
“We believe Brazil will be a very big market. We already have some customers here and with their help we hope to expand our customer base.”
“The number of microgeneration systems operating in the country has tripled from Jun 2014 to May 2015, from 189 to 670. The vast majority are solar power. ” says Livia Neves.
“If this continues, the national Photovoltaic market will grow to more than Reales $4 billion (US $1.3 billion) annually just in large installations. ”
Li Liang, Marketing Director of HTT SAAE, also known as Shanghai Aerospace Automobile Electromechanical, sounded a note of caution however.
“We are a nationalised and state owned company based on aerospace and satellite technology. We put the solar panels on satellites and space ships, and we have installed about 3 GW capacity around the world.”
“The Brazilian market feels similar to the way other now mature markets were placed in 2012-2013. The government should support the market, but they should consider carefully the most appropriate way to do this. The industry has a bright future here but it may be two to three years for the opportunities to develop.”