Brazil’s Solar Power Sector Potential

According to the Bloomberg New Energy Finance (BNEF)’s annual data, global investments in solar energy totaled US$ 160.8 billion for 2017, representing an increase of 18% over the previous year. Within renewable energies, solar energy is the one that has stood out the most in the last years, representing 48% of the total investments in clean energy worldwide. In Brazil, the investment was US$ 6.2 billion for 2016.

Brazil is one of the few countries in the world where solar incidence is equal to the total number of solar radiations on earth: the northeast region of the country alone receives about 4.5 to 6 kWh of solar rate. With more than 2000 hours of solar irradiation per year, the economy is positioned therefore as a market with robust potential for investments in the solar energy sector.

The industry generated 1.1 GW, and this year it is expected to produce 2.4 GW, enough to power 1 million middle-class households. Until June 2018, the total solar energy production in Brazil summed 1.5 GW (gigawatts) of installed capacity. Brazil is expected to have approximately 887 thousand solar energy systems (On Grid) installed throughout its territory by 2024.

According to the National Electric Energy Agency (ANEEL), about 1.2 million solar energy generators or more will be installed in homes or companies throughout Brazil until 2024, and the photovoltaic energy market is projected to move around R$ 100 billion for the next years. Brazil is prepared and open to receive more significant investment in solar energy.

Multinational companies, such as the Austrian company Fronius, observe a strong potential in the Brazilian solar energy market, and assure that “the market continues expanding, with an exponential growth rate, in addition to the fact that the agribusiness industry is increasingly looking for clean and sustainable energy.”

Brazil’s solar energy production is still below capacity regardless of its massive potential in this sector. China’s solar energy industry leads the world in both solar manufacturing and installations, by contributing about 50% of the world’s solar energy generation. Saudi Arabia aims to have 6 gigawatts of photovoltaic solar energy production until 2020, and Germany offers subsidies for those who want to invest in this type of sustainable energy.

Although the solar energy sector in Brazil is still an emerging market that presents several difficulties, mainly financing, the country has all the geographic and climatic conditions for the installation of photovoltaic energy production technologies. The CEO of the Brazilian ABSolar, Rodrigo Sauaia, said: “Chinese investment in photovoltaic solar power is significant for the development of projects and manufacturing because China is a model and Brazil has much to learn about the sector.”

Sidera understands the challanges that the sector must overcome to grow and realize its full high potential. Our team is experienced both in developping optimal strategies to enable the entry of foreign investors interested in the sector in Brazil in a profitable and succesful manner, and reducing trade barriers for exporters into Brazil.

Valentina Tabares