Brazil Solar Energy Market

Brazil Solar Energy Market Analysis

The Brazil Solar Energy Market is expected to register a CAGR of 23.3% during the forecast period.

• Over the medium term, factors like government initiatives, like net metering, promote renewable energy, stabilize the growing carbon footprint, and have a sustainable form of energy. Also, net metering helped customers get credits on the bills by selling excess electricity produced to the grid.
• However, Brazil's electricity regulator, Agência Nacional de Energia Elétrica (ANEEL), proposed to apply a fee for solar systems with up to 5 MW of power generation capacity. Further, installing other renewable energy sources such as wind, hydro, and others is expected to hinder the market's growth during the forecast period.
• Under its latest plan, Plano Decenal de Expansão de Energia (PDEE) 2027, Brazil is expected to increase its non-hydro renewable energy to 28% of its electricity generation mix by 2027. Utility-scale projects and distributed solar generation projects are expected to be rolled out under various auctions, which is expected to create an opportunity for the market to grow in the future.

Brazil Solar Energy Market Trends

Rising Electricity Demand to Drive the Market

• Electricity in Brazil is generated through various fuels, and renewables are one of the major generation sources. With the increasing concerns over climate change in the atmosphere due to increasing CO2 emissions, Brazil and other countries are concentrating more on electricity generation from renewables. As of 2022, Brazil generated nearly 92% of electricity from renewable sources.
• The demand for electricity in Brazil is mostly mitigated by the hydropower facilities available. Hydropower dominated the country, with the output production of 48,000 MWa in 2022. Hydropower plants are located on the Amazon River basin in the north. However, Brazil's demand for electricity is mainly from the eastern coast that relies primarily on hydropower, which could be insufficient to fulfill the ring electricity demand during the coming years.
• According IRENA, Brazil's total installed solar energy capacity reached around 24.08 GW in 2022 increased from around 14.19 GW in 2021. The country expects to have 1.2 million solar power generation systems by 2024. With its net-meter policy and decreasing solar energy cost, Brazil's solar energy is anticipated to increase during the forecast period.

Increasing Deployment of Solar Photovoltaic (PV)

• Brazil is one of the most advanced countries in South America with respect to the development of renewable energies. The country has excellent solar radiation levels, as it is in a latitude range in which the incidence of solar radiation is much higher than in the rest of the world.
• The installation of distribution capacity is also rising rapidly in the country. The distributed installed capacity has exceeded centralized plants' capacity, accounting for 71% of the country's installed PV capacity.
• Solar PV picked pace from 2017, with the total capacity increasing to 24.08 GW in 2022. Overall, Brazil's solar power sector has experienced decent growth with its economic recovery since 2017, and it may lead the regional market in the future.
• For instance, In April 2023, Atlas Renewable Energy announced it reached a 21-year power purchase agreement with Albras, a Brazilian aluminium producer, to supply solar power. It will provide the agreed energy from the 902MWp Vista Alegre photovoltaic project in the state of Minas Gerais in Brazil.
• The above-mentioned factors are likely to drive growth in the solar PV segment in the upcoming period in Brazil.

Brazil Solar Energy Industry Overview

The Brazilian solar energy market is fragmented. Some of the key players in the market (not in particular order) include JinkoSolar Holding Co. Ltd, Yingli Green Energy Holding Co. Ltd, Canadian Solar Inc., Engie SA, Scatec Solar ASA, JA Solar Holdings Co. Ltd, Enel SpA, NextTracker Inc., and Solar Provider Group (SPG).

Brazil Solar Energy Market Leaders

Brazil Solar Energy Market News

• In June 2023, the European Investment Bank (EIB) has provided a loan of USD 213 million (EUR 200 million) loan to a cooperative financial institution in Brazil, Sicredi for investments in solar energy. Sicredi will use the funding to establish solar photovoltaic (PV) panels in individual homes, small and medium businesses, and rural properties in Brazil.
• In August 2022, a subsidiary of Exus Management Partners, Exus Brasil Investimentos, announced a contract to acquire 100% of the shares of Riacho da Serra Energia S.A., and the assets related to projects, from Decal Renewables and Upside Value. The portfolio consisting of 20 solar parks and this project shall have a total installed capacity exceeding 1GW already granted by ANEEL.