Brazil Reaches 34 GW of Solar Capacity
- Discover how Brazil has experienced rapid solar growth since 2018, driving record-low prices and the launch of Aneel's first renewable energy auction with only solar projects.
Brazil has experienced rapid solar growth since 2018, when the country only had 1.3 GW of installed solar capacity. This is due to the April 2018 auction where solar developers secured contracts for the delivery of 9.3 GW of PV energy at a record-low price of $24.70/MWh. Currently, Aneel is preparing the first renewable energy auction with only solar projects.
What Enabled Brazil's Solar Growth?
- Abolishment of the solar tax: In August 2018, Brazil abolished the tax on solar energy production, making the sector more attractive to investors.
- Increasing interest from the private sector: Private energy companies have increasingly shown interest in solar projects, due to the low cost of solar energy and its competitive advantage.
- Financial incentives: The government has provided various financial incentives for solar energy production, such as feed-in tariffs and public auctions.
- Availability of financing: The government has implemented several financing programs to facilitate the development of solar projects.
- High investment capacity: Brazil has the potential to attract a large amount of capital for renewable energy projects, due to the country’s large economy and its access to international financing.
- Technological advances: The development of new technologies, such as solar tracking systems, has enabled the cost of solar energy production to decline.
- Supportive policy framework: The Brazilian government has adopted a supportive policy framework for the development of solar energy projects.