Market Trends of Brazil Solar Energy Industry
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.
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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.
