Monday, 5 August 2013

New Incentives To Invest In Solar Industry In Brazil

New Incentives To Invest In Solar Industry In Brazil
Language
English

June 2nd, 2014, marked two good news for solar energy in Brazil: first - the conference "Solar Tech Brazil" held in Sao Paulo gathered the best renewable energy specialists from the public and private sectors.

And second - The Brazilian Ministry of Energy announced that a first federal reserve auction for solar, wind and biomass energy will be held in October 2014. Since the sources will not compete among each other, it will be the first solar only auction in Brazil at federal level.

Against the backdrop of this news the participants first discussed the various perspectives for solar energy development in Brazil until 2030. Parallels were drawn from the experience of the wind industry, which has been in a similar infant state only a number of years ago. Elbia Melo, CEO of the Brazilian Wind Energy Association, highlighted that the signal for investors to enter the market was given with the first wind only energy auction in 2009. Solar supporters aspire that the auction in October could send a similar signal for the Brazilian solar industry.

Mrs. Melo additionally stressed that a change of the current paradigm of centralized generation is imperative. Instead, it will become increasingly important to consider society as a key player to foster the diffusion of solar technology rather than just blaming the government for not providing more streamlined support. At the same time, it remains a challenge to convince middle class and even upper class households to invest more than 20,000 reals ( 6 598 Euro) for a PV system on their roofs. The price problem of solar energy hence remains a crucial inhibitor for its further expansion and the common reoccurring themes are mainly: a lack of regulation, a lack of specific financing lines and the need for additional taxes incentives.

In response to these challenges, Carlos Mattar from ANEEL (National Electric Energy Agency) discussed the review of the net-metering resolution 482 in terms of its lega l and tax aspects, such as an ICMS exemption. According to the recent review (Conv^enio ICMS 6, de 05/04/2013) solar energy user pays the tax at the difference only if it is positive between consumed and injected energy. Though these measures can incentivize solar use, they will not be sufficient to establish a competitive price, according to Mattar.

One of the most interesting sessions of the conference was about financing possibilities. Gustavo Fava from "BTG Pactual bank" made a great presentation of all financing instruments existing on the market portraying their advantages and disadvantages. In a nutshell, commercial bank rates are too high, international institutions and regional programs finance only for the long term and prefer to be a complementary finance source and finally BNDES requires national content.

The results of the conference were inspiring and encouraging the further development of the solar industry in Brazil. The announcement of the Brazilian manufacturer of solar modules Tecnometal of a plan on starting the production of solar cells and readiness to cooperate for technology and know-how transfer served as a good sign for the this trend.

Authors: Alina Gilmanova, Co-Founder of BoostGreen and Ralf Bernhard, Researcher at MPhil Engineering for Sustainable development University of Cambridge Tags: solar energyBrazilGermanyinvestorsfinancinggovernemntsolar energy auction

0 comments:

Post a Comment