The seller of the two PV projects, both to be developed in the state of Minas Gerais, is the Chinese-Canadian solar module manufacturer Canadian Solar. The €95 million transaction enables the Spanish power and gas provider to make its entry to the Brazilian solar market, after it secured its first large-scale PV projects in Spain in last summer’s auction.
The Chinese energy infrastructure developer, which is already building a transmission line in the north of the state, has planned to build several large-scale solar facilities across the region, the first of which is expected to require an investment of over US$300 million.
The Brazilian government is planning to resort to renewable energies to meet power demand in the non-interconnected areas in the north of the country. Meanwhile, another Brazilian state, Santa Catarina, has decided to introduce the ICMS exemption for solar DG.
After improving financing conditions for solar and renewable energy projects in upcoming auctions in November, the Brazilian Development Bank has now agreed to considerably reduce the interest rate for loans devoted to projects in the areas of public safety, innovation, environment, solar energy, sanitation, solid waste treatment and professional qualification.
In an interview with pv magazine, head of the Brazilian government-run energy agency EPE, Luiz Augusto Barroso explains how the newly-implemented mechanism for power auctions was conceived for ensuring a more market-oriented approach and increasing competition. Barroso adds that the upcoming A-4 auction, which includes solar, may have a slightly bigger outcome than the auction held in December, and that the inclusion of solar in the A-6 auction, which is expected to be held in the second half of this year, is being considered.
Twenty countries, including Brazil, have already ratified their alliance with the organization. For the executive president of ABSOLAR, the initiative will represent a strategic step to position Brazil as a main player in the international solar PV sector. Meanwhile, the cumulative installed capacity of DGPV system connected to the Brazilian grid has reached 200 MW.
For the A-4 April auction, the Brazilian regulator ANEEL has already pre-qualified solar projects with a combined capacity of 20 GW. The maximum price for wind projects has been set at around $79/MWh.
The renewable energy unit of the Brazilian power distributor, CPFL Energia is the largest shareholder in the country’s distributed solar energy business. The Initial Public Offering (IPO) from the Chinese utility, however, has been deemed too low by the Brazilian securities market authority.
Investors throughout the world made 406 investments in large-scale renewables in 2017, collectively valued at roughly €40.1 billion (US$49.5 billion), but solar is set to grow more in terms of capacity than any other clean-energy technology over the next half decade, according to a new report. Battery storage will play a crucial role in this, it found.
The $110 million project is expected to generate 220 GWh per year.