Brazil

Cracking the two-cent-mark as a global standard for PV appears within sight as projects in the U.S. and Brazil have been signed below that threshold. Just two years ago the industry celebrated sub-three-cent bids in the MENA region. Prices have come down so quickly, however, the new records are another third cheaper.

Brazilian energy agency the EPE has pre-qualified 1,829 renewable power projects with a combined capacity of 100.8 GW for the procurement exercise. The A-6 auction is expected to be the largest in terms of allocated capacity and to deliver lower bids than previous rounds.

As the solar industry digests yesterday’s announcement by Theresa May of a net zero carbon ambition by 2050, developer Solarcentury says Downing Street is hugely underestimating the role PV can play in achieving that milestone.

Italian industrial group Maccaferri, the parent company of the insolvent EPC contractor, has also filed for insolvency for another three units of its energy business.

Rodrigo Sauaia, CEO of Brazilian solar energy association ABSOLAR, analyzes the chances of PV in this year’s two energy auctions in which it can compete. But it is not all about auctions, Sauaia tells pv magazine, there are 2 GW of solar projects under development for which bilateral PPAs may be signed, and hundreds of MW worth of such schemes that have already secured contracts.

Although only two of the nine projects selected in the auction are for hybrid biomass-solar power plants with some storage, seven will rely on renewable energy sources. The largest selected project, however, is a 123 MW gas power plant in the city of Boa Vista.

The tender is on June 28. This year’s procurement exercise may allocate less capacity than previous auctions, due to lower demand for contracting new projects.

After being excluded from the A-6 auction last year, solar will now be entitled to compete for 20-year PPAs alongside wind, hydro and thermal power projects in future procurements. The next auction will be held on September 26.

New PV installations under the nation’s net metering scheme grew 137% year-on-year from January to March, according to consultancy Greener, and module imports registered even greater growth, signalling activity in the distributed generation segment is increasing at a faster pace. With the regulator mooting changes to the net metering regime, however, it may reflect customers rushing to secure current tariffs.

Alsol Energías Renováveis is specializing in the installation of residential, commercial and industrial PV systems. Energisa has approximately six million clients across nine Brazilian states.