Energy prices are sky rocketing. Shortage of supply combined with growing energy demand is straining the electrical supply to it’s limits.
Energy user’s prices have increased 59% in the last three years and it is set to get even worst. The Government have introduced restrictions on energy consumption my penalising large energy users with peak rate electricity costing over 400% more than the off-peak rate. Add in the issues of grid distribution and solar energy solutions makes perfect sense.
Why Solar in Brazil make perfect sense
· Brazil is one of the sunniest places in the world (4.25-6.5 sun hours per day)
· Currently less than 0.1% of its energy from solar panels
· Government subsides not required to make projects feasible
· Brazil has introduced new regulations and tax incentives to fast-track the development of the solar photovoltaic energy sector.
· Bloomberg Energy Finance have ranked Brazil 2nd place among emerging market for clean energy investment.
· Brazil has signed up to the Paris Accord to reduce its emissions by 43% by 2030
· Population of 202 Million and large growing middle class.
· Set to become the fifth largest economy in the World by 2050.
The Barriers
Brazil is coming out of a deep recession and lack of funding is a major barrier to deployment. On top of this solar is deemed new technology, shortage of equipment, red tape and negative image all have contributed to a slow solar start. Dispute the negative press Brazil energy sector is very stable and the new laws are making it easier for foreign investment. Having reliable local partners to navigate the process helps to open up the market.
Opportunities
We have exciting opportunities in both solar and battery storage projects that are ready to go. Designs, suppliers and agreements in place. We are looking for an investment partner who understands renewables and willing to work in an emerging market. If you are looking for access to the Brazilian market then please get in touch.