According to projections from ABSOLAR, the photovoltaic solar sector will invest more than US$ 1.3 billion in 2019, generating more than 15 thousand new jobs in the country.
In 2018, Brazil reached the historical milestone of 2.000 megawatts (MW) of operating PV capacity connected to the national grid and the strong market growth will continue in a fast pace during 2019.
According to projections from the Brazilian Photovoltaic Solar Energy Association (ABSOLAR), the national voice of the solar PV sector in Brazil, the photovoltaic solar sector will surpass the 3,000 MW milestone by the end of the year, attracting more than US$ 1.3 billion in new private investments and adding more than 1,000 MW in small, medium and large-scale PV systems throughout the country.
The expected annual growth rate of the market is expected to reach 88% in comparison to 2018, representing an important boost in favor of the recovery of the Brazilian economy.
Source: ANEEL / ABSOLAR, 2019. Last update 03/01/2019.
"The myth that photovoltaic solar energy was expensive has already been busted. PV has become one of Brazil's most competitive renewable energy sources, with returns on investment between 3 and 7 years at the distributed generation segment. PV will be a great prosperity driver, contributing to the progress and economic, social and environmental development of Brazil. This will be another great year for the Brazilian PV market, with good opportunities, new businesses, new private investments and strong job creation”, comments ABSOLAR President of the Board of Administrators, Ronaldo Koloszuk. “The country has a privileged solar resource and can become one of the leading nations in PV over the coming years", adds Koloszuk.
In the segment of PV distributed generation, composed of small and medium-sized systems installed at homes, businesses, industries, rural properties, public buildings and small terrains, ABSOLAR projects a market growth of more than 97% in relation to 2018, with the addition of 628.5 MW in 2019, reaching a cumulative installed capacity of 1,130.4 MW by year’s end. Consequently, the participation of PV distributed generation in the market will increase from 21.9% in 2018 to 34.2% in 2019, demonstrating the growing relevance of this market to the sector.
“Distributed generation is on the rise and is essential for the advancement of PV in Brazil. It will be responsible for more than US$ 750 million in all the states and municipalities of the country, bringing economics and sustainability to public and private consumers, while generating thousands of qualified local jobs for the population", says ABSOLAR’s CEO, Rodrigo Sauaia.
In the segment of PV centralized generation, composed of large-scale plants, ABSOLAR projects the addition of more than 380 MW, a much lower than expected market forecast. The small volume is the result of the cancellation by the Ministry of Mines and Energy of two PV energy auctions initially scheduled for 2016. The situation will reduce the share of the centralized generation segment in the PV market from 78.1% in 2018 to 65.8% in 2019, confirming the negative impacts of the energy auction cancellations in 2016.
"It was a terrible mistake and a strong blow to the PV sector, which frustrated the market perspectives, stalled strategic international investments in Brazil and hampered the development of the technology. The Federal Government can, however, reverse this scenario and avoid similar problems, by structuring a reliable and transparent PV energy auction schedule. In that regard, ABSOLAR recommends that the Ministry of Mines and Energy contract at least 2,000 MW per year in large-scale projects. PV is one of the cheapest and most sustainable electricity sources in Brazil and our sector is ready to contribute to the renewable and competitive expansion of the national electricity matrix through energy auctions in 2019, as well as through the free electricity market based on bilateral power purchase agreements (PPAs)", explains Sauaia.
According to ABSOLAR data, the PV sector has a pipeline of more than 20,021 MW in non-contracted large-scale PV projects, available and ready to participate in new energy auctions.