Brazil will become the world’s leading solar market by 2026, says SolarPower Europe – pv magazine Latin America

SolarPower Europe launched its “Global Market Outlook” report at Intersolar Europe this week in Munich. The world installed a record 167.8 GW of solar power in 2021, surpassing the 1 TW milestone and giving rise to a new international solar star: Brazil.

SolarPower Europe’s “Global Market Outlook for Solar Power 2022-26” report, presented in Munich during the Intersolar Solar event, paints a sunny picture for solar power worldwide. This year’s report also features a special focus on the Latin American market, written in collaboration with the Global Solar Council and the Brazilian photovoltaic solar energy association, ABSOLAR.

In 2021, Latin America’s PV capacity additions increased by 44%, totaling 9.6 GW, with a cumulative capacity of more than 30 GW. The region’s solar market has grown more than 40-fold since 2015. Projections suggest that by 2026 it could grow to 30.8 GW per year. In this incredible success story, one country emerges as a rising star: Brazil.

Latin America’s solar leader is set to become one of the top five global markets in the next five years, reaching a total solar capacity of 54 GW by 2026, according to SolarPower Europe. pv magazine He recently met with Dr. Rodrigo Lopes Suaia, CEO of ABSOLAR, to discuss the report and Brazil’s place in the global solar market.

As of April 2022, Brazil had surpassed 15 GW of total installed solar energy, with more than 5 GW added in 2021 alone. Distributed generation systems represent 10 GW of installed capacity and large-scale solar photovoltaic power plants, 5 G.W. Distributed generation recorded record growth in 2021, but that could well be surpassed in 2022.

The approval of a long-awaited distributed generation law explains the increase in growth, Suaia said pv magazine. The law ensures that all distributed solar systems in operation and all new requests made until 2023 will be eligible for full net metering until the end of 2045. Connection requests made after 2023 will be subject to a new net metering regime, which gradually introduces Network Tariffs for electricity injected into the network.

According to Suaia, these fees will not mean a loss of interest in solar energy.

“There is no risk of market collapse. We believe this solution will help the system continue to grow, without upsetting the utility companies,” said Suaia. “Electricity rates increased between 20% and 25% in the last year, exceeding 10% inflation. These payments will remain competitive for end consumers to choose solar energy.”

The country’s other main market segment, centralized generation, also saw a record number of new projects in 2021, with most of them targeting bilateral power purchase agreements in Brazil’s so-called free electricity market. Government-regulated market auctions used to be the rule in Brazil, but a weakening economy prompted the federal government to reduce the size of auctions in 2021. Solar’s cost competitiveness has incentivized large consumers, such as shopping malls, to enter into bilateral agreements with generation companies. , in order to own or lease their large-scale solar photovoltaic plants and lower their electricity bills, Suaia explained.

Energy storage is also expected to grow in Brazil. However, it still faces high taxes, a lack of regulatory frameworks and insufficient incentive schemes for end users.

“We also face these problems with solar energy. We have learned a lot and we are using that experience to inform the rapid growth of storage in Brazil,” said Suaia.

ABSOLAR has created a working group to propose a roadmap for storage, in collaboration with two consultants. His work will focus on regulation and legislation, taxation, access to financing and technical standards.

“The future is bright,” Suaia concluded.

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