Brazil is gradually becoming a leader in the PV market in Latin America

Seetao 2022-05-17 10:50
  • Brazil, the leader of the PV market in Latin America, will be among the top five in the global PV market in the next five years
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The European Photovoltaic Industry Association recently released the 2022-2026 global photovoltaic market outlook report at the Intersolar Europe conference in Munich. The report pointed out that in 2021, the installed capacity of photovoltaic systems worldwide reached a record 167.8GW, the cumulative installation exceeded the milestone of 1TW, and Brazil has become a rising star in the international photovoltaic market.

Brazil Brazil may become the main global photovoltaic market

The report paints a bright picture for the global PV market, with a particular focus on developments in Latin America, and was produced by the European Photovoltaic Industry Association in collaboration with the Global Photovoltaic Council and the Brazilian Photovoltaic Association. The installed capacity of photovoltaic systems installed in Latin America in 2021 will increase by 44% to a total of 9.6GW, and the cumulative installed capacity of photovoltaic systems will reach more than 30GW.

Since 2015, the PV market in the region has grown by more than 40 times. Forecasts suggest that from 2022 to 2026, it could grow at a rate of 30.8GW per year. In this incredible success story, Brazil is a rising star in the global PV market. Dr. Rodrigo Lopes Suaia, CEO of the Brazilian Photovoltaic Association, discussed Brazil's position in the global photovoltaic market. As of April 2022, the total installed capacity of PV systems in Brazil has exceeded 15GW, with an increase of more than 5GW in 2021 alone. The installed capacity of the distributed photovoltaic system is 10GW, and the large-scale photovoltaic system is 5GW. While distributed PV systems enjoyed record growth in 2021, they are likely to be surpassed in 2022.

Suaia said the passage of the industry’s long-awaited Distributed Generation Act explains its rapid growth. The law issued by Brazil ensures that distributed PV systems operating by 2023 will be eligible for net metering by the end of 2045. Connection requests from 2023 will be subject to a new net metering regime that will progressively charge for electricity injected into the grid. But he said the costs would not affect investment in PV systems. We are not at risk of a market crash. We believe this solution will help the PV market continue to grow without embarrassing utilities, as electricity prices in Brazil have risen by 20 to 25 percent over the past year, outpacing the 10 percent inflation rate. These costs remain competitive for end consumers with electricity from photovoltaic systems.

Government-regulated market auctions used to be the main rule in Brazil's PV market, but a weak economy prompted the country's government to scale back auctions in 2021. Suaia explained that the competitiveness of PV systems in terms of cost has prompted large consumers, such as shopping malls, to enter into bilateral agreements with utilities to own or lease their large PV systems and reduce their electricity bills. The installed capacity of energy storage systems in Brazil is also expected to grow rapidly, however, it still faces high taxes, a lack of regulatory framework and insufficient incentive programs for end users. Keywords: engineering construction, engineering news

“Our PV industry is also facing these issues. We have learned a lot and are using this experience to inform the rapid development of the Brazilian energy storage market,” Suaia said. The Brazilian Photovoltaic Association has partnered with two consulting firms to set up a work Group to propose a roadmap for the development of energy storage systems. Their work will focus on regulation and legislation, taxation, access to financing and technical regulation.Editor/XingWentao


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