Solar Energy: Is It The Next Frontier?

Author:Ms Ana De Souza and Felipe Furcolini
Profession:Machado Meyer
 
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Ten years ago, PROINFA, a Federal Government's program for the de­velopment of alternative sources of power generation, was launched. The program had an ambitious goal to provide 1100 MW of wind power in the grid by 2008. Currently, the sys­tem has more than 5 GW of installed capacity coming from this source. Gi­ven this relative consolidation of the wind energy market, it is important to question whether solar energy is the next frontier.

On the 6th Reserve Energy Auction (Auction 008/2014), solar source sold, in an unprecedented way, about 890 MW, at extremely competitive prices. Before the event, it was expec­ted that the feasibility price of solar projects would be around R$250.00 MW/h, an expectation that, after an intense auction day, dropped to an average price of R$215.12 MW/h.

Despite the good news, the solar energy market in Brazil is still inci­pient, and is highly dependent on the adoption of an economic and regu­latory model by the Federal Gover­nment. In this context, some ques­tions still have no clear answers.

It is important to question the level of nationalization required by the federal government for the granting of funding, through BNDES. The Bra­zilian Photovoltaic Solar Energy As­sociation estimates that, to attract the production chain into the country, particularly in regard to photovoltaic panels (with solar cells produced in Brazil), as required for financing by BNDES from 2020, it would be ne­cessary to contract at least 1 GW per year of energy from this source, in the next 5-10 years.

Given the current product competi­tiveness, we also need to question whether it would be more important for the development of this source in Brazil that the requirement of local content be less incisive, thus allowing that, at this early stage, the market itself...

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