Brazil has become one of the top solar PV markets in the world, in terms of annual addition of PV capacity. In 2022, the country added around 11 GW of solar PV capacity. With this, Brazil became the fourth largest market globally in terms of annually installed PV capacity. At the end of 2022, the country’s solar PV capacity reached around 25.4 GW. The rise in solar PV capacity has mainly happened due to increased installations in the Distributed Generation (DG) segment. In 2022, the country added 8.25 GW of solar PV capacity in the DG segment. In total, there is 17.95 GW of solar PV capacity installed in the DG segment.
The government allows renewable energy generators up to 5 MW of installed capacity for net-metering. However, in 2020, due to increased financial pressure on utilities and consumers, the government took a decision to end net-metering from 2023 and replace it with net-billing, in which small-scale renewable energy generators (up to 3 MW) will still be compensated for all the exported electricity to the grid, despite the compensation being less than the imported cost of electricity. With these regulatory announcements, the developers rushed to install small-scale solar PV systems in 2021 and 2022.
On the one hand, net-metering has increased solar PV capacity in the small-scale segment. On the other, auctions and bilateral PPAs have increased solar PV capacity in the utility-scale segment. In the 2021 and 2022 auctions, around 700 MW solar PV capacity was procured. In total, there is 7.42 GW of solar PV capacity installed in the utility-scale segment.
As during the first half of 2023 Brazil managed to install around 6.6 GW of new PV, EUPD Research expects the PV capacity to continue showing the same healthy pulses in 2023 and beyond.
Challenges posed by fluctuating renewable sources require new approaches for managing the Brazilian electricity grid, creating significant opportunities for energy storage.
The smarter E South America presented the core topics of the energy world of tomorrow. With the well-known trade fair and conference Intersolar South America, and two new energy trade fairs, such as the ees South America, Eletrotec+EM-Power South America and the Special Exhibition Power2Drive, The smarter E South America created space for all core areas along the value chain and interconnected interaction.
Whether you were able to attend the trade show or not, we make sure you can benefit from a digital booth walktrough video.
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