Brazil sees solar boom ahead of subsidy cuts for new projects, Energy News, ET EnergyWorld

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Electric utilities and developers rush to register solar projects in Brazil, one of the most promising markets for renewable energy, as it prepares to cut subsidies for new solar installations and parks wind turbines, according to a report by consulting firm ePowerBay.

The Spanish Iberdrola, the French Voltalia, EDF, the Italian Enel and the Portuguese EDP Renewables are among the main players developing solar projects in Brazil, as well as Atlas Energia, controlled by the British private equity firm Actis, has shown Tuesday ePowerBay.

Only projects registered with the electricity industry regulator ANEEL by March 2022 will benefit from the subsidies, which will be eliminated. Subsidies halve the price renewable projects pay for the use of transmission networks.

“Certainly, the impending end of the grant has accelerated the search for approval for new projects by developers, mainly for solar projects,” said the consulting firm.

Last September, before the government proposed the law reducing subsidies, investors had applied to ANEEL for the development of 8.7 gigawatts (GW) in new renewable projects. In March, after the law was passed, applications for new projects jumped to 18 GW, led by solar projects.

The volume of projects awaiting approval in March alone exceeds the total capacity of currently operational solar parks in Brazil (3.3 GW) by several times.

According to ePowerBay, Voltalia recorded 4 GW in new solar projects with ANEEL, followed by Iberdrola (2.1 GW), EDP Renewables (1.75 GW), Atlas (1.2 GW), EDF (1 GW) and Enel Green Power (910 megawatts).

Oil majors are also betting on the Brazilian renewable energy market, the consultancy firm said, with Royal Dutch Shell registering solar projects totaling 1.5 GW, while Total Eren, owned by France’s Total, has already obtained approval. for 49 megawatts in solar projects.

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