Brazil Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Brazil Solar Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Brazilian solar energy market is expected to witness a CAGR of around 5.5%, during the forecast period (2022 - 2027). The outbreak of the COVID-19 has had a significant impact on the country's economy which is expected to significantly hamper the growth of the solar market in the country. In 2020, Brazil generated 10.7 TW.h of solar power and stood second the highest contributor to the solar market in South America. The primary drivers of the market include government initiatives, like net-metering, to promote renewable energy, to stabilize the growing carbon footprint, and to have a sustainable form of energy. Also, net metering helped customers in getting credits on the bills, by selling excess electricity produced to the grid. However, At the end of 2019, Brazil’s electricity regulator, Agência Nacional de Energia Elétrica (ANEEL), proposed to apply a fee for solar systems with up to 5 MW of power generation capacity, which is expected to hinder the market growth during the forecast period.

Key Highlights

• The increasing electricity demand, especially from renewable sources is likely to drive the market, during the forecast period.
• Brazil, under its latest plan - Plano Decenal de Expansão de Energia (PDEE) 2027, is expected to increase its non-hydro renewable energy to 28% of its electricity generation mix by 2027. Utility-scale projects and distributed solar generation projects are expected to get rolled out under various auctions, which is expected to create an opportunity for the market to grow in the future.
• With a significant installed solar PV generation capacity of around 8.01 GW in 2021 and concentrated solar power (CSP) in its initial state, solar photovoltaic (PV) is expected to dominate the Brazilian solar energy market, during the forecast period.

Key Market TrendsRising Electricity Demand to Drive the Market

• Electricity generation in Brazil is done through various fuels, and renewables are one of the major sources of generation. With increasing concerns over the climatic change in the atmosphere due to increasing CO2 emission, Brazil, along with various other nations, is concentrating more on electricity generation from renewables. As of 2021, Brazil generated nearly 45% of electricity from renewable sources.
• The demand for electricity in Brazil is mostly mitigated by the hydropower facilities available in the country. Hydropower dominates the country, and it accounted for nearly 26% of the country’s electricity generation, in 2020. Hydropower plants are located on the Amazon river basin in the north, but Brazil’s demand for electricity is mainly from the eastern coast, particularly in the eastern portion, which relies mainly on hydropower that may be insufficient to fulfill the ring electricity demand during the upcoming years.
• According to the Operator of the National Electricity System (ONS), there are 3,893 solar power plants in Brazil, with another 13 in the construction stage.
• In 2020, installed solar power in brazil was 7.8 GW and the country expects to have 1.2 million solar power generation systems in the year 2024. Also, With its net-meter policy, and decreasing solar energy cost, Brazil's solar energy is expected to increase, during the forecast period.

Increasing Deployment of Solar Photovoltaic (PV)

• Brazil is one of the most advanced countries in South America, with respect to the development of renewable energies. The country has excellent levels of solar radiation, as it is in a latitude range, in which the incidence of solar radiation is much higher than in the rest of the world.
• Solar power energy picked pace from 2017, with total capacity increased to 7.8 GW, in 2020. Overall, Brazil’s solar power sector has experienced decent growth with its economic recovery since 2017, and it may lead to the regional market in the future.
• For instance, in January 2020, Enel Group announced that the 475 MW Sao Goncalo solar PV plant in Northeastern Brazil was connected to the grid, and the plant may be able to produce more than 1,200 GWh, annually.
• Additionally, In 2020, the Brazilian government announced that Norwegian clean power producer Scatec ASA is expected to install a 532-MW solar photovoltaic (PV) plant in Rio Grande do Norte state, Brazil. The project is likley to be operational by March 2022. Addition of such projects are expected to boost the market studied, during the forecast period.

Competitive Landscape

The Brazilian solar energy market is fragmented. Some of the key players in the market include JinkoSolar Holding Co. Ltd, Yingli Green Energy Holding Co. Ltd, Canadian Solar Inc., Engie SA, Scatec Solar ASA, JA Solar Holdings Co. Ltd, Enel SpA, NextTracker Inc., and Solar Provider Group (SPG) among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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