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portunity for states in the South and Northeast SOLAR ENERGY
Wind energy development is an excellent op-

regions of Brazil to attract foreign direct invest-
ment. Traditionally the Northeast region, which While Brazil’s solar energy sector remains in its
is situated in the arid caatinga biome, receives infancy, the market environment is ripe for fast-
little rainfall and is largely dependent on the paced growth and development. Located in a
South of the country to provide electricity. Wind largely tropical climate with an investment en- ? Best Opportunities in Solar Energy
energy is an opportunity to further advance the vironment supported by government incentives The solar energy market is full of opportunities.
economic development of the Northeast Re- and market demand for energy in rural and iso- There is currently only one local manufacturer
gion, which is already home to over 80% of the lated areas, Brazil is a significant market with of solar panels. Imports of solar panels and so-
wind farms that have already been auctioned. growth potential. lar cells are expected to double in 2012, reaching
The Northeast is also emerging as a leading re- The federal government has facilitated solar US$4.5 billion. Several specific areas represent the
newable energy cluster as it is home to the Cen- energy plant access to the national grid and in- strongest immediate opportunities for solar ener-
ter for Strategies in Natural Resources and En- cluded solar energy in the net metering system gy investment:
ergy (CERNE) and a branch of the Center for Gas announced in April 2012. End consumers are eligi-
and Renewable Energy Technologies (CTAGS- ble to receive credits on their electricity bills from » Isolated systems and distributed generation,
ER). The Southern and Southeast regions have selling solar energy back to operators. The rollout specifically systems for residential and small
boosted incentives programs aimed at attract- of electricity in rural areas under the government’s business use, such as complete packaged
ing investment in renewable energy and environ- Luz para Todos program has benefited solar energy systems for generated distribution, installation
services and residential PV models, are
mental solutions. investment. anticipated to grow rapidly due to the recent BIOFUELS
One of the main obstacles to stronger invest-
? Best Investment ment in the solar energy sector is cost. Similar to introduction of the net metering system;
Opportunities in Wind Energy wind energy in the mid-2000s, solar energy costs Biofuels are Brazil’s second-largest energy source,
Manufacturers and developers in wind energy at least three times more than other renewable » Municipalities and government will continue after oil. Biofuels from sugar generate only two-
have made good use of the locally developed bra- energy sources in Brazil, such as hydro or wind. to stimulate the sector by including solar fifths of carbon emissions of gasoline and half
zilian supply of towers, blades and other compo- Researchers from the Brazilian Development energy systems in public works, buildings those of corn-based ethanol, according to the
nents. There is still strong demand for other wind Bank (BNDES) and the Brazilian Energy Research and parks and will require components such United States Environmental Protection Agency.
energy items not being currently met: Company (EPE), however, believe that the sector as batteries, self-commutated inverters, Biofuels are oriented not only towards the do-
will follow the path of wind energy, for which pric- monitoring and automation systems; mestic market, but also to the export market.
» Development of specific systems for es fell, unlocking the current period of exponential Transportation fuel is growing, as well as emis-
the Brazilian climate and stronger and growth. These are the fundamental drivers for the » Demand for locally manufactured sions. Many countries have adopted emissions re-
more stable winds, such as cost-effective solar energy market: components, such as inverters, lead and gel duction targets aimed at reducing greenhouse gas
blades, turbines and metal parts; batteries, as well as supply chain, will grow. emissions. Brazil’s biofuels are sugar-based and
? The arid Northeast region, which receives more are a clean solution and one that does not con-
» High-technology components sunlight than other regions of Brazil, is also a net ? Further reading: tribute to driving up food prices. Brazil’s sugarcane
such as generators, automation and importer of electricity from the Southern Region production is concentrated in the Southeast Re-
monitoring systems, as well as high- of the country and is leading the effort to develop » Brazilian Association of Electrical gion, far from the Amazon Rainforest.
tech inverters and converters; autonomous sources of electricity generation. and Electronics Industries (ABINEE) Brazil is the world leader in investment in bio-
– www.abinee.org.br fuel production plants, accounting for approxi-
» With the net metering system approved ? As a result of regulatory reform, small mately a quarter of total worldwide investment,
in April 2012, several small companies are distributed systems are now able to access » Brazilian Association of Wind Energy according to F.O. Licht. Brazil’s biofuels market is
investing in services and technology for isolated the national electricity grid at reduced costs. (ABEEOLICA) – www.abeolica.org.br a vibrant business sector, with strong opportuni-
systems and micro and individual wind-farms, ties for new greenfield investment, mergers and
directed at small businesses and farms in ? Several regions in Brazil have higher » Brazilian Energy Research Corporation acquisitions.
isolated locations. Smaller, less expensive residential electricity prices compared to (EPE) – www.epe.gov.br Biofuels production is concentrated in Brazil’s
systems will be in demand, together with lead other regions, making net metering with Southeast and Northeast regions.
and nickel batteries to support these systems. photovoltaic solar energy attractive. » Brazilian Network of Civil Ethanol production has more than doubled
Organizations for Renewable Energy over the past decade. Brazil produces flex-fuel
? Solar energy is being implemented in public (RENOVE) – www.renove.org.br cars, bolstering demand. Almost all new cars are
investment projects such as public buildings and flex. The government mandates that gasoline in-
stadiums to be used in the 2014 World Cup. clude about 25% ethanol.
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