Sao Paulo, August 17: The Intersolar South America webinar “Why Brazil could be the next global solar superpower and why you should keep an eye on it”, held in advance of the upcoming exhibition and conference in Sao Paulo provided insights into the promising Latin American solar market. Focused on Brazil, with solar projects totaling 750MW under construction, but others delayed in moving forward, the webinar and two polls included offered a glimpse on the country’s impressive growth potential and market status.
Ongoing optimism despite market setbacks
After Brazil’s government announced to postpone the reserve auction planned for July 29th, for which gigawatts of solar PV projects were registered, to December, the first question was “Does this influence your investment decisions?” Not surprisingly, 42% of the 204 international webinar participants said “Yes, it does a bit”, thus expressing some doubt.
However, a total of 40 percent said that the postponement will probably not or not at all influence their investment decisions. Asked whether Chile, Mexico, Argentina or Brazil will be Latin America’s PV leader by 2020 an astonishing 69% of the poll participants voted for Brazil, 15 % for Chile and Mexico respectively, and only 2% for Argentina.
Speaker and GTM research solar Analyst Manan Parikh commented that this fascinating vote shows unambiguous confidence in Brazil’s solar market. However, Chile and Mexico “should have a little more,” he said, since GTM research forecasts an 18% market share for Chile, and 33% for Mexico by 2020.
Nevertheless, despite setbacks in the market, Brazil is on track to become a major market. Having more stability from a policy and economy perspective, support by Brazil’s Ministry of Energy and Mines and ANEEL renewable energy demand is set to take off.
Concluding the Q&A session, Parikh emphasized that access to financing is key to achieve Brazil’s high growth potential. Though financing is already being supported by attractive BNDS debts, untightened local content requirements could spur project developments supported by BNDS, and facilitate international financing as well.
