MEMS

5422

The solar energy market in Brazil

Andressa Fernandes de Gusmo

June 2015

Abstract

Contents

1 Introduction

Photovoltaic conversion is the direct conversion of sunlight into electricity

without any heat engine to interfere. The photovoltaic devices deign is simple and does
not require several maintenances. They have a wide applications: power source, water
pumping, remote buildings, solar home systems, communications, satellites and space
vehicles, reverse osmosis plants, and for even megawatt-scale power plants (Parida et
al., 2011).
Photovoltaic converters are semiconductor devices that convert part of the
incident solar radiation directly into electrical energy (Duffie and Beckman, 1980).
These systems are rated in peak kilowatts (kWp) which is an amount of electrical power
that a system is expected to deliver when the sun is directly overhead on a clear day
(Parida et al., 2011).
Currently, the Grid-connected PV is the energy technology that grows faster in
the world, followed by wind power (Martins et al., 2008). Since 2010, the world has
added more solar photovoltaic (PV) capacity than in the previous four decades. New
systems were installed in 2013 at a rate of 100 megawatts (MW) of capacity per day.
Total global capacity overtook 150 gigawatts (GW) in early 2014. PV system prices
have been divided by three in six years in most markets, while module prices have been
divided by five. (IEA, 2014).
Latin America presents excellent solar energy resource availability and a huge
potential of using PV (IEA), however it shares less than 2.15% in 2013 of the global
market and does not present significant growth rates (EPIA, 2014). This slow demand in
Latin American countries, including Brazil is due to: the preference on other renewables
source of energy; cost and the lack of technological awareness; and the still use of a
huge amount of conventional energy sources (Martins et al., 2008).

2 The PV market in Brazil

2.1 The Brazilian electricity sector
Brazil has important characteristic which gives it a huge potential for PV
systems. Besides its big extension, Brazil also has low latitude, with a large solar
radiation resource and a low variability of the solar energy distribution content (Ordenes
et al., 2007). Brazil is located in a region where solar radiation is among the highest in
the world. The daily solar radiation varies from 5,9 kWh/m in the north-east to 5,2
kWh/m in the south. The Amazon (north) region is one of the sunniest regions in
Brazil, however it must be the one of the most difficult are to implement PV systems,
because of its forest vegetation, social and economic reasons (Azzaoui, 2013).
The figure 1 shows the annual and seasonal averages of daily global solar
irradiation in Brazil. Even though the Brazilian territory presents several climate,
vegetation and characteristics, it can be observed that the overall irradiation is uniform.
The sum of the annual daily horizontal global solar irradiation in Brazilian is
(1500-2500 kwh/m2) greater than those for the majority of the European countries such
as: Germany (9001250 kWh/m2), France (9001650 kWh/m2) and Spain (12001850
kWh/m2), where projects to enhance solar resources are more popular (EPIA).
Forty percent of the Brazilian electric energy is utilized by residential,
commercial and public buildings. The residential sector, specifically, consumes 23% of
the national consumption and the other two sectors are responsible for 11% and 8%,
respectively. Brazils electricity generation is already renewable, since over 80% of
electricity ins generated by hydro power (EIA 2012). Although the hydro power causes
come ecological and social damages to operate.

Besides the social and environmental impact of the hydropower, it also results in
a centralized structure of the Brazilian energy. The large distance between power
generators and consumers has resulted in supply constrains over the last years. In
addition, heavy droughts has caused several rationing in the past. Thus the main
challenges for the current Brazilian electric generation systems are: high transmission,
distribution losses and the limited availability of electricity in dry seasons pose serious
challenges (Azzaoui, 2013).

Therefore, PV systems seems a perfect alternative for solve the energy problems
in Brazil, however it still presents a high cost there due to several problems: lack of
investments in researches related to the field, poor marketing of the technology, few
stimulus from the government and lack of PV industries. Nevertheless, the crescent
price of the Brazilian electricity tariffs and the increasing industrial and government
interest could make PV systems reach economic feasibility in a near future.
2.2 Major Applications of PV in Brazil
Martins and colleagues have identied two major applications for PV in Brazil,
where there is a potential for large volumes, and for which the accurate knowledge of
the solar resource distribution is critical.
2.2.1 .Hybrid diesel/PV systems in mini-grids in the Amazon region
The Amazon region, in Brazil, represented by Figure 2, is huge and because of
its size, distance and dense vegetation, it is not connected to the Brazilian grid of
electricity distribution. When it exists, the current energy supply in this region is: the
use of Diesel generators or very simple PV systems. The Brazilian interconnected
electric system is shown on the Figure 3 (Martins et al., 2008).
The potential for using PV is huge, and can be estimated in tens to hundreds of
MWp in the Amazon region alone, even if only a fraction of the 286 existing Diesel
power plants with a total installed capacity of over 620 MVA would adopt some PV to
an optimum Diesel/PV mix (Beyer et al., 2004). Furthermore, while the solar radiation
resource distribution in Amazon region is considerable, and with a small seasonal
variation (Martins et al., 2008).
Solar PV is the most viable renewable energy technology currently available for
spread and relatively small energy demands in the region.

Figure 2. Brazilian Amazonic Forest (Verissimo et al., 2002).

Figure 3. Brazilian interconnected electric system (Azzaoui, 2013).

2.2.2 Grid-connected PV systems in urban areas

Brazil is particularly well suited for the application of grid-connected PV due to
both considerable solar resource availability, and to the high value that can be attributed
to PV in commercial areas of urban centers (Ruther, 2004).
Most of the commercially available PV systems are either facade- or roofintegrated , with PV modules based on different technologies, which include the marketdominant crystalline silicon (c-Si), three thin-lm technologies based on amorphous
silicon (a-Si), cadmium telluride (CdTe) and copper indium gallium diselenide (CIGS),
and a heterojunction comprised of a thin a-Si PV cell on top of a c-Si cell (HIT).
PV can contribute to a utilitys capacity if the demand peak occurs in the
daytime period. Commercial regions with high midday air-conditioning loads have
normally a demand curve in a good synchronism with the solar irradiance (Knob et al.,
2004; Perez et al., 2001.
3 Necessary Improvements
3.1 The establishment of the market
First, the PV systems need to be advertised to the Brazilian society. Some
actions were taken recently to promote this technology: some of the 2014 World Cup
stadiums illumination were derived from PV electricity, as shown in Figure 4. This kind
of advertise is important to promote a great visibility of the technology to the
population.
Besides that vitrine, it is also important to promote the spread of the knowledge
and technology among people who deal with constructions and/or can influence the

coming market, such as: contractors, engineers, architects, politicians. It is important to

disclose the importance of the PV systems and their benefits.

Figure 4. Minerao Stadium roof (Ingeteam).

The government can take some actions that could help the market establishment.
First it could start to install PV panels on all new federal construction. Second, it could
institute an obligation to use renewable sources of energy using a height criteria. Third,
it could determine a minimum value of PV energy participation on the total energy
source, in order to incentive the creation of new companies in this field.
The Brazilian government already gives tax credit for both solar industries and
consumers. For industries, there is a significant reduction of the federal taxes that the
company should pay. For the costumers, there is also a discount on the tariffs.
Apparently the problem are not the taxes, but the big initial investment due to the lack
of technology production in Brazil.

3.2 Solar Industry Support

So far, there are 4 companies that commercialize PV systems in Brazil and only
one that produces. The lack of researches incentive is the principal reason for that. And
besides the tax incentives, it does not have Brazilian companies that showed interest on
manufacturing PV cells.
Economically speaking, it would be better for Brazil the development of national
industries, but in an absence of those, Brazil could be open to international investment
on this sector.
Although the volume of the Brazilian PV market remains low and the import of
modules poses legal and financial obstacles, international companies started to take
interest in further market developments. Foreign companies have shown interest in the
emerging PV sector given the growth prospects of this infant industry and the new
regulatory incentives for electricity production (Azzaoui, 2013).
3.3 Research Support
Brazil has several mines of quartz and already produces the metallurgic
silicon, although the silicon pure enough to produce PV cells has to be imported, since
the investment in R&D is very deficient. This was one of several examples to reassure
the importance of research support on the development of technologies, including PV
cells.
Since Brazil has the raw material, it would be clever to invest in researches and
technologies to produce the purity required for production of solar and

microelectronic silicon. Incidentally, researches that have common interests on PV

and microelectronic should be given priority, since the beneficial potential results are
higher.

Which should include: understanding the differences between ideal and

available properties; process production of films and surfaces.

Besides the direct investment on researches, indirect investments are necessary.
Improvements of laboratories in order to promote the characterization of impurities of
quartz and silicon, development of pilot processes of silicon refining and films
production. And also the investment should be done in personnel within the field of
scientific research and development Brazil participates with small PV technology
projects (Kissel 2008: 11). Nevertheless the Brazilian education system lacks PVorientated study programs and professional expertise. The human capital needed to
develop the PV sector in Brazil is consequently barely existent. In a long-run this is a
major obstacle for the PV market development.

3. Conclusion
However, the PV industry can take advantage of the outstanding solar potential in
certain Brazilian cities where PV power plants are economically justifiable due to high
power prices although no direct financial support is provided to start the diffusion of
this technology. Beyond that, expert know-how points to the fact that social
characteristics are highly relevant for the consumer behavior of potential customers.

Thus Brazil could take advantage of its location, in a region on Earth where solar
radiation is one of the highest in the world, this potential is mainly untapped (Meisen
2010: 29).
In the near future, when the use of grid-connected PV becomes more widespread
due to both cost reductions and the acknowl-edgment of the benets of distributed PV,
the assessment of ELCC will be of strategic value for utilities and investors.