The government of Brazilian state Pernambuco is in negotiations with two unnamed solar panel manufacturers to set up facilities in the state, according to a local report.
State energy secretary Eduardo Azevedo said the manufacturers could be attracted to Brazil by encouraging project winners of the state’s solar-only auctions in December 2013 to buy equipment from the target manufacturers, said News outlet Canal Energia.
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From the 2013 auctions, five out of six winning projects have been delayed for completion until 2017, meaning that they still need to purchase solar equipment. However, legally they must still purchase a portion of their equipment from national suppliers.
Azevedo said there is 82MW of capacity requiring equipment, and he highlighted Pernambuco’s close proximity to the west of Bahia, which is one of the best areas of insolation in the country.
On the other hand, high taxes on imported components are still one of the largest barriers to foreign module manufacturers settling in Brazil.
Canal Energia reported that importing ready-made modules can be 30% cheaper than importing components.
Azevedo said the government aims to draw in manufacturers of inverters and other smaller components, either through direct investments or through licensing and production of such equipment by local companies.
In other news, Pernambuco is also mulling a second solar-only auction after just one of the six winning projects is near completion, 18 months after the first auction.