Brazil state solar auction to impose domestic content restriction

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

The Brazilian state of Minas Gerais is to apply domestic content regulations to its solar auction in November.

The Superintendent for Minas Gerais’ Economic Development Secretary, Guilherme Augusto Duarte de Faria, told Bloomberg, developers taking part in the auction must buy equipment manufactured in the state.

The state-level move follows the introduction of domestic content requirements for bidders wishing to quality for solar project financing from Brazil’s national development bank, BNDES.

Faria told Bloomberg Minas Gerais is looking to utilise the current solar enthusiasm after the BNDES announcement, to improve solar energy development in Brazil.

Faria also said five developers have expressed interested so far, along with three module manufacturers planning to build facilities in the state.

Last summer the state’s deputy governor, Alberto Pinto Coelho, announced plans for a solar manufacturing facility to be built in the state.

State governor for Minas Gerais, Alberto Pinto Coelho also announced a solar incentive in August last year with tax breaks for investors building modules, inverters and solar plants.

A local company, Companhia Energetica Integrada, is already building a 3MW solar park in the state, and Tecnometal, Brazil’s first solar panel maker, has apparently demonstrated an interest in investing in Minas Gerais.

The Minas Gerais solar auction is to have a ceiling price of BR260 (US$109) per MWh and offer 15-year power contracts with utility, Energetica de Minas Gerais.

Last year, vice president of Brazil’s Industry Association of Cogeneration (COGEN), Leonardo Calabró, said a reasonable price for solar auctions to offer is BRL190 (US$83) to BRL200 (US$87), per MWh.

The state of Pernambuco successfully held a state solar auction last year for 180MW of solar capacity, auctioned with an average price set at BR250 (US$105) per MWh.

Brazil’s next national energy auction is to be held 30 September and is for all energy sources to compete for national tenders. The later LER reserve auction in October will include a solar-only category, after last year’s auctions procured zero solar projects.

The Brazilian government has turned its focus to solar energy, after a drought caused energy prices to sky rocket as expensive thermal electric generation replaced cheap generation lost from parched hydro power plants. 

There is currently growing optimism for solar development taking part in the national state auctions this year, and solar has also taken a front stage position in Brazil’s national election debates, with the election to begin in a few weeks.

Also this week EPE released its plans for energy developments for the next ten years, with only 3.5GW of solar planned.

19 October 2021
This year’s EV World Congress will hold a special role, not only as the first live EverythingEV event in over a year – a chance to renew your connections and re-engage with the EV sector face to face – but also as a chance to share insight and inspiration as world starts to look towards move on post COVID towards hitting ambitious decarbonisation goals in 2030 and beyond. As ever, we will be bringing world leading organisations, cities, and technology providers to the UK to inspire EV innovators, and delve into the challenges facing the sector as the UK looks to revolutionise road transport.
20 October 2021
Utility-scale solar is evolving, shaped by higher power modules and demand for increasingly lower levelised cost of electricity (LCOE). Those trends are also changing project requirements elsewhere, with inverters capable of delivering high power density and power capacity in strong demand. In this webinar, FIMER will detail how its innovative high-power, multi-MPPT string inverter and modular conversion solution can both meet those demands and transform the utility-scale solar sector for the better.
20 October 2021
The race is on but we need to sprint… With global climate talks fast approaching and time running out to prevent the most disastrous impacts of climate change, now is the time to act. The Summit will explore the opportunities that emerge from taking action on climate change and provide a clear pathway forward for governments, citizens and companies. Taking place just 10 days before the G20 meeting in Rome, on 30-31 of October, and in the lead up to the critical COP26 meeting in Glasgow from 31 October–12 November, this event will be instrumental in influencing ambitious global action.
10 November 2021
The solar tracker market continues to mature at breakneck speed, with designs and component selections becoming ever-more complex in the pursuit of better project economics. But a more simplistic design could deliver a triple benefit of lower Capex, EPC and Opex costs. This webinar will set out the ideal single axis tracker design for utility-scale solar farms. The design leapfrogs from decades of experience, with a comprehensive understanding and attention to the three cost structures of Capex, EPC and Opx. Sun and Steel Solar has prototyped a single axis tracker designed to deliver up to US$0.03/W in real savings compared to existing single axis trackers on the market. That’s US$30 million for every gigawatt deployed.
15 November 2021
The 10th edition of the famous Metallization and Interconnection Workshop, MIW2021, will take place in the Thor Central venue in Genk, Belgium, on Monday, November 15, and Tuesday, November 16, 2021 as a face-to-face meeting. We are longing for direct exchange of knowledge and ideas after a long time. Hopefully you can be part of it! But of course, the organizors will keep an eye on the evolution of the Covid pandemic. It will be assess carefully, whether the workshop can be held without major risks or excessive restrictions. We are looking forward to exciting talks, discussions and meetings and to welcoming you in Genk!
23 November 2021
The solar, storage and EV industries in the UK are going from strength to strength. There is no better place for the community to meet, share ideas and do business than Solar & Storage Live from 23-25 November at the NEC.There’s something for everyone; more than 150 exhibitors, a high-level conference, a start up and innovation zone, a poster zone, strategic partners to network with and much more. 

Read Next

October 19, 2021
Shortlisted bids in Saudi Arabia’s latest solar tender have jumped significantly on the lowest price recorded in the country’s previous renewables programme, reflecting the hikes in PV equipment costs in recent months.
October 19, 2021
The White House has said renewables are still key to its budget reconciliation bill despite rumours of the investment tax credit (ITC) being modified as opposition to the bill by senators Manchin and Sinema continue
October 19, 2021
Europe's energy crisis can be a boon for renewables deployment on the continent by bolstering business cases, but familiar foes such as grid constraints will still need to be hurdled in the coming years.
October 19, 2021
Solar tracker manufacturer Soltec has signed a framework agreement with renewables developer Acciona Energia to supply trackers over a three-year period.
October 18, 2021
Heterojunction cell and module manufacturer Meyer Burger has appointed a new CFO just one year after incumbent Jürgen Schiffer took on the role.
October 18, 2021
Italian grid operator Terna has acquired Italian solar O&M provider LT in a €24 million (US$27.8 million) transaction.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 19, 2021
BRISTOL, UK
Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021