Brazil’s Pernambuco signs PPA for 50MW solar park

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The Brazilian state of Pernambuco has signed a power purchase agreement with PV developers Kroma Comercializadora de Energia and Concierge Cone a 50MW solar park in the city of Flore, its second with the company.

Under the state’s solar-only auction held in 2013, Kroma Comercializadora de Energia won 29.25MW. Meanwhile Cone was commissioned to build 22.82MW.

Requiring an investment of BRL200 million (US$57 million), the project will generate 80GWh annually, the equivalent of supplying 60,000 households.

The two developers have pledged to use up to 60% local content in their installations as part of the Pernambuco government's strategy to form a supply chain of equipment and components for PV projects in the state.

The solar project will create 350 jobs and 750 indirect jobs, with 15 workers employed in operation and maintenance of the plant.

Pernambuco’s government has also extended the ICMS tax break for apparatus and equipment for solar parks. The ICMS is Brazil's tax on the sale of goods.

In July Pernambuco announced it was considering launching a second solar energy auction after a number of delays to the winning projects from its first auction.

However, secretary for economic development Thiago Norões said: “With this signature, two-thirds of [the] solar energy auction contracts are formalised, confirming the success of the initiative, pioneering and daring in Brazil.”

He added that the state has strong solar resources and offers good connection to transmission lines.

In February, Italy-headquartered renewables developer, Enel Green Power (EGP), started building two PV power plants totalling 11MW in the state after the first PPA from the solar-only auction was signed.

Overall, Brazil brought just 11MW of solar online in Q2 this year, according to GTM Research. However in an interview with PV Tech, GTM Research solar analyst Adam James said Brazil's market is expected to take off in 2016 with distributed generation gaining a lot more traction and utility-scale projects starting to come through.

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