The hottest renewable energy market outlook in Bra

2022-08-14
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Prospects for renewable energy markets such as photovoltaic and wind power in Brazil

in 2016, Brazil has been deeply affected by the economic recession and political turmoil, and the energy industry has also been hit hard. Electricity demand has declined, and the electricity supply in the market is in a state of oversupply. Finally, Brazil did not sign any wind power or photovoltaic capacity contracts in 2016. With regard to the protection of the host, here is no longer an introduction to the plight of developers suffering from the shortage of loan supply and rising interest rates. Equipment suppliers are worried about the lack of project demand, and the acquisition and merger activities of clean energy projects are unprecedented

macro economy: Although the economic indicators in 2016 showed slight signs of improvement, Brazil's economy is still facing a recession of 3.4% this year. The domestic unemployment rate rose to 11.3%, which was worse than the 6.8% in 2015, and the real wages of the people also fell

power market: due to the economic recession, Brazil's energy demand has decreased, and distribution companies are facing a serious oversupply. In 2016, the electricity auction in Brazil was sluggish, with only 709mw capacity created by Burt Rutan in 1982, and most of it came from small-scale hydropower and biomass power generation projects. In addition, the wind power and photovoltaic auctions originally scheduled for last December were also cancelled, which has brought more uncertainty to the short-term development of Brazil's renewable energy industry

clean energy investment: in 2016, renewable energy investment in Brazil continued to decline. In the first three quarters, the country received only $5billion in clean energy projects at the end of 2014. BNDES, the Brazilian Development Bank, has confirmed that it will continue to support the development of clean energy projects in 2017, but the amount of investment will be significantly reduced. In addition, the difficulty of financing has also brought certain challenges to the feasibility of wind farms. Due to the shortage of funds, two developers have applied to cancel the PPA agreement previously signed in the auction

auction: so far, the Brazilian government has not announced any information about the 2017 auction. Market participants are concerned that the market demand for new power generation projects will continue to remain low in 2017

wind power: last year, no wind power projects were signed in the electricity auction in Brazil, which is the first time since 2009. The fan manufacturers are deeply worried about the future project demand. At present, the total assembly capacity of fans in Brazil for a long time is about 3.4gw, belonging to six fan manufacturers, namely Ge ALSTOM, Siemens gamesa, wobben, nordex Acciona, Vestas and Weg motors. In this context, these manufacturers may have to make difficult decisions to reduce the domestic fan production in Brazil

photovoltaic: the photovoltaic industry in Brazil has just started, but it is facing challenges in all aspects, including insufficient equipment supply, high financing costs, and it is difficult to see future demand. At present, most power plant developers with PPA have begun to evaluate the economic feasibility of their projects in the current environment and the ability of power plants to deliver projects on time

key data

US $5billion

in the first three quarters of 2016, the total investment in clean energy in Brazil was US $5billion, a decrease of 30% compared with the level in 2015

0.7gw

in 2016, the new power generation capacity of other technologies other than Brazil's scenery technology was 700MW, only 13% of the 2015 level (5.4gw)

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