Brazil retreats from solar auctions

Nilima Choudry – PVTech, 04/16/2012

Despite our reports in March and earlier this month, the Brazilian Secretary of Energy Planning and Development of the Ministry of Mines and Energy, Altino Ventura Filho, has announced that solar energy will not form part of auctions in order to augment generation of solar power.

Auctions are already in place for wind power, but the Brazilian government had proposed to implement new regulations to make solar PV a more viable option for electricity generation in the country. The argument for going back on this decision has been attributed to claims that the price of solar is too high. In previous auctions, the government alleges that solar power cost on average €150, whereas wind energy is around €76.

The minister suggested that foreign investors have calculated a 15 – 20% annual drop in price in five years time, when solar energy would become more competitive and would be able to stand up against other renewables such as wind power, which is fairly established in the country.

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