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Brazil power watch

Bnamericas Published: Wednesday, October 12, 2022
Brazil power watch

Growing demand for subscription-based solar power, mainly to serve consumers in the retail and service sectors is expected to leverage the shared generation market over the next two years, according to a strategic study on remote distributed generation (DG), produced by consultancy Greener. 

The survey suggests that the remote DG will require the construction of at least 3.8GW of solar plants by 2024, involving more than 15bn reais (US$2.8bn) in investments.

Brazil has made significant advances in the capacity of the solar plants in operation and/or under construction, rising to 2.3GW compared with the 0.4GW reported in 2020. 

"The growing interest of consumers in hiring more competitive and sustainable energy has accelerated the allocation of resources to remote DG, especially considering the subscription model in shared generation," Greener director Marcio Takata said in a statement.

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Eneva has concluded the acquisition of Eletronorte’s stake in Amapari Geração de Energia for 17.8mn reais.  

With this deal, Eneva becomes the single owner of Amapari, holding 100% of its shares. 

Amapari's main activity was the operation of the Serra do Navio thermoelectric plant in Serra do Navio municipality, Amapá state, which stopped operating in 2013 and was demobilized in 2019.

“This transaction is aligned with the goal of optimizing the company's corporate structure,” Eneva said in a statement. 

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MTR Solar plans to invest 150mn reais between 2022 and 2023. 

The investments will be concentrated in stock and infrastructure, such as the expansion of its plant for fixed and tracker ground structures, in Juiz de Fora, Minas Gerais state, and the construction of a new factory to manufacture medium-voltage skids.

MTR forecasts growth of 300% in the 2022-23 two-year period, with revenues projected to rise beyond 1bn reais. 

"There is a range of factors favoring the solar energy segment, such as the high cost of electricity in the country, which makes it more attractive to compare the cost-benefit ratio for investing in the installation of plates and batteries for capturing solar energy in mini plants and to increase the supply of financing for the installation of these systems," the company's CEO, Thiago Rios, said in a statement. 

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Brazil’s energy commercialization platform BBCE had its best month of the year in September, in terms of transactions. 

The traded energy volume reached 28,253GWh, up 36.2% compared with the same month of 2021 and a 106% increase compared with August. 

Distributed in 4,023 contracts, this volume moved a total of 3.3bn reais, up 29.5% from August, but a 39.7% year-on-year decrease. 

Another point highlighted by BBCE is that, in September, the system reached the milestone of 300,000 contracts traded since the company was founded. These operations involved some 939,000GWh for a total of 194bn reais.

Of the total number of deals closed on the screen and formalized through the company's solutions, 65% were contracts with delivery deadlines in 2023 and 2024.

In the company's analysis, September's movements indicate that the market is looking more at the long term and sees future business opportunities. 

The reduction in volatility may have been a driver of the movement, given that in September high oscillations and a month-end closing with a sharp drop were reported on the platform, BBCE added.

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Brazil's national grid operator ONS noted some 29 records in solar and wind power generation in September.  

Solar generation stood out in the period, with 24 new records in the month, the most recent of which were confirmed between September 27 and 29.

On September 27, instantaneous solar power generation in the northeast subsystem peaked at 3,499MW at 9:46 am, equivalent to 32.1% of the region's total demand. The previous high was 3,450MW at 11:12 am on September 5.

Also in the northeast, a record was verified on September 28 for average solar generation at 1,372MWa (11.8% of demand). The previous high, in the same subsystem, was 1,315MWa, on September 13.

On September 29, three new records in solar generation were registered: one in the southeast/center-west subsystem and two in the national grid. 

In the east/center-west, the record was in instantaneous generation with 1,773MW (4.4% of demand) at 11:38 am. The previous high was reached on September 25 at 1,649MW. 

National grid figures were also identified in instantaneous generation, with 5,155MW (7.4% of demand) and in the average generation, at 1,945MWa (2.8% of total demand). 

The records exceeded the measurements seen on September 10 (4,876MW) and September 13 (1,937MWa), respectively.

Regarding wind power generation, Brazil saw five new records in the month, all between September 5 and 7. 

The national grid reached total wind generation of 15,890MWa, or 22.9% of the system’s total power demand. The previous best had been 15,150MWa on August 30, 2022.  

The other two highs in wind generation were in the northeast subsystem. The snapshot came in at 16,618MW at 10:21 pm, representing 143% of the demand. The previous best result was 16,055 MW, ascertained on August 30. 

The new high in average wind power generation in that subsystem was 14,439MWa, which is equivalent to 137% of demand.

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