Brazil looking to create support industry for fast-growing solar sector

Brazil’s solar energy industry is set to get a boost from a government plan to have local industry manufacture inputs for the sector. 

"In last few years, our industry was forgotten and we want to revive the Brazilian industrial park so we can produce inputs here that can be used throughout the entire solar sector chain," Adalberto Maluf Filho, urban environment secretary at the environment and climate change ministry, told BNamericas.

"In addition to meeting the increased demand for solar energy in Brazil, we want to be able to meet demand in South America and also from the US and Europe, as we are recognized as a reliable business partner," said Maluf Filho, who attended the Intersolar conference in São Paulo. 

"Most of our inputs today come from China, having local production can help the entire sector, including to reduce costs," Túlio Fonseca, CEO of solar power franchisor Energy Brasil, told BNamericas.

As part of the government's efforts to stimulate the local industry, funding will be made available for projects through the country’s climate fund, which is managed by development bank BNDES. 

Solar makes up 15% Brazil’s energy matrix and is the second largest energy source after hydroelectric plants, with the expectation to reach 50% by 2050, according to local PV solar association Absolar.

Among the challenges to reach 50% is developing a vibrant consumer market for solar energy – and green hydrogen could facilitate this process.

"With green hydrogen projects moving forward, we will also see an increasing demand being created for solar energy to be part of those projects," said Absolar president Rodrigo Sauaia at the event.  

Electrification of bus fleets

At the local level, several governments are seeking to accelerate the electrification of their bus fleets.

"São Paulo has a plan to have a total of 2,600 electric buses in its fleet by the end of 2024," Gilberto Natalini, the city's climate change secretary, told BNamericas. 

"In the past Brazil was the biggest exporter of buses to Uruguay and Argentina, and we are losing those markets to China. Through reindustrialization we now want to recover these markets," said Maluf Filho.