Category Intelligence on Renewable Energy Market Analysis Brazil covers the following
Regional Market Outlook on Renewable Energy Market Analysis
In Southern part of Brazil, biomass is the most preferred, owing to high availability of sugarcane residue feedstock, while higher solar intensity makes solar PV preferable for industry in the Northern region of Brazil.
What are the considerations for industry's RE sourcing?
Supportive polices would help industry in reducing the capital investments and/or receiving monetary benefits for sale of excess energy.Currently, Brazil has strong RE policy, coupled with monetary benefits, such as tax exemptions and net metering mechanism.
PPA Contract Models
PPA contract models would allow industry to source renewable energy at per unit cost without installing the power plant on its own. Presently, the number of PPA-based projects is less and this is expected to grow in the coming years.
The industry could decide on the renewable energy type according to the potential of source in its region. The lack of strong grid connection and PPA structure limits the installation to industry's premises.
The market maturity of a renewable energy source is a prime important factor to be considered, as the high market maturity would make the project price competitive.
The electricity supply in Brazil is mainly met by domestic generation (about 94%) and the rest from imports. In 2017, the renewable energy contributed to 15.20% of the fuel mix.
Overall energy production in Brazil has increased due to the rise in bioenergy, wind and solar power. Hydro energy has the highest installations in Brazil, about 64%, however due to lower rainfall and draught conditions the government is aiming to reduce the share of hydro power share as it leads to price fluctuations
Brazil's north part of the country is blessed with radiation levels greater than 6 kWh/m2/day. Majority of industry's operation in Brazil falls under a low to medium solar intensity region, however, it is still considered to be feasible for installations.
Solar Energy in Brazil
Potential at industry Locations
Brazil has wind energy speed ranging from 2.5 m/s to above 6 m/s, and roughly, 50 percent of the country has a significantly good potential for wind energy generation. Most of the industry's brewery location are located in high wind energy potential location.
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