Brazil Readies Big Push on Solar Energy but Companies Are Wary

Grappling with its worst energy crisis in more than a decade, Brazil is making its first big move to develop a local solar power industry that could help reduce its dependence on a battered hydro power system.

In October, Brazil will hold an auction to negotiate energy to be produced exclusively by solar farms, the first ever of the kind in the South American country.

Power companies have registered some 400 projects for the auction, but many remain wary of the outlook for solar power in Brazil and say they need more clarity on investment conditions and financing before signing any deals.

The auction could negotiate up to 10 gigawatts (GW), although industry sources estimate final volumes at a much smaller level, varying from 500 megawatts (MW) to 1 GW.

Sun-kissed Brazil has one of the highest solar radiation factors in the world and plenty of land for solar farms, plus large reserves of silicon, used to make solar panels.

Brazil Readies Big Push on Solar Energy but Companies Are Wary