Studies of renewable energy in Brazil

Introduction

The Brazilian energy scenario today is based on energy generation through hydroelectric power plants. Only a small portion of the generation of energy derived from other sources. According to studies there is a preoccupation with the

diversification of energy generation because of preservation of the environment.

Contents

1. Legislation 1.1 Fiscal Incentive and Regulations Norms 1.2 Removed from article: PROPOSTA PARA UM SETOR FOTOVOLTAICO 1.3 List of Decree-Law about Power Politic 2. Potential Solar Radiation 3. Energy Distribution

4. Cost Energy Distribution 4.1 per Region 4.2 per Activity 4.3 Prospects
5. Feed in Tariff 6. Looking Partners 7. Conclusion

Legislation

Fiscal Incentive and Regulations Norms

There are tax incentives from the government when the company uses the solar energy to help in the production or reduction of energy consumption. A clear example of using this system in Brazil is CEPEL. It has a photovoltaic system

connected to the network, this system supplies a portion of the energy consumption of the building and is rated at
16.32 kWp and injects energy into the low voltage of 220V. The Decree-Law No. 132-A/2010 21 December approved a strategy for energy policy, where the government sets an ambitious goal of multiplying by 10 the previous objective. Which had as its goal to produce 150MW, and now moved to 1500 MW until 2020, through an integrated policy for

the different solar energy technologies, based on a model of industrial development in the segment. But in DecreeLaw No. 34/2011 of March 8 provides a partnership with Portugal to lead the energy revolution with the intention to include Portugal in the state of the global industrial chain of renewable energy, invest in the decentralized energy production, simplify processes and procedures facilitating the adhesion of citizens, companies and other entities.

Legislation

Removed from article: PROPOSTA PARA UM SETOR FOTOVOLTAICO

Marcos Vincius de Souza, director of fostering Innovation MDIC(Ministry of Development, Industry and Foreign Trade), said that the laws do not include benefits for the metallurgical grade silicon, even though they included

advantages for PV cells and solar panels.

Besides the tax issue, he said that improvements are still needed on the issue of funding, but noted that the National Bank of Development Economic and Social (BNDES) provides credit for renewable energy among its "best lines", with interest 3% at years. " This is both for those who want to produce solar photovoltaic power and for those who want to

build industries, are cells or panels.

Source: http://www.mosaico.com.br/?canal=4&pg=show_noticias_informativa&in=187&path=Noticias

Legislation

List of Decree-Law about Power Politic Decree-Law 189/1988 Decree-Law 182/1995 Decree-Law 186/1995 Decree-Law 168/1999 Decree-Law 538/1999 Decree-Law 312-A/2001 Decree-Law 339-C/2001 Decree-Law 68/2002 Decree-Law 363/2007 Decree-Law 118-A/2010 Decree-Law 132-A/2010 Decree-Law 34/2011

Potential Solar Radiation

Solar energy potential and production in Brazil

As with the winds, Brazil is privileged in terms of solar radiation. The National Energy Plan 2030 reproduces data Solarimetric Atlas

of Brazil and registers that this radiation varies from 8 to 22 MJ

(mega joules) per 1 square meter (m2) during the day, with the smaller variations occurring in the months from May to July Ranging from 8 to 18 MJ / m 2. Besides of the study, the Northeast has better radiation compared to the better regions of the world, as the town of Dongola, in the desert of Sudan and the region of Dagget, in the Mojave Desert, California. What, however, does not occur with other more distant locations from the equator as the South and Southeast, which is concentrated the bulk of economic activity.

Potential Solar Radiation

The next figure illustrates this variation. Despite this potential and use of solar heaters to be very widespread in the inner cities and in rural areas, the participation of the sun in the national energy matrix is greatly reduced. Both that solar energy is hardly mentioned in the list

of sources that comprise the National Energy Balance, 2008 edition.

Also in the Stock Information Generation (BIG), Aneel, there is only a photovoltaic plant - Araras, in Nova Mamore, the State of Rondnia, with an installed capacity of 20.48 kW. BIG does not record any other photovoltaic project under construction or already awarded. What exist in the country are research and implementation of pilot projects of technology. One is the project Residential Photovoltaic Systems, University of So Paulo (USP), which has installed 19 photovoltaic systems in the San Francisco community of Aiuca located on Sustainable Development Reserve Mamiru, Amazonas, with

production of 13 kWh (kilowatt-hours) per month.

Energy Distribution - Actually Freedom Consumers Generation

Transmission

Distribution

Subtitle of pictures must be written in fontsize 12, italic

CaptiveConsumers

Freedom Consumers
Captive Customer: A consumer who purchases energy concessionaire or grantee who holds the monopoly service in the region where it is installed and whose contract is fully regulated by the National Agency of Electrical Energy (Aneel). Consumer Freedom: It's the one that attended all tension, you can choose to purchase electricity from any supplier, according with the specific legislation and regulations.

Cost Energy Distribution Actually per Region

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Cost Energy Distribution Actually per Region

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Cost Energy Distribution Actually per Region

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Cost Energy Distribution Actually per Activity

AVERAGE RATES OF ELECTRICITY IN BRAZIL (2009).

Consumer / Class Residential Industrial

Average rate in 2009 (R$/MWh) 285,82 218,82

Commercial

273,09

Source: ANEEL (2009)

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Cost Generation Energy Prospects

PRICE OF ELECTRICITY GENERATION BY VARIOUS SOURCES AND PROSPECTS FOR COST REDUCTION.

Cost Power Generation (R$ cents/ kWh) Fossil Fuels Nuclear Wind Power

2005 9,4 10,6 4-6 9 7,5

2030 14,1 -16,5 3,5 7 65

2040 15,3 21,2 3,6 6 34

Solar Thermal
Solar Photovoltaic

17
20 - 40

6
5 - 10

3
3-6

Source: Salamoni, 2009

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Cost Generation Energy Prospects AVERAGE ANNUAL GROWTH RATES OF RENEWABLE ENERGY CAPACITY.

Source: REN21,2008

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Feed in Tariff
The two most important taxes that encourage the use of photovoltaic systems are some of the Tax on Circulation of Merchandise and Services (ICMS) of state jurisdiction, and the Tax on Industrialized Products (IPI), of federal jurisdiction. Equipament photovoltaic Free Taz de ICMS (2008) Pumps for liquids, for use in photovoltaic solar energy system in DC, with power not exceeding 2 HP; Photovoltaic modules;

Not mounted solar cells;

Solar cells in modules or panels; The benefit applies only to equipment that is exempt or taxed by Decree 3827/01, which reduces to zero the IPI on

various equipment and accessories for the generation of

electricity. According to manufacturers and retailers of photovoltaic systems, PV modules are the only devices that are currently exempt from IPI and ICMS. Purchase of inverters in the domestic market are included 12% of ICMS and if the charge controllers are included 12% of ICMS and 15% of IPI.
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Looking for Partners

BUILDING PARTNERSHIP
The search for partners within the Brazilian territory is very important to leverage our supply of CPV solar
modules (Photovoltaic Concentration). Among them are some who alreadyhold relationship from Spain who need to build a business relationship in Brazil.

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Conclusion

How is today photovoltaic energy in Brazil?

The potential for PV is huge, given its high levels of solar radiation.
Currently, governments and utilities are the main investors, using photovoltaic panels on road signs and surveillance, public lighting, telecommunications and others. The federal project Light For All, which aims to bring electricity to remote communities and disadvantaged, it also makes extensive use of photovoltaic. However, the on-grid PV systems are still quite a novelty. The two main obstacles have been the cost of purchasing and installing the panels and the lack of an official policy of subsidies. The first is already being

overtaken by the advance of technology, which has reduced cost and

increased the efficiency of photovoltaic panels. The second depends on political will of governments and awareness of society, the main factor of pressure on the government. The outlook for the sector in Brazil, however, are optimistic, and it is hoped that soon the country rely on legislation defining incentives for installation of residential and commercial photovoltaic systems, and the sale of photovoltaic energy to the grid by users .

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Contact partner

Teknia Research & Development

Andr Segundo Ferreira

Solar Energy Brazil

Avda. Ioneji Matsubayashi, 1221 08260 050 So Paulo Brasil

tel ext e-mail

+55 011 2523 9100 241 andre.ferreira@tekniagroup.com

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Thank you for your interest and attention