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Large scale solar in Brazil is among the cheapest in the world

Large scale solar in Brazil is among the cheapest in the world
December 11, 2014 Kai Frolic

Solar power in Brazil has been boosted by the announcement of 31 solar parks to be built in the country. The installed capacity is expected [1] to exceed 1 gigawatt (GW), a substantial increase from the 30 megawatts currently [2] generated by solar power in Brazil.

Rio de Janeiro Brazil Solar

Price per Megawatt

The contracts for the developments were awarded at an auction, in which a maximum price per megawatt hour was set by the government at 262 Reais (approximately $101 or €82) and companies bid down to the price they are prepared to offer energy.

The final price tag: 220 Reais (approximately $85 or €69) per megawatt-hour. The head of the Brazilian government’s energy research company claims this is one of the lowest prices for solar energy in the world.

Power Auctions

Power auctions such as this have reportedly not favoured solar in the past because of its relative cost compared to other sources. However, this auction was unique because it was exclusively for solar power, demonstrating the government’s desire to increase this market. It has been reported that this is in part due to the impact of drought on Brazil’s hydroelectric sector. Brazil’s climate is well suited to solar development, which may prove to be one of the most promising renewable energy solutions for the country.

References

[1] Brazil gives go-ahead to 31 solar parks in push for new energy, Reuters. Last Accessed 5th December 2014

[2] Brazil Belatedly Joins The Solar Race.Last Accessed 5th December 2014

Image accreditation: “Blazing Sunset, Rio de Janeiro” by John O’Connell /  CC BY 2.0 / Image cropped and resized from original.

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