Brazil will receive around 60bn reais (US$14.4bn) in investments for distributed power generation by 2027, according to energy ministry data.
Installed capacity of distributed generation is expected to rise from the current 1.2GW to 12GW in the period, with 1.35mn new systems. Today, the country has 101,761 projects, mostly solar power but there are also wind, thermo and small hydro initiatives.
The expansion, however, could be impacted by regulatory changes currently being discussed by power regulator Aneel. The new rules will be published in the first half of 2020.
“Distributed generation brings a series of benefits to the system. It is clean, renewable and it's aligned with the empowering of consumers. Our regulatory revision will not make this activity unfeasible, it will generate better resource allocation,” Aneel head André Pepitone commented during Brazil’s largest electricity event, Enase, in Rio de Janeiro on Wednesday.
The rules review is backed mainly by power distributors, whoh argue that subsidies for distributed generation are paid by regular consumers. On the other hand, many service providers say some of the changes could mean projects are not economically feasible.
“We're very worried about those changes. It's important to have a balance in the system. The way the rules are today many projects are already unfeasible due to high costs of connection to the distributor’s grid,” Bruno Suzart, Brazil business development manager at Japan's Shizen Energy, told BNamericas.
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06 September 2019