Brazil has been making great strides in solar energy generation, with the country's installed solar capacity reaching over 29 GW, according to data from the National Agency of Electric Energy (Aneel). This figure includes 8,624 MW from centralized generation plants and 20,580 MW from mini and micro-generation plants of up to 5 MW each. This year alone, at least 1,437 MW of distributed generation and 1,153 MW of centralized generation have been added.
Residential solar systems account for over a third of the current generation capacity, with 10,400 MW, of which 10,123 MW are attributed to systems of up to 80 kW. Aneel reports that there are more than 104.4 GW of awarded projects still under construction or under development in centralized generation. Larger projects are expected to support the growth of the free market and supply power for the energy-intensive production of green hydrogen.
For distributed generation, there were more than 30 GW of connection requests made up to Jan. 1, 2023, indicating continued growth in the sector, albeit at a slower pace. However, both centralized and distributed generation face the challenge of grid connections, which remain a significant barrier to the realization of all projects.
One of the factors that encouraged the rush of orders for solar generation connections in recent years was the end of discounts on tariffs that remunerate networks. For centralized projects, the 50% discount on the tariff for the use of the transmission system (TUST) ended for projects that requested the grant after March 2, 2022. However, projects that requested grants before that deadline can still receive the discount, provided they start operating within 48 months of Aneel's authorization.
For distributed generation, projects that requested connections after Jan. 7, 2023, will gradually pay the tariff for the use of the distribution system, starting at 15% for systems of up to 500 kW installed at the point of consumption. Larger systems that are of remote self-consumption or shared generation will pay the tariff in full for orders placed after Jan. 7.
Despite the challenges, Brazil's solar energy sector has made impressive strides in recent years and is poised for further growth, with significant potential for both centralized and distributed generation. The government's continued support and investment in the sector will be critical to realizing this potential and achieving a more sustainable energy future for the country.
