Tax Cuts on Solar Energy in Brazil, an Act to Boost a Growing Market even Faster?

The very controversial head of Brazilian state, President Jair Bolsonaro, has now voted for a bill vetoed a bill that would have exempted solar components including PV cells from a 10% import tax. However this came as a shock, both in “the way it was broadcasted on social media” and also due to the “president’s earlier policies regarding climate change and Amazons”.  However the act is seen to be an accelerator to an already growing market, as international solar companies are already running projects in Brazil such as Equinor & Scatec Solar.

Recently, Brazil had strong growth in renewable electricity generation and mixing it in meeting its electricity demand. BP Statistical Review 2019, shows growth in solar and hydropower has reduced the countries fossil fuels consumption. In 2018, Brazil lifted up the share of hydropower and other renewables in its energy mix and reached 39% compared to 37% in 2017. Although large hydropower plants accounted for 80% of Brazil’s electricity generation, it seems that the country wants to increase the share of other renewable energies in their electricity generation mix. 

One IEA report states “Access to electricity across the country is almost universal and renewables meet almost 45% of primary energy demand, making Brazil’s energy sector one of the least carbon-intensive in the world,”.   

Source:@bp_plc & @Solar_Edition
Photo:@Solar_Edition @Equinor @scatecsolar @ Wikiwand
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