BMI View : As the wider economic downturn worsens, we expect growth in non-hydro renewables to decrease below previous ly forecast levels for 2015 and 2016. Although auctions in H215 showed stable interest, increasing obstacles such as high interest rates and a weakened currency have led us to further revi se our already conservative overall estimates. Solar power has , nevertheless , experienced another upward revision for our long-run outlook ; we now expect the sector to cross the 1GW capacity mark in 2017 - instead of 2018 , previously . The recently introduced 2024 targets in the newest PDE may act as a crucial driver if further governmental support follows.
|f = BMI forecast. Source: EIA, national sources, BMI|
|Generation, Non-Hydropower Renewables, TWh||52.178||56.979||60.222||64.696||71.430||76.974||82.478|
|Generation, Non-Hydropower Renewables, % y-o-y||12.782||9.202||5.692||7.429||10.410||7.761||7.151|
|Capacity, Non-Hydroelectric Renewables, MW||16,755.8||19,068.3||20,804.4||23,475.5||26,436.6||28,873.3||30,755.2|
|Capacity, Non-Hydroelectric Renewables, % y-o-y||21.9||13.8||9.1||12.8||12.6||9.2||6.5|
Latest Updates And Structural Trends
Going into 2016, we expect overall non-hydro renewables to see a y-o-y capacity and generation growth of 9.1% and 5.7%, respectively, significantly below the expected 2015 levels and previous expectations, as the wider economic downturn worsens.
Based on the latest governmental PDE, solar capacity targets have been increased to 7GW by 2024. Our expectations of 3.7GW by 2024 remain significantly below that target. Wind power targets stand at 24GW for 2024, with our own forecast estimating about 20GW of installed wind capacity.
The August 2015 auctions awarded contracts for onshore wind power projects totalling 538.8MW and solar power projects totalling 834MW. The government postponed the November auctions until December 2015. The first auctions in 2016 are set to take place in February instead of late-January 2016.
In October, the 183.6MW Brisa Potiguar Wind Complex in Rio Grande do Norte, run by Companhia Paranaense de Energia (COPEL) , and the 210MW Ventos do Araripe I Wind Complex in the city of Simoes, Piaui, run by Casa dos Ventos, began operations.
The Brazil Renewables Report researched at source contains BMI Research's assessment of the current renewables market in Brazil. The report also contains historical data together with forecasts to end-2018 covering electricity generation (TWh) and electricity capacity (MW).
The renewables sectors covered in the report include Wind, Solar, Geothermal, Tidal and Wave, and Biomass (See Table of Contents for exact coverage). The report also features details on government green energy agendas and funding opportunities, as well as presenting a detailed list of key renewables projects currently being planned or undertaken in Brazil, their capacity, the timeframe of construction and their current status.
The report discusses the various energy policies currently in force, including targets, subsidies and the relevant infrastructure developments or limitations which might impact on renewables growth, analysing the potential effects of regulatory changes in conjunction with the background macroeconomic outlook. Finally, there is a general overview of the competitive landscape in Brazil, together with a detailed summary of the main utilities and manufacturers present and their business operations.
BMI's Brazil Renewables Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with unique independent forecasts and competitive intelligence on the Brazil renewables industry.
- Benchmark BMI's independent renewables industry forecasts for Brazil to test other views - a key input for successful budgeting and planning in the renewables market.
- Target business opportunities and risks in the Brazil renewables sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in the country.
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering the renewables market in Brazil, regulatory changes, major investments and projects and significant multinational and national company developments.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the renewables sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2010-2012) and forecasts to end-2018 for electricity generation (TWh) and electricity generating capacity (MW) for each individual renewables sector present in the country.
These in turn are broken down into:
Electricity Generation: Overall capacity (TWh), growth % change year-on-year, KWh per capita, % of Total Non-Hydropower renewables generation, % of total electricity generation.
Electricity Capacity: Overall capacity (MW), growth % change year-on-year, % of non-hydroelectric renewables capacity and % of total capacity.
These forecasts are in turn supported by explicit assumptions, in conjunction with analysis of the key risks to the main forecast.
Business Environment Rankings
BMI's Renewables Business Environment Rankings provide fully comparable Risk-Reward Rankings aimed at investors in the regional renewables market.
The rankings methodology makes sophisticated use of various industry, economic and demographic data point.