Wind and solar fury as Brazil tender axe ‘threatens investment’

Recharge news

Brazil’s wind and solar industries have slammed the cancellation of the nation’s 19 December reserve tender as a “hard blow” and “counter-sensible”, warning that billions of dollars of investment are at risk and factories could grind to a halt in 2018.

“It’s a sad day for the solar sector in Brazil,” Rodrigo Sauaia, CEO of the Brazilian Solar Power Association (Absolar) told Recharge.

“In the end, it’s a very negative signal for a sector that has been contributing to the recovery of the country’s economic growth.”

Sauaia said the decision would affect potential investments of some R$9bn ($2.7bn) in new projects and supply chain on offer if the 1.5GW in new solar contracts promised by government earlier this year were fulfilled.

The wind sector predicted that more than R$65bn invested in the past decade to build 11GW of capacity and six wind turbine assembly plants would be at risk.

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