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Brazil is mapping opportunities to strengthen its supply chain in the renewable energy sector, in a step that aims to stimulate national reindustrialization and also project the country as a protagonist in the global energy transition, a secretary from the Ministry of Development, Industry, Commerce told Reuters and Services.
The work, which is part of the proposal for a new industrial policy in the country, meets the demands of the industry, which sees the possibility of Brazil becoming a “hub” exporting technology for the energy transition, and at the same time reducing its dependence on imports, according to executives consulted.
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The photovoltaic solar source, which is growing rapidly in the country, is one of the main focuses of the “energy and decarbonization” axis of the plan in progress, said Uallace Moreira, Secretary of Industrial Development.
According to him, the government is studying the entire solar chain to identify opportunities, both in the upstream, such as manufacturing solar modules and inverters, and in the downstream, such as engineering and operation and maintenance services.
“The big challenge now is to assess where Brazil has already built capacity that can be strengthened, expanded, and where it can enter, mainly through technological partnerships with countries that already have some expertise, mainly in the development of parts and components for solar energy” , said Moreira, in conversation with Reuters.
Brazil manufactures part of the equipment used to generate solar energy locally, which has already reached the position of second largest source in the national electrical matrix, but the panels — the main component of the systems — are mostly imported from China.
China dominates the world market for solar modules, a situation that has already raised warnings from the International Energy Agency (IEA) and led Europe and the United States to put together plans to encourage their own manufacturing and reduce dependence on imports.
Brazil may follow this same direction, depending on what is defined in industrial policy. Companies such as the Italian Enel are expanding their production of solar modules worldwide and have already indicated their interest in bringing a factory to Brazil, if production conditions prove favorable. An important step has already been taken with the reissue of Padis, a tax incentive program for semiconductors. In March, the government issued a decree including parts and equipment used in the manufacture of solar panels in Padis, guaranteeing tax reductions on raw materials such as copper sheets and strips and tempered glass.
Moreira highlighted that, in the case of developing new technologies, the proximity of Brazil's relations with China is a differentiator and recalled that, on President Lula's last visit to the country, several memoranda were signed for partnerships with Chinese companies and entities.
WIND POWER – In addition to solar, initiatives will also be discussed to encourage the supply chain of wind energy, already consolidated locally, and green hydrogen, which has attracted the European Union's interest in investments in the country.
According to Moreira, the proposal for a new Brazilian industrial policy, which will feature seven “missions”, involving areas such as agroindustry, health and housing, should be launched by December. “We are working, trying to speed up everything, so that it can be delivered before this deadline. Because we are talking about industrial policy, it requires a reasonable investment maturation period”.
The topic is being discussed within the scope of the National Council for Industrial Development (CNDI), linked to the presidency of the Republic, made up of representatives from 20 ministries, in addition to BNDES, and another 21 advisors representing civil society.
INDUSTRY VISION – The guidelines of the new industrial policy are eagerly awaited by manufacturers and agents in the energy sector, who, like the government, see a window of opportunity for Brazil to project itself globally on the sustainability and decarbonization agenda.
Aeris, which currently manufactures blades for wind generation, has been studying the diversification of its business into composite materials for the energy transition — that is, solutions that allow the replacement of metallic materials with lighter materials in the automotive, aeronautical and other industries, aiming to reduce consumption power.
For Aeris Planning Director, Bruno Lolli, it is important that the government encourages this industry with dedicated financing lines and “some degree of protectionism”, with local content rules.
“It is very unlikely that another country in Latin America will reach the scale that we were able to achieve in Brazil. If the government helps us to start up with these products, in a short time we will gain enough volume and scale to supply Latin America”, said Lolli.
In the view of Siemens Energy's senior vice president for Latin America, André Clark, Brazil has the opportunity to project itself in energy as it did in the past with the aeronautical industry, in a policy that encouraged the development of highly technological products and that placed Embraer among the world's leading aircraft manufacturers.
Clark highlighted, however, the importance of this reindustrialization being linked to tax reform.
“Any industrial policy is fragile, it depends on investment happening and markets buying. A fragile plant cannot be born in the adverse world of our taxes and the 'framing' of public spending”, he pondered.
The solar energy association Absolar points out that it will be necessary to guarantee demand so that manufacturers, such as solar module manufacturers, actually decide to set up shop in Brazil.
“The government can use the State's purchasing power to buy photovoltaic products made in Brazil, to put solar energy in public buildings, schools, hospitals”, noted the president of Absolar, Rodrigo Sauaia.
According to him, the government could, for example, grant some type of incentive to those who purchase equipment of national origin in programs such as Minha Casa, Minha Vida and those aimed at universalizing energy and decarbonization solutions in the Amazon.
Source: Letícia Fucuchima | Notícias Agrícolas
