ANNOUNCEMENT 03 Jul 2014

In July 2014, the government of Brazil announced a change in the required local inputs to serve domestic customers.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Bloomberg. (2014). Brazil Planning Local-Content Rules for Solar Industry. Available at http://www.bloomberg.com/news/2014-07-02/brazil-planning-local-content-rules-for-solar-industry.html

PVTECH. (2014). Brazil confirms details of PV local content rules. Available at http://www.pv-tech.org/news/brazil_development_bank_releases_criteria_for_domestic_content_funding

O banco nacional do desenvolvimento. (2014). Anexo 1 AO Termo de Ades?o e Responsabilidade. Available at http://www.bndes.gov.br/SiteBNDES/export/sites/default/bndes_pt/Galerias/Arquivos/produtos/download/credenciamento_fotovoltaicos_metodologia.pdf


Inception date: 12 Aug 2014 | Removal date: open ended
Still in force

Local sourcing

On 3 July 2014, Mauricio Tolmasquim, the head of the Energy Research Agency (EPE), announced that EPE and the Brazilian development bank (BNDES) are working on new local content regulations with the intention to boost the domestic solar industry.

The idea is, that only producers using a certain amount of locally produced components in solar farms will be eligible for BNDES funding. These rules are also binding for the bidders at the first national auction for solar-power contracts on 31 October this year.

UPDATE:
On 12 August 2014, BNDES presented a document, outlining the details of the local content requirements for solar projects. The rules currently specify various degrees of required local content for different components of the solar panel. The announcement further states that the aim is to impose a 60 percent local content requirement on all modules by 2020. A summary of the exact rates can be found on p.9-11 of the official document listed in the sources below.

All new projects need to be registered at the BNDES in order for them to get funding from the development bank and the responsible companies need to be headquartered in Brazil. Registration started in July 2014.

The proposed rules are comparable to those already in force in the wind energy and domestic manufacturing sectors.
 

AFFECTED SECTORS