Review of distributed generation with photovoltaic grid connected systems in Brazil: Challenges and prospects

Brazil has a clean energy matrix, mainly due to its intensive use of hydropower for electricity generation and sugarcane ethanol for transportation. Nevertheless, following a worldwide trend, the penetration of non-conventional renewable and alternative energy sources into the grid such as wind and small hydro, has increased. This greater participation of alternative renewable sources in the electricity market has occurred due to specific market mechanisms designed to stimulate its implementation, but solar energy utilization is highly untapped and underutilized. This study will give a background on the development of the first photovoltaic systems and show the importance of solar energy for the diversification of the electric energy matrix in Brazil. The incentives implemented to date will be described, along with others that, if put into practice, could further the development of solar electricity generation. The main obstacles to the widespread utilization of solar generation and some policy recommendations are also described.