Water crisis could be a catalyst for approval of PL 5829

“The water crisis reinforces to the consumer market that it is possible to generate its own energy”. This is the analysis of Leandro Martins, president of Ecori Energia Solar.

According to him, this period of drought, considered the worst in the last 91 years and which triggers the energy recession, could be a catalyst for the approval of PL 5829, which aims to create the Legal Framework for GD (distributed generation). “This could be a good time for forces to be stepped up.”

Read more: Renewable energy is vital to minimize water crisis and high tariffs

“In any case, with the approval of the bill, the solar sector expects to feel a warming with a greater search for photovoltaic generators. However, a possible increase in demand linked to the fall in the dollar does not mean that there will be the possibility of passing on a lower price to distributors”, highlighted the executive.

“This is because the value of materials is rising in foreign currency due to a combination of factors such as high global demand, high domestic demand in China (which has committed to having a carbon neutral economy by 2060), difficulties in the supply chain , as well as the issue of international shipping”, he added. 

Read more: Deputies go into recess and voting on the GD Legal Framework is scheduled for August 

Analysis of the 1st semester

For Martins, it is possible to highlight some important points that marked the first half of 2021 in the Brazilian photovoltaic market. One of the issues is the delay in approving PL 5829, which has been on and off the agenda of the Chamber of Deputies since March and is still not expected to be resumed. 

“Unfortunately, it has been immensely amended and puts us in a backward position. If it is included on the agenda and some amendments are approved, we will have a very damaged sector, with an acceleration in the search for photovoltaic systems with energy storage”, he commented.

“The time is for caution. We continue to talk in the political and business scenario to try to achieve a positive outcome for the country, for the distributed generation segment and for the planet as a whole”, emphasized the expert. 

Furthermore, the president of Ecori pointed out that another essential factor in the sector is the import of goods. “The increase in international freight directly affects the national market, which makes it impossible to reduce prices even in a scenario where the dollar falls. Currently, costs are at the highest levels ever seen and the main problem is the lack of predictability in relation to the following months”. 

“If we compare freight prices before the pandemic with current ones, the values represent more than 10% of merchandise, a factor that alone eliminates the possibility of their reduction due to the fall in the dollar. Freight will remain under pressure until 2022 due to the increase in natural demand in the second half of the year”, he reported. 

Read more: 2nd semester will be more challenging for importing photovoltaic equipment

Analysis of the 2nd semester

“Taking the first half of the year as a basis, in general, the prospects for the second are positive for the photovoltaic sector.” This is what Leandro Martins said.

“Our expectation is that we will continue to grow due to some factors. First, we understand that people have learned to live with this pandemic scenario, which means that this is no longer an impediment to the segment. Another point is that the economy is showing signs of warming”, explained the expert.

Digital formats gain strength in the sector

The executive also said that, given the pandemic scenario, the solar sector needed to move and migrate to digital or, at least, hybrid formats to maintain a rhythm for business. 

“We believe that these forms will work very well. Our idea, in fact, is that we can return to the events, as soon as recommended by the health authorities, and adopt a hybrid format with in-person events and live broadcasts”, he highlighted.

“While this is not possible, we follow the premise of zeal and care for the health of employees, partners and customers”, highlighted Martins, adding that, for this year, Ecori’s forecast is to close with 100% of growth.