Brazil launches ProGD to prompt distributed generation

Brazil government launched a new incentive program “ProGD” to prompt distributed generation in the nation. Including tax incentive for renewable installations and credit establishments, the program aims to increase its distributed generation capacity from current’s 15MW to 23.6GW by 2030 with an US$26 million investment.

PV Magazine reports that the program sets a reference price for the sale of electricity from PV installations at 454 real (US$117) per MWh. This tariff is what electricity distributors will pay and will be updated to conform to the consumer price index in the years under contract. In addition, installation under the nation’s net metering program can exchange surplus electricity for credits instead of selling the surplus on the market.

By the end of 2016, Brazil plans to cut the PV equipment import tax from 14% to 2%.  Furthermore, the program involves in important tax exemptions for the electricity consumed by its generators. The government is preparing to create and apply lines of credits for installations driven by the ProGD program. Development bank BNDES will offer financing services at specific rates for projects for schools, universities and hospitals. ProGD will prompt distribute generation through industrial plan and professionals training. The power generation goal of ProGD by 2030 is 48TWh per year.

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