SeeNews Renewables — Brazil may invest more than BRL 100 billion (USD 25.4bn/EUR 23.3bn) in distributed generation (DG) by 2030.
The announcement was made on Tuesday at the official launching of the Distributed Generation Development Programme for Energy, or ProGD by the Ministry of Mines and Energy.
ProGD will update the Annual Specific Reference Amounts (VRES), for solar power sources to BRL 454 per MWh. The VRES defines the compensation paid by the distributor to the generator.
The programme will also help boost the sales of DG electricity in the free market, as well as develop a partnership between the Ministries of Mines and Energy and Education for solar DG projects in federal universities, technical schools and hospitals.
The government also created a dedicated working group to run the new programme.
Through ProGD, the government will also continue to provide other incentives to attract investment to the DG sector, including tax exemption, credits for surplus output of generators to use for electricity bills when needed, reducing from 14% to 2% the tax rate on import goods and equipment used in solar generation, etc.
The Brazilian government believes the country will have 2.7 million DG units producing 48 TWh by 2030. With this, Brazil can offset about 29 million tonnes of carbion dioxide (CO2).
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