INSUBCONTINENT EXCLUSIVE:
crucial for sustainable energy, has seen a drastic reduction in new projects over the last two years.Consequently, orders for critical
components like turbines and blades have plummeted.Currently, the sector grapples with two main issues
An excess of energy in the regulated market has negated the need for new capacity auctions.Moreover, this surplus depresses energy prices in
(Photo Internet reproduction)This price fall favors photovoltaic installations over wind projects and promotes the adoption of new
influx of cheap solar panels from China.In response, the government is contemplating export incentives for domestic equipment
manufacturers.Such measures would aid Brazilian companies in tapping into markets focused on the energy transition, like the U.S
and Europe.This strategy could ease immediate industrial pressures, averting job losses and production halts.Despite these efforts, major
industry players like GE and Siemens Gamesa have already ceased their Brazilian operations.Similarly, WEG plans to pause its turbine
production in Santa Catarina by mid-year to pivot towards the U.S
market.Meanwhile, Aeris, a blade manufacturer, has laid off 1,500 workers due to a lack of domestic orders.Vestas, another key player,
although not currently in crisis, predicts potential production stops in the next two years.These developments led to discussions last
Seeks Government LifelineOther governmental strategies include tweaking financing lines and modifying import tariffs.A notable proposal is
mandating local content in solar projects financed by state banks to level the playing field with imported solar technologies.This suite of
output.The Brazilian Association of Wind Energy supports these initiatives, noting an 80% domestic component in wind turbines, contrasted
industrial capacity in the face of global economic shifts and competitive pressures.
