Brazil targets 3.5 GW of solar power by 2018

Brazil is going to boost the development of its local solar power industry in a bid to reduce its dependence on a struggling hydropower system.

In October, an auction is scheduled to negotiate energy to be produced exclusively by solar farms, the first of its kind in South America.

400 projects have been registered for the auction by power companies who are still seeking assurances on investment conditions and financing before signing any agreements.

According to commentators, the auction could negotiate up to 10 gigawatts (GW) of energy capacity for Brazil.

Brazil has one of the highest solar radiation factors in the world and plenty of land for solar farms, plus large reserves of silicon, used to make solar panels.

Companies such as Swiss ABB, a leading producer of inverters used to send solar power to the grid, will watch how the October auction pans out to decide whether to invest to increase capacity in Brazil.

Brazil's government said it will offer public credit to investors, but the conditions have yet to be released.

Brazil aims to add 3.5 GW to the grid from solar power projects by 2018.