Competitiveness of the value chain of distributed generation of photovoltaic energy in Brazil

Abstract

This article diagnoses the competitiveness of the Brazilian value chain of photovoltaic (PV) distributed generation and identifies challenges and strategies to overcome them and strengthen the market. Literature analysis and interviews were conducted with 87 professionals from all value chain links. Results show that the competitiveness of the Brazilian PV industry is chiefly affected by the increased production costs, the high tax burden, and the lack of inspection and incentives for developing the production chain. Results also reveal the need to establish international collaborative arrangements to ensure agility in innovative processes and enable the country to increase its industrial photovoltaic competitiveness. Additionally, Brazil should intensify the connections between the links of main and auxiliary value chains to accelerate the development of the photovoltaic sector. The comprehensive diagnosis presented in this study helps to support academics, policymakers, regulators, and professionals involved in the PV value chain to develop investigations and actions to increase the sector's competitiveness and the participation of PV distributed generation in the national electricity matrix.