By Luciano Costa
SAO PAULO, June 9 (Reuters) - General Electric (NYSE:GE) Co GE.N has
started producing solar power inverters at its plant in Betim,
Brazil, looking to supply the country's nascent solar power
industry and possibly export the equipment to countries in the
region, a GE executive said on Thursday.
Despite the unfavorable business environment in Brazil,
which is on track for its worst recession ever, GE's marketing
director for the Latin America Power Conversion unit, Sérgio
Zuquim, said the company was positive about prospects for solar
power growth.
"That's inevitable, there is no turning back," Zuquim said
in an interview. "There is political commitment, following
international agreements, for investments on renewables," he
said.
Inverters are a key component on solar power systems. They
convert power generated by photovoltaic plates to alternating
current, or AC, so it can be fed into a commercial power grid.
With the local production, GE consumers would be able to
access more favorable credit lines from Brazil's development
bank, BNDES, which gives better financing terms on deals for
locally produced equipment.
The director said the company had already closed four
contracts with companies awarded operating licenses for new
solar parks in Brazil. The government is promoting solar power
generation in an effort to diversify its energy mix.
Initial investment to add the production line to the plant
in Minas Gerais state was around $20 million, Zuquim said.
The initial steps on solar power development in Brazil have
not been smooth.
Many companies that won licenses in the first licensing
round in 2014 have yet to start construction. They are seeking
to prolong the deadline to complete the projects, saying
Brazil's recent devaluation of the local currency made the
projects financially unfeasible, since they still require
sizeable imports.
There are no PV plate producers operating in Brazil to date.
Among companies requesting extension of construction periods
are Canadian Solar CSIQ.O , Grupo Cobra, Fotowatio and Renova
Energia SA RNEW11.SA .
"We will probably have delays on some projects, but others
will go ahead and new licensing rounds will happen," Zuquim
said.
Brazil's government has already granted licenses for 3.2
gigawatts of solar projects estimated to require about 13
billion reais ($3.83 billion) of investment.
There are two additional licensing rounds scheduled for this
year, in July and October.
(Writing by Marcelo Teixeira; Editing by Peter Cooney)