Floating Solar Hits $65/Mwh Lcoe In Brazil, With Up To 24 Gw Of Potential

From pv magazine Brazil

The installation of floating solar systems on just 1% of Brazil's hydroelectric reservoirs could add up to 38 GW of capacity to the national grid. This projection comes from a first-of-its-kind study by PSR Energy Consulting and Analytics.

The report analyzes the technical, economic, regulatory, and environmental potential of integrating floating solar systems into the country's hydroelectric plants.

“The integration of hydroelectric plants with floating solar systems, or those near reservoirs, is a strategic option for Brazil to advance its energy transition with efficiency and sustainability,” said Rafael Kelman, PSR Energy Consulting's executive director. “This is an opportunity to use existing infrastructure to rapidly expand the use of renewable sources.”

The study identified a theoretical generation potential between 2,265 GW and 3,800 GW by covering Brazil's hydroelectric reservoirs with floating solar systems. This figure exceeds 10 times the National Interconnected System’s current installed capacity of 235 GW, according to the National Electric System Operator (ONS).

From an economic perspective, floating solar projects are viable, especially in high short-term price scenarios. Economic potential ranges from 17 GW under a fixed-price scenario to 24 GW based on Brazil’s historical spot price average.

On the environmental front, the study found that floating systems could cut water evaporation by 30% to 50%, depending on reservoir coverage, helping conserve water for hydroelectric use. However, the electricity gain from saved water is modest.

Hybrid operation with hydropower offers synergies such as complementary generation and shared use of drainage infrastructure, which can cut connection costs and support integration.

The levelized cost of energy (LCOE) for floating solar systems stands at BRL 374 ($65/MWh), above land-based solar at BRL 343 ($60/MWh), largely due to higher upfront costs. But operational and environmental factors can narrow that gap, especially in areas with limited land availability.

Despite strong potential, adoption faces hurdles. The study flagged grid curtailment risks, hydropower operating limits, and the need for flexible supply during low demand.

It also noted regulatory and environmental issues, including risks of eutrophication and impacts on aquatic life. Still, the report said these could be mitigated through good practices such as continuous monitoring and siting in well-circulated water.

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