Competitive advantage and the Brazilian photovoltaic industry
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2019-02-19
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Orsato, Renato J.
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The photovoltaic solar energy, as an alternative source of electricity, has developed globally at a fast pace in recent years. Curiously, the favorable conditions for the diffusion of this technology in Brazil, such as high levels of solar irradiation, and one of the most expensive energy tariffs in the world were not sufficient to make the country a leader in this sector. Solar power remains at an infant stage in Brazil. For this reason, this study aims to explore the main factors explaining this situation. I do so by adopting Porter’s diamond framework for the analysis of the sector. Based on the analysis of the five aspects of the model, it was possible to conclude that Brazil already has a strong foundation for the development of the photovoltaic industry, such as a favorable regulation, geographical location and financial incentives. However, to become a leader in solar energy, the national photovoltaic industry must be competitive internationally. Furthermore, attractive financing lines in addition to industrial policies and gains of scale are essential.