The company's Brazil head, Cláudio Loureiro, says the decision will be tough because there are too many uncertainties at the moment in the local market, most importantly the foreign exchange rate.
“When the first solar projects were contracted in the 2014 auction, one US dollar was worth R$2.40; today we are close to R$4 to the dollar,” he says.
The 890MW of projects contracted in 2014, which have local-currency-denominated 20-year power-purchase agreements, are considered to be viable only with financing from the national development bank, BNDES, which requires adherence to its local-content programme.
