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Brazil and US firms sign PV pact

Brazilian PV makers will sell electricity generated from solar power to a São Paulo municipality as part of an agreement with US firm that manages global renewable energy projects

Solar electricity prices are fall particularly steeply in Brazil leading to grid parity with other energy sources

Brazil’s only photovoltaic panel makers have teamed with US project managers, New Generation Power to sell energy from a solar project in São Paulo.

Tecnometal Equipamentos Ltda is expected to sign the contract with the US firm on 22 November. The electricity will be sold for less than the rates the local government pays for public lighting, which may cost as much as 400 reais (USD 193) a megawatt-hour.

The 1MW project, which will cost 7 million reais, is scheduled to be complete in the second half of next year and may be expanded to 3 megawatts in 2014.

Solar Energy is now cheaper to generate than buying electricity from the utility for retail consumers in Brazil. The sharp fall in solar panel prices in 2011 made the prices of solar electricity fall steeply leading to grid parity in a number of places globally.