Brazil has significantly expanded its renewable energy capacity by 22 gigawatts over the past two years, according to a recent report by the Energy Industries Council (EIC). The country's total generating capacity now stands at nearly 204 GW, with renewable sources contributing 171.8 GW, as outlined in the “Brazil Operational Renewables” report.
Key drivers of this growth include the onshore wind and centralized solar PV sectors, which collectively added more than 18.5 GW of new capacity. States like Bahia, Rio Grande do Norte, and Minas Gerais spearheaded this expansion, each incorporating over 3 GW primarily from wind and solar projects, the report noted. Additionally, northeastern states such as Piauí and Pernambuco contributed 3.7 GW from similar renewable sources.
Brazil's longstanding energy diversification policies have played a crucial role in fostering this expansion, supported by the issuance of numerous long-term power purchase agreements (PPAs) across both regulated and free contracting environments.
“The onshore wind and solar PV industries have greatly benefitted from a national energy diversification policy aimed at reducing reliance on hydropower and promoting installation subsidies for wind farms and solar parks,” the report highlighted.
Despite the growth in renewables, hydropower remains pivotal in Brazil's energy mix, providing stability during water shortage periods and peak demand, according to the EIC report. Ongoing regulatory developments, including the National Low Carbon Hydrogen Policy and potential offshore wind investments, are expected to further bolster Brazil's renewable energy landscape.
Lucas Ramos, Energy Analyst O&G, Americas at EIC, emphasized, “The rapid expansion of Brazil's renewable energy capacity underscores the country's commitment to diversifying its energy sources and reducing dependence on hydropower. Strategic investments and supportive policies have been instrumental in advancing the renewable sector.”
