The market for renewable energy in Brazil is expected to grow at a CAGR of more than 5% in the forecast period of 2020-2025. Factors such as encouraging government policies, rapid acceptance of domestic solar energy in the duration of 2018-2019, and pressure to meet power demand using renewables to decrease dependency on fossils to decrease Carbon footprints are significant contributors to the growth of the market. The total installed renewable capacity in Brazil increased from 2.9 Gigawatt (GW) in 2000 to 33.1GW in 2019. Moreover, Renewable sources accounted for more than 75% of the 7,246 MW of new capacity Brazil added to its national grid in 2019. Additionally, the declining costs of renewable technologies are becoming competitive with fossil fuel sources, and additional subsidies on renewables are driving the renewable market further. On the other hand, with the absence of any new initiatives, the falling interest of investors in 2019, and limited land and limited power capacity by variable renewable energy sources, hindrance in the growth of the renewable market is expected.

  • Brazil witnessed rapid growth in the wind power market in the duration of 2018-2019. The total installed wind capacity, in 2019, accounts for 9.04% of the country’s 170,071 MW cumulative installed power generating capacity.
  • With renewable target of 2030, Brazil was aiming to achieve renewable capacity to exceed 60GW. Various project majorly of solar and wind power plant project are approved by government. This, in turn, are expected to provide ample opportunity to market studied in coming future.
  • Brazil has many ambitious renewable projects lined up. With enormous solar, wind, and hydro energy potential, the country is ready to take a leap in the renewable market. Moreover, the government is regulating policies to attract foreign investment in the renewable power plants. This, in turn, ambitious project and rising investment are likely to drive the Brazil renewable market during the forecast period.



Key Market Trends

Wind Power to Dominate the Market

  • Brazilian wind energy has been growing on a fast trajectory, with the prospect of being the second primary source of energy in the year 2019 after hydroelectricity. The wind power sector is dominated by the onshore segment as the country does not have offshore wind installations.
  • However, there is a growing interest in offshore power plants, as wind is usually more durable and more uniform in the sea. Unprecedented in Brazil, offshore wind energy began to take its first steps in 2018 by Petrobras, a semi-public Brazilian multinational corporation in the energy industry, with the installation of a pilot plant in the Northeast region, next to its oil platforms in shadow fields, expected to start operation in the year 2022.
  • In recent years, Wind energy has gained ground and currently represents 9.2% of the national electricity matrix. Moreover, according to Brazil government, it is expected that in 2023 there will be close to 19.4 GW of installed wind capacity, taking into account the auctions already made and contracts signed in the free market.
  • Furthermore, there is various wind power project such as Neoenergia, has 17 wind farms in operation with an installed capacity of 516 megawatts (MW), and has another 15 under construction. With the completion of this project, Brazil is expected to add 1 GW installed capacity through wind power into country grids.
  • This, in turn, with upcoming and under construction wind projects, the Brazil renewable energy market is expected to dominate the market studied at a considerable rate.



Future Potential With Upcoming Renewable Projects

? In 2018, the country finished 168 GW of projects in operation which are divided in Hydroelectric Plants with 60.6%, Thermoelectric Plants with 25%, Wind Plants with 8.6%, Small Hydroelectric Plants with 3.1%, Thermonuclear Plants with 1.2%, Photovoltaic Plants with 1.1% and Central Hydroelectric Plants with 0.4%, according to the regulator agency ANEEL and Union Official Diary.

? Brazil stands out in the wind generation, with 13.4 GW of installed capacity (2018). In Brazil, there are 534 wind farms in 12 states, with more than 6600 wind turbines.

? Moreover, At the end of 2018, ANEEL had 2,949 projects registered as DRO, DRI, or DRS (first registration of a project), and wind projects were the highest number with 1,270 followed by photovoltaic projects with 948.

? Furthermore, Despite the unfavorable economic and political scenario in Brazil during the past few years, the market for renewable energy continues to grow and attract international players. Brazil’s government is regulating various policies to attract domestic as well as foreign investment for the renewable project in the country.

? With large scale renewable projects under construction or financially committed and government initiative, the state is likely to witness growth in energy production through renewable. This, in turn, Brazil’s renewable market is expected to drive the market during the forecast period.

Competitive Landscape

The Brazil renewable energy market is partially fragmented. The major companies include Engie Brasil Energia SA, Furnas Centrais Eletricas SA, Companhia Hidro Eletrica do Sao Francisco, CPFL Energias Renovaveis SA, Omega Geracao SA, and others

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