Wind energy, concentrated mainly in the Northeast, is now the second-largest source in the electricity matrix, while solar energy is growing even faster.
Brazil has established itself as a global leader in renewable energy, with strong growth in solar and wind power generation. By 2024, these sources combined would account for about a quarter of installed electricity generation capacity, reducing dependence on hydroelectric and fossil-fuel power plants. Wind energy, concentrated mainly in the Northeast, is now the second-largest source in the electricity matrix, while solar energy is growing even faster, driven by falling costs and the expansion of distributed generation on residential rooftops, in businesses, and in rural areas.
Historically, the Brazilian electricity matrix was dominated by hydroelectricity. Starting in the 2010s, specific auctions and clearer regulatory frameworks unlocked investment in wind farms, leveraging the high potential for consistent winds in states such as Rio Grande do Norte, Bahia, Ceará, and Piauí. In the last decade, wind capacity has grown exponentially and continues to expand, with new complexes under construction and studies advancing towards offshore projects. Solar energy, in turn, experienced a surge after 2016, driven by a decrease in the price of photovoltaic panels and regulations that encouraged distributed generation, leading thousands of consumers to become producers as well.
Projections through 2030 indicate that solar and wind power will continue to gain ground, potentially comfortably exceeding 30% of the electricity mix, provided that investments in infrastructure and regulatory predictability are maintained. However, there are significant barriers. The main one is the limitation of transmission networks: many of the best wind and solar resources are far from major consumption centers, requiring large transmission lines and long-term planning. In addition, environmental and land bureaucracy, while necessary to guarantee rights and protect ecosystems, is often slow and fragmented, delaying projects. Another challenge is the need for storage solutions and management of the variability of these sources, such as batteries, flexible generation, and demand response systems.
Although not a major direct exporter of renewable electricity, Brazil integrates with interconnections in Argentina, Uruguay, Paraguay, and Venezuela, enabling seasonal energy exchanges, in which the expansion of solar and wind power helps free up more hydroelectricity for export during certain periods. More important than physical exports, however, is the country’s role as a potential exporter of low-carbon products and, in the future, of green fuels, such as hydrogen produced from renewable sources.
In domestic use, solar and wind energy are primarily intended to feed the National Interconnected System, ensuring supply to homes, businesses, industry, and services. Distributed solar generation has become relevant for reducing electricity bills, giving consumers greater autonomy, and relieving the grid during peak hours. Wind power, due to its scale, is concentrated in large parks connected to high voltage, providing competitive energy for the system as a whole.
Despite the significant advance of renewables, fossil fuels still have a significant weight, especially in the transport sector (gasoline, diesel, aviation kerosene) and in thermal power plants used as a supplement during periods of drought or higher demand. The challenge for Brazil, therefore, is not only to increase the share of solar and wind power in electricity generation, but also to extend this transition to other sectors, including the electrification of transport, the use of advanced biofuels, and the integration of diverse clean energy sources.
If it manages to overcome transmission bottlenecks, simplify processes without sacrificing socio-environmental rigor, and invest in innovation and storage, Brazil has the conditions to establish itself as a global renewable power, combining a predominantly clean electricity matrix with a competitive low-carbon economy.
This post was submitted by Climate Scorecard Brazil Country, Manager Carlos Alexandre de Oliveira.
Learn More Resources:
ANEEL – National Agency of Electric Energy; EPE – Energy Research Company; ABSOLAR – Brazilian Photovoltaic Solar Energy Association; ABEEólica – Brazilian Wind Energy Association; ONS – National System Operator.