Spotlight Market | Brazil
GWEC'S GLOBAL MARKETS THEATRE AT WINDENERGY HAMBURG
The Brazilian people head to the polls on October 2. It is an election that could have a significant impact on the renewable energy market in the country.
Brazil’s onshore wind market drove growth in the LATAM region, where project development through private PPAs continues to bring new players into the market. Brazil is also positioning itself as a highly promising offshore wind market with an opportunity for regional and global leadership.
Offshore wind is seen as one of the most promising new renewable energy technologies in the country, contributing to a just energy transition and benefiting from green recovery packages, in which more than R$250 billion ($49 billion) has been provisionally allocated over the next 10 years to invest in the generation and transmission infrastructure of renewable energy.
The growth of the offshore wind sector is associated with having positive socioeconomic benefits, such as job creation, which will in turn reduce the social income gap that exists in Brazil. Job creation will play a positive part in increasing the average income of those in the workforce by a greater proportion than that of any other existing renewable energy technology.
In the first weeks of 2022, the long-awaited Decree Nº 10.946/2022 was published, setting out the main guidelines for offshore wind projects in Brazil. The decree provides a framework for the assessment of seabed for the development of offshore wind projects, and shows that the stages of planning and permitting are being defined to ensure the effective rollout of this technology is being facilitated.
Another positive regulatory signal is the PL 576/2021. This bill is not limited to the development of offshore wind solely, but also details the scope to produce renewable energy at sea, which opens up possibilities for new technologies in the future, such as floating offshore wind. PL 576/2021 creates a regulatory framework for the process of granting offshore wind farms with auctions, and charges the payment of special participations to the Union, states and municipalities – resources that are not provided for in the presidential decree.
This session examines the activity in both the onshore and offshore wind sectors and provides some political context for the various outcomes of the election.