Majority of Brazil’s annual power generation to come from renewables by 2035, predicts GlobalData

Brazil’s power generation relies on various sources such as thermal sources like gas, oil, and coal, hydropower, nuclear power, and renewables. Although hydropower dominates the country’s annual power generation, Brazil’s heavy reliance on it has exposed the nation to challenges during periods of drought. To address this vulnerability, Brazil is rapidly expanding its renewable energy capacity. In 2024, renewable power accounted for 36.7% of the country’s annual power generation, with projections indicating that it will rise to 50.7% by 2035, as reported by GlobalData, a prominent data and analytics firm.

GlobalData’s recent report, ‘Brazil Power Market Outlook to 2035, Update 2025 – Market Trends, Regulations, and Competitive Landscape,’ forecasts that Brazil’s annual renewable power generation is set to grow at a compound annual rate of 5.9% from 2024 to 2035, reaching 523.2 TWh. Attaurrahman Ojindaram Saibasan, a Senior Power Analyst at GlobalData, emphasized the critical role of natural resources and governmental policies in fueling opportunities in Brazil’s power sector, particularly in renewable technologies. The government’s auctioning system has played a pivotal role in fostering the development of the renewable power market in Brazil.

Brazil’s government is steering its focus towards accelerating the growth of the renewable energy sector, with an emphasis on wind power and solar photovoltaics (PV). Notably, numerous wind and solar PV projects are currently in progress across the country, presenting a wealth of opportunities for both local and international equipment manufacturers. Saibasan highlighted that the imminent full liberalization of the power market is anticipated to unlock a multitude of opportunities, especially within the renewables segment. Currently, only major consumers have the autonomy to choose their electricity supplier within Brazil’s free contracting market, but by 2028, this privilege is expected to extend to all electricity consumers, including small businesses and residential households.

Looking ahead, significant post-2028 developments are on the horizon, including the advent of green energy retailers offering 100% renewable electricity, smart contracts with dynamic pricing, peer-to-peer energy trading, and energy-as-a-service models. These innovations hold the promise of transforming the energy landscape in Brazil, making it more adaptable, efficient, and sustainable. Saibasan underscored the appeal of liberalized markets to private investors, both domestic and international, a trend that is poised to drive the renewables market’s growth and increase its share in annual power generation to over half by 2035.