Brazil highly targeted by investors interested in renewable projects

For certain countries, renewable energy sources are not a goal for the next 20 years, but a reality. Brazil, one of the largest countries in South America, is achieving impressive results in terms of the energy transition. By the end of 2022 in Brazil over 82% of energy comes from renewable energy sources. The total installed power until the beginning of the year is 181,532.7 MW.

For Brazil, this position is great news, as it means greater energy independence and stability for the country. In addition, the large percentage of energy from renewable sources means a good business climate, reliable supply, and access to energy at a good price. For the real sector, this means lower costs and greater competitiveness.

The good news is that despite this energy structure, the renewable energy market continues to show a growth trend. The reasons for that lie in the good policy that offers favorable conditions for investments, and of course the natural potential should not be left out, in the key segments of the sun, wind, and water. According to the current structure, small and mini hydropower plants make up 56% of the total renewable energy, and 11.5% goes to wind turbines, and solar energy is at a similar level.

There is great interest in the additional use of solar energy. There are about 3900 solar power plants in the country, and new projects for remotely distributed solar energy production are in the final stage. Wind energy has a share of 9.2% of the total national energy portfolio.

There are 726 wind farms in Brazil, and the total energy production from them can satisfy the needs of a small town of about 29,000 households. Interest in wind energy investments is growing, both among domestic and international investors. Despite the certain political instability that reigns in the country, investors show great interest in investing. According to the contracts that are at the final stage and the auctions, by next year the installed energy in wind will be about 30.2 GW.

Investments in solar energy remain attractive this year as well. According to the announced projects, more than 9 billion dollars will be invested in the construction of solar energy facilities by the end of the year alone. The realization of these investments will increase renewable sources from the sun, thereby increasing the share of solar energy in the total energy structure of Brazil.

Investments in renewable energy sources, especially in solar energy, also receive political support. The highest political top promises a national strategy to further strengthen the sector and create favorable conditions for investments. Despite some macroeconomic uncertainty, investments in this sector have so far contributed to the reduction of 33.3 million CO2 emissions.

There is no doubt that 2023 will be the year of investment for Brazil’s renewable energy sector. According to the analysis, investments will come largely from traditional investment companies. At the same time, large energy giants for fossil fuels, which invest serious funds in their own energy transition, also have great potential.