Brazil solar capacity expansion targets ambitious growth by 2025
Brazil is on a mission to significantly expand its solar energy capacity by 2025, aiming to add an impressive 19.2 gigawatts (GW) of new centralized solar power. This strategic initiative is set to elevate solar energy’s contribution within Brazil’s energy mix, increasing from 4.9% in 2025 to a notable 10.7% by 2034. This vision, as outlined by the Ministry of Mines and Energy (MME), underscores the pivotal role solar power is anticipated to play in Brazil’s energy landscape.
The projected solar capacity increase will be sourced from two primary channels: 9.4 GW will stem from auctions, while the remaining 9.8 GW will be acquired via the free market. By 2034, the country aims to reach a total installed solar capacity of 31.8 GW, which will represent 10.7% of its total energy mix—a substantial leap from the projected 4.9% in 2025.
These figures were released by the MME during an ongoing public consultation focused on expanding Brazil’s energy infrastructure. Interested parties can contribute their insights and feedback until October 31, influencing the future of Brazil’s energy strategy.
Future energy auctions to support Brazil solar capacity expansion
In terms of auction schedules, Brazil has detailed its plans for 2024-2025. The A-4 auction is slated for May 2024, with the supply period commencing in 2028. There is also the potential for an A-5 auction, although its execution remains uncertain.
For 2025, Brazil has scheduled the A-4 auction for May and an A-6 auction in September, both of which are expected to feature solar power prominently. This approach reflects Brazil’s ongoing commitment to integrating solar energy into its national grid.
Recently, Brazil’s MME introduced a novel power generation auction model designed to balance supply and demand within the National Interconnected System (SIN). This model emphasizes acquiring new generation capacity and reserve power, with auctions planned for December 2024 and 2025.
This innovative auction model is a key component of a broader strategy aimed at ensuring the reliability and sustainability of Brazil’s energy supply. By prioritizing solar power in these auctions, Brazil is making substantial strides towards a greener, more resilient energy future.
Current status of Brazil solar capacity expansion
As of June 2024, Brazil had achieved a centralized photovoltaic capacity of 9 GW, according to the national electricity agency Aneel. By August, the country’s cumulative solar capacity had escalated to 32 GW, with 22.5 GW derived from distributed generation. This rapid growth is a testament to Brazil’s dedication to renewable energy and its resolve to diminish dependency on fossil fuels.
In August 2023, Brazil’s solar power output reached 21.5 terawatt-hours (TWh), marking a 21.8% increase from the previous year. This boosted revenue for solar power plant operators to R$ 29.7 billion (US$ 5.3 billion), a 27.3% rise from the previous August. These figures highlight the economic advantages of investing in renewable energy.
Despite these advancements, solar power accounted for only 4% of Brazil’s total electricity generation during this period. In comparison, wind power contributed 22.8%, producing 122.3 TWh, while hydroelectric power remained the dominant source, generating 286.8 TWh or 53.4% of the total.
Economic benefits driven by Brazil solar capacity expansion
The solar energy expansion in Brazil is not only reshaping the country’s energy profile but also delivering substantial economic benefits. The R$ 29.7 billion generated from solar power in August 2023 underscores the potential of renewable energy to fuel economic growth and foster job creation.
Brazil’s plans to introduce 19.2 GW of new centralized solar capacity by 2025 reflect its steadfast commitment to renewable energy and carbon emission reduction. With solar energy’s share in the energy mix set to more than double, Brazil is well on its way to achieving a more sustainable and environmentally responsible future.
