Even with unprecedented levels of generation and leadership in the use of renewable sources, wind energy in Brazil is going through an ambiguous moment: while it consolidates its relevance in the electricity matrix, it suffers a slowdown in the expansion of new plants and faces regulatory obstacles.
A wind power in Brazil reached historic milestones in 2024, reaffirming its central role in the energy transition process. In November, the country broke two generation records: on the 3rd, it recorded the highest hourly average in history, with 23.699 average megawatts (MWmed); on the 4th, it set a daily generation record, with 18.976 MWmed. These results highlight the strength of the sector, which already occupies the second position among sources in the national electricity matrix — behind only hydroelectric power.
Despite this, the sector is experiencing a worrying decline in the number of new installations. In 2024, there was a 31,25% drop in the construction of wind farms compared to the previous year, totaling just 3,3 gigawatts (GW) added.
Advances in wind power generation contrast with decline in investments
The contrast between generation performance and the slowdown in investments highlights deeper challenges.
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Lawyer Bianca Bez, an energy specialist at the BBL Advogados law firm, points to two main factors for this decline: the oversupply in the regulated energy market and the crisis faced by manufacturers of wind turbines — the equipment responsible for transforming wind into electricity.
“Although the technical potential of wind energy – especially offshore – places Brazil among the global leaders in renewable expansion capacity, future prospects cannot be analyzed solely from the perspective of technological promises. It is necessary to consider the institutional and economic obstacles that currently prevent the full realization of this potential,” explains Bez.
She also warns that poorly designed public policies can jeopardize progress. “Even if well-intentioned, these measures can lead to inefficient allocation of resources if they do not take into account the real risks faced by sector agents,” she says.
How does wind energy work?
Wind energy is generated from the movement of the wind, which turns the blades of wind turbines connected to wind turbines.
This mechanical movement is converted into electrical energy, which is sent to the transmission grid. This is a clean, efficient and increasingly competitive process, especially in regions with high levels of constant winds, such as the Northeast.
Energy storage enters the agenda, but auction is suspended
With the advancement of intermittent sources such as wind power, the need for solutions to guarantee stability and security in the energy supply grows.
The use of battery storage systems has been adopted globally to support the electricity grid during times of low generation.
However, in Brazil, a measure that could encourage this technology was postponed.
The Ministry of Mines and Energy has cancelled the capacity reserve auction, which was scheduled to take place at the end of June 2024. The decision was made amid a legal dispute between companies in the sector.
According to the Ministry, a public consultation will be opened soon to discuss the new auction guidelines, with a focus on contracting energy at the lowest possible cost for the consumer.
The government hopes to set deadlines so that the competition can still take place this year.
The future of wind energy in Brazil requires more than just tailwinds
The potential of wind energy in Brazil, including in offshore projects (on the high seas), it is immense.
However, experts point out that the expansion of the sector depends on a more stable environment, with legal certainty, regulatory predictability and long-term planning.
Even with record generation and international prominence, the real consolidation of wind energy in the country involves overcoming structural bottlenecks, avoiding errors in the formulation of public policies and creating sustainable conditions for new investments.
Source: Examination