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Renewable energy: Legal uncertainty and environmental obstacles that threaten its advancement in Brazil

Published 15/03/2025 às 22:34
Expodireto Cotrijal is one of the largest international agribusiness fairs
Photo by expodireto – Source: Expodireto website

Discover the challenges that hinder the growth of renewable energy in Brazil, from legal uncertainty to environmental obstacles and lack of infrastructure. Understand how these factors affect investments and the future of the sustainable energy matrix.

A energy transition represents one of Brazil's greatest challenges in achieving a sustainable energy matrix. For this, the country relies on sources such as solar, wind, hydro and biomass energy. However, experts warn that the juridical insecurity and the environmental obstacles prevent the expansion of renewable energy in the country.

In view of this scenario, the 25rd Expodireto Cotrijal, realized in March 2025, promoted debates to analyze the main obstacles to the development of the sector. According to the website People's Mail, during the event, experts highlighted that the juridical insecurity, lack of state policies and limitations imposed by environmental legislation are the main barriers to the advancement of renewable energy in the state. (People's Mail)

On the one hand, the legal instability in the energy sector stands out as one of the biggest problems. On the other hand, frequent changes in regulations create uncertainty and affect investments. Furthermore, the absence of long-term public policies harms the security of projects.

For Brazil to move forward, the sector needs a more stable environmentavoiding sudden changes that may compromise the economic viability of the projects.

the director of Wind Power of the Union of the Renewable Energy Industry of Rio Grande do Sul (Sindienergia-RS), Guilherme Sari, reinforces that Brazil has abundant natural resources to generate clean energy and diversified. However, structural challenges make it difficult to decarbonization of the economy.

The environmental challenges that hinder the energy transition

Beyond the juridical insecurity, bureaucracy in environmental licensing also harms the growth of renewable energy in Brazil. Solar power plant and wind farm projects often face atrasos due to complex regulatory requirements.

Furthermore, lack of standardization in state licensing processes creates an even more challenging environment for investors. According to the website Beyond Energy, many projects encounter difficulties in obtaining licensing, which leads to legal uncertainty and work stoppagesystem. (Beyond Energy)

According to a Alexandre Lietzke, manager Planning of the Southern Regional Development Bank (BRDE), Brazil needs a more efficient approach to prevent long environmental approval deadlines harm investments in energy transition.

Another crucial factor concerns the remuneration for carbon credits. While other markets, such as European, already use this mechanism as source of income, Brazil still faces difficulties in establish an efficient model. In this way, the incentive to new sustainable projects remains limited.

Ao mesmo tempo, o environmental sector requires clear rules to reduce environmental impacts Taj new plants. However, the excessive bureaucracy often impedes the advancement of renewable energy.

As a consequence, investors redirect contributions for countries with more agile regulation. This compromises the growth of the sector in Brazil and reduces the country's competitiveness in the global clean energy market.

Lack of infrastructure and the impact on renewable energy generation

Beyond the difficulties legal and environmental, lack of infrastructure also compromises the sector. The distributed energy generation, mainly the solar, demands modern transmission networks to meet the new demand.

However, without a efficient electrical grid, several projects become unfeasible. The president of Ocergs System, Darci Hartmann, defends the implementation of state policies, and not just government.

According to him, this is an essential step towards ensure the continuity of initiatives in the renewable energy.

On the other hand, connectivity of new energy sources to the National Interconnected System (SIN) also presents itself as a critical challenge. Although many regions have great potential for wind and solar energy, the infrastructure is still insufficient to integrate this production into national power grid.

No investments in modernization of the electrical grid, renewable energy generation becomes underutilized. As a consequence, the financial return for investors is negatively impacted. Furthermore, the stability of the energy matrix may be compromised.

This way, the diversification of the electrical matrix needs to be accompanied by improvements in the distribution system. This ensures that problems such as energy waste and difficulties in continuous supply are avoided.

The future of renewable energy in Brazil

Brazil has great potential to lead the global energy transition. However, the juridical insecurity, the environmental obstacles and lack of infrastructure continue to impede the advancement of renewable energy.

In view of this, it becomes essential that the country adopts more stable public policies, modernize your environmental licensing system and invest in expansion of the power grid.

If Brazil wants to consolidate a sustainable energy sector, needs to offer a favorable regulatory environment. Otherwise, the country will miss valuable investment opportunities e technological development.

Therefore, only with strategic planning results e solid policies it will be possible to guarantee a safer and more sustainable energy future.

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Marcelo Ibrahim da Silva Simao

Production Engineer, postgraduate in project and process management, with 10 years of experience in certification, processes and business management. Great interest in the oil and gas sector and renewable energies.

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