Offshore Wind Farms Will Only Start Producing Energy in 2030, According to Abeeólica

Abeeólica Has Projections for the Start of Offshore Energy Production with the Installation of Wind Farms at Sea for the Year 2030, and Until Then, Companies Are Awaiting New Regulations Regarding Projects Under Development

According to projections from the Brazilian Wind Energy Association (Abeeólica) for this Wednesday, (06/01), offshore wind farms are expected to begin operations around the year 2030. Currently, several companies are awaiting regulations regarding wind energy production at sea, and with the delivery of the expected rules for the year 2022, they will be able to continue their offshore wind farm construction projects.

Offshore Wind Energy Production Could Begin Around the Year 2030 with the Start of Operations of Offshore Wind Farms, According to Abeeólica

Offshore wind energy production, also known as offshore, is the latest bet of the energy sector for the coming years along the Brazilian coast, due to its high energy generation potential. However, according to Elbia Gannoum, president of Abeeólica, the start of operations for wind farms may take some time, and the executive believes that, for at least the next 7 years, there will not yet be an operating offshore venture in the country.

The president of Abeeólica further emphasizes: “We expect the regulation this year and, therefore, I believe that the first electricity auction for the offshore segment should take place in 2023. From then on, companies will need between five and seven years to build an offshore wind facility.”

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Thus, the expectation is that the start of offshore wind energy production will begin around the start of the year 2030, with companies increasingly invested in this new alternative for the energy sector. This is happening because, currently, the Brazilian Institute of Environment and Renewable Natural Resources (Ibama) is reviewing over 80 GW of offshore projects, confirming the aim of energy companies for offshore generation.

Despite the high installation costs and the need for significant initial investment to build wind farms, this is the new major move of large companies in the sector. Among those interested in offshore wind energy production are Shell Energy, TotalEnergies, Equinor, and Acciona, which are strongly seeking regulations for the development of the projects.

Offshore Wind Farms Are the New Bet of the Energy Sector for the Future of the Production Market in Brazil

Between 2020 and 2021 alone, the additional capacity for offshore wind energy worldwide more than tripled, increasing from 6 GW to 21 GW, and as a result, the national market now sees the benefits of these ventures.

As such, Abeeólica now sees a strong future outlook for the sector in Brazil, especially after the publication of Decree 10.946, which addresses the assignment of physical spaces and the utilization of natural resources at sea for offshore electricity generation.

This is mainly due to the strong winds along the Brazilian coast, where offshore projects have observed an average capacity factor of 41% in different regions of the country, higher than the average of 36% for onshore projects. Additionally, integration with the oil sector is also one of the attractions for companies that are considering the installation of offshore wind farms in Brazil. 

Now, companies and Abeeólica are awaiting regulations regarding the projects, expected to be delivered in 2022, and they hope for a future of strong investments and financial applications in the Brazilian market.