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Energy transition: The Brazilian energy matrix has evolved, with renewable sources dominating, promoting carbon neutrality, public investments and electricity generation.
Energy transition: in Brazil, the adoption of renewable sources has been gaining momentum, reflecting a global movement to seek sustainability and lower environmental impact. This process contributes significantly to reducing greenhouse gas emissions and increasing energy security. Today, solar and wind energy are among the main clean energy options, accompanied by growing investment in infrastructure to support these technologies.
Furthermore, the energy transition involves not only changing how energy is generated, but also how it is distributed and consumed. It is important to highlight the joint efforts between the public and private sectors in promoting a transformation that prioritizes change of energy matrix. Changing the energy matrix is crucial for Brazil's sustainable future, ensuring that future generations have access to clean and renewable energy sources.
The Challenges of Energy Transition
Many years later, the energy transition remains one of the greatest challenges of the century. energy matrix The Brazilian energy matrix underwent a significant transformation between 1970 and 2022. In the 1970s, the matrix was predominantly composed of non-renewable sources, such as oil and its derivatives. In the following two decades, the country began to diversify its energy sources, including renewable options such as hydroelectric power and biomass.
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In the 2000s, there was a considerable expansion in the use of wind and solar energy. Twenty-two years later, the Brazilian energy matrix consisted of 55,2% non-renewable sources and 44,8% renewable sources. Currently, the matrix is mostly renewable, with hydroelectric power accounting for 56,8% of all electricity generated in Brazil.
Environmental Impact and Carbon Emissions
The issue of energy transition has taken on another dimension due to the associated environmental concerns. The Earth cannot sustain carbon emissions for much longer, which are responsible for the greenhouse effect and climate change. In Brazil, evolutionary process is highlighted by the Energy Transition Program (PTE), which was developed by the Energy Research Company (EPE) in partnership with the Inter-American Development Bank (IDB) and the Brazilian Center for International Relations (CEBRI).
The PTE aims to discuss long-term energy transition scenarios, with ambitious goals and detailed strategies to achieve the carbon neutrality by 2050. Last year, important studies were published that provide a clear vision of the future and the scenario for the energy transition in the country.
Public Financing and Investments
Reports indicate that Brazil will need to allocate around R$233 billion by 2050 to achieve the decarbonization stipulated by the ETP. Meeting this ambitious target requires the formation of an alliance between the public and private sectors to achieve a common and beneficial goal for all: a greener and more sustainable future for future generations.
In 2023, Brazil recorded an annual record in the expansion of electricity generation, adding 10,3 gigawatts (GW) of installed capacity, with 87% coming from photovoltaic and solar plants, as reported by the Ministry of Mines and Energy. In total, 291 new projects began operating last year.
Advances and Economic Growth
These advances not only increase the country’s energy capacity, but also boost the economy and create new job opportunities. Strategic partnerships have been essential to advancing this agenda.
In February 2024, the World Bank, the Ministry of Finance and the Ministry of Environment and Climate Change announced a partnership to foster climate-related public and private investments. Areas of collaboration include technical and financial solutions to support climate resilience instruments, such as the Ecological Transformation Plan and the Climate Fund.
Future Opportunities and Challenges
In practice, this initiative represents a significant advance in the optimization of resources to finance solutions that combat the effects of climate change. Brazil is on a promising path towards the energy transition, with strong support from the financial market and strategic partnerships that aim to promote sustainability and decarbonization of the economy.
However, it is worth noting that the current climatic episodes, such as excessive rainfall or lack thereof, demonstrate the need for robust investments, constantly evolving regulations and a diversified energy matrix. These measures are crucial for the current context, allowing the country to take advantage of its potential and become a global leader in clean energy and sustainable solutions.
By contributing significantly to mitigating and adapting to climate change, Brazil is positioning itself for a future more aligned with the natural cycles of our planet, promoting a more sustainable environment for future generations.
Source: BANK BV Press
