Market Overview

The Brazil renewable energy market was valued at USD 17.4 Billion in 2025 and is projected to reach USD 31.0 Billion by 2034, growing at a CAGR of 6.60% from 2026 to 2034. The market growth is driven by abundant natural resources, government initiatives such as Proinfa, tax incentives, and increasing private and foreign investments. Rapid expansions in solar, wind, and biomass segments, alongside emerging green hydrogen projects, support Brazil’s commitment to sustainable energy development.

Study Assumption Years

• Base Year: 2025
• Historical Years: 2020-2025
• Forecast Period: 2026-2034

Brazil Renewable Energy Market Key Takeaways

• The Brazil renewable energy market size reached USD 17.4 Billion in 2025, with a CAGR of 6.60% forecasted during 2026-2034.
• Market growth is fueled by Brazil's abundant natural resources like high solar irradiance and favorable wind conditions supporting solar and wind projects.
• Government policies and incentives such as tax benefits and renewable energy auctions attract significant investments from local and global players.
• Rapid capacity expansion in solar and wind energy is driven by declining technology costs and supportive regulatory incentives.
• The biomass sector benefits from Brazil’s strong agricultural base, and green hydrogen projects indicate future market innovation potential.
• Challenges include regulatory uncertainties, grid integration, and infrastructure investment needs, which also present growth opportunities.

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Market Growth Factors

Brazil's renewable energy market growth is primarily driven by the country's rich natural resources. High solar irradiance and strong wind conditions create a robust foundation for expanding solar and wind energy projects. These natural conditions, combined with favorable geographic environments, offer extensive opportunities for investment and development, underpinning Brazil’s status as a renewable energy leader.

Government support plays a crucial role in advancing the renewable energy sector. Initiatives such as Proinfa, various tax incentives, and streamlined regulatory frameworks encourage private and international investments. Renewable energy auctions and tax benefits attract large-scale project approvals, accelerating market growth and diversifying the energy mix with solar, wind, and biomass.

Technological advancements and cost reductions further drive market expansion. Solar photovoltaic and wind technology costs have decreased significantly, prompting rapid capacity growth. Additionally, the rise of green hydrogen initiatives signals innovative future prospects. Private investments are increasing in generation capacity and in grid modernization, including smart meters and storage technologies, improving system reliability and supporting Brazil's clean energy transition.

Market Segmentation

By Type:

• Wind: Brazil’s wind energy sector has grown substantially, supported by favorable wind conditions particularly in the northeast and south regions, government incentives, and over 20 GW installed capacity as of 2023.
• Solar: Solar energy is expanding driven by abundant sunlight and government support. Brazil installed over 14 GW of solar capacity by 2023, including large solar farms and rooftop installations, especially important for remote area energy access.
• Hydro: Hydropower remains the backbone, accounting for approximately 60% of Brazil's electricity generation. Large plants like Itaipu and Belo Monte dams exemplify reliance on hydropower despite challenges like drought and environmental concerns.
• Bioenergy: Leveraging Brazil’s agricultural sector, bioenergy uses biomass, sugar cane ethanol, and biogas. Brazil is one of the world's largest ethanol producers, with advancements in technology and government policies stimulating growth.

By Region:

• Southeast: States like Sao Paulo, Rio de Janeiro, and Minas Gerais are major renewable hubs with strong hydropower facilities and gradual solar energy growth fueled by industrial demand.
• South: Including Rio Grande do Sul, Paraná, Santa Catarina, this region leads in wind energy production due to favorable wind conditions, supplemented by hydropower and increasing solar interest.
• Northeast: Comprising Bahia, Ceará, Pernambuco, this region excels in wind and solar power with high wind speeds and solar irradiation, hosting significant investments and supporting energy security.
• North: Encompassing the Amazon and states like Pará and Amazonas, primarily reliant on hydropower from dams like Belo Monte, with growing interest in solar and bioenergy to reduce diesel dependence in remote areas.
• Central-West: Including Goiás, Mato Grosso, and Mato Grosso do Sul, this region is expanding solar farms and bioenergy, supported by abundant sunlight and agricultural biomass resources.

Regional Insights

The Northeast region of Brazil stands out as a dominant renewable energy hub, particularly for wind and solar power. Boasting some of the highest wind speeds and solar irradiation in the country, it attracts substantial domestic and international investments. Wind farms along the coast and large solar parks inland significantly contribute to the national grid, promoting economic development and energy security.

Recent Developments & News

In July 2025, CGN operated its first 165 MW Lagoinha solar project in northeastern Brazil, supporting 240,000 households. June 2025 saw 2C Energia open a 2.7 MW solar plant in the Federal District, with plans for a 400 MW pipeline integrating solar with sugar and ethanol operations. In March 2025, Statkraft completed the 519 MW Ventos de Santa Eugênia Wind Complex and an 80 MW project in Bahia. February 2025 marked Brazil's launch of the Energy Transition Acceleration Program (Paten), backed by a Green Fund to promote low-carbon projects. ENGIE acquired 545 MWac of solar assets in October 2023; Eletrobras partnered with Maranhão government in May 2024 for renewable hydrogen production.

Key Players

• CGN
• 2C Energia
• Statkraft
• ENGIE
• Eletrobras

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