Market Overview
The Brazil renewable energy market reached a size of USD 17.4 Billion in 2025 and is projected to grow to USD 31.0 Billion by 2034, with a CAGR of 6.60% during the forecast period 2026-2034. This growth is driven by abundant natural resources, increasing investments, and supportive government policies such as Proinfa and tax incentives. Expansions in solar, wind, and biomass sectors, along with emerging green hydrogen projects, underpin the market’s strong growth potential.
Study Assumption Years
- Base Year: 2025
- Historical Year/Period: 2020-2025
- Forecast Year/Period: 2026-2034
Brazil Renewable Energy Market Key Takeaways
- Current Market Size: USD 17.4 Billion in 2025
- CAGR: 6.60% from 2026-2034
- Forecast Period: 2026-2034
- Brazil’s renewable energy growth is supported by its high solar irradiance, favorable wind conditions, and government incentives like tax benefits and renewable energy auctions.
- Solar and wind capacity are rapidly expanding due to reduced technology costs and geographic advantages.
- The government has allocated approximately USD 12.5 billion in 2023 to fund renewable energy projects, including 196 solar power plants.
- Private investments, including joint ventures and infrastructure funding, are boosting large-scale wind farms, solar parks, and biomass projects.
- The energy transition has led to a 38% reduction in power sector carbon emissions from 2014 to 2023.
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Brazil Renewable Energy Market Growth Factors
Brazil, with one of the world’s largest potentials for renewable energy including one of the highest solar irradiation and wind speed levels globally, has a very large sector in solar and wind energy. Favorable government policies and incentives like tax incentives and renewable energy auctions have created much interest from domestic investors and foreign investors in large renewable energy projects. These powerful resources, in combination with support from regulations, ease the eventual market emergence.
Also of importance are the decreasing costs of technologies for solar photovoltaics and wind power. By 2023, Brazil had more than 14 GW of installed solar capacity and more than 20 GW of wind power capacity. Government programs such as the ProGD distributed generation program would pay consumers to generate solar electricity. Favorable wind speeds and solar irradiation have caused investors to invest importantly in new projects and existing projects. This trend places Brazil to lead renewable energy expansion in Latin America.
The Brazilian government commits to generate solar energy through constructing the 196 solar plants. Over USD 12.5 billion happened in 2023. Beyond this, pension funds, private equity, and infrastructure investors invest privately in substantial ways too. Further investment in smart grids, storage and transmission to help manage intermittency and grid integration will support Brazil maintaining its renewable energy pathway to 2034.
Brazil Renewable Energy Market Segmentation
Breakup by Type:
- Wind: Brazil’s wind energy sector is a leading renewable source, driven by favorable wind conditions in the Northeast and South and government incentives. Over 20 GW installed capacity contributes significantly to the national grid, with major projects like Lagoa do Barro Wind Complex.
- Solar: Growing steadily with 14 GW capacity in 2023, solar energy benefits from abundant sunlight and supportive policies including the ProGD initiative for distributed generation, enabling sustainable access in remote areas.
- Hydro: The dominant renewable energy backbone providing about 60% of Brazil’s electricity, leveraging vast river systems in the Amazon basin, with large plants such as Itaipu and Belo Monte dams.
- Bioenergy: Utilizes Brazil’s strong agricultural sector with biomass, sugar cane ethanol, and biogas. Brazil is among the world’s largest ethanol producers, enhancing energy security and lowering emissions.
- Others:
Breakup by Region:
- Southeast: Home to key states like Sao Paulo and Rio de Janeiro, hydropower dominates with significant facilities; solar energy is expanding steadily supported by industrial demand.
- South: Known for favorable wind conditions, it leads in wind energy production; hydropower and growing solar interest in farming areas also contribute.
- Northeast: A frontrunner in wind and solar power, with high wind speeds and solar irradiation promoting major renewable projects that support economic and energy security.
- North: Predominantly hydro-reliant due to Amazon basin rivers; faced with environmental and logistical challenges, though solar and bioenergy projects are increasing in remote areas.
- Central-West: Growing solar and bioenergy markets supported by abundant sunlight and agricultural biomass; hydropower is less dominant but still present.
Recent Developments & News
- July 2025: CGN commissioned the 165 MW Lagoinha solar project in northeastern Brazil, generating 400 million kWh annually and supporting 240,000 households.
- June 2025: 2C Energia launched a 2.7 MW solar plant in Brazil’s Federal District, initiating a 400 MW planned pipeline integrating solar with sugar and ethanol operations.
- March 2025: Statkraft completed the 519 MW Ventos de Santa Eugênia Wind Complex and the 80 MW Morro do Cruzeiro project in Bahia, enhancing wind capacity.
- February 2025: Brazil introduced the Energy Transition Acceleration Program (Paten) with a Green Fund managed by BNDES to support low-carbon projects and carbon capture research.
- October 2023: ENGIE agreed to acquire 545 MWac of solar assets from Atlas Energia Renovável do Brasil S.A. and Atlas Brasil Energia Holding 2 S.A. for €618 million, pending CADE approval.
- May 2024: Eletrobras partnered with Maranhão government for renewable hydrogen production aligned with the State Green Hydrogen Program.
Key Players
- CGN
- 2C Energia
- Statkraft
- ENGIE
- Eletrobras
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