Wind and solar power fuel over one-third of Brazil's electricity for first time

Brazil Achieves Record Renewable Energy Milestone, Faces Future Challenges

Brazil's electricity sector witnessed a significant shift in August, with wind and solar power collectively generating over a third of the nation's electricity. This marks the first time these renewable sources have surpassed this threshold in recorded history, signaling a major advancement in the country's energy transition.

Record-Breaking Renewable Energy Production

Last month, wind and solar energy accounted for 34% of Brazil's total electricity generation, reaching a monthly record of 19 terawatt-hours (TWh). This output is sufficient to power approximately 119 million average Brazilian homes for an entire month. The previous record was 18.6 TWh, set in September 2024. This achievement coincides with a decline in hydroelectric output, Brazil's traditionally dominant power source, which has fallen to a four-year low.

The Role of Wind and Solar in Brazil's Energy Mix

The rise of wind and solar power is reshaping Brazil's energy landscape. In 2024, these sources generated 24% of the country's electricity, more than double their contribution from five years prior. Solar power has experienced remarkable growth, increasing from just over 1% of generation in 2019 to 9.6% in 2024. Similarly, wind power has climbed from 8.8% to 15% during the same period.

Environmental Impact and Emissions Reduction

The expansion of renewable energy has had a positive impact on Brazil's carbon emissions. The country's power sector emissions peaked in 2014, and by 2024, they had fallen by 31%, even as electricity demand rose by 22%. This reduction is attributed to the fifteenfold increase in wind and solar generation, which has outpaced demand growth and allowed for a 45% decrease in fossil fuel generation.

Hydropower Decline and Fossil Fuel Consumption

Hydropower provided 48% of Brazil's electricity in August, marking only the second month on record that it has supplied less than half of the country's power. Despite the reduced hydro output, fossil fuel plants, primarily powered by natural gas, coal, and oil, accounted for just 14% of generation, equivalent to 7.8 TWh. In previous drought years, fossil fuel use has surged to compensate for shortfalls, reaching as high as 26% in August 2021. The rapid growth of wind and solar has helped Brazil avoid similar spikes in fossil fuel consumption this year.

Expert Perspectives on Brazil's Energy Transition

According to Ricardo Baitelo, a project coordinator at Brazil's Institute for Energy and the Environment, the record renewable energy production reflects over a decade of consistent growth in wind and solar capacity, with solar expanding particularly rapidly in recent years. He emphasizes that these sources are no longer alternative options but are now a well-established part of Brazil's electricity mix. Brazil is transitioning from a primarily hydro-based power system to one supported by three main pillars: hydro, solar, and wind. Baitelo also highlights that Brazil is the only G20 nation currently on track to meet the goal of significantly increasing renewable energy within the next five years, a target established at the U.N. COP28 climate summit in Dubai in 2023.

Challenges and Concerns for the Future

Despite the progress, challenges remain. Baitelo warns that Brazil needs to take urgent measures to avoid losing its leading position in renewable energy deployment. Without reforms, fossil fuel interests could exploit opportunities to expand thermal generation in upcoming auctions, potentially increasing greenhouse gas emissions despite the growth in renewables.

Paulo Pedrosa, president of Abrace Energia, which represents large energy consumers, raises concerns about the heavy reliance on subsidies to expand renewables, particularly residential solar, which he believes has created distortions in the power market. He argues that the excessive renewable energy subsidy models have increased the cost of energy and paradoxically promoted the contracting of expensive thermal energy, which is necessary to maintain system balance when wind and solar resources are unavailable.

Pedrosa suggests that Brazil should prioritize using its abundant clean, low-cost energy to boost industrial output and competitiveness while contributing to global decarbonization efforts. The focus should be on optimizing the energy mix to ensure both environmental sustainability and economic growth.