Brazil Emerges as Latin America's Renewable Energy Powerhouse with 6.60% Annual Growth Through 2034

Market Overview

The Brazil renewable energy market reached a size of USD 17.4 Billion in 2025 and is forecasted to grow to USD 31.0 Billion by 2034, reflecting a CAGR of 6.60% during the forecast period 2026-2034. Supported by abundant natural resources, government incentives, and increasing investments especially in solar, wind, and biomass sectors, the market is poised for steady expansion. Brazil's commitment to sustainability and clean energy development underpins its strong growth prospects.

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Study Assumption Years

Base Year: 2025
Historical Year/Period: 2020-2025
Forecast Year/Period: 2026-2034

Brazil Renewable Energy Market Key Takeaways

The Brazil renewable energy market size was USD 17.4 Billion in 2025.
The market is projected to reach USD 31.0 Billion by 2034, growing at a CAGR of 6.60% during 2026-2034.
Government initiatives like Proinfa and tax incentives drive foreign and private investments.
Rapid expansion seen in solar, wind, and biomass sectors with emerging interest in green hydrogen.
Challenges such as grid integration and infrastructure investment needs exist, but abundant resources and favorable policies provide significant opportunity.
The market is bolstered by declining technology costs and optimism from large scale projects.

Market Growth Factors

The combination of a high level of solar irradiation and wide-ranging wind resources is seen as key for the development of the industry in Brazil. Government support in the form of tax breaks and renewable energy auctions for new projects has also attracted large domestic and foreign investment.

The rapid expansion of solar photovoltaic and wind power capacity has largely been driven by the decreasing price of renewable technology and is more common where there is sufficient government support and good solar, wind or biomass resources. There are also signs of Brazil's opportunity to be a leader in green hydrogen.

Privately financed utility-scale solar parks, large wind farms and biomass plants should be located close to areas of high agricultural intensity and partnerships and joint ventures can pool risk, achieve synergies and transfer knowledge along the supply chain to implement upgrades to the grid, smart technologies and storage that are needed for variable renewable energy.

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Market Segmentation

Breakup by Type:

Wind: Brazil's wind sector is a leading renewable energy source with over 20 GW installed capacity as of 2023. Favorable wind conditions in the northeast and south have driven investments and development of large projects like the Lagoa do Barro Wind Complex.
Solar: Growing steadily with over 14 GW installed capacity in 2023, boosted by abundant sunlight and government initiatives such as the ProGD program, encouraging distributed generation and solar deployment in remote areas.
Hydro: The backbone of Brazil's renewable sector, hydro power comprises about 60% of electricity generation. Major facilities include Itaipu and Belo Monte dams. Despite facing environmental and drought challenges, hydro remains dominant.
Bioenergy: Leveraging Brazil's agricultural strength, bioenergy utilizes biomass, sugarcane ethanol, and biogas. Brazil is one of the world's largest ethanol producers. Use of industrial residues for biogas is also increasing.

Breakup by Region:

Southeast: Includes Sao Paulo, Rio de Janeiro, and Minas Gerais. Dominated by hydropower with key plants like Furnas and Ilha Solteira. Solar energy is gradually growing, supported by industrial demand and urban distributed systems.
South: Comprising Rio Grande do Sul, Paraná, and Santa Catarina, this region leads in wind energy production due to favorable wind conditions, with hydropower also playing a vital role. Solar interest is rising, especially in agricultural areas.
Northeast: Regarded as a frontrunner in renewables, especially wind and solar, driven by the highest wind speeds and solar irradiation. Wind farms along the coast and expansive solar parks inland play a crucial role in national energy supply.
North: Dominated by hydropower with key dams like Belo Monte, this region faces challenges like environmental concerns and logistics. Growing interest exists for solar and bioenergy to reduce diesel dependence in remote locations.
Central-West: Includes Goiás, Mato Grosso, and Mato Grosso do Sul. Exhibiting growing solar and bioenergy activity due to abundant sunlight and agriculture. Hydro contributes moderately compared to other regions.

Regional Insights

The Northeast region of Brazil emerges as the dominant market segment due to its superior wind speeds and solar irradiance, attracting significant investments in wind farms and solar parks. This region's renewable projects critically promote economic development, reduce energy poverty, and ensure energy security, making it pivotal to Brazil's renewable energy landscape.

Recent Developments & News

In July 2025, CGN launched its first self-built 165 MW Lagoinha solar project in northeastern Brazil, supporting 240,000 households. In June 2025, 2C Energia opened a 2.7 MW solar plant in Brazil's Federal District with a 400 MW planned pipeline. Statkraft completed the 519 MW Ventos de Santa Eugênia Wind Complex and the 80 MW Morro do Cruzeiro project in March 2025. Brazil initiated the Energy Transition Acceleration Program (Paten) in February 2025 to expand renewable energy with a Green Fund managed by BNDES. ENGIE acquired 545 MWac of solar assets in October 2023 for €618 million. Eletrobras partnered with the Maranhão government in May 2024 to advance renewable hydrogen production.

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Key Players

CGN
2C Energia
Statkraft
ENGIE
Eletrobras

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