SIGNIFICANCE
In recent years, Brazil's renewable energy supply has surged due to substantial government incentives and subsidies. However, demand has not kept pace, leading to an oversupply in the wind power sector, further exacerbated by high costs.
ABEEolica forecasts a recovery for the industry in 2027, driven by a more rapid increase in Brazil's power demand, supported by stronger economic growth and emerging sectors such as data centers and green hydrogen.
STATISTICS
In 2024, Brazil added 76 new wind farms with a combined capacity of 3.3 gigawatts (GW), a decrease from 123 new farms and 4.8 GW in the previous year, as reported by ABEEolica. This slowdown marks the most significant decline since 2018/2019, when several power auctions were canceled.
KEY INSIGHTS
The results indicate a strategic decision within the sector to reduce the initiation of new projects, as noted by ABEEolica's leader, Elbia Gannoum, who also mentioned that 2025 is expected to be a challenging year.
"The demand crisis and reduced installations will continue," Gannoum said. "But starting 2027, with economic growth, lower incentives for solar power, data center, artificial intelligence, many contracts will come. We need to be prepared."