Brazil is entering a new phase of power sector development as reforms to the electricity market, offshore wind regulation and low-carbon hydrogen policy support investment in a more diversified energy system. Solar photovoltaic growth, increasing demand for grid flexibility and an offshore wind development pipeline are adding to the country’s established hydropower base, according to GlobalData.
GlobalData’s latest report, *Brazil Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035*, projects that Brazil’s cumulative installed power capacity will grow at a compound annual growth rate of 4.7% between 2025 and 2035. Over the same period, the share of renewable capacity is forecast to increase from 48% to almost 62%, while renewable generation is expected to approach 50% of total electricity generation.
In the near term, solar photovoltaic is expected to account for much of the capacity growth, supported by projects in permitting, under construction and with financing in place. Onshore wind is also expected to expand, particularly in Brazil’s Northeast, while natural gas capacity under construction is expected to provide additional flexibility during periods of lower hydropower availability.
