Brazil Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in brazil, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Power Generation, Transmission and Distribution Infrastructure
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Overview

Brazil is the largest electricity market in Latin America, the world’s seventh-largest consumer electricity market, and has the third largest renewable energy generation capacity in the world, according to data from the U.S. Energy Information Administration (EIA). The renewable energy sector accounts for 87% of the Brazilian electricity matrix, while the global average is close to 30%. The renewable energy industry has continuously expanded over the years with the help of private investment. Regulatory frameworks are being developed for new sustainable solutions in the coming decade to include green fuels, power storage, hydrogen, and offshore wind power projects. At the same time, Brazil is promoting policies toward a green transformation of the industrial sector, where the wide availability of renewable energy sources could play an important role in attracting international investment to the local manufacturing industry, including through green financing.

Brazil generates and transports electricity to over 88 million residential, commercial, and industrial consumers, more than the power produced by all other South American countries combined.  Investment in the Brazilian electricity sector is expected to reach over $100 billion by 2029, including utility-scale generation, distributed generation, transmission, and distribution projects.  

Brazil’s electricity matrix is one of the cleanest in the world and Brazil is committed to continuing its support for renewable energy projects. Large hydropower plants account for much of the domestic electricity generation, but continued expansion of hydropower is increasingly constrained by environmental concerns surrounding developing large projects often in remote areas of the country. Solar projects (utility scale and distributed) will represent nearly 70% of all additional electricity generation in the coming years. Reliance on other sources for power generation is also growing, notably natural gas, wind (on-shore and off-shore) and bioenergy. Wind generation is expected to reach 13% of the electricity matrix by the end of 2029, while solar generation is expected to double.  


Leading Sub-Sectors and Opportunities

GENERATION

Hydropower 

Hydropower has been the leading Brazilian energy source for electricity generation for several decades. This is due to its economic competitiveness and its potential at the national level. Brazil has a generation system with proven capacity of more than 150 GW, with most of the energy coming from hydro, due to Brazil’s abundance of powerful rivers. The Brazilian hydroelectric potential is estimated at 172 GW, of which more than 60% has been developed. Approximately 70% of the untapped potential is in more remote, protected areas of the country including the Amazon. A Capacity Reverse Auction (LRCAP 2025), scheduled for June 27, 2025, allows for hydropower projects to expand installed capacity, through the installation of new generating units, of existing hydroelectric plants of centralized dispatch, with delivery for July 1st, 2030, with a 15-year contract.  

Thermal Power 

Thermoelectric power generation can use different fuels: natural gas, biomass, biofuel, coal, nuclear and fuel oil. Depending on the type of fuel and the generation technology, they can fulfill different roles, from base-load generation to back-up generation for renewables or serving peak demand.

Considering the relevance of hydropower and the growth of solar and wind in Brazil, thermal power plants have been essential during periods of critical hydrological conditions such as droughts. With the increasing importance of wind and solar power plants in the Brazilian power system, thermal power plants play an important role providing baseload and to compliment the generation variability of these sources in the short-term. To address this issue, the Brazilian Minister of Mines and Energy (MME) scheduled a Capacity Reverse Auction (LRCAP 2025 for June 27, 2025, which allows for new andexisting natural gas and biofuel thermal power plants to compete.

The Ministry of Mines and Energy will define the total amount of reserve capacity to be contracted, based on the studies of the Brazil Energy Reseach Agency (EPE) and the National Grid Operator (ONS), respecting the general criteria for supply guarantee established by the National Energy Policy Council. All projects contracted in the 2025 LRCAP must have operational flexibility characteristics, in order to meet all the dispatches defined in the daily schedule established by the National Grid Operator (ONS) to compete. The awarded contracts for new power plants will be for 15 years, while for existing power plants awarded contracts are for 10 years. 

Wind power generation in Brazil reached over 32 GW in 2024, according to the Brazilian Wind Power Association (ABEEOLICA). Brazil has 890 wind farms operating across 12 Brazilian states. Of these, 85 percent are in the country’s Northeast region. By 2028, Brazil is expected to have over 44 GW of installed wind power capacity, accounting for 13.2 percent of the Brazilian electricity matrix.  

Solar Power 

In 2024, solar power, when including distributed generation, became the second largest source of electricity in Brazil, surpassing wind power, and reaching almost 50 GW. Utility scale solar energy in Brazil reached 16.4 GW, while distributed generation from solar accounted for 34 GW in 2024. Investments in utility-scale solar energy projects that have already been approved amount to more than $20 billion. An additional $1 billion has been invested in solar distributed generation since 2012. This amount is expected to increase exponentially in the next several years.   

TRANSMISSION

Brazil has an extensive and complex transmission system, reflecting the continental dimensions of the country, the spatial dispersion of production sources - especially hydraulic sources - and the distances between large load centers. Transmission has the essential role of integrating sources of production and consumption, often acting as a virtual generator. According to the 10-year expansion plan (PDE 2029) published by Brazilian Energy Research Agency (EPE), Brazil is expected to invest $ 20 billion in the electricity transmission sector until 2029, of which $ 14 billion will be in transmission lines and $ 6 billion in substations                   

DISTRIBUTION  

Private firms owned by foreign investors dominate this segment. Large international companies operating in this market include Spanish firm Ibedrola and Italian company ENEL. This segment sees annual investment of around $4 billion per year, 69% of which is in expansion, 19% in improvement and 12% in renewal of distribution networks. The power distribution sector is undergoing a technological revolution with the introduction of energy storage associated with the growth of distributed generation, mainly solar, plans for electrification of the transportation sector, and the expansion of a deregulated electricity market.  

Grid connection queues in Brazil are offering new opportunities for energy storage and hybrid systems and opening new energy business models. Renewable energy companies are adding solar and batteries to their utility-scale wind power sites to use existing power transmission capacity.

Batteries are also making inroads into small-scale, distributed generation in response to connection shortages to the utility-run, low-voltage distribution network and to power failures in states including São Paulo. In addition, some businesses are adopting a “zero-grid” approach focusing on generation at the point of consumption without injection into the grid.  

Specific sector opportunities include:  

  • Data analytics  

  • Control and automation systems  

  • Data loggers and acquisition systems  

  • Monitoring/testing/inspection systems   

  • Remotely operated vehicles   

  • Digital power plants  

  • High efficiency turbines capable of integrating with renewable resources.   

  • Rehabilitation/repair/maintenance/upgrading services.  

  • Weather instruments and meteorological equipment   

  • Microgrid solutions   

  • Residential, commercial, and industrial energy efficiency solutions   

  • Energy storage  

  • Distributed energy resources management and control   

  • Transmission and distribution automation   

  • Enterprise grid management  

  • Cybersecurity and incident response solutions   

  • Customer engagement solutions   

  • Smart metering: smart grid software and analytical packages; advanced metering infrastructure   

  • Electric vehicle infrastructure   

  • Vehicle-to-grid technology 

  • Off-grid solutions 

  • PV + Storage 

  • Hybrid Systems 

  • Blockchain   

  • Technical and environmental consulting services 

  • Engineering services 

  • Data and weather analytics 

Resources 

Key Government Agencies and Associations:

  • Brazilian Energy Research Agency (EPE)
  • Brazilian Wind Power Association (ABEEOLICA) 
  • Brazilian Solar PV Association (ABSOLAR) 
  • Brazilian Association of Electric Power Distribution Companies (ABRADEE) 
  • Brazilian Association of Large Electric Power Transmission Companies (ABRATE) 
  • Brazilian Cogeneration Association (COGEN)
     

Major Trade Shows 

For additional information about Brazil’s electricity and renewable energy sectors, please contact: Igly Serafim, email: igly.serafim@trade.gov