This expansion has boosted Brazil's overall generating capacity to nearly 204 GW, with renewable sources accounting for 171.8 GW, according to the report titled “Brazil Operational Renewables”. Key contributors to this growth include the onshore wind and centralised solar PV sectors, which together added over 18.5 GW of new capacity.

The states of Bahia, Rio Grande do Norte, and Minas Gerais led the charge, each incorporating over 3 GW of new capacity, predominantly from wind and solar projects, the report finds. The northeastern states of Piauí and Pernambuco also made contributions with combined additions of 3.7 GW from wind and solar sources, according to the report.

The report sheds light on Brazil's long-standing energy diversification policies, which have facilitated the growth of the power sector. The awarding of multiple long-term power purchase agreements (PPAs) in both the Regulated Contracting Environment (ACR) and the Free Contracting Environment (ACL) has further stimulated this expansion.

“The onshore wind and solar PV industries have greatly benefitted from a long-lasting national energy diversification policy aimed to redistribute some of the traditional role of preponderance of the hydropower sector by, for instance, subsidising costs associated to the installation of onshore wind farms and solar photovoltaic parks in the country” the report states.

Despite the progress in renewable energy, hydropower remains the dominant force in Brazil's electric grid. However, the country continues to rely on conventional power sources for stability during periods of water shortage and peak demand, according to the report.

The EIC report also pointed to the ongoing regulatory developments, such as the National Low Carbon Hydrogen Policy and potential future investments in offshore wind projects, which could drive further growth and innovation in Brazil's renewable energy landscape.

“The rapid growth in Brazil's renewable energy capacity is a telltale of the country's commitment to diversifying its energy mix and reducing its reliance on hydropower” said Lucas Ramos, EIC Energy Analyst O&G, Americas. “Our findings show that strategic investments and supportive policies have been pivotal in accelerating the development of renewables sector.”