Brazil's wind energy sector will slow in 2024 and then resume growth in 2027

The Brazilian wind energy sector is expected to continue declining until 2027, according to the local association ABEEolica.

Why it's important

In recent years, Brazil's renewable power supply has soared thanks to government subsidies and incentives. However, demand for the power did not grow as fast and there is an oversupply in the wind energy sector, which is exacerbated by high costs.

ABEEolica predicts a recovery of the industry in 2027, fueled by accelerated expansion of Brazil's electrical load. This will be boosted through stronger economic growth, and new demand drivers such as data centers and green hydrogen industries.

By the Numbers

ABEEolica reported that Brazil will install 76 new wind turbine farms in 2024, with a capacity totaling 3.3 gigawatts. This is down from 123 farms of 4.8 GW the year before.

This was the biggest slowdown since 2018/2019 when certain power auctions had to be canceled.

KEY QUOTES

Elbia Gannoum, ABEEolica's head, said that the results reflect the sector’s decision to scale back the launch of new project, and added that 2025 will also be challenging.

Gannoum stated that "the demand crisis and decreased installations will continue." But starting in 2027 with the economic growth and lower incentives for solar energy, data centers, artificial intelligence. "We need to be ready." We need to be prepared."

(source: Reuters)