Forecast on offshore wind business in Brazil : World Bank

By Editor

Share

Brazil’s offshore wind energy potential, estimated at over 1,200 GW, presents a significant opportunity for the country’s future energy landscape.

According to a World Bank Group study, this potential includes 480 GW from fixed foundations and 748 GW from floating foundations, strategically located near demand centers. This positions offshore wind as a crucial component of Brazil’s energy strategy.

The report, developed with the World Bank, Brazil’s Ministry of Mines and Energy (MME), and the Energy Research Office (EPE), outlines three growth scenarios for offshore wind in Brazil by 2050:

# Base Case: 16 GW, representing 3 percent of Brazil’s generation capacity.

# Intermediate: 32 GW, accounting for 6 percent of total generation capacity.

# Ambitious: 96 GW, comprising nearly 20 percent of the generation mix.

Offshore wind development in Brazil could complement hydroelectric power, mitigate interannual variability, and support green hydrogen targets. Under the Ambitious scenario, it could create up to 516,000 jobs and contribute $168 billion to the national economy. Aligning resources with demand centers could reduce transmission losses and improve local electricity generation.

However, the report identifies several challenges:

# High initial costs requiring concessional finance.

# Complex financing and procurement processes.

# Need for transmission upgrades and grid flexibility.

# Environmental and social considerations requiring careful planning.

# Necessary upgrades to regional ports, logistics infrastructure, and the offshore wind supply chain.

Strategic planning, collaboration, and targeted investments are essential to overcoming these obstacles and realizing the potential of offshore wind energy in Brazil. Santiago Blanco of DNV highlighted the importance of balancing energy demands, climate goals, and economic growth. Tchiarles Coutinho Hilbig emphasized the need for swift action from policymakers and stakeholders to capitalize on current interest and maintain investor confidence.

This report is part of a series of offshore wind roadmap studies by the World Bank Group’s Offshore Wind Development Program, supported by the Energy Sector Management Assistance Program (ESMAP) and the International Finance Corporation, executed by DNV, and partnered with Vieira Rezende Advogados and Magalhaes Reis Figueiro Advogados.

Latest News

Related