The global champ of renewable energy

The green monster

The green energy matrix of Brazil is a rapidly evolving and diverse mix of renewable energy sources that are being utilized to power the country. Brazil has long been a leader in renewable energy, with a strong focus on hydroelectric power. In recent years, however, the country has made significant strides in expanding its use of other renewable energy sources, including wind, solar, and biomass.

One of the key drivers of Brazil's green energy matrix is the abundance of natural resources that the country possesses. Brazil is home to vast hydroelectric potential, with the majority of its electricity being generated by hydroelectric dams. In addition to hydroelectric power, Brazil is also making significant investments in wind and solar energy. The country has a number of large-scale wind and solar farms, and is also promoting the use of distributed solar energy through programs like net metering.

Accelerating

The development in recent years, regardless of any current government, has meant that since the beginning of 2023, solar energy has overtaken wind energy and now occupies second place in the national energy matrix, after hydropower. As a result, solar power contributes 11.2% of the national energy supply. Generation from wind power is now at 11.1%. Hydro energy continues to rank first with 51.3%. Gas takes fourth place with 8.2%, followed by biomass with 7.8%, diesel (4%), coal (1.7%) and nuclear with just 0.9%. The national fully integrated distribution network contributes to efficient distribution of energy.

Adding the mobility sector with the significant share of ethanol as an energy source, Brazil currently generates 84.6% of its total energy from renewable sources.

The comparison with other world regions shows its position as a champion. The USA obtains 18% from renewable energy, Europe 40%, China 26% and India 17%. The global average is 25.9%. All the above figures come from the IEA, as of January 2022, before the outbreak of war in Europe.

Taking forest into account

The whole factor of native forest should be seen in the same context. In total, 65% of Brazil's total national area is forested, of which 92% are native forests. The comparison with Europe shows the dramatic situation on the old continent.

Europe has 35% forest area, according to the 2021 UN Forest Report, of which ⅔ is in Finland. The total share of European native forest land is 0.7% distributed among 32 nations. Europe urgently needs a functioning forest and native nature conservation, as well as reforestation with resilient native forests.

Tax incentives, agro business and biomass

Another important factor in Brazil's green energy matrix is the country's commitment to sustainability and reducing its carbon footprint. Brazil has ambitious goals for reducing its greenhouse gas emissions, and has implemented a number of policies and initiatives to support the growth of renewable energy. This includes tax incentives for renewable energy projects, as well as the establishment of renewable energy targets for utilities.

One of the most promising areas of growth in Brazil's green energy matrix is in biomass. Brazil has a large agricultural sector, and the country is working to harness the potential of bioenergy by using waste products from the agriculture and forestry industries as feedstocks for bioenergy production. This includes the use of sugarcane waste, called bagasse, to generate electricity, as well as the use of wood waste and agricultural residues for the production of biofuels.

Overall, Brazil's green energy matrix is a diverse and rapidly evolving mix of renewable energy sources that are helping to power the country in a sustainable and environmentally-friendly way. As the country continues to invest in and develop its renewable energy resources, it is well positioned to play a leading role in the global transition to a low-carbon economy.

Comparative and strategic advantage

The expansion of renewable energy, which has been ongoing for decades, is consensus in Brazil and not part of an "ideological war." Renewable energy is a positive comparative economic factor of the nation and positions the country in the Champions League for sustainable production.

Unfortunately, this factor is overlooked by very many companies and not incorporated into the strategic scenario of a global strategy.