A energy transition is a process of global change in search of more sustainable energy sources with low carbon emissions. It is a gradual and inevitable journey. Currently, in Brazil, this debate goes beyond international climate goals, presenting itself as a structural challenge to consolidate the country as a protagonist in the production of clean energy. Although Brazil has more than 199,3 GW of installed capacity in renewable energy, according to data from the National Electric Energy Agency (ANEEL), the success of this transition depends on the ability to transport the energy generated, especially in the Northeast, to large consumption centers.
Transmission infrastructure is essential to connect clean energy to consumers, enabling the green economy. According to the ANEEL, renewable energy currently s for 84% of all energy generated in the country, with wind and solar energy standing out in the Northeast and North regions. However, these producing areas face challenges in distributing energy to high-demand regions, such as the Southeast and Midwest.
The National Electric System Operator (ONS) warns that the expansion of energy transmission in Brazil has not kept pace with the accelerated growth of renewable energy generation, creating a bottleneck for the use of these sources. To reduce this gap, the ANEEL has been holding auctions to expand the transmission network. Between June 2023 and April 2024, around 17 thousand kilometers of new lines were approved, with investments of 54,9 billion reais and the generation of more than 100 thousand jobs. In September 2024, a new auction guaranteed 3,35 billion reais in investments and the construction of an additional 780 km of lines, benefiting states such as Santa Catarina, Paraná, Minas Gerais, Espírito Santo, São Paulo and Bahia.
Given the infrastructure deficit that Brazil will face by 2030, the country is beginning to adopt innovations such as battery storage to overcome structural challenges and optimize the use of renewable energy. Recently, the Ministry of Mines and Energy proposed regulations that encourage this technology, allowing energy generated at times of low demand to be stored for use at peak times, increasing efficiency and ing the achievement of the net-zero emissions goal. In addition, storage and predictability are essential to optimize intermittent renewable energy sources, reduce waste and maximize competitiveness in the energy market.
The future of renewable infrastructure in Brazil
The implementation of these projects will follow a long-term schedule, with the expectation that the new lines will be operational by 2030. During this period, Brazil will continue to advance in the expansion of infrastructure to optimize the generation and use of renewable energy. In 2023, restrictions on the production of solar and wind energy caused losses estimated at more than 1 billion reais, highlighting the importance of investments in the transmission network. The National Bank for Economic and Social Development (BNDES) estimates that around 249 billion reais per year will be needed to the country's energy transition and ensure an increasingly robust and sustainable system.
The energy sector, responsible for more than 70% of global CO₂ emissions, has a direct impact on decarbonization goals, especially in countries like Brazil, which seeks to play a leading role in the climate agenda. To lead the global energy transition, Brazil will need to invest more than US$1,3 trillion by 2050 in low-carbon technologies, with at least US$500 billion earmarked for renewable energy, according to the BloombergNEF.
With a vast territorial extension and abundant natural resources, Brazil has all the attributes to lead this transformation. However, this requires a continued commitment to expanding transmission infrastructure and technological innovation. According to the global coalition of leaders Energy Transitions Commission, the goal of net zero emissions by 2050 will require annual investments of 1,1 trillion dollars in transmission and distribution networks globally, highlighting the importance of a resilient and adaptable electricity system to sustain the energy transition.
With advances in infrastructure and the integration of innovative technologies, Brazil is well-positioned to become a global leader in the energy transition. However, achieving this goal requires a strategic and consistent focus on expanding the transmission grid, decentralized generation, and energy storage. If the country continues to drive these projects and foster a favorable regulatory environment, it will not only optimize the use of its natural resources, but also ensure a more sustainable future for future generations. The opportunity is within reach, and with the right vision, Brazil can become the engine of an exemplary energy transition in Latin America and the world.
The opinions and information expressed are the sole responsibility of the author and do not necessarily represent the official position of the author. Canal Solar.
