The energy transition and renewable energy have ceased to be an environmental issue and have become a geopolitical, economic and technological priority.
The escalation of the climate crisis, the volatility of fossil fuel prices and the pressure for ESG targets make this issue central to strategic decisions around the world.
Brazil already has a structural advantage: a predominantly clean and renewable electricity grid. From north to south, sun, wind, water and biomass already power homes, businesses and large power plants.
However, there are still important challenges — and even greater opportunities — that need to be understood by those who work or want to invest in the sector.
In this article, you will understand what renewable energy is, what types are available in the country, the advantages and limitations of each, and why this is an increasingly strategic issue for governments, companies and consumers!
What is renewable energy?
Renewable energy is that generated from natural resources that regenerate in a short period of time and are continuously available in nature.
Sources such as sun, wind, water, biomass and the Earth's heat (geothermal energy) are considered renewable because they are not depleted by human use, unlike fossil fuels.
In addition to being more sustainable, these sources produce little or no greenhouse gas emissions, which contributes to reducing environmental impact and combating climate change.
In Brazil and around the world, solar and wind energy have been gaining more and more ground, driven by technological advances, incentive policies and the search for cleaner and more economical alternatives.
In 2023, global renewable energy capacity increased by 473 gigawatts (GW), ing for 86% of all new power generation capacity additions. This growth was led primarily by solar and wind power.
The data was released by the International Renewable Energy Agency (IRENA).
Renewable and non-renewable energy: what's the difference?
The main difference between renewable and non-renewable energy is the replenishment capacity of the resource used to generate electricity.
- Renewable energy comes from sources that regenerate naturally and quickly, such as the sun, wind and rivers. Its use is sustainable and causes less environmental impact. Examples: solar, wind, hydroelectric, biomass and geothermal energy.
- Non-renewable energy, on the other hand, is obtained from finite resources, such as oil, coal, natural gas and uranium. These inputs take millions of years to form and, once exhausted, cannot be replaced. In addition, their burning emits large volumes of pollutants.
Why is it important to use renewable energy? See 5 advantages!
The adoption of renewable sources goes far beyond a technical decision: it is a necessity in view of the climate, environmental and energy crises that the world is facing.
As demand for energy grows, investing in sustainable sources becomes essential to ensure a cleaner, safer and more affordable future.
Let's understand this.
1. Reduction of greenhouse gas emissions
The energy sector is responsible for around 73% of global greenhouse gas emissions, according to the Climate Change 2023 Synthesis Report.
This is mainly due to the burning of fossil fuels. By adopting renewable sources such as solar, wind and biomass, these impacts can be drastically reduced.
O IRENA’s World Energy Transitions Outlook report It also projects that the expansion of renewable energy, combined with energy efficiency, could reduce CO₂ emissions by up to 70% by 2050.
2. Long-term sustainability
Sources such as the sun and wind are naturally renewed, which guarantees long-term energy security, unlike fossil fuels that are subject to scarcity and geopolitical instability.
Furthermore, the International Energy Agency (IEA), based on the material Renewables 2023 — Analysis and forecast to 2028, points out that the cost of solar energy fell by more than 80% between 2010 and 2022, making it one of the most competitive forms of generation on the planet.
3. Diversification and stability of the electrical matrix
Brazil is a global reference in clean energy. According to the National Energy Balance 2023, 83,79% of the national electricity matrix comes from renewable sources, with emphasis on hydroelectric, wind and solar power.
4. Job creation and economic development
In 2022, the renewable energy sector employed 13,7 million people worldwide, with 4,9 million in solar energy alone, according to another IRENA report.
In Brazil, Brazilian Association of Photovoltaic Solar Energy (ABSOLAR) estimates that the solar sector has created more than 870 direct and indirect jobs since 2012 — and this number continues to grow with the advancement of distributed generation.
5. Alignment with global agreements and ESG
Investing in clean energy is in line with the Paris Agreement and the UN Sustainable Development Goals, especially SDG 7 – Affordable and Clean Energy.
Furthermore, companies that adopt sustainable practices stand out in ESG criteria, which facilitates access to investments, improves reputation and strengthens the brand. The renewable energy sector, in fact, is among the most promising in the global electricity industry.
O Energy & Utilities Strategy & Performance 2023 report showed that companies focused on clean sources presented an EV/EBITDA on average 19% higher than that of companies focused on generating energy from fossil sources, such as oil and natural gas.
What types of renewable energy are available in Brazil?
As mentioned, Brazil is one of the countries with the greatest potential for using renewable sources, thanks to its geography, climate and diversity of natural resources.
Below, we explain the main types and differences between renewable energies available in the national territory — some already widely used, others in the research or implementation phase.
Solar energy
Solar energy is obtained from sunlight, which can be converted directly into electricity using photovoltaic s. It is one of the fastest growing sources in the country, driven by distributed generation on rooftops and also by large solar plants.
In addition to being accessible and versatile, it can be applied in urban and rural areas, which means savings for homes, businesses and industries.
Hydropower
Present in a large part of the Brazilian electricity matrix, hydroelectric energy is generated by harnessing the power of water from rivers and reservoirs.
Large hydroelectric plants are the best known, but the country also has small hydroelectric plants (PCHs) and generating plants (CGHs), which have a smaller environmental impact and are used in more isolated regions.
Biomass energy
Biomass comes from the burning or fermentation of organic materials, such as sugarcane bagasse, wood and agro-industrial waste. It is widely used in the sugar and alcohol sector and in rural areas, with the potential to generate electricity and heat from by-products that would otherwise be discarded.
It is also an important source for the production of biofuels, such as ethanol and biodiesel.
wind energy
A wind energy is captured by wind turbines that transform the movement of the propellers into electricity.
Brazil has regions with excellent wind potential, especially in the Northeast, where the wind blows with intensity and regularity throughout almost the entire year.
It is a clean, silent and efficient source in the country.
Wave energy
This form of energy uses the movement of ocean waves to generate electricity. Although it is not yet widely used in Brazil, the potential is significant, especially in coastal regions.
Some pilot projects are being developed with a focus on innovation and small-scale use.
Geothermal energy
Geothermal energy is produced from the heat of the Earth's interior. In Brazil, there is still no large-scale exploration for electricity generation, but there are specific applications for heating environments and industrial processes, mainly in southern regions.
Hydrogen energy
So-called green hydrogen is produced with electricity generated by renewable sources, such as solar and wind.
It can be used as a clean fuel or stored for various uses in industry and transportation. Brazil has been moving to become a relevant player in this segment in the coming years.
tidal energy
Similar to the wave power source, this source uses the movement of the tides to generate electricity.
Because it depends on locations with large variations in sea level, it is still little explored here, but it is on the radar of researchers and experts in energy transition.
Biogas energy
Biogas arises from the decomposition of organic waste, such as urban waste, sewage and animal waste.
It can be transformed into electrical or thermal energy or biomethane — a renewable alternative to natural gas. It is a strategic option for treating waste and, at the same time, generating energy on rural properties, landfills and treatment plants.
What is the best renewable energy source?
The answer to this question depends on several factors and there is no single source that can be considered “the best” in all contexts. Each type of renewable energy has its own characteristics, specific advantages and technical, logistical or environmental challenges.
Therefore, choosing the best source must take into the project's objective, geographic location, consumption profile and technical and economic feasibility.
Solar energy: versatility and accelerated growth
Solar energy, for example, stands out for its ease of installation, wide availability and applicability on different scales — from small residential systems to large photovoltaic plants.
It is a silent source, with low environmental impact and ideal for distributed generation, especially in regions with high solar incidence, such as the Center-West and Northeast of Brazil.
It is considered by many to be the best alternative for those seeking energy autonomy, savings on their electricity bill and medium to long-term financial returns.
Wind energy: high yield in specific regions
Wind energy performs well in areas such as the northeastern coast and southern Brazil, where winds are strong and constant. Its efficiency is high, and wind turbines take up little space on the ground, allowing the land to be used simultaneously for agriculture and livestock farming.
On the other hand, it depends on rigorous studies of the region's wind potential and good planning for connection to the electricity grid.
Hydropower: consolidated basis of the matrix
Hydroelectric plants are the backbone of the Brazilian electricity grid. With high generation capacity and the possibility of storing energy via reservoirs, they ensure stability to the system. However, they also generate significant environmental and social impacts, especially in large-scale projects.
Today, smaller alternatives such as PCHs (Small Hydroelectric Power Plants) and CGHs (Hydroelectric Generating Plants) are more sustainable options in certain regions.
Biomass, biogas and hydrogen: strategic potential
Other sources, such as biomass and biogas, play a fundamental role in the decentralization of electricity generation, especially in rural areas and in agro-industrial sectors. Green hydrogen, on the other hand, is emerging as a promising solution for the decarbonization of industrial segments and mobility, although it still requires scale and investment.
So which one is better?
In practice, the best renewable energy source is the one that best suits the reality of the project and the location. In many cases, the combination of different sources — such as solar and biogas, or solar and battery — offers greater energy efficiency and security.
Rather than seeking a single solution, the ideal is to invest in a diversified, clean and intelligent energy matrix, capable of meeting present demands without compromising the future.
What are the main challenges facing renewable energy in Brazil?
The renewable energy sector in Brazil, despite its prominent global position, faces significant structural challenges to be overcome to ensure sustainable growth.
One of the main obstacles is insufficient electricity transmission infrastructure. The rapid growth of solar and wind power, especially in the Northeast, has not been accompanied by the expansion of transmission lines, resulting in significant financial losses.
In 2024, for example, estimated losses reached R$700 million for the wind sector and R$50 million for solar, according to Reuters data.
Another critical challenge is the intermittency of renewable sources. Since solar and wind generation depend directly on weather conditions, this compromises the stability of supply when there is no sun or wind.
The lack of large-scale storage systems exacerbates this limitation, making it difficult to safely integrate these sources into the national energy matrix. In addition, Brazil faces an urgent need to modernize its electricity grid.
Studies such as the one by Report of the Latin American Smart Grid Forum by 2024 indicate that investments of over R$350 billion will be needed to adapt the distribution and transmission infrastructure to the new demands of a more decentralized and digital system.
The shortage of skilled labor also limits the expansion of the sector. There is a lack of technicians, engineers and installers with adequate training to meet the growing demand.
On top of all this, there is still a regulatory environment with barriers for small and medium energy producers, making access to financing and the economic viability of new projects difficult.
And what are the opportunities for renewable energy in the country?
Despite these obstacles, Brazil presents extraordinary opportunities in the renewable energy sector.
The country has one of the greatest technical potentials in the world for sources such as solar, wind, hydro and biomass, with emphasis on photovoltaic solar generation.
The latter reached 54,8 GW of installed capacity in March 2025, representing around 22,2% of the national electricity matrix, according to the infographic ABSOLAR.
Another promising factor is job creation. According to IRENA, Brazil was the third country that created the most jobs in
renewable energy in 2023, with especially strong growth in the biofuels, solar and hydropower sectors.
Furthermore, there is a growing movement of technological innovation in the country, with advances in storage batteries, hybrid systems and digital solutions that increase the efficiency and reliability of clean sources.
Initiatives such as the “Nova Indústria Brasil” program and the “National Green Mobility and Innovation Program (MOVER)” aim to encourage the local production of sustainable technologies and the transition to a low-carbon economy.
Combined, these public policies expand the space for investments, international partnerships and socioeconomic development in regions that are still not very industrialized.
Brazil has all the conditions to be a protagonist in the global energy transition, but it needs to face its structural bottlenecks with integrated policies, consistent investments and technical qualification.
Conclusion
The advancement of renewable sources in Brazil is an ongoing transformation that is redefining the way we produce, consume and relate to energy.
The abundance of natural resources, accessible technology and an expanding market are three elements that make the country capable of being part of the global energy transition in a good position.
Solar, wind, hydro, biomass and many other renewable energy sources represent concrete opportunities to reduce environmental impacts and democratize access to clean energy.
But for this future to become a reality, it is necessary to continue investing in information, professional training, public policies and innovation.
Whether you are a professional in the sector, an investor, a small entrepreneur or a consumer interested in sustainability, understanding the role and potential of renewable energy is the first step to being part of this revolution.
If you want to continue learning about how renewable energy can transform and understand more about each type, start now by reading our Complete Consumer Guide: Everything You Need to Know About Solar Energy!
