Solar soars and fossil fuels plummet in just one year

Data are part of the Electric Energy Statistical Yearbook, a study published and updated by EPE every year
Solar soars and fossil fuels plummet in just one year
Centralized solar energy generation plant. Photo: MME/Disclosure

A capacity installed quality electricity generation in Brazil were expanded between 2022 and 2023, with emphasis on solar energy, according to data of the new edition of Electrical Energy Statistical Yearbook, published by EPE (Energy Research Company). 

According to the study, despite the largest contribution in the period coming from hydroelectric plants (45,7%), greater proportional expansion occurred in the solar source, which closed 2023 with a increase in installed power of 54,8% compared to the previous year, totaling a expansion of 13,4 GW. 

With regard to the generated electricity, Brazil produced, last year, around 708 TWh, a growth of 4,6% between 2022 and 2023.

During this period, the prominent movements went to drop in thermal generation from natural gas (-7,9%) and petroleum derivatives (-19,3%), which occurred due to the stability of the water regime, and the increased solar generation (+ 68,1%) and wind (+ 17,4%).

Fall of the captive market 

The study also highlights that the captive market, which (historically) has always been superior to the free contracting environment, comes losing ground over the last few years.

As a result of opening of the Free Energy Market for all Group A consumers (high voltage) in January this year, the tendency is that the next edition of the EPE yearbook – which will be released in 2025, with data from 2024 – will reveal a scenario with a further drop in the captive market

In relation to consumer classes, industrial sector Brazilian continued to be the biggest energy consumer, with 35,4% of the total, followed by the residential sector, with 31%. Per regions, Southeast is the one who had the greater share in energy consumption (48% of the total). 

As to greenhouse gas emissions from electrical generation in Brazil, the mapping shows that there was reduction of 6% in the last year. 

The 38,9 million tons of CO₂ issued in 2023, around 51,4% came from self-producers; 42,9% of generation in the SIN (National Interconnected System) and 5,7% associated with isolated systems.

Energy tariffs 

O EPE survey also highlighted some points related to the evolution of average tariffs in the regulated market, which increased by around 1,1% between 2022 and 2023, which indicated a slowdown in the growth observed between 2021 and 2022 (+5,7%). 

A highest rate lifting was observed in the North region (+7,9%) and the lowest in Southern, which presented a 2,3% reduction in the average value of its consumers' electricity bill.

Finally, the report also highlighted that higher lift rate of the average tariff was recorded for rural consumers (+ 4,3%) between 2022 and 2023, while the “Public Lighting” class showed a decrease of 3,2%.

Access complete study from EPE, clicking aqui.

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Photo by Henrique Hein
Henrique Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

Answers of 2

  1. I just hope the government doesn't come and mess up what's working, every time that happens it becomes a mess, the Gurgel cars? The government let it go bankrupt, imagine if it had ed it.

  2. Congratulations on the report. Many of us Brazilians want to have our own plant and generate our own energy; but unfortunately for some reasons we cannot make this happen.

    What we know is: For more than 18 years in Europe and the United States, customers have been allowed to choose to buy or be part of a company X or Y that generates its own energy.

    Here in Brazil it took a long time, but fortunately or unfortunately for some, a Law was signed in 2022 that allows us to be part of a plant sharing its credits through companies; This is called Energy Transition; Now January 2024 has opened the long-awaited Free Energy Market. That's right.

    It's been going on for almost 2 years now. You, me, we can be part of this movement, just like what happened with the telephone market in 1990.
    I acquired my License (Franchise) and today I have the opportunity to have my own renewable energy without having to purchase plates or install any equipment.

    If you are interested in learning about our project, just call me on Watts 51984863327

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