NEWS

Brazil Solar Power Projects to Increase in Upcoming Years

10/02/2024

Brazil is set to increase its renewable energy plants by 2024 and continue to do so for the few upcoming years. This progressive expansion will receive financial support ($2.32 billion) for utilizing transmission and distribution systems. This is more (by $0.17 billion) than what was budgeted for the “CCC” fund, which subsidizes fossil fuels for energy generation in isolated areas.

Both the “CCC” and solar projects are funded through the Energy Development Account (CDE). This account is financed by a tariff charge on Brazilians’ electricity bills, meaning that taxpayers ultimately bear the cost of these subsidies.

A significant number of solar and wind power plants, totalling 142 gigawatts, were approved by Aneel between 2022 and 2023. The incentives for wind and solar energy were introduced to facilitate the integration into the Brazilian energy system. The increase of renewable energy generation is anticipated to contribute to a more substantial supply of energy, leading to lower prices.