Wind Energy in Brazil: Present Trends and Future Scenarios

Abstract

Wind energy is becoming one of the main energy sources of the Brazilian Power Sector. The installed capacity increased from 247,00 MW in 2007 to 15.378,85 MW in 2019. This paper aims to examine the current scenario and the perspectives for wind energy in the country, based on an analysis of the institutional framework that developed the wind power sector in Brazil. In order to do this, this study carries out an analysis on two mechanisms that fostered this sector in Brazil: The Incentive Program for Alternative Energy Sources and the Auction of Alternative Sources, based on official data, legislation and specialized literature. The Incentive Program for Alternative Energy Sources enabled the acquisition of many wind farms, as it introduced local content rules. In addition, due to the prices that resulted from generation auctions in recent years, the extreme competitiveness of wind energy in Brazil becomes evident.