In 1979, Brazil's first hydropower plant was inaugurated in the state of Minas Gerais. Since then, the South American country went on to become one of the
. Nevertheless, in line with global trends, solar and wind power have been gaining traction in Brazil’s electricity sector.
A historical dependence on hydropower
Brazil is the
largest electricity producer in Latin America, with more than 677 terawatt-hours generated in 2022 – almost double that of runner-up Mexico. For several years now, approximately 80 percent of the electricity generation in the country
originated from renewable sources, making the Brazilian electricity industry one of the cleanest in the world.
The sector’s relative independence from fossil fuels stems from the resourceful use of Brazil’s abundant water resources. In fact, hydropower accounted for roughly two thirds of the
national electricity generation in 2022. The Itaipu Dam, a binational investment located on the border between Brazil and Paraguay, is the second
largest hydroelectric dam in the world based on generation capacity, only behind the Three Gorges Dam in China.
Diversification of the electricity matrix
Despite historically relying on hydropower plants to supply its energy demand, Brazil’s electricity matrix has been shifting in recent years. With its large hydropower potential already mostly exploited, in combination with growing concerns about the social and environmental impacts of dam construction, the country has started to focus investments in solar and wind power. Out of the almost 140 gigawatts of
additions to the generation capacity already approved as of August 2023, only one percent referred to hydropower. Meanwhile, solar and wind plants combined accounted for 96 percent of authorized additions. By 2027, these two sources are expected to make up roughly 22 percent of
Brazil’s electricity capacity.
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