Brazils wind energy industry, according to the Brazilian Wind Energy Association (Abeelica), now faces its most severe and prolonged crisis.
The sector, once a symbol of rapid growth, now struggles with technical, economic, and regulatory setbacks.The National Electric System Operator (ONS) has imposed frequent curtailments, forcing wind and solar plants to reduce output.
This measure, meant to stabilize the grid, has led to a 10% drop in wind generation in 2024, causing losses of R$1.6 billion for the sector.In Cear, a state where wind power makes up 46% of the energy mix, losses reached R$104 million.
Transmission infrastructure has failed to keep up with the rapid expansion of wind projects, especially in the Northeast.This bottleneck has left many new projects unable to connect to the grid, forcing companies to halt or cancel investments.
The number of new wind farms dropped from 123 in 2023 to 76 in 2024.Installed capacity growth slowed to 3.3 GW, a 31% decrease from the previous year.
Major manufacturers, including General Electric and AES, have closed factories or left the market, leading to job losses and a shrinking supply chain.Brazils Wind Power Sector Faces Deepest Crisis as Investment and Output Plunge.
(Photo Internet reproduction)Brazils Wind Sector Stalls Amid OversupplyThe rise of distributed solar generation, now at 36 GW and surpassing winds 33 GW, has added to the oversupply.
Weak demand growth has made it harder for wind projects to secure long-term contracts.Legal disputes over compensation for curtailed generation have mostly ended in losses for wind companies, further discouraging investment.
Regulatory uncertainty and shifts in U.S.
environmental policy have added to the sectors instability.The lack of clear rules on compensation and contract treatment has increased financial risk for developers.
Industry leaders argue that the government has not enforced laws that would guarantee fair compensation for curtailed output.Brazils wind sector had grown quickly from 2010 to 2022, but expansion outpaced grid upgrades and regulatory adaptation.
The August 2023 blackout exposed the grids fragility and led to stricter curtailment policies.The sectors future depends on urgent infrastructure upgrades, regulatory reform, and restored investor confidence.
Without these changes, new investments will remain on hold, and the industrys decline may continue.