The report is one of a series of offshore wind roadmap studies commissioned by the World Bank Group (WBG) under its Offshore Wind Development Programme, funded and led by the Energy Sector Management Assistance Program (ESMAP), in partnership with the International Finance Corporation. The study upon which the World Bank's Latin Energy and Extractives Practice developed the report was executed by DNV and written in partnership with Vieira Rezende Advogados and Magalhães Reis Figueiró Advogados.
Brazil's offshore wind energy potential exceeds 1,200 GW, with 480 GW from fixed foundations and 748 GW from floating foundations. This abundant resource, strategically located near demand centres, positions offshore wind as a pivotal player in Brazil's future energy landscape.
The report, prepared in collaboration with the World Bank, Brazil's Ministry of Mines and Energy (MME), and the Energy Research Office (EPE), provides a thorough analysis for policymakers and stakeholders. Its findings emphasise the need for a clear energy strategy, significant infrastructure investment, and prompt action to harness the growing interest in offshore wind in Brazil
The report provides a vision for a future under three different Growth Scenarios:
Base Case: 16 GW by 2050, representing 3% of Brazil's generation capacity.
Intermediate: 32 GW by 2050, accounting for 6% of the total generation capacity.
Ambitious: 96 GW by 2050, comprising nearly 20% of the generation mix.
Offshore wind development in Brazil offers a promising complement to hydroelectric power, reducing interannual variability and providing a buffer during dry periods. It also supports Brazil's green hydrogen targets and can drive economic growth and job creation, potentially generating up to 516,000 full-time equivalent jobs and contributing $168 billion in national gross value added under the Ambitious scenario. Additionally, it can streamline local electricity generation, reducing transmission losses by aligning resources with demand centers, including major cities.
However, several challenges exist, including high initial costs that require concessional finance and strategic seabed rights allocation. Despite projections of significant long-term cost reductions, financing and procurement complexities remain. Substantial investments are also needed for transmission upgrades and grid flexibility to integrate offshore wind effectively. Environmental and social considerations further complicate development, necessitating meticulous planning and community consultations. Upgrading regional ports, logistics infrastructure, and the offshore wind supply chain to support larger turbine production adds to the overall costs.
Strategic planning, collaboration, and targeted investments can help overcome these obstacles and unlock the full potential of offshore wind energy in Brazil's renewable energy transition.
“This report highlights the immense potential of offshore wind in Brazil and provides guidelines for its development” said Santiago Blanco, Executive Vice-President and Regional Director for Latin America, Energy Systems at DNV. “The country's choice to embrace offshore wind power hinges on balancing energy demands, climate goals, and economic growth. Our research offers insights, not directives, outlining the challenges and opportunities to inform strategic decisions.”
The success of Brazil's offshore wind sector depends on establishing a long-term energy strategy, as emphasised in the World Bank Group's report on “Key Factors for Successful Development of Offshore Wind in Emerging Markets”. The chosen path will shape the role of wind power in Brazil's future, from a marginal role under the Base Case to significant economic transformation in the Ambitious scenario.
“The report comes at a pivotal moment, anticipating regulatory approval for offshore wind in the country” added Tchiarles Coutinho Hilbig, Market Area Manager for South America. “It provides valuable insights on technological, environmental, economic, and policy factors influencing the sector's growth. Using DNV's advanced design models with real data on resources, site conditions, and key projects, it’ll equip stakeholders to make informed decisions and strategies for sustainable industry expansion.”
Whatever course policymakers and stakeholders choose to chart, they must act swiftly to capitalise on current interest, particularly amid waning investor enthusiasm for emerging markets. Updates in transmission networks, port infrastructure, and manufacturing capabilities, along with Environmental & Social sensitivity mapping – all prerequisites for offshore wind development –, have lengthy timelines. Providing a clear market entry pathway, including seabed exclusivity and offtake arrangements in initial offshore wind auctions, is essential.
For additional information:
