Brazil has established itself as a leading renewable energy producer in South America while maintaining significant fossil fuel operations. As of 2025, roughly half of the country’s energy came from renewable sources including solar, wind, and bioenergy, with energy-related emissions representing less than 20 percent of total greenhouse gas emissions compared to a global average of 75 percent.
Recent capacity additions underscore the nation’s renewable energy momentum. In August, approximately 1.68 GW of solar, wind, and thermal capacity was added to the grid through 20 new facilities, including 15 solar plants, three thermal power plants, and two wind parks. Year-to-date additions in 2026 reached 4.85 GW, with solar accounting for 3.5 GW. Brazil’s total installed generation capacity now stands at 221 GW, with nearly 85 percent derived from renewable sources.
International financial institutions and foreign investors have supported Brazil’s energy transition. The World Bank approved a $500 million loan in May as part of a broader $968 million financing package targeting low-carbon industrial development and renewable energy expansion in Brazil’s northeastern region. The New Development Bank financed a 648-MW wind complex completed in October 2025. Chinese companies have also increased involvement, with State Grid Corporation undertaking a 1,468-km ultra-high voltage transmission project representing the largest electricity transmission investment in Brazilian history.
Business leaders are advocating for continued green energy commitment ahead of October elections. The Brazilian Business Council for Sustainable Development, representing 11 major business groups, issued a letter to presidential candidates emphasizing Brazil’s competitive advantages in clean energy, biofuels, biodiversity, and productive soil. The organization framed sustainable development as an economic opportunity rather than a constraint. Both leading candidates—incumbent President Luiz Inácio Lula da Silva and Senator Flávio Bolsonaro—support energy expansion including renewables, though they differ on fossil fuel priorities. Lula has directed preparation of an energy transition resolution and proposed an Energy Transition Fund financed through oil and gas revenues.
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