Brazil Electric Power Sector Report 2025-2026

In 2023, Brazil's electric energy sector recorded an installed capacity of 225.2 GW, reflecting a 9.6% y/y increase from 205.5 GW in 2022, marking the largest single-year expansion since the EPE's inception in 2004. Renewable energy sources strengthened their dominant position, accounting for 89.2% of total capacity, up from 79.6% in 2022. The wind and solar segments were the primary drivers, adding 4.9 GW and 13.4 GW, respectively, compared to a combined 13.5 GW added in 2022. In 2023, solar capacity continued its rapid expansion, surging by 57.3% y/y, reinforcing its position as the second-largest energy source in Brazil's installed capacity mix. Meanwhile, hydropower capacity, while still the largest contributor, saw its share decline to 49% in 2023, from 53.4% in 2022, reflecting Brazil's ongoing diversification strategy. Electricity tariffs continued to rise, driven by inflationary pressures, fuel price volatility and increased reliance on thermal plants during dry periods. In 2023, the average tariff of residential electricity rose by an average of 0.5% y/y, following a 4.2% increase in 2022. These cost increases impacted household energy expenditures and contributed to the migration towards distributed generation, particularly solar, as consumers sought energy cost reductions. Additionally, free market participation continued to expand, with an increasing number of large commercial and industrial consumers opting for ACL contracts, benefiting from more competitive pricing and long-term contract flexibility. The policy environment remained supportive, with initiatives such as the New Growth Acceleration Programme (Novo PAC) and Ten-Year Energy Expansion Plan (PDE 2034) providing a roadmap for future investments. While tariff increases and hydrological risks posed challenges, the sector's resilience was evident in its continued diversification and expansion, reinforcing Brazil's position as one of the world's largest renewable energy markets.

This report provides a complete and detailed analysis of the "Energy and utilities" sector for Brazil. EMIS Insights presents in-depth business intelligence in a standard format across countries and regions, providing a balanced mix between analysis and data.

What this report allows you to do:

• Understand the key elements at play in the "Energy and utilities" sector in Brazil
• Crystallise the forces both driving and restraining this sector in Brazil
• Ascertain Brazil’s position in the global sector
• Build a complete perspective on sector trade, investment and employment
• Understand the competitive landscape and who the major players are
• View M&A activity and major deals
• Gain an understanding of the regulatory environment for the sector in Brazil.
• Build a clear picture of trends, output and consumption for specific sub-sectors