Brazil is preparing for its first offshore wind projects following the approval of legislation that establishes a regulatory framework for investments in the sector.
Industry leaders anticipate that this legal foundation will accelerate development, with the first auction for offshore wind areas expected soon.
The move comes as Brazil seeks to leverage its vast wind resources and address slowing growth in its onshore wind sector.
"The offshore wind law was approved at the right moment," said Elbia Gannoum, president of Brazilian wind association Abeeolica. "Brazil has one of the largest wind generation potentials, and without this law, the country risked missing investment opportunities."
The new legislation comes as onshore wind expansion slows. After nearly 5GW of new wind capacity was added in 2023, investment declined, with capacity expanding by just 3.3GW last year, according to Abeeolica. A lack of demand from power distributors in energy auctions and an oversupply of power generation capacity have contributed to the slowdown. With limited demand for new projects, equipment suppliers have scaled back operations, and in some cases, suspended activities in Brazil.
With the offshore wind law in place, the sector is optimistic that the government will hold its first auction for offshore wind areas this year or in early 2026. Awarding these areas would pave the way for Brazil's first offshore wind projects to begin operations by 2031 or 2032. Before the auction, the government must finalize regulations for the sector, which Gannoum expects will be complete this year.
Companies have already begun preparing for the auction, conducting assessments of wind speeds, power transmission infrastructure and supply chains, according to Ricardo de Luca, Brazil country director for UK offshore wind developer Corio Generation. Once the areas are awarded, project development could take up to four years, followed by an auction for power purchase agreements in 2028, de Luca estimates. Corio plans to develop five offshore wind projects in Brazil, totaling 5GW of installed capacity.
Wind developers warn that Brazil must also prepare its power transmission infrastructure for future offshore wind projects. "Even though areas haven't been awarded, the mines and energy ministry must start planning transmission infrastructure in regions with significant offshore wind potential," said Fernando Elias, regulatory director at Casa dos Ventos. "Without long-term planning, infrastructure bottlenecks could prevent projects from moving forward."
While transmission constraints could pose challenges, Brazil has an advantage in developing offshore wind thanks to its established offshore oil and gas industry, said Renato Machado dos Santos, regional director of renewable energy at RES. "There is significant overlap in the supply chains for offshore wind and oil, which will not only accelerate investment but also make Brazil a more attractive destination for investors."
Opportunities ahead?
Despite potential hurdles, offshore wind developers remain cautiously optimistic.
US president Donald Trump's 20 January executive order suspending offshore wind leasing and permitting could shift more investor interest toward Brazil.
"Trump's policies have redirected attention to Brazil," de Luca said, adding that the Brazilian government has demonstrated a long-term commitment to renewable energy development.
Beyond the offshore wind law, other recent legislation is expected to bolster demand for power from future offshore wind projects. This includes the approval of the low-carbon hydrogen law, which will drive demand for green fertilizer production.
Additionally, the expansion of data centers for artificial intelligence and growing electricity demand from electric vehicle adoption will contribute to future power consumption in Brazil, a share of which will come from offshore wind projects, Gannoum said.
