The World Bank Group released a study on “Scenarios for Offshore Wind Development in Brazil” conducted by DNV, the global independent energy expert and assurance provider. This report is one of a series of offshore wind roadmap studies commissioned by the World Bank Group (WBG) under its Offshore Wind Development Program, 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 America and Caribbean 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 centers, 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, active in Brazil. The findings emphasize 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 USD 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.