With the global shift towards cleaner energy, Brazil’s extensive coastline offers a prime opportunity for offshore wind farms, which could significantly contribute to the country’s energy transition, says a recent report from the World Bank, “Scenarios for Offshore Wind Development in Brazil.” However, the resport notes there are challenges to overcome before Brazil can fulfill its potential for offshore wind development.
The report presents different scenarios for the growth of offshore wind in Brazil, projecting what might happen by 2035 and 2050. Stressing the need for major infrastructure investments, regulatory frameworks, and technology to support these projects, the report examines the technical potential of various coastal regions in Brazil. It considers factors such as wind speed, proximity to energy demand centers and the potential impact on the environment.
While Brazil has great potential for offshore wind, the report concludes the cost of producing it remains higher than other sources. This is partly because offshore wind technology is still new in Brazil and setting up the necessary infrastructure requires significant upfront costs. The report suggests that with adequate policy support — such as financial incentives and easier processing of permits — offshore wind could become a competitive and sustainable energy source for the country.
The report says that:
In Brazil, the initial cost of financing may be higher due to the risks associated with first-of-a-kind risks projects. Therefore, the involvement of BNDES [Banco Nacional de Desenvolvimento Econômico e Social or Brazil’s National Bank for Economic and Social Development] and other sources of concessional financing for emerging markets will be key to help reduce overall financing costs, reduce tariffs, and create market precedents.
“Scenarios for Offshore Wind Development in Brazil”. Report, International Bank for Reconstruction and Development/The World Bank, July 19, 2024.
Looking at the environmental and social aspects of developing offshore wind, the report underscores the importance of choosing sites carefully and involving stakeholders to minimize impact on marine life and coastal communities:
Offshore wind development during pre-construction and construction phases can cause displacement, cause habitat changes, and pose a threat to marine and surrounding biodiversity due to noise and disturbances, as well as reduced water quality. During operational phase, the main potential impacts are the presence of turbines and related structures, which can disturb marine species and avifauna.
“Scenarios for Offshore Wind Development in Brazil”. Report, International Bank for Reconstruction and Development/The World Bank, July 19, 2024.
The report calls for collaborative effort between the Brazilian government, the private sector, and international partners to help seize the opportunities that offshore wind energy presents for Brazil as the country works to diversify its energy sources and reduce its carbon footprint.
Read the full report originally published by The World Bank on July 19, 2024.
