Brazil climbs four places in renewable energy attractiveness ranking

RIO DE JANEIRO, BRAZIL – Brazil rose four positions in the ranking of a publication that measures the attractiveness for renewable energy investments and is now 11th, the best placed in Latin America, pointed out consulting and auditing company EY.

The United States remains in 1st place, followed by China and India, which moved from 6th to 3rd, according to the 57th edition of the Renewable Energy Country Attractiveness Index (RECAI).

Ahead of Brazil are countries like the United Kingdom (4th), France (5th), Australia (6th), and Germany (7th), in a market that last year recorded investments of over US$300 billion in new renewable energy capacity.

EY cited that Brazil is progressing with plans to regulate the offshore wind energy market. “Currently, Brazil has no turbines on its 5,000 miles of Atlantic coastline, but a new bill was proposed in Congress in February, and if passed, will open up the sector,” the consulting firm said.

According to EY, the offshore wind energy sector in Brazil could “see strong growth” also because of the country’s wind speed, suitable for the source.

The company cited that Equinor and Iberdrola have already sought licenses for 4 GW and 9 GW generators, respectively. Total and Enauta have also expressed interest, according to EY.

In addition to measuring the attractiveness of investments in renewable energy, RECAI also reflects implementation opportunities at a time when environmental, sustainability, and governance goals are increasingly present on investors’ agendas.

About the ranking leaders, the publication cited that under President Joe Biden, the U.S. is ushering in a “new era” of energy policies to shift the nation further away from fossil fuels, starting with the reactivation of the Paris Agreement. Biden further pledged that the U.S. will cut greenhouse gas emissions by up to 52% by 2030, based on 2005 levels.

EY also cited investments in offshore wind power in the U.S., and the rapid growth of the source also underway in China. The publication said China added an “impressive” 72.4 GW of new wind power in 2020, including 48 GW in December alone, as developers raced ahead of the subsidy cut for onshore wind power.

China will no longer approve subsidized onshore wind projects after 2020, and installed 3 GW in offshore wind power capacity last year, accounting for about half of global new capacity, with the country leading the way in these new projects for the third consecutive year.