Rio de Janeiro is emerging as a key player in Brazil’s energy transition, establishing itself as a hub of innovation and investment in clean and renewable sources. The city, known for its natural beauty, now stands out for initiatives aimed at a more sustainable future, boosting the economy and creating jobs.
A Promising Scenario for Renewable Energy
Brazil has immense potential for an energy transition, with an energy matrix that is already significantly renewable. Agribusiness, for example, is one of the main drivers of this scenario, accounting for about 60% of the contribution of renewables in the national energy matrix through sources such as ethanol, biodiesel, biogas, and biomass. This contribution is so significant that without it, the share of renewables in the national energy matrix would drop from 49% to approximately 20%.
In Rio de Janeiro, the state government has been actively working to map and promote the potential for renewable energy generation, including wind, solar, and biogas, as well as hydrogen production. The state has already attracted over R$ 2 billion in investments for the development of solar energy, ranking 5th nationally in installed solar systems, with over 57,000 consumers generating their own sustainable energy.
Science and Innovation as Drivers of Change
The energy transition is not limited to source substitution; it requires a comprehensive transformation that considers economic, social, and environmental development. In this context, science, technology, and innovation play a crucial role. The Minister of Science, Technology and Innovation, Luciana Santos, emphasizes that there is no development of clean energy and decarbonization of the economy without innovation and technology. Brazil has been investing in research, development, and innovation (R&D&I) in the energy sector, with the National Fund for Scientific and Technological Development (FNDCT) becoming an important source of funding for decarbonization and energy transition projects.
The Growth of Data Centers and the Demand for Clean Energy
The era of artificial intelligence (AI) and digitalization is driving demand for data centers, which are increasingly seeking renewable energy sources for their operations. In Brazil, long-term contracts in the free energy market for powering data centers already total 330 average megawatts, with an estimated transaction volume of R$ 7.7 billion over the past three years. The Ministry of Science, Technology and Innovation (MCTI) plans to invest R$ 500 million in a program to promote the implementation of green data centers in Brazil, prioritizing the use of renewable sources and innovative cooling technologies.
Brazil stands out as a hub for the development of the renewable energy market for data centers and new technologies, given the high competitiveness and availability of solar and wind sources. Companies like Scala Data Centers have already secured more than 9.7 TWh of renewable energy through 2039, leveraging Brazil’s 90% renewable energy matrix to export green energy alongside data processing services.
Innovative Projects in Rio de Janeiro: The Solário Carioca
A concrete example of Rio de Janeiro’s progress in the energy transition is the “Solário Carioca” project. The result of a Public-Private Partnership (PPP) won by the Rio Solar Consortium, formed by GNPW Group and V-Power Energia, the project involves installing a photovoltaic plant on the former landfill site of Santa Cruz, in the city’s West Zone.
This pioneering initiative will transform land deactivated for 25 years into a source of clean energy, with more than 11,000 solar panels and a generation capacity of 5 megawatts (MW). The energy produced will supply public buildings such as schools and emergency care units (UPAs), generating annual savings of R$ 2 million for the city, potentially reaching R$ 62 million over the 25-year concession. Beyond the economic impact, Solário Carioca has significant environmental benefits, with the potential to remove at least 40,000 tons of carbon per year from the atmosphere.
The Rio de Janeiro City Hall has already mapped other areas for the implementation of similar photovoltaic plants, demonstrating the city’s commitment to expanding clean energy. Rio de Janeiro also became the first city in Latin America to use renewable energy to power public agencies, beginning with the São Sebastião Administrative Center (CASS) and expanding to health units and the Rio Operations Center (COR).
Legislation and Incentives for the Energy Transition in Rio
The Rio state government has implemented legislative measures to boost the energy transition. One of the decrees signed by Governor Cláudio Castro regulates Law 10.456/2024, which provides special tax treatment for natural gas thermal power plants in the state. This legislation reduces the ICMS tax on gas used in power plants. In return, companies benefiting from this incentive must invest at least 2% of the amount they save in taxes into “energy efficiency and energy transition projects,” including low environmental impact renewable energy projects, energy conservation in public buildings, public lighting, monuments, or studies on energy transition, renewables, and sustainable development.
Another decree signed by Castro regulates a 2012 law (Law 6.361/2012), which encourages the production and distribution of biomethane—a substance identical to natural gas that can be mixed with fossil fuel, produced from gases released during organic waste decomposition. The regulation authorizes gas distribution concessionaires to purchase and redistribute biomethane through the existing natural gas network, and removes the previous price ceiling that had hindered the sector.
Challenges and Opportunities
Despite the progress, the energy transition in Brazil and in Rio de Janeiro faces challenges, such as dependence on renewable sources that may be affected by climate conditions and the need for continuous investment in infrastructure and technology. However, the opportunities are vast, with the potential to create jobs, boost the economy, and position Brazil as a global leader in clean energy.
With its innovative initiatives and commitment to sustainability, Rio de Janeiro is paving the way for a greener, more prosperous energy future, serving as an inspiration for other cities and regions across the country.
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