What is the most utilized source in the Brazilian energy matrix? What is the future of renewables in Brazil? Find out in this content!
Despite the presence of fossil fuel sources, Brazil’s energy matrix is considered one of the most renewable among global economies. While Brazil uses more than 48% renewable sources, the global average is only 14%.
However, even though the Brazilian energy matrix has developed in recent years, attracting investments in clean sources, the market still needs to grow. This growth is essential both for a successful energy transition and for diversifying the energy matrix.
What is the Difference Between Electric Matrix and Energy Matrix?
Before delving deeper into the composition of the Brazilian energy matrix, it is important to clarify the differences between the electric matrix and the energy matrix. According to the Energy Research Company (EPE), the energy matrix is the set of available sources in a country, state, or the world to meet the total energy demand.
In contrast, the electric matrix refers to the set of sources available for electricity generation in a country, state, or the world. In other words, these types of matrices are composed differently.
For comparison, the most used energy source in Brazil’s energy matrix is oil and its derivatives, at 33.1%. In the case of the electric matrix, hydroelectric power leads with 65.2%, followed by biomass at 19.1%.
Currently, Brazil’s electric matrix is highly dependent on hydroelectric power. This means that 65.2% of the energy generated for consumption in the country comes from hydroelectric plants. The main issue is that in cases of drought, as happened in 2020 and 2021, the entire chain is affected and must rely on other sources, which can be more expensive or more polluting. According to the Ministry of Mines and Energy, the share of renewables in the electric matrix is expected to remain above 80% until 2030, reaching 85% by 2050.
The Evolution of the Brazilian Energy Matrix
Although hydroelectric power has been the most used source for electricity generation in Brazil for years, and oil is the predominant source in the energy matrix, in the past 20 years, the country has begun to effectively invest in new sources to increase diversification.
According to the 2021 National Energy Balance Synthesis Report by EPE, the renewable sources present in Brazil’s energy matrix today are: sugarcane biomass (19.1%), hydroelectric power (12.6%), wood and charcoal (8.9%), and other renewables (7.7%). Non-renewable sources include oil and derivatives (33.1%), natural gas (11.8%), mineral coal (4.9%), uranium (1.3%), and others (0.6%). These data show that the Brazilian energy matrix has been diversifying; however, further investment is necessary to ensure that the majority of sources are renewable and clean.
The Future of Energy Generation
In recent years, the global energy sector has undergone significant transformations, driven by the growing commitment to decarbonization and the transition to cleaner and more sustainable energy sources. One of the biggest challenges remains the decarbonization of the transport and mobility sectors, which are among the most difficult areas to reduce greenhouse gas (GHG) emissions.
Initiatives in Brazil: RenovaBio and the Future Fuel Program
In Brazil, various policies and programs have been implemented to reduce dependence on fossil fuels. The National Biofuels Policy (RenovaBio), which remains in force, has been a crucial tool in promoting the use of biofuels in the country’s energy matrix, helping to create a growing market for these renewable energy sources.
Launched in 2021, the Future Fuel Program continues to be a central pillar of this strategy, with ongoing initiatives through 2024 to reduce the share of fossil fuels in the national energy matrix. Complementing these actions, the National Hydrogen Program has advanced with a focus on green hydrogen, a technology that gained even more relevance in 2023 and 2024, especially with the growing global demand for carbon-free energy sources.
Recent Developments: Carbon Market and Methane Zero
The carbon market, formally structured in Brazil in 2023, is another key component of this scenario, encouraging companies to adopt more sustainable practices and reduce their emissions. The recently launched Methane Zero Program has also been instrumental in mitigating methane emissions, a gas with a much higher global warming potential than CO2, further strengthening Brazil’s climate change mitigation strategy.
Prospects for the Brazilian Energy Matrix
According to the Ten-Year Energy Expansion Plan (PDE) 2033, Brazil is expected to continue reducing its dependence on hydroelectric power, with less than 45% of electricity expected to be generated from this source by 2033. This highlights the growth of other sources, such as distributed generation and self-generation of energy, which are expected to significantly increase their share in the coming years, reaching around 20% of the energy matrix.
Growth of Biomass and Biogas
The biomass and biogas sector in Brazil continues to show significant growth potential, driven by technological advances and favorable public policies. According to the latest projections from the Energy Research Company (EPE) and international studies, domestic biogas supply in Brazil is expected to continue expanding rapidly in the coming years. Estimates indicate that biogas production could reach around 10 billion Nm³ by 2035, with a substantial increase in conversion to biomethane, which could reach up to 6 billion Nm³.
This growth is supported by a series of investments in new production plants. By 2029, 81 new biomethane plants are expected to be installed, with a combined capacity of 6.6 million m³/day, representing a total investment of approximately R$11 billion. The focus of these plants will mainly be on the use of agro-industrial waste, sanitary sewage, and urban solid waste, aligning with the goals of a circular economy and reducing greenhouse gas emissions.
Moreover, government policies and rising natural gas prices have encouraged the development of biomethane as a sustainable and competitive alternative to traditional natural gas. By 2040, the share of biomethane in the global bioenergy market is expected to grow significantly, establishing itself as one of the main forms of renewable energy in Brazil.
These trends indicate that Brazil will not only strengthen its position as a leader in bioenergy production but also contribute significantly to global decarbonization efforts, especially in sectors where direct electrification is more challenging.
If you liked the content, read on the blog why investing in renewables is better than fossil fuels?
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