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Climate & Environment
03 October 2025

Brazil Launches Offshore Wind Group Amid Renewable Boom

A new working group and regulatory push aim to unlock Brazil’s vast offshore wind potential while rapid solar and wind growth strain grid infrastructure and skilled labor.

Brazil is taking ambitious steps to cement its place as a global leader in renewable energy, with a particular focus on harnessing the vast potential of offshore wind and solar power. On October 1, 2025, the National Energy Policy Council (CNPE) approved a pivotal resolution that established the Offshore Wind Working Group (GT-EO), a move designed to propel the regulation and effective implementation of Brazil’s new Offshore Wind Law (Law No. 15,097 of January 10, 2025). The GT-EO, coordinated by the Ministry of Mines and Energy (MME) and comprising 23 institutions, aims to lay down the regulatory groundwork for what could become one of the world’s most significant clean energy transitions.

Brazil’s offshore wind generation potential is nothing short of staggering. According to estimates cited by the Ministry of Mines and Energy and reported by BNamericas, the country boasts more than 1,200 gigawatts of offshore wind potential, with 697 gigawatts considered usable in coastal areas up to 50 meters deep, where winds blow at 100 meters high. This places Brazil among the global frontrunners in terms of renewable energy resources—an opportunity that government officials and industry leaders are eager to seize.

Currently, the federal environmental agency Ibama is reviewing 104 environmental licensing requests for offshore wind projects, representing a combined capacity of 247 megawatts under analysis. While these numbers are still modest compared to the country’s theoretical potential, they signal a rapidly accelerating interest from both domestic and international investors.

Minister of Mines and Energy Alexandre Silveira underscored the transformative potential of these initiatives, stating, “We are creating the regulatory foundations to transform the potential of offshore wind into a concrete reality for Brazil. This is a historic opportunity to generate jobs, income, and sustainable development, placing the country at the global forefront of clean energy.” His remarks, as reported by BNamericas, reflect a broader governmental commitment to the energy transition and to leveraging the country’s natural advantages for economic and environmental gain.

The GT-EO’s mandate is broad and ambitious. The group will address complex regulatory issues, including the definition of prior locations for wind farms, the establishment of rules for requesting a Declaration of Prior Interference (DIP), technical and economic-financial qualification criteria for developers, and sanctions in cases of non-compliance. Phased deliveries are planned, which will encompass technical studies on the coexistence of offshore wind energy with fishing activities, navigation safety, port requirements, and proposals for digitalizing regulatory processes. A key innovation will be the creation of a Single Offshore Area Management Portal—a digital hub intended to streamline project approvals and oversight.

Economic projections for the offshore wind sector are equally compelling. The Ministry of Mines and Energy estimates that expanding offshore wind capacity could generate up to 516,000 full-time jobs by 2050 and contribute approximately R$902 billion to Brazil’s Gross Domestic Product (GDP) over the same period. The projected costs for fixed-foundation offshore wind plants, ranging from US$52 to US$64 per megawatt-hour, suggest that the technology will be competitive with other renewable sources—a crucial factor as Brazil seeks to attract investment and keep energy prices affordable.

Yet, the country’s renewable energy boom is not without its challenges. As highlighted in a BNamericas interview with Diego Guillen, strategic account manager at Fluke, the rapid expansion of wind and solar power has led to an unprecedented demand for specialized services in the electricity sector. "There are still relatively few companies that provide this service," Guillen observed, pointing to a shortage of qualified labor to meet the growing needs for consultancy, commissioning, startup, and operation and maintenance (O&M) services. This shortage is already putting pressure on the industry and could become a bottleneck as more projects come online.

The swift growth of renewables has also introduced technical headaches. Issues such as curtailment—where excess power must be dumped due to grid constraints—have become more frequent. Overgeneration during periods of high wind or solar irradiation can lead to grid overload and even transformer burnouts, making robust power quality monitoring and advanced filtering at connection points essential. Guillen explained that modern testing and analysis instruments are critical in detecting equipment issues such as partial discharges and the corona effect, the latter being a luminescent electrical discharge around high-voltage conductors that results in energy losses.

Infrastructure resilience is another pressing concern. The topic of underground cabling has resurfaced, especially after a recent power outage in São Paulo caused by strong winds and rain. While the idea of burying power lines to protect them from the elements is appealing, Guillen noted that Brazil remains far from a widespread transition to underground networks. Overhead lines are easier and more cost-effective to inspect and maintain, especially given Brazil’s vast and diverse geography. "When you have the cables exposed, it becomes much easier to perform preventive and predictive maintenance on the equipment," he told BNamericas. In contrast, underground networks are plagued by issues like humidity, interference from other utilities, and uncoordinated civil works, all of which drive up complexity and cost.

Guillen also pointed out that extreme weather events, when combined with insufficient routine maintenance and poor municipal coordination, heighten the risk of power supply interruptions. He criticized the tendency of some companies to delay preventive and predictive maintenance in favor of corrective action only after failures occur. In some parts of the country, he noted, infrastructure remains precarious, with wooden poles still in use—hardly ideal in the face of Brazil’s increasingly volatile weather. Municipalities also bear part of the responsibility: inadequate tree management and lack of coordination with utilities can exacerbate the likelihood of outages.

Amid these challenges, the expansion of wind and solar power is also creating opportunities for specialized service providers and technology firms. Companies like Fluke, which offer advanced test and measurement solutions, are finding themselves in high demand as generators and grid operators seek to ensure reliability and optimize performance. The need for skilled labor and intelligent monitoring systems is pushing the sector toward greater professionalism and technical sophistication, even as it grapples with growing pains.

Brazil’s journey toward a clean energy future is undoubtedly complex, marked by regulatory, technical, and operational hurdles. But the country’s commitment to leveraging its immense renewable resources—backed by robust policy initiatives and growing industry expertise—suggests that these challenges are surmountable. As the GT-EO gets to work and the sector continues to innovate, Brazil is poised not only to meet its own energy needs sustainably but also to serve as a model for other nations navigating the transition to renewables.