Brazil Wind Energy Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Brazil Wind Energy Market Trends and Insights

Rapid scale-up of ACL power contracts boosting wind PPAs

Brazil’s ACL lowered the eligibility threshold to 500 kW in 2023 and is expected to be fully operational by 2028, thereby multiplying the addressable buyer pool. Corporations now sign multi-year wind PPAs to hedge spot volatility, exemplified by ArcelorMittal’s R $4.2 billion deal, which covers 38% of its Brazilian load.^{[1]ArcelorMittal Brasil, “Maior contrato de energia renovável do país,” brasil.arcelormittal.com} Energy desks at B3 offer risk-management products that enable generators to swap Real-denominated cash flows into USD, thereby offsetting currency swings. Developers secure premium tariffs versus regulated auctions, and the trend accelerates as renewable subsidies phase out, making the ACL the main revenue engine for the Brazil wind energy market.

Northeast grid expansion unlocking new interconnections

Chesf and ONS are rolling out 1,700 km of extra-high-voltage lines, most visibly the Asa Branca corridor, to ferry surplus Northeast wind toward load centers in the Southeast. Iberdrola’s USD 1 billion commitment signals foreign confidence that congestion can be tamed.^{[2]Iberdrola, “1,700-km transmission line in Brazil,” iberdrola.com} Each kilometer energized frees stranded parks and trims curtailment, raising delivered megawatt-hours without tapping new sites. In the longer term, reinforced corridors will enable hybrid wind-plus-solar farms to co-share capacity, further stabilizing grid frequency.

Lower LCOE from 4-6 MW turbines accelerating repowering

Modern 3-6 MW platforms enhance nameplate capacity while reusing roads and foundations, driving levelized costs below USD 34/MWh and increasing average project factors to around 50%.^{[3]World Wind Energy Association, “Repowering Potential,” worldwindenergy.org} Brazil’s earliest PROINFA projects now hit the 15-year mark, making repowering viable. OEMs report Brazilian order books dominated by 4-5 MW units tailored to 140 m hub heights, a sweet spot for the trade-wind regime. Repowering reduces permitting timelines and drives incremental gigawatt growth within the existing Brazilian wind energy market footprint.

Corporate decarbonisation targets of Brazilian C&I off-takers

Science-based emissions commitments drive mining, metals, and health-care groups to secure renewable supply. Anglo American’s 195 MW PPA at Rio do Vento trims 430 kt of CO₂ annually, proving wind delivers headline ESG wins. I-REC certificates add export-market credibility, and wind’s dusk-to-dawn profile aligns more tightly with industrial demand than solar. As ACL access widens, mid-tier manufacturers join first movers, broadening demand across the Brazil wind energy industry.

Transmission congestion risk in Rio Grande do Norte & Bahia

A 2023 grid split cut 18,900 MW of load, exposing the Northeast–Southeast bottleneck.^{[4]Agência Nacional de Energia Elétrica, “Relatório de Ocorrências do SIN 2023,” aneel.gov.br} Curtailment peaks force generators to spill wind even as thermal plants fire up elsewhere, eroding project IRRs. Until new 500 kV circuits are energized, some developers locate projects in suboptimal wind tracts solely to access evacuation, thereby trimming the overall growth of the Brazilian wind energy market.

Slow environmental licensing for offshore foundations & cables

IBAMA is vetting 189 GW of marine proposals, yet multi-agency reviews prolong timelines and create capital-holding costs.^{[5]Instituto Brasileiro do Meio Ambiente, “Licenciamento Eólico Offshore,” ibama.gov.br} The absence of clear seabed-lease rules pushes the first auctions into 2026+, delaying diversification beyond onshore. Smaller players struggle with the high costs of baseline studies, which hinder competition in the future offshore tier of the Brazilian wind energy industry.

Segment Analysis

By Location of Deployment: Onshore optimization dominates growth

Onshore assets delivered the full 35.5 GW operating base in 2025 and continue to expand at a moderate 3.7% CAGR as developers squeeze more energy from existing corridors. Repowering PROINFA-era sites with 4-5 MW machines increases output without requiring new land, supporting incremental additions to the Brazilian wind energy market size. Consistent trade-wind regimes and mature supply chains keep LCOE competitive, while ACL contracts help offset mild curtailment risk in grid-constrained nodes.

Offshore remains aspirational. Although 189 GW sit in IBAMA’s queue, permitting complexity and undefined auction terms defer large-scale commitments. Demonstration projects, such as the 720 MW Asa Branca array, could pioneer revenue models; however, full commercialization is unlikely before 2028. In the meantime, onshore projects dominate corporate procurement, underscoring the near-term centrality of land-based build-outs to the Brazilian wind energy market.

Note: Segment shares of all individual segments available upon report purchase

By Turbine Capacity: Mid-range platforms lead technology shift

Units under 3 MW still make up 62.5% of installed turbines, a legacy of early auctions. Developers now favor 3-6 MW machines, the fastest-growing class, which is experiencing a 12.5% CAGR, because larger rotors harvest more of the Northeastern boundary layer. Swapping a 1.5 MW nacelle for a 4.2 MW model can double annual energy yield, lifting site-level capacity factors to the Brazil wind energy market share thresholds needed to clear ACL pricing. Units above 6 MW remain niche, awaiting offshore demand and localized blade logistics.

OEM strategies reflect this pivot. Vestas captured 347 MW of multi-megawatt orders in 2024, while Nordex’s 112 MW Auren Energia contract spotlighted demand for 5 MW platforms. Goldwind’s USD 28.6 million Bahia factory adds supply-chain depth and meets BNDES content tests. As repowering accelerates, the fleet-wide average rating is expected to surpass 3 MW by 2030, enhancing overall productivity within the Brazilian wind energy industry.

By Application: C&I appetite widens the buyer mix

Utility-scale auctions still underwrite 87.3% of installed capacity, but commercial and industrial (C&I) demand grows at an annual rate of 18.1% as ACL liberalization lowers participation barriers. Steel, pulp, and data-center operators sign ten- to fifteen-year deals that hedge spot-price swings and satisfy Scope 2 mandates, expanding the Brazil wind energy market size beyond state-utility balancing requirements. Community projects remain embryonic; yet as distributed-generation rules mature, co-operatives could unlock local ownership models in the Northeast hinterland.

The C&I shift alters commercial terms. Developers structure indexed tariffs, synthetic hedges, and I-REC bundles to win industrial loads, while retailers acquire portfolios to arbitrage diurnal spreads. Casa dos Ventos’ purchase of América Varejista exemplifies vertical integration, capturing supply, trading, and retail margins inside the Brazil wind energy market.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Northeast Brazil hosts roughly 80% of the national capacity, led by Rio Grande do Norte, which produces enough wind to export power southward on most days. Persistent 8 m/s winds generate 45-50% capacity factors that underpin the Brazil wind energy market’s global competitiveness. Ceará positions itself as an offshore staging ground thanks to ports at Pecém, while academic clusters refine floating-platform design to exploit deeper waters. Bahia trails closely, combining coastal gales with inland plateau resources and boasting the 566.5 MW Oitis complex, Latin America’s largest onshore wind farm.^{[6]Iberdrola, “Oitis Wind Complex,” iberdrola.com}

Piauí and Maranhão deliver diversified resource pockets, reducing locational risk. Invenergy’s 600 MW portfolio acquisition, spanning Piauí and Rio Grande do Norte, demonstrates investor appetite for multi-state synergies in the Brazilian wind energy market. Complementarity with hydro in the Southeast stabilizes the national grid, as wind peaks during reservoir drawdowns. Transmission upgrades under the ONS 2026 plan aim to add 4 GW of Northeast export capacity, mitigating curtailment and widening market access.

Southeast and South states, while wind-poorer, drive demand through corporate PPAs that backhaul power via 500 kV corridors. São Paulo hosts trading desks that slice renewable blocks into hourly products, deepening liquidity. As battery costs fall, developers may pair Northeastern wind with Southeastern storage to arbitrage peak prices, thereby stretching the geographic footprint of the Brazilian wind energy industry.