Spotlight: Brazil's upcoming energy investments

A series of Brazilian energy sector capex projections for the coming years were disclosed throughout 2024.

The investments cover all areas, from oil and gas exploration and production to refining, electric power generation, transmission and distribution.  

Federal energy research company EPE forecast the sector will require 3.2tn reais (US$517bn) over the next 10 years.

BNamericas lists some of the highlights.

Petrobras

The federal oil giant’s new business plan involves capex of US$111bn by 2029, with US$18.5bn projected for 2025 alone. 

In recent months, the company announced investments in fertilizer plants, refineries and green hydrogen projects. 

Independent oil and gas firms

Independent oil and gas firms are expected to invest 40bn reais by 2029, according to sector association ABPIP. 

Oil and gas exploration 

Exploration work plans of oil and gas operators call for 5.5bn reais in investments in 2025, according to a report from regulator ANP seen by BNamericas.  

Natural gas distribution

Rio de Janeiro state gas distributor Naturgy has announced investments of around 300mn reais in a sustainable corridor project. 

The initiative allows trucks and buses powered by vehicular natural gas to operate in states in Brazil’s southeast, emitting fewer pollutants and greenhouse gases and generating less noise.

Gas storage 

Origem Energia and Transportadora Associada de Gás (TAG) have formed a joint venture to develop a natural gas storage project, with initial capex of US$200mn. 

Solar power

Investments generated by the solar photovoltaic sector could exceed 39.4bn reais, including centralized and distributed generation (DG) plants, solar power association Absolar predicts.

ABGD, which represents the DG segment, estimates capex of 27bn reais for 2025. 

Cemig

Minas Gerais state energy company Cemig plans to invest 39.2bn reais between 2025 and 2029, of which 23.2bn reais are earmarked for distribution, 4.2bn reais for generation, 4.3bn reais for transmission, 2.6bn reais for distributed generation, 1.6bn reais for natural gas, 2.3bn reais for innovation and 1bn reais for information technology. 

Copel

Paraná’s state energy firm plans to invest 3bn reais in 2025, up 25% from the investment projection for 2024. Of the total, 2.5bn reais will go to distribution arm Copel Distribuição.

Enel

The Italian company plans to invest 25.3bn reais in Brazil, of which 24bn reais will be allocated to distribution. Of the total investments planned, 10.4bn reais will be directed to the São Paulo concession area, where Enel has been facing problems in serving customers. 

ISA Energia

The Colombian company intends to invest 9bn reais by 2029 in Brazil. 

Engie Brasil Energia

The French multinational has raised its capex projection for 2025 from 3.30bn reais to 3.77bn reais.

Power transmission

National grid operator ONS estimates that 7.6bn reais will have to be invested in about 1,260km of transmission lines and 14,750MVA of new transformers for new and existing substations by 2029.

Power transformers

Nansen will invest 265mn reais in a new transformer factory and an R&D center in Minas Gerais. The initiative is the result of a partnership with Cemig. 

Electromobility

By the end of 2025, Kinsol plans to have opened a total of 1,000 ultra-fast electric charging stations, with estimated investments of 150mn reais.

Waste-to-energy

Brazil’s waste-to-energy market is expected to attract up to 12bn reais by 2030, Yuri Schmitke, CEO of sector association Abren, told BNamericas in a recent interview.