Brazil to face significant challenges to develop offshore wind – GWEC

Despite the positive momentum, Brazil’s offshore wind industry faces significant challenges, the Global Wind Energy Council (GWEC) said in a report published on Wednesday. 

Among the hurdles are the development of a domestic supply chain and the accommodation and organization of the structure of maritime routes and ports, incorporating the port-industry concept.

There are also challenges regarding transmission infrastructure, in addition to the consideration of cost and value competitiveness within the Brazilian market, as offshore wind will need to compete with other more mature and highly competitive supply chains, such as onshore wind and solar projects. 

A first step has already been taken with the publication of a decree and the regulation of the transfer of use for maritime areas, which should be released later this year. 

“One of the most relevant aspects for investors are the rules that will be established for energy auctions,” GWEC said.  

After the regulation of the assignment of areas, the next step is to hold the first offshore wind energy auction.

Another positive regulatory signal is a federal bill that details the scope to produce renewable energy offshore, which opens up possibilities for new technologies in the future, such as floating offshore wind.

The bill, which is being analyzed by congress, would create a regulatory framework for the granting of offshore wind farms with auctions, and charges the payment of special participations to the federal government, states and municipalities – resources that are not provided for in the decree. 

GWEC estimates that the country will have its first offshore wind turbines operating by the end of this decade.  

“This would allow for a strong market expansion due to its capacity to supply other renewable generation chains, such as green hydrogen,” the organization said. 

As of April, there were more than 130GW in offshore wind undertakings under analysis by environmental agency Ibama.