Snapshot: The capex needed for Brazil's energy technologies

Sugarcane bagasse biomass is Brazil’s lowest-capex energy generation technology, with the required investment varying between 2,000-6,500 reais/kW (US$353-1,147/kW), according to federal energy research company EPE. 

It is followed by simple cycle liquefied natural gas (3,000-5,000 reais/kW), PV solar (3,000-6,000 reais/kW) and sugar-energy waste biogas (3,000-12,000 reais/kW).

EPE estimates that the investment required to install a floating PV solar plant ranges from 4,000 to 8,500 reais/kW. 

Meanwhile, capex for an offshore wind project is between 10,500 and 25,000 reais/kW, compared with 4,000-10,500 reais/kW in the case of onshore wind. 

Also analyzed by the EPE were the following technologies: 

– Energy storage (5,000-9,500 reais/kW);

– Urban solid waste (20,000-36,500 reais/kW);

– Domestic coal (8,000-16,000 reais/kW);

– Combined cycle natural gas (3,500-7,000 reais/kW);

– Combined cycle LNG (3,500-6,000 reais/kW);

– Wood chip biomass (3,500-8,500 reais/kW). 

– Nuclear (20,000-40,000 reais/kW);

– Small hydro plants (5,000-13,500 reais/kW);

– Reversible plants (6,000-15,000 reais/kW).

TRANSMISSION

The EPE also looked at the investments required to build power transmission lines.

The lowest capex is for those connecting Acre and Rondônia states to the center-west region of the country, at 2,850 reais/kW. 

Connections between the south and the southeast require 2,900 reais/kW; north-northeast 2,950 reais/kW; northeast-southeast 3,040 reais/kW; north-southeast 3,060 reais/kW; and northeast-south/Manaus-north (3,300 reais/kW).