Snapshot: The energy agenda in Brazil’s ecological pact

Brazilian authorities signed a pact for ecological transformation on Wednesday, which outlines support for the energy transition, among other topics.

The initiative was inked by President Luiz Inácio Lula da Silva and the heads of the senate, Rodrigo Pacheco; lower house, Arthur Lira; and supreme court, Luís Roberto Barroso. 

The pact is intended to establish a new framework for the country, in which ecological sustainability, economic development, and social and climate justice become cornerstones of public policies.

One of the focuses is to speed up the regulation of offshore wind generation in the country, which is currently being analyzed by congress. 

The agreement also provides for investments in renewable energy sources with the aim of making their use universal. 

“The signing of this pact is a further demonstration of our commitment to tackling the climate emergency,” Lula said during the ceremony. 

Offshore wind generation is still a long way from become a reality in Brazil, since specific rules for holding bidding processes will have to be published after the legal framework is approved. 

The country also has vast areas available for onshore wind farms and is experiencing an energy surplus, holding back investment in new projects, as BNamericas explained in its latest wind energy report. 

With respect to the universalization of renewable energy sources, the main drivers are the federal housing program Minha Casa Minha Vida and electric power democratization scheme Luz para Todos, which include incentives for solar generation. 

Another highlight is Brazil’s Amazon energy program, which promotes investments in isolated systems (i.e., those not connected to the national power grid).