As of 2024, renewable energy accounted for about 88% of the electricity used in Brazil—one of the highest shares of any major economy—according to Brazil's Energy Research Company (EPE). The renewable share was around 89% in 2023, with hydropower supplying roughly 60% of generation and rapidly expanding wind and solar power making up most of the remainder. Brazil relies on hydroelectricity for 65% of its electricity, and the Brazilian government plans to expand the share of wind energy (currently 11%), solar energy (currently 2.5%) and biomass as alternatives. According to Brazil's Energy Master-plan 2016-2026 (PDE2016-2026), Brazil is expected to install 18,5GW of additional wind power generation, 84% in the North-East and 14% in the South. Brazil started focusing on developing alternative sources of energy, mainly sugarcane ethanol, after the oil shocks in the 1970s. Brazil's large sugarcane farms helped the development. In 1985, 91% of cars produced that year ran on sugarcane ethanol. The success of flexible-fuel vehicles, introduced in 2003, together with the mandatory E25 blend throughout the country, have allowed ethanol fuel consumption in the country to achieve a 50% market share of the gasoline-powered fleet by February 2008. The European Investment Bank, as of 2023, signed a €200 million loan to make renewable energy to homes in Sao Paulo's favelas more available.
Total energy matrix and Electric energy matrix Brazil's energy matrix is significantly more renewable than the global average. According to Brazil's Energy Research Office (EPE), renewable sources accounted for 50% of Brazil's total energy supply in 2024, compared with about 14% globally and 13% in OECD countries. Brazil's electricity matrix is even more dependent on renewable sources; EPE's 2025 National Energy Balance reported that renewables accounted for about 88% of the country's electricity mix in 2024, with wind and solar together supplying about 24% of total demand.
Electricity
Hydroelectricity Hydroelectric power plants produced almost 80% of the electrical energy consumed in Brazil (now 60%). Brazil has the third highest potential for hydroelectricity, following Russia and China. At the end of 2021 Brazil was the second country in the world in terms of installed hydroelectric power (109.4 GW).
Itaipu power plant
The Itaipu Dam is the world's second largest hydroelectric power station by installed capacity. Built on the Paraná River dividing Brazil and Paraguay, the dam provides over 75% of Paraguay's electric power needs, and meets more than 20% of Brazil's total electricity demand. The river runs along the border of the two countries, and during the initial diplomatic talks for the dam construction both countries were suffering from droughts. The original goal was therefore to provide better management and utilization of water resources for the irrigation of crops. Argentina was also later incorporated in some of the governmental planning and agreements because it is directly affected, being downstream, by the regulation of the water on the river. If the dam were to completely open the water flow, areas as far south as Buenos Aires could potentially flood. Construction of the dam started in 1975, and the first generator was opened in 1983. It is estimated that 10,000 locals were displaced by the construction of the dam, and around 40,000 people were hired to help with the construction of the project. Many environmental concerns were overlooked when constructing the dam, due to the trade-off considering the production of such a large amount of energy without carbon emissions, and no immediate harmful byproducts, such as with nuclear energy.
Wind power
In July 2022 Brazil reached 22 GW of installed wind power. In 2021 Brazil was the 7th country in the world in terms of installed wind power (21 GW), and the 4th largest producer of wind energy in the world (72 TWh), behind only China, USA and Germany. As of August 2021, the total installed wind power capacity in Brazil was 18.9 GW, with 16.4 GW in the Northeast Region and 2.0 GW in the South Region. Wind is more intense from June to December, coinciding with the months of lower rainfall intensity. This puts the wind as a potential complementary source of energy to hydroelectricity. While the 2009 United Nations Climate Change Conference (COP15) was taking place in Copenhagen, Brazil's National Electric Energy Agency (ANEEL) held the country's first ever wind-only energy auction. On 14 December 2009, around 1,800 megawatts (MW) were contracted with energy from 71 wind power plants scheduled to be delivered beginning 1 July 2012. The 716 MW Lagoa dos Ventos began operating in 2021.
Solar power
In October 2022 Brazil reached 22 GW of installed solar power. In 2021, Brazil was the 14th country in the world in terms of installed solar power (13 GW), and the 11th largest producer of solar energy in the world (16.8 TWh). The total installed solar power in Brazil was estimated at 34.2 GW at October 2023, which consists of about 15.6% of the country's electricity matrix. In 2022, Brazil was the 8th country in the world in terms of installed solar power capacity (24.079 GW). As of May 2022, according to ONS, total installed capacity of photovoltaic solar was 15.18 GW, with 10 GW of distributed solar (where Minas Gerais stood out with 1.73 GW, São Paulo with 1.29 GW and Rio Grande do Sul with 1.17 GW of this total) and 5.18 GW in solar plants (where Bahia, with 1,354 MW, Piauí, with 1,205 MW, Minas Gerais, with 730 MW, São Paulo, with 588 MW and Ceará, with 499 MW stood out) Brazil has one of the highest solar incidence in the world. The largest solar plants in Brazil consist of Ituverava and the Nova Olinda plants. The Ituverava solar plant produces 254 MW and the Nova Olinda plant produces 292 MW.
Ethanol fuel
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