Consolidation of the wind energy sector in the Brazilian electricity matrix: opportunities, advantages and challenges

Abstract

This paper addresses the role of wind energy in the diversification of the Brazilian electricity matrix. The predominance of hydroelectricity requires favourable weather conditions for operation, which may compromise the security of the generation and supply of energy from this source. Moreover, the growing demand during the last two decades and environmentalism's appeal has increased the need to invest in other energy sources. The paper analyses the wind power source as a potential alternative for electricity generation in Brazil. The main opportunities, advantages and challenges for the consolidation of the wind energy market were identified. It was concluded that the consolidation of this sector demands; i) policies to encourage, develop and modernise the transmission infrastructure; ii) promotion of investments in research, technology and training of skilled labour; iii) an increase in the supply of credit for long-term financing; and iv) a stable and transparent policy to attract new investors.