Brazilian Petroleum Dips into the Renewable Energy Sector
Abundant pre-salt
Brazil's abundant pre-salt oil and gas resources, along with post-salt and onshore assets, have attracted international oil companies. But the South American country is offering companies the chance to invest in renewable energy.
The opportunity comes as some companies diversify, adding cleaner sources of energy, such as solar and wind, to their portfolios. BP, Shell and Total, for example, have expanded their portfolios to include renewables. Several oil and gas companies are investing in R & D for technologies such as carbon capture, use and storage, which will help meet emission reduction targets. And companies are eyeing Brazil for investments in renewable energy.[1]
The great opportunity
For decades, Brazil has been one of the main candidates to develop and promote the use of biofuels in transportation. In terms of the clean generation matrix, Brazil is 20 years ahead of the global average, according to Luciano Losekann, an energy researcher and professor at the Fluminense Federal University. "The challenge, however, is to maintain the share of renewables in the generation matrix, so this leadership does not exempt Brazil from following emission mitigation policies," he wrote in a July 2018 study on the energy sector renewable in Brazil.[1]
Given the potential of wind and solar energy, Brazil has created incentives to promote these sources of energy. These include long-term contracts established through auctions and funding resources of the National Bank for Economic and Social Development (BNDES). BNDES financing, however, is related to domestic production, so local content policies are also in place for the development of renewable energy sources.
According to the Brazilian Office of Energy Research, renewable energy sources - including wind, solar and biomass - are expected to reach almost 61 gigawatts in capacity by 2027, almost double the current 33.4 gigawatts, and reach 30% of the matrix. % today.[1]
Solar Potential
The installed capacity of solar energy in Brazil is expected to reach 2.5 gigawatts by the end of 2018, an increase of about 115% compared to 1.15 gigawatts by the end of 2017, according to the Brazilian Association of Solar Photovoltaic Energy.
The future also looks bright for wind power. Currently, wind energy accounts for 8.5% of Brazil's energy mix. But this must surpass thermal generation and biomass by 2019 or 2020, according to the Brazilian Association of Wind Energy.[1]
Further Information
