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The future of energy in Brazil: perspectives from BEN 2025
The Brazilian energy sector is undergoing rapid transformation. With the publication of the National Energy Balance (BEN) 2025, based on data from 2024, we have a clear view of recent achievements and future challenges. The study, prepared by EPE (Energy Research Company), presents data that reinforce Brazil's position as one of the countries with the most renewable energy matrix in the world, while also pointing to pathways for decarbonization, regional integration, and new investment opportunities.
Consolidation of renewables
One of the major highlights of the BEN 2025 is the consolidation of renewable energy sources. For the first time since 1990, Brazil has achieved 50% renewable participation in the total energy matrix and an impressive 88.2% in the electricity matrix.
Solar photovoltaic generation grew by 39.6% in 2024, while installed capacity increased by 28.1%. Wind power generation grew by 12.4%, consolidating itself as one of the main sources of diversification. This movement shows that the country is maintaining its historical commitment to the energy transition and security of supply.
Green hydrogen
Green hydrogen is emerging as a strategic medium- to long-term investment. Although still in the early stages of consolidation in Brazil, the topic appears as a global trend to complement intermittent renewable sources (such as solar and wind) and to serve sectors that are difficult to decarbonize, such as steelmaking, fertilizers, and heavy transport.
The BEN 2025 highlights that progress in this area will depend on the creation of specific public policies, export infrastructure, and integration with Brazilian industrial hubs – opening up opportunities for investments in technology and new business models.
Decarbonizing transport
The transportation sector is one of the most challenging for the energy transition. In 2024, it reached 25.7% renewability, a result of the significant increase in the consumption of hydrated ethanol (+30.1%) and biodiesel (+19.3%), driven by the increase in the mandatory blending of biodiesel with mineral diesel to 14% (B14).
Furthermore, BEN 2025 included, for the first time, the accounting of electricity consumption in road transport (such as electric buses and plug-in hybrid cars), consolidating electromobility as an irreversible trend.
Regional energy integration
The report also reinforces the importance of energy integration among Latin American countries. Brazil plays a central role in this process, both because of its renewable energy matrix and its potential for electrical interconnection. Integration with neighboring countries can increase regional energy security and create synergies for the expansion of clean energy sources.
Regulatory and infrastructure challenges
Despite the progress, the BEN 2025 points out that renewable energy expansion and diversification require regulatory improvements and infrastructure investments. Among the main challenges are:
Modernizing the transmission system to integrate new renewable sources. Regulating distributed generation and the integration of green hydrogen.
Strengthening energy efficiency policies and digitizing networks.
Without progress in these areas, growth may be limited and uneven across regions.
Investment opportunities
The energy transition opens up new opportunities in Brazil. With an already highly renewable energy matrix, the country can consolidate itself as a clean energy hub for the world, attracting foreign investment in sectors such as:
Large-scale solar and wind power.
Production and export of green hydrogen.
Electric mobility and advanced biofuels.
Energy efficiency in energy-intensive industries.
According to BEN, Brazil has a competitive advantage not only due to its abundance of natural resources, but also due to its history of consistent energy policies and its emissions differential: in 2024, the Brazilian electricity sector emitted only 59.9 kg of CO₂ per MWh, a value well below that of OECD countries, the USA and China.
The Brazilian National Energy Plan 2025 shows that the future of energy in Brazil will be increasingly renewable, integrated, and sustainable. The country already occupies a prominent position on the global stage, but faces the challenge of accelerating policies and investments to guarantee competitiveness and energy security.
With the consolidation of renewable energy sources, the advancement of biofuels, the growth of electromobility, and the prospects for green hydrogen, Brazil is moving towards becoming not only a major consumer but also a global leader in the energy transition.
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