The study from research firm GlobalData states that this substantial growth will be driven by government initiatives focusing on the expansion of generation capacity, especially in the wind, biomass, and solar, in order to meet increasing power demand.
GlobalData’s senior power analyst Chiradeep Chatterjee said the predicted surge in demand is on the back of GDP and population growth.
“Brazil’s economy is one of the fastest growing in the world, with GDP growing from $263.8 billion in 2000 to $401.5 billion in 2014 and driving increased consumption.
“Brazil generates power from a diverse range of sources, with hydropower accounting for the majority of the country’s requirements. Although a large amount of hydropower capacity has been developed in Brazil, with a cumulative installed capacity of 89 GW in 2014, additional capacity remains to be developed.”
However, while hydropower is the largest source of electricity in Brazil, GlobalData forecasts that its relative share will decline from 66.9 per cent of total installed capacity in 2014 to 54.7 per cent by 2025.
The company also states that that both wind and biomass technologies have been developed substantially in Brazil over recent years, and there is significant potential for further development.
Chatterjee said: “Onshore wind capacity is expected to increase at a compound annual growth rate of around 15% between 2015 and 2025, although no offshore wind additions are forecast.
“The biomass sector is anticipated to increase at a compound annual growth rate of 4 per cent during the same period. However, despite this comparatively low growth rate, biomass will account for almost 30 per cent of Brazil’s total non-hydro renewable capacity by 2025, due to its current large base of 11.4 GW.”