Private Energy Players Anticipate $2 Billion Offshore Wind Surge As Brazil Nears Approval

(MENAFN- The Rio Times) Major energy companies expect around $2 billion in offshore wind investments as Brazil's new regulatory framework approaches final approval.

Lawmakers recently passed the proposal, and its implementation now depends on the president's signature and the energy ministry's regulation. Observers believe these steps will happen by 2025, creating a path for auctions between 2026 and 2027.

Industry leaders see strong opportunities in this sector, especially since offshore wind complements existing offshore oil exploration and production.

In March, Petrobras and Equinor initiated a partnership to examine seven offshore wind projects in Brazil. Many firms already requested environmental licenses for such endeavors.

Their proposed areas often overlap with oil wells, fiber-optic cables, marine habitats, bird migration routes, and zones sheltering threatened species.



Certain states like Ceará, Rio Grande do Norte, Rio de Janeiro , and Rio Grande do Sul concentrate most license requests. Around 20% of these areas see competing claims from multiple companies.
Offshore Wind Energy in Brazil
Industry representatives believe old offshore oil platforms can provide stable bases for wind turbines, cutting both decommissioning and installation costs. Such measures could reduce overhead and shorten project timelines.

Experts note that the new law includes unrelated provisions that could grant subsidies worth $440 billion. These measures could raise electricity bills by about 7.5%.

These extra benefits flow to renewable energy , natural gas, and coal sectors, reflecting intense lobbying. The Brazilian Institute of Petroleum acknowledges these additions but focuses on securing offshore wind's legal support.

IBP's president, Roberto Ardenghy, believes market logic justifies accepting such legislative compromises. He claims that if offshore wind projects require strange provisions, then so be it.

The institute fought in Congress for the new framework and now awaits final approval and regulation. Investors, free of paternal controls, prepare to commit large sums, expecting future returns.

MENAFN16122024007421016031ID1108999707