The largest economy in Latin America, Brazil finished second on Climatescope 2014, scoring 2.17 out of 5.
2013 was a difficult year for Brazil’s power sector, which relies heavily on large-hydro generation and suffered through one of the worst droughts in 50 years. Brazil had to lean far more than anticipated on gas generation; power prices spiked. Meanwhile, clean energy investment fell 52% from 2012 with the country attracting just $3.1bn in 2013 for new non-large hydro clean energy projects.
On the positive side, Brazil saw a record volume of non-large hydro renewable capacity (3.3GW) commissioned in 2013 and renewables now represent 15% of a 126GW national power matrix. In addition, in 2013 Brazil contracted through tenders 6.2GW of future renewable capacity from wind, small hydro and biomass plants to be commissioned in the next 3-5 years.
This pipeline of new projects bodes well for Brazil remaining a dynamic clean energy market. Investment levels are expected to rebound in 2014 after two years of decline as developers seek to build the new capacity contracted in 2013.