Brazil's Energy Nexus
Exploring the diverse sources, consumption patterns, production capabilities, and policy evolution of Brazil's dynamic energy sector.
Explore Energy 👇 View Rankings 📊Dive in with Flashcard Learning!
🎮 Play the Wiki2Web Clarity Challenge Game🎮
Overview
Global Significance
Brazil stands as the 7th largest energy consumer globally and the foremost in South America. Simultaneously, it is a significant producer of oil and natural gas within the region and holds the position of the world's second-largest producer of ethanol fuel. The nation's energy policy is guided by key governmental bodies, including the Ministry of Mines and Energy (MME) and the National Council for Energy Policy (CNPE).
Environmental Profile
A defining characteristic of Brazil's energy matrix is its substantial reliance on renewable sources. In 2019, renewables constituted 45% of the total energy supply, a figure significantly higher than the global average of 14%. This commitment to renewables extends prominently to its electricity generation, where they accounted for 83% in the same year, far surpassing the global average of 25%. Access to electricity is nearly universal across the country, contributing to one of the world's least carbon-intensive energy sectors.
Key Players
State-owned enterprises, Petrobras and Eletrobras, are pivotal entities in Brazil's energy sector. Petrobras is the nation's most important energy producer and a major player in oil and gas exploration, production, and distribution. Eletrobras, a significant electricity generator and transmitter, plays a crucial role in the country's power infrastructure. These companies, along with others, shape the landscape of energy production and distribution in Brazil and across Latin America.
Energy Matrix Composition
Total Energy Mix
In 2021, Brazil's total energy supply was composed of approximately 44.2% crude oil and petroleum products, 37.5% renewables (including hydro), 11.6% natural gas, 5.5% coal, and 1.3% nuclear energy. This diverse mix reflects the nation's rich natural resources and its strategic focus on developing various energy sectors.
Electricity Generation
The Brazilian electric energy matrix is notably dominated by renewable sources. In 2021, renewables accounted for 75.9% of electricity generation, with hydroelectric power contributing 54.8% and other renewables (such as wind and solar) making up 21.1%. Natural gas followed at 14.5%, with coal and nuclear energy contributing 4.0% and 2.2%, respectively. Crude oil and other petroleum liquids represented 3.4% of the mix.
Key Energy Sources
Oil
Brazil ranks as the world's 8th-largest oil producer. Petrobras, the national oil company, dominates exploration and production, particularly from offshore pre-salt reserves in the Campos and Santos basins. Brazil has been a net exporter of oil since 2011, though it imports light crude oil for its refineries, which are not always optimized for the heavier domestic crude. Brazil holds significant oil reserves, ranking second in Central and South America as of 2022.
Natural Gas
With substantial natural gas reserves, primarily associated gas from offshore oil fields, Brazil's natural gas sector is growing. The New Gas Law of 2020 aims to foster market competition and attract investment. Natural gas constituted about 7% of Brazil's total energy production in 2021, a notable increase from previous years. Imports, mainly from Bolivia, and LNG are crucial for meeting domestic demand.
Hydroelectricity
Hydropower is a cornerstone of Brazil's electricity generation, consistently contributing the largest share. The country possesses vast hydroelectric potential, with major plants like Itaipu Dam (historically the world's largest by capacity) and Tucuruí Dam being significant contributors. As of 2021, Brazil ranked second globally in installed hydroelectric power capacity, underscoring its importance in the nation's energy matrix.
Wind Energy
Brazil has emerged as a global leader in wind energy. With significant onshore potential, the country has rapidly expanded its installed wind capacity, reaching over 22 GW by mid-2022. Brazil ranks among the top global producers of wind energy, benefiting from high capacity factors in regions like the Northeast. Wind power represents a substantial and growing portion of the national electricity generation.
Solar Power
Solar power is another rapidly growing renewable energy source in Brazil. By October 2022, installed solar capacity surpassed 21 GW. Brazil is recognized for its high solar irradiation levels, particularly in states like Minas Gerais, Bahia, and Goiás. While still a smaller contributor compared to hydro and wind, solar energy's growth trajectory is steep, driven by technological advancements and policy support.
Nuclear Energy
Nuclear energy plays a modest but consistent role in Brazil's electricity generation, accounting for approximately 2.2% in 2021. The country operates the Angra 1 and Angra 2 nuclear power plants, with Angra 3 under construction. Brazil also possesses significant uranium reserves, ranking 6th globally, and engages in nuclear cooperation agreements, notably with Argentina.
Biofuels
Brazil is a global powerhouse in biofuel production, particularly bioethanol derived from sugarcane. The nation's commitment to biofuels dates back to the Pró-Álcool program initiated in the 1970s, significantly reducing dependence on fossil fuels. In 2021, Brazil was the world's second-largest biofuel producer, with bioethanol comprising the majority of its biofuel consumption, followed by biodiesel.
Energy Sector Reforms
Liberalization and Restructuring
In the late 1990s and early 2000s, Brazil's energy sector underwent significant market liberalization. The adoption of the Petroleum Investment Law in 1997 established a new legal and regulatory framework, opening oil and gas exploration to competition and creating key regulatory agencies like the CNPE and ANP. These reforms aimed to increase investment, enhance market competition, and reduce energy subsidies, although the government retained control over certain energy complexes and price regulations.
Policy Focus
Current government policies emphasize improving energy efficiency across residential and industrial sectors and expanding the utilization of renewable energy sources. Continued restructuring of the energy sector is considered vital for ensuring adequate investment to meet the growing demand for fuel and electricity, aligning with national sustainability goals.
Energy Statistics & Rankings
Global Standing
Brazil consistently ranks high in global energy production and consumption metrics. Its substantial renewable energy share, particularly in electricity generation, distinguishes it internationally. The following tables provide a snapshot of Brazil's position in various energy sectors as of recent data.
Consumption Trends
Brazil's energy consumption has seen varied growth rates. While consumption increased significantly between 2000 and 2010, the period from 2011 to 2021 saw a slower average annual growth rate. This trend reflects evolving economic conditions and energy efficiency initiatives. The following table details key energy indicators from 2004 to 2013.
Teacher's Corner
Edit and Print this course in the Wiki2Web Teacher Studio

Click here to open the "Energy In Brazil" Wiki2Web Studio curriculum kit
Use the free Wiki2web Studio to generate printable flashcards, worksheets, exams, and export your materials as a web page or an interactive game.
True or False?
Test Your Knowledge!
Gamer's Corner
Are you ready for the Wiki2Web Clarity Challenge?
Unlock the mystery image and prove your knowledge by earning trophies. This simple game is addictively fun and is a great way to learn!
Play now
References
References
- Matriz Energética e Elétrica
- Country Analysis Brief. Brazil, US Energy Information Agency, August 2006
- Quantas usinas geradoras de energia temos no Brasil?
- Eólica supera 22 GW em operação no Brasil
- RENEWABLE CAPACITY STATISTICS 2021
- Ventos promissores a caminho
- Solar atinge 21 GW e R$ 108,6 bi em investimentos no Brasil
- RENEWABLE CAPACITY STATISTICS 2022
- Hannah Ritchie, Max Roser: Solar Power Generation
- Brasil e Argentina, 25 anos de cooperação nuclear
Feedback & Support
To report an issue with this page, or to find out ways to support the mission, please click here.
Disclaimer
Important Notice
This page was generated by an Artificial Intelligence and is intended for informational and educational purposes only. The content is based on a snapshot of publicly available data from Wikipedia and may not be entirely accurate, complete, or up-to-date. Some data points may reflect information from over a decade ago, and recent developments may not be fully captured.
This is not professional energy or economic advice. The information provided on this website is not a substitute for professional consultation regarding energy policy, investment, or infrastructure. Always refer to official government and industry sources and consult with qualified professionals for specific needs.
The creators of this page are not responsible for any errors or omissions, or for any actions taken based on the information provided herein.
