Brazilian President Luiz Inácio Lula da Silva approved the National Energy Transition Policy (PNTE) during an extraordinary National Energy Policy Council (CNPE) on August 26, as a group of ministers gathered to advise the presidency on energy matters, Valor reported.

The scheme aims to reduce Brazil's greenhouse gas emissions and attract significant green economy investments.

Minister of Mines and Energy, Alexandre Silveira, who chairs the CNPE, stated that the energy transition could attract BRL2 trillion ($361bn) investments over the next decade and generate up to 3mn jobs.

The government plans to leverage Brazil's abundant renewable energy sources, including wind, solar, hydro, biomass and green hydrogen, to foster sustainable industrial growth.

Following the PNTE approval, Thiago Barral, Secretary of Energy Transition at the Ministry of Mines and Energy, announced the creation of the National Energy Transition Forum (Fonte) to involve public and private stakeholders in decision-making.

The policy also includes the National Energy Transition Plan (Plante), which will serve as an action plan integrated with other government initiatives, such as the Climate Plan and the Pact for Ecological Transformation.

Plante will focus on sectoral approaches like industrial and transport sectors, and transversal issues such as regulatory frameworks and reducing energy poverty.

Brazil's electricity generation from clean sources reached nearly 93% in the first three quarters of 2023, marking a rise of over 2 percentage points year-on-year and securing its position as the leader among major economies in clean power share, as per data reviewed by Reuters.

The country's long-standing hydroelectric infrastructure continues to dominate, contributing approximately 68% of total electricity generation in 2023. However, the solar sector has emerged as the primary driver of renewable growth, with electricity output soaring by more than 75% in the first nine months of 2023 compared to the same period in 2022.

According to the National Electric Energy Agency (Aneel), Brazil's total photovoltaic solar capacity exceeded 30 gigawatts (GW) last year, bolstered by 4.4 GW of new capacity added since January 2023. The agency’s data indicates that solar power's share in Brazil's electricity generation jumped to 6.8% in 2023 from about 4.2% in 2022.

Wind power also saw significant growth, with output increasing by nearly 18% through September 2023 compared to the same period a year prior. The combined expansion of solar and wind capacities enabled Brazil's power producers to boost total electricity generation by 4% in 2023.

This clean energy push aligns with global efforts to transition towards sustainable power sources and reduce carbon emissions. Brazil's progress in diversifying its renewable portfolio while maintaining its hydroelectric base positions it as a notable player in the global clean energy landscape.