Brazil’s energy minister has announced that the country aims to establish a regulatory framework for offshore wind and green hydrogen by the end of this year, as reported by Reuters on June 27. This move is part of Brazil’s efforts to unlock new sectors and drive its energy transition. Under President Luiz Inacio Lula da Silva’s leadership, Brazil is prioritizing the overhaul of its environmental credentials. Lula and his advisors view the transition to a green economy as a central focus of their state-driven development policies.

To support this transition, Energy Minister Alexandre Silveira has emphasized an upcoming auction for transmission lines that will transport solar and onshore wind energy from Brazil’s northeast to power stations in the south. The auction, with a minimum value of BRL16bn (USD3.3bn), has the potential to attract investments worth BRL200bn (USD41.79bn). At present, Brazil lacks the necessary legislation to regulate offshore wind and green hydrogen. However, the government issued a decree earlier this year to pave the way for offshore wind power generation, attracting interest from companies like Shell [SHEL:LN] and Equinor [EQNR:NO]. Silveira is confident that a robust regulatory framework for offshore projects will be in place by year-end, while also aiming to establish regulations for green hydrogen projects within the same timeframe. The energy minister sees green hydrogen as a significant opportunity for Brazil to expand its position in clean and renewable energy.

Sources:

https://www.reuters.com/sustainability/climate-energy/brazil-aims-pass-offshore-wind-green-hydrogen-laws-by-year-end-energy-minister-2023-06-27/

https://www.evwind.es/2022/08/18/brazil-approves-regulatory-framework-for-offshore-wind-energy-exploration/87458