Photo: AP

Brazil has reached a remarkable milestone in its energy journey. In August 2025, for the first time in its history, wind and solar power combined produced more than one-third of the country’s electricity. This shows a strong move toward cleaner, renewable energy sources and highlights Brazil’s commitment to reducing carbon emissions.

Traditionally, Brazil has relied heavily on hydropower. The country’s many rivers and dams have long been the backbone of electricity generation. Hydropower has historically supplied more than half of Brazil’s electricity. However, in August 2025, hydropower’s contribution fell to 48%, marking only the second time it has been less than half of the total electricity production.

Fossil fuels, including natural gas, coal, and oil, accounted for 14% of the electricity. In past drought years, fossil fuel generation spiked, reaching 26% in August 2021. This year, the rapid growth of wind and solar energy helped Brazil avoid excessive reliance on fossil fuels.

Rapid Growth of Wind and Solar Energy

Wind and solar energy in Brazil have grown significantly over the past five years. In 2019, wind and solar combined contributed just about 12% of Brazil’s electricity. By 2024, they reached 24%, more than double. In August 2025, they surpassed one-third of total electricity generation. Solar alone grew from a little over 1% in 2019 to 9% of total electricity in 2025, while wind energy has also expanded steadily.

This growth has reduced carbon emissions from Brazil’s power sector. Since the peak in 2014, power sector emissions have fallen 31%, even as electricity demand has risen 22%. The increase in renewable energy production has outpaced electricity demand growth and helped cut fossil fuel generation by 45%.

Why This Growth Happened

Experts say Brazil’s success is due to a combination of factors. The country has diversified its energy mix, using hydro, wind, solar, and some fossil fuels strategically. Wind and solar complement each other well. Solar produces the most energy during sunny days, while wind often peaks in the late afternoon or night. This combination helps provide a steady supply of electricity.

Government policies and incentives have also encouraged private investment in renewable energy. Auctions for new energy projects, tax benefits, and support for infrastructure have attracted companies to invest in wind and solar power.

Brazil’s renewable growth is not only a national achievement but also a global example. It demonstrates that large countries can expand clean energy rapidly while reducing carbon emissions.

Hydropower and Energy Balance

Hydropower remains an important part of Brazil’s energy system. The country’s hydroelectric dams provide baseload power, which means they generate electricity continuously. This is crucial for keeping the electricity grid stable. Even though hydropower’s share fell below 50%, it continues to provide nearly half of Brazil’s electricity.

During droughts, when river levels drop, hydroelectric power generation declines. In such years, countries often rely more on fossil fuels, which increases emissions. However, the growth of wind and solar has reduced the need to use fossil fuels during these periods. This makes Brazil’s electricity system more resilient and environmentally friendly.

Challenges and Concerns

Despite this progress, challenges remain. Brazil’s reliance on subsidies for renewable energy has created concerns about electricity costs. Some experts warn that without proper policy adjustments, consumers may face higher prices in the future.

There are also technical challenges. Integrating a growing share of wind and solar energy into the grid requires careful planning. Electricity supply must remain stable even when the sun isn’t shining or the wind isn’t blowing. Brazil has invested in modernizing the grid and building storage systems to address these challenges, but continued improvements are needed.

Environmental Benefits

The increase in wind and solar power has major environmental benefits. Less fossil fuel use means fewer carbon dioxide emissions, helping Brazil meet its climate goals. Renewable energy also reduces air pollution, which benefits public health.

Additionally, wind and solar projects have a smaller footprint compared to large hydro dams, which can flood large areas and displace communities. Solar panels and wind turbines can be installed on land with minimal environmental impact, sometimes even on agricultural land.

Social and Economic Impact

The renewable energy boom has created jobs and supported local economies. Construction, operation, and maintenance of wind and solar farms provide employment opportunities. Communities near renewable projects can benefit from infrastructure improvements and investment in local services.

However, it is essential to ensure that these benefits are equitably shared and that Indigenous lands and sensitive ecosystems are protected during renewable energy development. Brazil has made efforts to consult communities and respect environmental regulations, but vigilance is necessary to prevent conflicts or ecological damage.

Future Outlook

Brazil’s achievement in August 2025 shows that renewable energy can play a dominant role in a large, developing country. If current trends continue, wind and solar could supply even more than 40% of electricity in the next few years.

Investment in battery storage, grid modernization, and smart energy management will be key to handling higher shares of variable renewable energy. Policies must balance growth, affordability, and sustainability to ensure long-term success.

Experts emphasize the importance of continuing to diversify energy sources. Hydropower, wind, solar, and even natural gas may all play a role in providing reliable electricity while keeping emissions low. Brazil’s experience offers valuable lessons for other countries aiming to expand clean energy rapidly.

Global Significance

Brazil’s renewable energy progress is not only important nationally but also globally. As one of the largest electricity producers in South America, Brazil’s success in reducing emissions can contribute significantly to global climate targets. The achievement also demonstrates that developing countries can adopt advanced renewable technologies without compromising energy security or economic growth.

International organizations, investors, and governments are paying attention. Brazil’s approach, which combines policy incentives, private sector participation, and strategic energy planning, can serve as a model for other nations seeking to expand renewable energy.

Brazil’s milestone in August 2025—wind and solar generating over one-third of electricity—represents a major step toward a sustainable energy future. This achievement shows that with the right policies, investments, and planning, countries can significantly reduce reliance on fossil fuels while meeting growing energy demands.

The country still faces challenges, including integrating renewables into the grid, managing costs, and ensuring environmental and social safeguards. However, the progress demonstrates that renewable energy is not just a possibility but a reality capable of transforming a nation’s electricity system.