The Distributed Generation Revolution in Brazil

Geração Distribuída no Brasil: Balanço de 2024 e Perspectivas para 2025

Distributed generation (DG) established itself in 2024 as a fundamental pillar of Brazil’s energy matrix, reflecting a global shift toward decentralization and sustainability in energy production. This model allows consumers, from households to large companies, to generate their electricity from renewable sources such as photovoltaic solar, wind, and biomass, contributing to energy matrix diversification and promoting economic and environmental benefits.

The year 2024 was marked by significant growth in Brazil’s installed DG capacity. Data from the National Electric Energy Agency (ANEEL) indicate that by October, the country had added approximately 8 gigawatts (GW) in micro and mini distributed generation capacity, maintaining a stable monthly average of 700 megawatts (MW), similar to the volumes of 2022 and 2023.

This growth raised the total DG capacity to around 34 GW, positioning Brazil as a global leader in the adoption of distributed generation systems. States such as Minas Gerais, São Paulo, and Rio Grande do Sul stood out with the highest installed capacities, reflecting favorable state policies and greater consumer awareness of the benefits of DG.

The dominance of photovoltaic solar energy remains evident, accounting for approximately 48.59% of the installed capacity in 2024. However, there is an increasing share of other renewable sources, such as wind and biomass, diversifying the DG matrix and enhancing the resilience of Brazil’s electric system.

This movement significantly contributes to reducing greenhouse gas emissions. Emissions from electricity generation in Brazil totaled 38.9 million tons of CO₂ in 2023, a 6% drop compared to 2022, indicating a continuous trend toward decarbonization of the electric sector.
EPE

Distributed Generation in Brazil: 2024 Overview and 2025 Outlook

The adoption of DG systems has provided significant savings for consumers. Studies indicate that energy bill reductions can reach up to 20%, depending on consumption profiles and installed capacity. Additionally, DG expansion has created jobs and boosted local economies, especially in regions with high solar radiation indices and wind potential.

The democratization of energy access is also a highlight. Innovative business models, such as energy cooperatives and shared generation, have enabled consumers without initial investment capacity to participate in DG benefits, expanding accessibility.

Despite the progress, DG in Brazil faces significant challenges. Regulatory issues, such as the need to update norms to keep pace with the sector’s rapid growth, and distribution infrastructure, which needs to adapt to support energy flow inversion, are critical points to address.

Projections suggest that Brazil could reach 56 GW of installed DG capacity by 2029, provided appropriate public policies are implemented and investments in infrastructure and technology are made. The continuation of growth will depend on the country’s ability to overcome challenges and create a favorable environment for investors and consumers.

The 2024 overview demonstrates that distributed generation is a consolidated reality in Brazil, bringing economic, social, and environmental benefits. With robust growth and promising prospects, DG positions itself as an essential component for the country’s sustainability and energy security. However, to fully realize its potential, it is crucial to tackle existing challenges and foster a regulatory environment and infrastructure that support its continuous development.