Bioelectricity, generated from biomass, is solidifying its position as a reliable and renewable source in Brazil’s electricity matrix. As the world’s largest producer of sugarcane, Brazil leverages sugarcane bagasse as a strategic input for sustainable energy generation. However, despite the growth and potential of biomass, the sector still faces regulatory and incentive challenges that may hinder its expansion in the coming years.
According to the 2024 National Energy Balance (BEN), biomass accounted for 9% of Brazil’s domestic electricity supply, establishing itself as the second-largest renewable source after hydroelectric power. Data from the Energy Research Company (EPE) indicates that there are 637 biomass power plants in operation across the country, with a total installed capacity of approximately 15,000 MW, equivalent to the combined capacity of the Itaipu and Belo Monte hydroelectric plants.
Sugarcane bagasse plays a leading role in this sector, accounting for 75% of bioelectricity generation for the grid. In 2023, bioelectricity from this input totaled 28,137 GWh, enough to power around 15 million homes for a year, according to the Sugarcane and Bioenergy Industry Union.
Using biomass as an energy source brings various environmental and economic benefits. Besides being a renewable energy source, its environmental impact is reduced due to the reabsorption of CO₂ during the sugarcane growth cycle. In other words, the carbon emitted during biomass combustion is offset by the carbon absorbed by the plant during its growth, making it a low-impact climate alternative.
Additionally, bioelectricity contributes to the decentralization of power generation, reducing dependence on hydroelectric plants, especially during drought periods. Another advantage is its ability to supply electricity during the dry season, when hydropower generation struggles. According to data from the Electricity Commercialization Chamber (CCEE), between May and November, a critical period for reservoirs, bioelectricity can meet more than 10% of the electricity demand in the Southeast and Midwest regions.
Despite its potential and contribution to the energy matrix, the biomass sector still faces barriers preventing faster growth:
- Lack of regulatory incentives – Unlike solar and wind power, which benefit from tax incentives and facilitated financing, bioelectricity does not receive the same treatment in the country’s energy planning.
- Limited access to the energy market – Biomass plants compete directly with fossil-fuel-powered thermal plants in energy auctions, often struggling with competitiveness due to contracting rule structures.
- Infrastructure and logistics constraints – Transporting and storing biomass requires significant logistical investment, which can increase generation costs and make projects unfeasible in remote areas.
Despite these challenges, the outlook for biomass remains promising. The National Energy Plan 2050 (PNE 2050) projects growth in bioelectricity, highlighting its potential to supply up to 20% of national electricity demand if proper incentive policies are implemented.
Moreover, new technologies, such as biogas production from agricultural and urban waste, could further expand biomass’s role in the power sector, fostering a sustainable circular economy.
Biomass has already proven essential for energy security and the decarbonization of the electricity sector. However, for Brazil to fully capitalize on this potential, a coordinated effort among the government, private sector, and regulators will be necessary to ensure incentives, modernize regulatory frameworks, and enable sustainable bioelectricity growth in the country.
