According to the Electric System National Operator (ONS), wind generation represented 10.9% of the Brazilian energy mix in 2021, with an anticipated increase to 13.6% by the end of 2025. Despite this promising trajectory, the wind power sector faces challenges in both legislative and regulatory environments. However, recent developments underscore the industry’s increasing importance and potential impact on business competitiveness in the coming years. The latest report of Brazil to restart import taxes on wind turbines & solar panels adds a new layer to the challenges and opportunities shaping the future of the wind power sector in Brazil.
In a strategic move, Brazil has announced the reinstatement of import taxes on wind turbines and solar panels, signalling a shift in its approach to alternative energy sources. The decision comes amid a growing global demand for the evolution of the energy mix, with wind power being a significant player in Brazil’s renewable energy landscape.
In January 2022, Brazil took a significant step forward by publishing Decree No. 10,946/2022, outlining directives to stimulate the development of projects in offshore energy generation. This regulatory milestone focuses on harnessing electric potential in federal interior water, territorial sea, exclusive economic zones, and continental shelves.
Furthermore, the Senate approved the Program for the Incentive of the Development of Wind and Solar Photovoltaic Energy (Pides) in January. The program aims to provide federal government financing of up to BRL 500 million for both wind and solar photovoltaic energies across all regions of Brazil. The report of Brazil to restart import taxes on wind turbines & solar panels adds a layer of complexity to the evolving landscape of alternative energy in the country.
The Emergency Program for Wind Energy (Proeólica) was established during the 2001 energy crisis, followed by the Program for the Incentive of Alternative Energy Sources (Proinfa) in 2002. Proinfa seeks to expand the participation of wind power in the national energy mix.
Brazil has witnessed the amplification of renewable energy sources through auctions dedicated to alternative energy. Wind energy sources have recently become part of these auctions, opening new investment opportunities in the sector.
The National Bank for Economic and Social Development (BNDES) has announced a BRL 1.47 billion support for constructing 14 wind farms in northeastern Brazil. This aligns with the Energy National Plan 2030, emphasizing cost-effective and sustainable energy expansion.
The Special System for Infrastructure Development (Reidi) aims to relieve the tax burden on corporate taxpayers engaged in infrastructure projects, including the energy sector. Tax incentives, such as ICMS Partnership No. 16/2015 and No. 101/1997, provide exemptions in internal operations and predict exemptions from ICMS for equipment and components in the wind power chain.
The recent decision to restart import taxes on wind turbines and solar panels adds a new layer to Brazil’s approach to the wind power industry. As the country navigates the evolving landscape of alternative energy, stakeholders and investors are urged to closely analyze state legislation, federal regulations, and other relevant factors when planning investments in the energy sector.