Brazil’s Coal Energy Strategy Sparks Global Concern

The Global Energy Monitor recently spotlighted in Brazil what it considers troubling coal energy trends, noting a deviation from the Paris Agreement’s goals.

While the world strives to cut back, Brazil’s choice to delay shutting down plants and to introduce new initiatives sharply contrasts with the required 6% cut in coal power capacity.

In fact, coal power capacity globally saw a 2% rise in 2023 instead.

Brazil could majorly reverse the current upward coal trend, yet it is said to hesitate to close existing facilities and plans new ones.

It’s progressing with two coal-fired projects. Halting these could mark Latin America as the first continent without new coal projects, underlining Brazil’s role in the G20.

Between 2015 and 2023, there was an 86% decrease in coal project developments across the region.

However, financial and legal challenges have halted Brazil’s Nova Seival and Ouro Negro projects, though they have not been formally axed.

The report highlights Brazil’s delay in closing coal plants, impacting the shift from coal.

In 2022, Brazil’s Congress voted to keep subsidizing the Jorge Lacerda plant until 2040.

The Offshore Wind Bill may allow southern coal plants to operate until 2050 as backup. This change would significantly impact two power generators.

In December 2023, Paraná advanced its decarbonization efforts by ending coal production and mining, influenced by Copel’s termination of the Figueira plant concession.

The future of this plant is now under the Ministry of Mines and Energy’s review.

Despite progress in closing plants in Brazil and Latin America, many coal facilities lack a publicly known decommissioning schedule.

Background

Despite this critique, it is a fact that Brazil derives only 3% of its electricity from coal, even though it’s cost-effective. The shift to cleaner energy is evident.

Worldwide, coal-fired power stations produce over one-third of electricity. In Brazil, coal’s share is tiny: 5% of the energy mix and 3% of electricity.

In 2021, Brazil halved its coal and gas thermal energy generation.

Download the report here.