The Brazilian Senate has passed a bill regulating offshore wind licensing and operations. The legislation also includes subsidies for coal and natural gas power plants, which President Luiz Inácio Lula da Silva is expected to veto.
The bill (PL 576/2021), introduced in 2021, focuses on offshore wind and renewable energy sources. It outlines offshore wind development areas, licensing processes, and mandates State lease payments.
The Chamber of Deputies amended the bill to include fossil fuel subsidies, sparking Senate debates. Senator Eduardo Girão noted this could raise energy bills by 7.5% on average.
Senator Randolfe Rodrigues criticized the amendments, stating they distort the bill’s original focus. He confirmed that President Lula plans to veto the fossil fuel provisions.
Supporters of the coal and gas amendments argue for energy security and economic stability, crucial for regions like southern Brazil where coal is significant. Senator Rogério Marinho stressed the need for gas and coal-fired plants for a secure energy matrix.
A DNV study for the World Bank Group highlights Brazil’s offshore wind potential of over 1,200 GW, with possibilities to install 16 GW to 96 GW by 2050, contingent on strategy and infrastructure enhancements.
Brazil’s Institute for the Environment and Natural Resources (IBAMA) has processed applications for offshore wind projects since 2019, totaling 103 proposed projects.
Ben Backwell, CEO of the Global Wind Energy Council (GWEC), remarked, “The 100 applications for offshore wind projects in Brazil represent over 230 GW of renewable power. This bill is pivotal for Brazil’s job creation, industry rejuvenation, and economic renewal.”
He added, “Offshore wind development strengthens Brazil’s energy transition leadership and positions it to produce green products and contribute significantly to the global wind supply chain.”
In 2023, Brazil’s Ministry of Mining and Energy and Energy Research Office (EPE) released an updated offshore wind roadmap following regulatory changes in energy generation laws (Law No. 9.636/1998).
Original Story at www.offshorewind.biz