Changes and updates to Brazil’s energy regulatory environment represent important advances for the country’s energy transition. Improvements to regulations for decentralised energy generation and distribution, the expansion of energy trading models, and the strengthening of mechanisms for integrating renewable energies into the National Interconnected System (SIN) have been pillars of the new scenario that the country intends to build.

Since 2017, installed solar photovoltaic capacity has grown exponentially, from approximately 100 MW to more than 50 GW in 2025, driven by a more robust regulatory framework and greater predictability. In the field of commercialisation, the free market has grown significantly, currently representing more than 35% of total electricity consumption in the country, with greater competitiveness and flexibility for consumers. In addition, the implementation of new mechanisms to integrate renewable sources, such as improvements in energy auction rules and the introduction of new flexibility contracting models, has allowed for more efficient incorporation of sources such as solar and wind, which together already account for more than 40% of Brazil’s electricity matrix.

The growth in the share of Variable Renewable Energy Sources (VRES), both in centralised generation and as Distributed Energy Resources (DER), has profoundly transformed the operation of the Brazilian electricity system. Dispatchable sources, especially hydro and thermal, have been decreasing their share in the sector, with projections of 61% versus 39% of installed VRE capacity, as indicated in the 2031 Ten-Year Energy Expansion Plan.

However, ensuring security and quality in the supply of electricity remains a challenge that requires structural actions in planning, operation and regulation of the sector. The expansion and integration of new technologies must be aligned with social development and environmental responsibility, ensuring a fair and equitable transition. This requires a regulatory environment that is both solid and attractive to the necessary investments.

The Brazil-Germany Cooperation for Sustainable Development and ANEEL remain committed to the continuous improvement of the electricity sector, with initiatives to leverage the use of new technologies for energy generation and storage, increasing system flexibility and creating mechanisms for new business models based on the digitisation and decentralisation of generation.

The success of the energy transition in Brazil depends on the continuity of these efforts. Strengthening the partnership between Brazil and Germany is essential to maintaining the country’s leadership in clean energy generation and the development of innovative solutions for the future of the electricity sector.