WHAT IS ENERGY TRANSITION? “Process of transformation of the infrastructure, production and consumption of energy by the different sectors, aiming to contribute to the neutrality of the country's net GHG emissions.” (CNPE Resolution No. 5/2024). WHAT IS THE PARIS AGREEMENT? International treaty that aims to restrict the increase in the global average temperature to well below 2°C, with efforts to limit the increase to 1.5°C, adopted at COP21 in 2015, strengthening the commitment of countries to act to combat climate change. 41.5% 50.0% 20.2% 9.4% 10.1% 14.5% 0% 20% 40% 60% 80% 100% 2015201620172018201920202021202220232024 ENERGY TRANSITION IN BRAZIL 10 YEARS OF THE PARIS AGREEMENT Each country has specific challenges and opportunities to consider in their transition strategies. While the world seeks to decarbonize its energy, Brazil stands out in renewables. Yet it faces energy poverty and justice challenges that must be part of the transition. Fontes: MCTI/SIRENE (Dados do Brasil); Climate Watch (Dados do Mundo) EVOLUTION OF THE BRAZILIAN ENERGY MIX (2015-2024) 50% renewable and lower share of fossil fuels The Total Energy Supply (TES) grew 0.8% per year, reaching 322 MMtoe. The share of oil and gas fell from 50.8% to 43.7%. Source: Brazilian Energy Balance (2025) 1 | 6 TEN YEARS AFTER THE PARIS AGREEMENT, BRAZIL IS ADVANCING IN THE ENERGY TRANSITION WITH AN INCREASINGLY CLEANER MATRIX, ROBUST PUBLIC POLICIES, AND ACTIONS FOR ENERGY SECURITY AND THE ERADICATION OF ENERGY POVERTY Share of renewables in Total Energy Supply (TES) Share of renewables in electricity generation Source: Brazilian Energy Balance (EPE, 2025 -Data from Brazil); IEA (Data from other locations). 37.2% 34.0% 13.6% 9.6% 7.8% 6.3% 11.3% 11.6% 8.3% 8.5% 16.9% 16.7% 5.0% 13.2% 0%20%40%60%80%100% 2015 2024 Total Energy Supply 2015-2024 20.5% 75.5% Brazil World Emissions by sector Source: MCTI/SIRENE (Brazil); Climate Watch (World). Data from 2022. Energy Industrial processes Agricultural Land Use Waste THE BRAZILIAN ENERGY SECTOR IS A REFERENCE IN RENEWABLES Oil and Oil Products Natural gas Coal, Nuclear and Other Non-Renewables Hydro Firewood and Charcoal Sugarcane derivatives Wind, Solar and Other Renewables ENERGY TRANSITION IN BRAZIL 10 YEARS SINCE THE PARIS AGREEMENT 73.5% 88.0% 38.2% 21.1% 24.2% 25.8% 0% 20% 40% 60% 80% 100% 2015201620172018201920202021202220232024 Brazil Europe United States World China Renewables: 2015 2024 42% →50%
63.% 8.0% 3.5% 0.0% 13.3% 4.1% 5.3% 2.4% 56.8% 8.1% 14.1% 9.3% 6.3% 1.9% 1.5% 2.1% 0% 10% 20% 30% 40% 50% 60% 70% Hidráulica¹Biomassa²EólicaSolarGás NaturalCarvão³Derivados de PetróleoNuclear 2015 2024 ELECTRICITY MIX (2015-2024) with more wind and solar 2 | 6 97% from renewable sources Share of each source in the electricity matrix HydroBiomassWindSolarNatural GasCoalOil ProductsNuclear Hydraulic generation still represents half of the generation, but its share has been falling and depends on hydrological conditions. The share of solar and wind generation increased from 3.5% to 23.4%. The operation of the National Interconnected System becomes hydro- thermal-wind, with greater demand for flexibility. Electricity supply increased by 2.3% per year, reaching 762.9 TWh in 2024. -5
5 10 15 20 25 201620172018201920202021202220232024 Annual capacity expansion (GW) At the end of 2024, there were 36 GW installed, 99% of which were photovoltaic solar energy, reaching 15% of the installed capacity and 5.5% of the electricity generation, with 4.8 million consumers (MMDG Data Dashboard –EPE, 2025). MINI AND MICRO DISTRIBUTED GENERATION (MMDG) grows exponentially 108 71 0 20 40 60 80 100 120 20152017201920212023 TWh Wind Solar Wind and solar generation 5,5% 15,3% 0% 5% 10% 15% 20% 20152017201920212023 % of energy % of capacity Source: Brazilian Energy Balance (EPE, 2025) Share of distributed generation The installed capacity of electricity generation has reached 236 GWin 2024. INSTALLED CAPACITY with renewable expansion In the last 10 years, 95,5 GW of installed capacity were added, of which Source: Statistical Yearbook of Electricity (EPE, 2025) The expansion with renewable energies is the result of energy auctions, incentive policies for renewable sources and normative instruments for MMDG, such as ANEEL Resolutions No. 482/2012, No. 687/2015, No. 786/2017 and Law No. 14,300/2022 (MMDG Legal Framework). Source: Brazilian Energy Balance (EPE, 2025) Renewables: 2015 2024 74% → 88%
ELECTRIC POWER TRANSMISSION SYSTEM increased by 47%, and continues to expand Source: ONS (2025) Brazil's transmission system is one of the most complex and robust in the world, connecting all states in the country. Transmission has been expanding to give greater reliability and robustness to the flow of an electrical system with growing demand and with more non-controllable renewable sources. Investments of US$ 43 billion were made in 19 transmission auctionsheld between 2015 and 2024, evidencing the success of this mechanism in the electricity sector (Results of transmission auctions -ANEEL, 2025). 119 176 20152024 10³ km Note: Values adjusted for inflation and converted to US dollars at an exchange rate of BRL 5.79/USD (December 2024). Transmission Lines Length
- 57 3 | 6 Isolated systems are locations that are not connected to the National Interconnected System (SIN). PLANNING FOR SERVING ISOLATED SYSTEMS (SISOL) Interconnections and auctions reduce emissions and foster development for communities in the Brazilian Northern region Source: Planning for Serving Isolated Systems –2024 Cycle (EPE, 2024). Values converted to US dollars at an exchange rate of BRL 5.79/USD. PLANNING CYCLE2018201920202021202220232024 Number of Isolated Systems 270271258251212196175 Number of utilities 9999888 Population served 3.25 mi3.3 mi3 mi2.98 mi3.1 mi3 mi2.6 mi Verified load (GWh) 4291404241644068401840514145 % of diesel in generation 97%93%95%94%79%69%67% CCC budgets –sector accounts US$ 1,0 biUS$ 1,1 biUS$ 1,3 biUS$ 1,5 biUS$ 2,1 biUS$ 2,1US$ 1,9 Diesel fuel's share in SISOL: 2018 2024 97% →67% Innovations in AucionNo. 1/2025: ▪22% Renewables Required ▪Hybrid Generation Model ▪Carbon Price Strengthening energy infrastructure drives community development.
- DEVELOPMENT
- ENERGY SECURITY
- QUALITY OF LIFE Number of isolated systems: 2018 2024 270 →175 By the end of 2029, +33 interconnections are planned. Interconnection of Roraima to the National grid in September 2025, connecting all states in Brazil.
ERADICATION OF ENERGY POVERTY
is part of a just and inclusive energy transition
Energy poverty: “situation in which households or communities do not have access to a basic package of essential
energy services or do not have their energy needs fully met” (CNPE Resolution No. 5/2024).
SDG7 Indicator 7.1.1
99.8%
of the population with
access to electricity in 2023
SDG7 Indicator 7.1.2
94.5%
of the population with primary access to clean fuels
and technologies in 2023
4 | 6
Sustainable Development Goal 7.1
By 2030, ensure universal access to affordable, reliable and modern energy services.
Extreme Energy Poverty
(no access)
Access to modern
energy sources
Access to a basic
basket of energy
services
Meeting all energy needs
with quality service at
affordable prices.
Energy access is the first step towards
eradicating energy poverty
Source: Launch of the Brazilian Observatory for the Eradication of Energy Poverty
Brazil is close to achieving universal access to energy
Brazil has important policies for eradicating energy poverty
Luz para Todos
(Light for All)
Luz do Povo
Gásdo Povo
Brazilian Energy Poverty Eradication Observatory -OBEPE
Interactive platform to monitor and analyze a solid base of energy poverty
indicators in a multidimensional way, with socioeconomic, geographic and
environmental elements.
It helps explain where and why this poverty persists and supports more effective
evidence-based public policies. For more information, click here.
Source: IBGE (2025)
FREE electricity for the first
80 kWh/month for low-income
families and social discount for
low-income families consuming up
to 120 kWh/month.
(Law No. 12,212/2010 and Law No.
15,235/2025)
FreeLPGor payment to mitigate
the effect of LPG prices on the
budget of low-income families.
(Law No. 14,237/2021, amended by
Provisional MeasueNo. 1,313/2025)
622 k
Households served 2015-2024
Includes electrification programs
“Luz para Todos –Rural”, “Luz para Todos –
RegiõesRemotasda Amazônia Legal" and
financial resources from utilities
(MME, 2025)
5 | 6 BIOFUEL POLICIES PREVENT EMISSIONS
- 20 40 60 2015 2024 Gasolina A Etanol
- 20 40 60 2015 2024 Diesel A Biodiesel Biofuel policies began in the 1970s, with the Proálcoolprogram, and lead to reduced emissions, increased energy security, industry development, and positive social impacts. Gasoline and ethanol consumption¹ (MMtoe) ¹ Final energy consumption Diesel and biodiesel consumption (MMtep) B7 B15 2015 2025 Source: Brazilian Energy Balance (EPE, 2025) Biodiesel blending The Brazilian Program for the Production and Use of Biodiesel(2004) introduced biodiesel into the energy mix. With regulatory advances, the mandatory addition of biodiesel to diesel reached 15% in volume in 2025. As a result, biodiesel consumption has more than doubled in 10 years. Brazilian Biofuels Policy –RenovaBio It aims to reduce the carbon intensity of the transport matrix, expanding the use of biofuels, ensuring predictability for the market and inducing efficiency (Law 13.476/2017). Instruments: •Mandatory decarbonization targets for each fuel distributor; •Issuance of the Certificate of Efficient Production of Biofuels; •Issuance of Decarbonization Credits (CBIO's). Source: Law No. 13,033/2014, CNPE Resolution No. 8/2023 and CNPE Resolution No. 8/2025 Ethanolconsumption replaces fossil gasoline, with: -mandatory content of anhydrous ethanol in gasoline C, which reached 30% in 2025 in volume (CNPE Resolution No. 9/2025), -the fleet of flex-fuel light-duty vehicles fueling with hydrous ethanol, and -the RenovaBio. AN INCREASE IN ENERGY EFFICIENCY OF 4.3% (2015-2023)
50 100 150 200 250 300 20152023 Eficiência Outras primárias Carvão e derivados Gás natural Etanol e biodiesel Lenha e carvão vegetal Bagaço de cana Eletricidade Derivados de petróleo Energy efficiency brings several benefits, including GHG emissions reduction. The energy savings in the period was 11.8 million toe. The result encompasses autonomous and policy- induced efficiency measures, such as: -National Program for the Conservation of Electric Energy –Procel (since 1985) -PEE/ANEEL (since 2000) -Minimum efficiency ratios (since 2001) -Brazilian Labeling Program (since 1984) -Route 2030 (since 2018) Final energy consumption [MMtoe] Efficiency calculated using the ODEX energy efficiency index, based on 25 specific consumption indicators weighted by their share in total consumption. For details on the ODEX methodology used in the Energy Efficiency Atlas, click here. Energy efficiency Other primary sources Coal Natural gas Ethanol and biodiesel Firewood and charcoal Sugarcane bagasse Electricity Petroleum products Neat gasoline Ethanol Neat diesel Ethanol
Rota 2030Mobility and Logistics Program Decree No. 9,557/2018 6 | 6 NOVEMBER/2025 EPE disclaims any responsibility for decisions or deliberations made based on the use of the information contained in this report, as well as for any misuse of this information. Geral Coordination Thiago Guilherme Ferreira Prado Thiago Ivanoski Teixeira Executive Coordination Carla Costa Lopes Achão Gustavo Naciff de Andrade Technical Team Glaucio V. R. Faria (coordination) Lúcio Carlos Resende Patrícia Messer Rosenblum Note: Icons used throughout this edition were obtained from the platform www.flaticon.com Note: This is not and exhaustive list BRAZIL IS ESTABLISHING A LEGAL AND INSTITUTIONAL FRAMEWORK TO DRIVE ENERGY TRANSITION FORWARD R&D and Innovation for Energy Transition CNPE Resolution No. 02/2021 Combustíveldo Futuro (Future fuel) Program Law No. 14,993/2024 –encourages the production of green diesel, sustainable aviation fuels, biomethane, and CCS Offshore wind Law No. 15,097/2025 National Secretariat for Energy Transition Decree No. 11,492/2023 –MME/SNTEP Regulation of Limits on Natural Gas Flaring and Losses in E&P National Agency of Petroleum, Natural Gas and Biofuels Resolution No. 806/2020 National Energy Transition Policy CNPE Resolution No. 5/2024 Federal Strategy for Sustainable Biogas and Biomethane Use and the Methane Zero Program Decree No 11,033/2022 and Ministry of the Environment Ordinance No. 71/2022 Gas for Jobs Program CNPE Resolution No. 01/2023 Amazon Energy Program Decrees No. 11,059/2022 and No. 11,648/2023 RenovaBio–Brazilian Biofuels Policy Law No. 13,476/2017 Legal Framework for Micro and Mini Distributed Generation Law No. 14,300/2022 Allocation of Resources to Procel –Brazil’s National Energy Conservation Program Law No. 13,280/2016 Just Energy Transition Program Law No. 14,299/2022: Promotes a fair transition in the coal-mining region of Santa Catarina Over the past decade, Brazil has advanced with a wide range of initiatives, programs, and policies to foster a FAIR and INCLUSIVE energy transition for all Biomethane Origin Guarantee Certificate Decree No. 12,614/2025 Brazilian Emissions Trading System Law No. 15,042/2024 Energy Transition Acceleration Program Law No. 15,103/2025 2017 2016 2018 2020 2021 2022 2023 2024 2025 Increase in the mandatory blend of ethanol in gasoline and biodiesel in diesel CNPE Resolutions No. 8/2025 and No. 9/2025 Luz do Povo Law No. 15,235/2025 Gásdo Povo provisional measure No. 1,313/2025 Hydrogen Legal Framework Law No. 14,948/2024 Green Mobility and Innovation Program (MOVER) Law No. 14,902/2024