Brazil offshore wind clear for lift-off at last as President signs law
'Lula' approves long-awaited legislation as heavyweights such as Iberdrola, Equinor, Ocean Winds and Corio eye gigascale projects
Brazil’s President Luiz Inácio ‘Lula’ da Silva has signed a long-awaited offshore wind act into law, paving the way for the first offshore wind tender in Latin America’s largest economy.
The text of the offshore wind law is “consistent and investor-friendly”, Marcelo Cabral, director of new business at Brazilian wind energy association ABEEólica said when the law was approved in the Senate in December.
ABEEólica expects first offshore wind projects in Brazil only to come into operation early in the next decade due to the long development cycle of projects. After a project is approved, the process of obtaining permits and engaging with institutions can take up to five years, the association estimated.
No subsidies are planned for offshore wind in Brazil, and the legislation even foresees payments to the state. How viable offshore wind will be in the country therefore depends on the conditions once first tenders are announced.
Submission of 97 environmental permitting proposals adding up to more than 230GW of potential projects has shown the level of interest, even allowing for the fact that these developer-led applications were on a preliminary, fee-free basis, and were often on overlapping areas.
Lula when singing the offshore wind act into law cut out amendments made by lawmakers that had nothing to do with wind at sea, such as support for gas and coal-fired power plants. The veto of such additions had been a demand by the offshore wind industry.
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