The Brazil PDE 2034, a strategic plan published by the Ministry of Mines and Energy (MME) in collaboration with the Energy Research Company (EPE), lays out ambitious goals for energy efficiency and renewable energy over the next decade. The plan aims to reduce Brazil’s energy consumption by 7% by 2034 through advances in energy efficiency. This reduction, equivalent to the annual energy use of large industries like steel and cement, aligns with Brazil’s goal to transition to a more sustainable, resilient energy grid.
Energy Efficiency: A Path to Sustainable Growth
According to the PDE 2034, enhancing energy efficiency across sectors will be critical to reducing energy demand and carbon emissions. By adopting advanced technologies and sustainable practices, Brazil can save significant energy resources, fueling its transition to a low-carbon economy. Minister Alexandre Silveira and Secretary Thiago Barral emphasize that Brazil’s energy sector investments will job creation, GDP growth, and substantial international relevance. Thiago Ivanoski, EPE’s Director of Energy Economics, notes that these efforts are essential for Brazil’s economic and environmental growth.
Renewable Energy Leadership in Residential and Distributed Energy Resources
The report highlights residential energy as a key contributor to Brazil’s renewable capacity. By 2034, it is projected that 98.3% of residential energy will come from photovoltaic systems, securing solar power as the dominant energy source for Brazilian homes. Alongside solar, other renewable energy sources like wind, biodiesel, and hydroelectric power will remain crucial in Brazil’s energy matrix, contributing around 48% to 49% of the national energy supply between 2024 and 2034. Renewable sources are projected to grow, particularly in the “Other Renewables” category, which includes wind, solar, and biofuels, expected to increase from 12% in 2024 to 16% by 2034.
Key Role of Strategic Minerals in Energy Transition
The report addresses the essential role of strategic minerals in enabling Brazil’s energy transition. Minerals like lithium, cobalt, nickel, and copper are critical for the production of solar panels, batteries, wind turbines, and electric vehicles. Brazil’s abundant mineral reserves position it as a global supplier, which presents opportunities for Brazil to expand its role in mineral processing industries, ensuring a stable supply of these resources for renewable technology manufacturing.
Oil, Gas, and Biofuels: Balancing Traditional and Renewable Energy Sources
PDE 2034 acknowledges the ongoing demand for traditional energy sources while transitioning to renewables. The plan projects a peak in oil production at 5.3 million barrels per day by 2030, with an anticipated gradual decline thereafter. Natural gas is set to become a significant transition fuel, nearly doubling in production by 2034. Investments of up to R$2.4 trillion in infrastructure for transport, processing, and distribution will be crucial to meet growing demands in the gas sector, ensuring supply security throughout the transition.
Growth in Biofuels and Emerging Technologies
Biofuels like ethanol and biodiesel will play a pivotal role in Brazil’s energy landscape. Ethanol production is expected to reach 48.5 billion liters by 2034, with biodiesel production reaching 13.6 billion liters. Other bioenergy options, such as biogas, bioelectricity, and innovative fuels like Sustainable Aviation Fuel (SAF) and Diesel Verde, are also highlighted as transformative solutions. Additionally, technologies such as BECCS (Bioenergy with Carbon Capture and Storage) will help diversify the energy matrix while promoting decarbonization.
Strategic Objectives for an Inclusive Energy Transition
The PDE 2034 emphasizes a balanced approach, stressing that the energy transition must be inclusive and equitable to ensure energy security, environmental sustainability, and economic resilience. As Renato Dutra from the MME notes, Brazil’s transition strategy will bridge public policy with energy goals, underscoring the importance of making the energy shift fair and balanced. The roadmap laid out by PDE 2034 is a significant step towards achieving these objectives, ensuring that Brazil remains a leader in sustainable energy while supporting global climate goals.