Medium-Sized Brazilian Enterprises Embrace Renewable Energy Transition Amid Challenges and Opportunities
Brazilian medium-sized enterprises are actively investing in renewable energy to reduce costs and enhance competitiveness, backed by government funding but facing challenges like high energy prices and taxes.
- • Medium-sized Brazilian companies prioritize renewable energy to reduce costs and increase competitiveness.
- • Global renewable capacity grew 50% in 2023, with solar energy leading growth, benefiting Brazilian enterprises.
- • BNDES provides funding to support energy efficiency and photovoltaic projects for small and medium enterprises.
- • Challenges include high energy costs and tax burdens, while opportunities span distributed generation, green hydrogen, and electric mobility.
Key details
Medium-sized enterprises in Brazil are increasingly investing in renewable energy and energy efficiency as strategic moves to reduce costs and gain competitive advantages in both domestic and global markets. According to reports from the International Energy Agency (IEA), the National Bank for Economic and Social Development (BNDES), and the National Confederation of Industry (CNI), the energy transition has become a key priority for Brazil’s productive sector.
In 2023, global renewable energy capacity surged by roughly 50%, with solar photovoltaic energy accounting for 75% of this growth—a trend that Brazilian medium companies are tapping into through distributed generation projects. The BNDES has launched funds to support energy efficiency initiatives and has approved financing for numerous photovoltaic plants benefiting thousands of small and medium enterprises. These efforts align with evolving consumer preferences, as Deloitte reports that 76% of consumers prefer purchasing from sustainable companies.
Despite these positive strides, medium-sized enterprises face significant hurdles, including high energy costs—especially for natural gas, priced among the highest globally—and a heavy tax burden. Nonetheless, opportunities in distributed generation, green hydrogen, and the integration of sustainable practices connected to the circular economy present promising avenues for growth. The rise of electric mobility, evidenced by a surge in electric vehicle registrations in Brazil, also creates opportunities in charging infrastructure and related technologies.
Successful implementation of renewable projects depends on training, partnerships, and strategic organizational planning. Experts stress that adaptive and data-driven strategic planning is vital in the increasingly competitive and digital business environment of 2026. Businesses that implement ongoing, practical strategy management tools can better navigate risks and capitalize on new sustainability trends.
This combination of governmental financial support through BNDES, market opportunities linked to sustainability, and the need to overcome operational challenges frames the future landscape for medium-sized Brazilian companies actively transitioning to renewable energy.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.
