Brazilian president Luiz Inacio Lula da Silva approved legislation that will clear the way to develop the offshore wind industry, while vetoing three items supporting fossil fuel-fired power projects.
The new law establishes a regulatory framework for the sector, clearing the way for Brazil to hold its first auctions for offshore wind concessions.
The law positions Brazil to become a leader in offshore wind development, according to Matheus Noronha, the head of offshore wind at the Brazilian wind power association Abeeolica.
Amid strong lobbying from large energy consumers, industry associations and environmentalists, Lula vetoed three articles that had been tied to the bill. These articles would have mandated the construction of new gas-fired thermoelectric plants, extended power purchase agreements (PPAs) for coal plants until 2050 and required PPAs for small hydroelectric plants. Energy research firm PSR estimated that these three amendments would have raised annual electricity prices for consumers by 9pc by adding cost of around R22bn/yr ($3.6bn/yr) .
Brazil is on the radar of wind power developers and companies have submitted over 100 projects with roughly 245GW of capacity to environmental watchdog Ibama for approval.
