Offshore Wind Development in Brazil: International Drivers, National Challenges, and the Impact of Regulatory Distortions

Offshore wind is expanding globally, driven by energy security and decarbonization goals. Brazil’s world-class potential for this resource is challenged by its unique context: an already clean electricity matrix and abundant, low-cost onshore alternatives, which reduce the immediate urgency for deployment. This paper starts with a global offshore wind market analysis, understanding why the main countries pursue this technology, in contrast with Brazil’s already high share of renewable generation. The following examination focuses on Brazil’s recently approved new offshore wind framework and the governance-related issues, revealing that the legislative process was distorted by unrelated riders mandating costly, non-competitive energy procurement. These riders threatened to absorb future market growth, undermining competition and jeopardizing the emergence of the entire offshore wind industry. While presidential vetoes of these riders were essential to preserve this opportunity, remaining market distortions still favor mature technologies. The study concludes that Brazil’s primary barrier to offshore wind is not technical or resource-based but institutional: the need for stable, transparent governance to foster a truly competitive and predictable policy environment.