The levelized cost of energy (LCOE) for solar photovoltaic generation in Brazil will fall by 25% in 2025, to US$37/MWh, consolidating the country among the most competitive markets in the world for this energy source, according to... report from IRENA (International Renewable Energy Agency).
LCOE considers the total cost to generate 1 MWh of energy throughout the entire lifespan of a project, including investments, operation, and maintenance. This indicator is one of the main parameters used to compare the competitiveness between different generation technologies.
With this result, Brazil is practically tied with India (US$ 35/MWh) and very close to China (US$ 36/MWh), a world reference in cost reduction for renewable projects.
The global average for solar energy was US$44/MWh, while markets such as Germany (US$65/MWh) and the United States (US$62/MWh) recorded significantly higher costs.
According to IRENA, the combination of high solar irradiance, a maturing production chain, economies of scale, and technological advances has contributed to making photovoltaic generation increasingly competitive in Brazil.
Wind and hydroelectric power also remain competitive.
The report shows that other renewable sources also remain among the most competitive in the country. The levelized cost of onshore wind generation rose 3% in 2025, reaching US$31/MWh, but remains among the lowest in the world. Only China presented a lower cost, at US$27/MWh.
In the case of hydroelectricity, IRENA compares the implementation costs of the projects. For large plants, Brazil presented the lowest cost among the countries analyzed, at US$ 1.463/kW. For small hydroelectric plants, the cost was estimated at US$ 2.540/kW, second only to China (US$ 1.918/kW).
Brazil is among the biggest beneficiaries of renewables.
In addition to the competitiveness of the projects, the report highlights the economic impacts of renewable sources on the Brazilian electricity matrix. According to IRENA, renewable generation avoided US$32 billion in fossil fuel spending by 2025.
At the same time, renewables prevented the emission of approximately 432 million tons of CO₂, reinforcing their role in both reducing emissions and ensuring energy security. In the global ranking, only China and the United States registered economies superior to those of Brazil.
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