Brazil Power EPC Market

Brazil Power EPC Market Size and Share:

The Brazil power EPC market size was valued at USD 15.8 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 28.9 Billion by 2033, exhibiting a CAGR of 7.00% from 2025-2033.  The rising electricity demand, significant investments in renewable energy, supportive government policies, aging infrastructure upgrades, and increasing international participation, are major factors bolstering the Brazil power EPC market share.

Brazil's electricity consumption has been on a consistent upward trajectory, driven by factors such as a rising population, increased urbanization, and the continuous growth of various industries. As such, the population stood at 212,441,432 in January 2025. Cities like São Paulo and Rio de Janeiro are hubs for commercial and residential growth, leading to higher electricity usage. Additionally, Brazil’s push toward digitalization, such as smart cities and increased use of electronic devices, is also contributing to this rising energy need. In response, the government has been allocating more resources to enhance power generation, transmission, and distribution infrastructure across the country. For example, programs like Luz Para Todos aim to bring electricity to rural and underserved regions, boosting the market for engineering, procurement, and construction (EPC) services. The need to ensure a stable and reliable power supply in both urban and rural areas directly benefit the Brazil power EPC market demand, as it creates opportunities for developing new power plants and upgrading the existing energy infrastructure.

Brazil is a global leader in renewable energy, particularly in hydropower, which accounts for about 65% of the country’s energy mix. However, to diversify its energy portfolio, Brazil has been investing heavily in other renewable sources like wind, solar, and biomass. The Brazilian government has additionally launched several initiatives and auctions to encourage private sector investments in renewable energy projects. Wind energy, especially in the northeastern region, and solar farms in the central and northern parts of Brazil, are experiencing rapid growth. For example, wind energy capacity in Brazil reached an impressive 29 GW by the close of 2023. It also has 890 wind farms that are operating across twelve Brazilian states. By 2028, Brazil's installed wind power capacity is projected to exceed 44 GW, representing approximately 13.2% of the nation's electricity matrix. This transition toward clean energy is driving demand for EPC contractors specializing in renewable energy, as these projects require expertise in design, engineering, and construction. With global support for clean energy and Brazil’s abundant natural resources, the renewable energy sector is becoming a cornerstone of the Brazil power EPC market growth.

Brazil Power EPC Market Trends:

Government Policies and Incentives

The Brazilian government is committed to advancing its energy sector by implementing supportive policies and incentives. Recently, it unveiled an investment package worth BRL 50 billion aimed at developing new transmission lines and infrastructure, specifically to accelerate the expansion of solar and wind energy projects. Along with this, programs like the Power Sector Modernization initiative aim to enhance efficiency and reduce energy losses. Additionally, the government conducts regular energy auctions to attract investments from private and international players, ensuring competitive electricity prices and encouraging innovation. Tax benefits and financing options for renewable energy projects further make the EPC market attractive. Brazil’s commitment to the Paris Agreement has also led to increased funding for green energy projects, making the regulatory environment conducive to growth in the power EPC market. The government is streamlining approval processes and minimizing bureaucratic obstacles to facilitate the efficient execution of large-scale energy projects.

Aging Infrastructure and the Need for Modernization

Brazil’s power infrastructure, especially in transmission and distribution, is aging and prone to inefficiencies and power outages. With increasing demand, the current system struggles to maintain reliable service. Upgrading outdated infrastructure is essential for minimizing energy losses and enhancing the reliability of the power supply. For instance, the National Energy Plan 2050 emphasizes grid modernization, integrating smart grid technologies, and upgrading substations to handle higher capacities. This push for modernization creates significant opportunities for EPC contractors to implement advanced technologies, build more efficient transmission lines, and revamp power plants. Upgrading infrastructure not only ensures stable power delivery but also aligns with Brazil’s sustainability goals.

Industrial Growth and Electrification of New Sectors

Brazil's industrial sector is growing, mainly due to mining, manufacturing, and agriculture. This is reflected in the fact that its industrial production increased by 1.7% in November 2024. These are energy-intensive industries that require a stable source of power to function effectively. Moreover, new industries, such as electric vehicles, are also gaining prominence, which increases the demand for electricity. The Brazilian government is supporting the use of electric vehicles and offering subsidies to residents as well as incentives, creating an urgent need for developing extensive charging infrastructure. Electric vehicle sales jumped 90pc to a record 177,360 units in the year 2024. The above trends and growth impact the Brazil power EPC market share as industries and emerging sectors require building dedicated power plants, substations, and transmission lines. As the country continues to industrialize and electrify, the demand for power EPC services will grow in parallel.

Brazil Power EPC Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Brazil power EPC market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type.

Analysis by Type:

• Thermal
• Gas
• Renewable
• Nuclear
• Others
   

Based on the Brazil power EPC market trends, the thermal power segment remains a crucial component of the energy mix, primarily driven by coal, oil, and natural gas. Despite Brazil's focus on renewable energy, thermal power is vital for providing consistent electricity during periods of low hydroelectric generation, especially during droughts. Thermal plants are also essential for balancing the grid and ensuring stable electricity supply in industrial and densely populated regions.

Natural gas power plants have gained traction in Brazil due to their efficiency, lower emissions compared to coal, and the country’s growing gas reserves. In 2023, natural gas accounted for a significant share in the total power generation, with new projects being developed to utilize domestic and imported liquified natural gas (LNG) resources. This sector plays a vital role in supporting peak demand periods and serves as a flexible backup to renewable energy sources.

Renewable energy, encompassing hydro, wind, solar, and biomass, remains a cornerstone of Brazil's power generation landscape. Wind energy has seen rapid growth in the northeastern region, while solar energy has expanded in the central and northern regions. Investments in renewable power continue to drive Brazil’s energy transition, positioning it as a global leader in clean energy solutions.

As per the Brazil power EPC market forecast, the country’s nuclear power segment holds a small but significant market share, with two operational plants—Angra 1 and Angra 2—and plans to complete Angra 3 by 2027. The government views nuclear energy as a reliable and carbon-neutral source for diversifying the energy mix and ensuring long-term energy security. This segment is expected to grow modestly, with increased focus on enhancing nuclear technology and safety measures.

Regional Analysis:

• Southeast
• South
• Northeast
• North
• Central-West
   

The Southeast region is Brazil’s most industrialized and populous area, making it the largest consumer of electricity. It hosts a mix of energy sources, including thermal, hydroelectric, and a growing number of renewable energy projects. Significant infrastructure developments in grid modernization and distributed solar installations are driving the energy market, supported by increasing urbanization and industrial activities.

The South region, known for its abundant hydroelectric resources, relies heavily on hydropower for its energy needs. States in the region have extensive hydroelectric dams and are now diversifying with wind and biomass projects. The region's robust agricultural and manufacturing sectors further contribute to energy demand, creating opportunities for distributed energy solutions and enhanced grid connectivity.

The Northeast is Brazil’s hub for renewable energy, particularly wind and solar power, due to its favorable geographic and climatic conditions. States in this area lead in wind power capacity, while solar energy installations are rapidly expanding. Investments in transmission infrastructure are critical in this region to deliver renewable energy from generation sites to demand centers, driving the EPC market.

As per the Brazil power EPC market outlook, large-scale facilities contribute significantly to the energy mix in the North, which is dominated by the Amazon rainforest and mostly depends on hydropower. The region's large and inaccessible topography makes energy delivery difficult, even with its abundance of resources. Small-scale renewable energy projects and rural electrification initiatives are vital in this region for supplying local energy demands and growing the market.

The expansion of agriculture and metropolitan areas like Brasília are driving up energy consumption in the Central-West region, which is noted for its agricultural dominance. High levels of solar irradiation have fueled the growth of solar energy in this area. Another significant component of the energy mix is biomass energy, which is produced from agricultural waste and offers prospects for EPC projects and localized power supply.

Competitive Landscape:

Major market players are focusing on creating renewable energy sources, modernizing grid infrastructure, and deploying cutting-edge technologies in an effort to boost efficiency and reliability. Particularly in regions with substantial renewable potential, significant amounts of money are being spent in wind and solar energy projects. In order to satisfy rising demand and reduce energy losses, modernizing the transmission and distribution network is likewise becoming a top priority. Businesses are also looking at innovative technology like floating solar plants and advanced wind turbines to optimize resource consumption. Market strategies are increasingly shaped by efforts to enhance grid resilience against extreme weather events, ensuring a more reliable and robust energy supply. These adjustments show the determination to meet the country's growing energy needs while maintaining environmental standards.

The report provides a comprehensive analysis of the competitive landscape in the Brazil power EPC market with detailed profiles of all major companies.

Latest News and Developments:

• In September 2024, WEG SA, a Brazilian electrical equipment maker, reported that it had been won a contract by local energy company Kroma Energia to develop a 250-MWp solar complex in Ceara state. This complex, worth BRL 630 million (USD 112 million/EUR 101.5 million), involves the delivery of photovoltaic (PV) modules, inverters, trackers, a power substation, and connecting services.
• In September 2024, ENGIE Brazil announced that it had been given a concession by the Brazilian Electricity Agency (ANEEL) to build, manage, and maintain a high-voltage power line spanning over 1,000 kilometers across five southeastern Brazilian states.
• In August 2024, Atlas Renewable electricity announced that it will develop a 315MWp solar project in Brazil to deliver electricity to ArcelorMittal, a Luxembourg-based steel mill.
• In May 2024, Mitsubishi Power and CONSAG Engenharia have entered into an agreement with Portocem Geração de Energia S.A. and New Fortress Energy, Inc. (NFE) to design, procure, and construct the Portocem Thermoelectric Power Plant (UTE Portocem) in Brazil. As part of the project, Mitsubishi Power will deliver four M501JAC advanced air-cooled gas turbines for simple cycle operation. Meanwhile, CONSAG will handle the balance of plant components, utilities, civil works, plant assembly, commissioning, and the development of the transmission line and substation infrastructure.
• In April 2024, Scatec ASA and Statkraft Energia do Brasil Ltda signed a ten-year power purchase agreement (PPA) for a 142 MW solar facility in Minas Gerais, Brazil. This deal covers around 75% of the planned electricity output, with the remaining expected to be sold via short, medium, and long-term contracts (PPA).

Brazil Power EPC Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Brazil power EPC market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Brazil power EPC market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Brazil power EPC industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.