New Standard Terms of Reference for offshore wind licensing in Brazil

On 17 November 2020, the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) launched a new Standard Terms of Reference (TR) for offshore wind energy developments. The aim of the TR is to assist prospective developers in preparing environmental impact studies for offshore wind complexes. Unlike onshore wind, the licensing of which falls within the competence of the relevant state, offshore wind is within the competence of the federal environmental agency, IBAMA.

With no operational offshore wind generation, but more than 12GW of projects seeking environmental licensing, this is an important first step in tapping Brazil’s huge potential for this source of energy.

This type of terms of reference is novel for Brazil, and was designed following consultation with the European Union, under a “Sector Dialogue”. The president of IBAMA described this as a fruitful exercise, which helped IBAMA to identify international best practices and benefit from discussions with entities with more experience in the area. There was also a public consultation, which allowed stakeholders to offer their feedback on the proposed TR.

The licensing of an offshore wind complex will require the developers to conduct an Environmental Impact Study (EIA), resulting in an Environmental Impact Report (RIMA), must be presented to IBAMA so that it may assess the environmental scope of each project. The TR sets out guidelines and information as to how the EIA-RIMA must be completed. The aim of the new TR is to provide better defined rules for offshore wind developments in Brazil, thereby attracting investment due to the enhanced transparency of the licensing process.

It is reported that seven offshore wind complexes are in the process of applying for environmental licences in Brazil:

• Asa Branca - Eólicas do Brasil
• Aracatu 1 and 2 - Equinor
• Camocim and Caucaia - BI Energia
• Águas Claras, Maravilha and Jangada - Neoenergia

All of these proposed developments involve the use of fixed structures, attached to the seabed, but studies are also being conducted to allow for floating offshore wind projects, in which Equinor is a pioneer. Floating wind could potentially allow for larger offshore wind complexes, further away from the coastline.

Ben Beckwell of the Global Wind Energy Council has said of the offshore wind industry in Brazil, “there will have to be a clear state policy to foster this sector… Brazil has fabulous factors, such as the coast of great dimensions, infrastructure and naval and offshore tradition, due to the oil and gas industry”. Mr Beckwell also said that offshore wind energy could boost Brazil’s post-Covid economic recovery and that the country even has potential to export offshore energy in future. Brazil’s Energy Research Office (EPE) has estimated Brazil’s offshore wind potential at 700GW in water depths of up to 50m.

There is clearly a long way to go, but the publication of this TR is an important first step and demonstration of intent.