Archive · 8 Nov 2025
Brazil's Coal Power Clings On Amid Renewable Energy Push
Brazil is known for using a lot of clean energy, like from the sun and water.
However, a few power plants that burn coal are still running.
One important coal plant in a town called Candiota was turned back on after some rich businessmen invested in it.
This town really depends on the coal plant for jobs, and people worry about losing their work if it closes.
The government is also helping coal plants by giving them new contracts and letting them join auctions for energy.
Some people think Brazil should shut down all coal plants because they cause pollution and the country has lots of clean energy.
But others say the coal plants are needed to make sure there's always electricity, especially when the sun isn't shining or the wind isn't blowing.
The situation shows how tough it can be to stop using coal, even in a country trying hard to be green, because of jobs and powerful groups who support coal.
Brazil, a leader in renewable energy, continues to operate some coal-fired power plants, including the Candiota plant which restarted in July.
Ambar, owned by the Batista brothers, has invested millions to keep the Candiota plant running, betting on continued demand for coal power.
Despite generating over 80% of electricity from renewables, coal plants still supply 3% of Brazil's power, illustrating the influence of interest groups.
Brazilian lawmakers have approved contracts for coal plants until 2040, and coal has been made eligible for a March capacity auction, intended to boost energy security.
Concerns remain about job losses in coal-dependent communities like Candiota, with calls for a 'just transition' plan that has yet to be fully developed by the government.
- Who
- Brazil's government, Ambar (a business group controlled by the Batista brothers), coal industry workers, environmental groups, and energy consumers.
- What
- Despite being a renewable energy leader, Brazil is keeping some coal-fired power plants operational due to business group investments, government support, and local economic concerns.
- When
- July (Candiota plant restart), November 8, 2025 (publication date), March (planned capacity auction), contracts approved last month.
- Where
- Candiota, southern Brazil.
- Why
- To ensure energy security, meet peak demand, and protect local economies and jobs in coal-dependent regions, despite environmental concerns and Brazil's renewable energy potential.
Pro-Renewable Energy Advocates
Pro-Coal Interest Groups and Plant Supporters
Role of Coal in Energy Security
Pro-Renewable Energy Advocates
Coal plants are not quick to start and lack the flexibility needed for energy security, especially when renewable sources like solar and wind fluctuate. Experts suggest renewable energy can meet Brazil's needs.
Pro-Coal Interest Groups and Plant Supporters
Coal provides a secure and available fuel source, crucial for ensuring reliability in the electric system, particularly during peak demand when renewable generation is low. Ambar claims coal is ideal for system reliability.
Just Transition and Economic Impact
Pro-Renewable Energy Advocates
The government lacks a transition plan for coal-dependent communities, and the continued burning of coal, despite its environmental and financial costs, makes the government vulnerable to lobbying. There's a need for retraining and development in alternative sectors.
Pro-Coal Interest Groups and Plant Supporters
Shutting down coal plants will lead to significant job losses in mining, power generation, and related industries. Extending the life of coal plants is necessary to allow for a just energy transition that protects livelihoods and local economies.
Government Support for Coal
Pro-Renewable Energy Advocates
Including coal in capacity auctions and granting contracts until 2040 is surprising and contradicts Brazil's climate goals, despite being host of COP30 and urging a transition away from fossil fuels.
Pro-Coal Interest Groups and Plant Supporters
Additional contracts for coal plants make the electric system more reliable and allow for more renewables to enter the grid. Coal is eligible for auctions aiming to boost energy security.
- Coal Plants Operating
- Six
- Coal's Share of Electricity
- 3%
- Candiota Plant Owner
- Ambar (controlled by Wesley and Joesley Batista)
- Potential Job Losses
- 10,000
- New Coal Contracts
- Approved until 2040 (awaiting presidential veto)
- Capacity Auction Inclusion
- Coal made eligible for March auction