Shell to exit solar and onshore wind projects in Brazil

Shell has decided to discontinue its solar and onshore wind power generation projects in Brazil, citing a portfolio adjustment, as reported by Reuters. 

The move reflects challenges in the country’s renewable sector, including energy oversupply, slow demand growth, and regulatory uncertainties.

Documents from Brazil’s official gazette indicate that Shell is seeking to revoke rights for operating certain solar plants in central-west and northeastern Brazil.

Despite this exit, Shell will remain active in Brazil’s renewable sector through Prime Energy, which manages smaller distributed solar assets. This follows Shell’s December 2024 announcement to scale back offshore wind investments and reorganise its power division.

In 2024, Shell focused on energy storage, flexible generation, and power trading, aiming to optimise returns from onshore assets using capital-light models, debt financing, and partnerships.