Floating solar farms in reservoirs for hydropower plants (HPPs) could increase Brazil’s energy capabilities by 17 to 24 GW of installed capacity depending on market conditions, according to a report by consulting company PSR Energy. The implementation of these systems will also make it possible to reduce water evaporation by 50%, preserving water for hydropower needs.
Analysts calculate that the country could add up to 38 GW to the capacity of its energy system by placing floating solar panels on at least 1% of the HPP reservoir area. With a full coverage, this figure could reach 3,800 GW, which is more than ten times higher than the current installed capacity of the national energy system and is therefore considered exclusively as the upper benchmark and not as a real scenario.
Reductions in water evaporation thanks to solar covering could range from 30% to 50% depending on scale, leading to a more efficient use of water in hydropower. Although water savings alone provide only a moderate increase in power output, joint operation with HPPs creates a synergistic effect, including through the use of common infrastructure and reduced connection costs.
The economic feasibility of these projects depends on market prices. With a fixed average price, one could increase capacity by 17 GW, or by up to 24 GW with the use of data on the average spot price. The levelized cost of power generation for floating solar farms is $65 per MWh, which is slightly higher than that of land-based solar farms ($60 per MWh). However, this difference could be offset by operational and environmental benefits, especially in regions with a shortage of suitable land, PSR Energy says.
Brazil remains the leader in the use of renewable energy across Latin America. As of 2025, as much as 85% of the country’s power output comes from renewable energy sources, although the government plans to raise this figure to 90% by 2030.
