In late March 2025, international energy giant Shell announced the termination of its investment in large-scale solar and onshore wind power projects in Brazil, citing “portfolio adjustment” while retaining its subsidiary Prime Energy’s distributed photovoltaic business. This move has prompted further reflection among new energy investment enterprises.
Behind this decision lies the complex changes in Brazil’s renewable energy market investment environment in recent years—a combination of energy surplus, slowing demand, regulatory fluctuations, and grid bottlenecks has made the profitability of large-scale power projects uncertain. Additionally, it highlights the importance for renewable energy investment companies to reevaluate their strategic layouts and adjust their strategies in a timely manner.
Shell’s divestment from centralized power stations is not a spur-of-the-moment decision but rather the result of a dual effect of strategic retraction and market changes. As an energy giant, Shell’s global strategy in the renewable energy sector is showing a trend of contraction, shifting from a “green pioneer” to a “pragmatic” approach.
In December 2024, Shell announced a reduction in new offshore wind investment, stating that it would “no longer lead new project development” and instead focus on high-return areas such as oil, gas, and biofuels.
In March 2025, Shell’s power sector was split into two divisions: Shell Power for power generation and Shell Energy for power trading, aiming to streamline operations and improve efficiency.
Furthermore, Shell plans to reduce its annual capital expenditure to 20−22 billion from 2025 to 2028 and allocate 40%-50% of its cash flow to shareholder dividends and share buybacks.
According to data from ABEEólica/ANEEL/IADB, Brazil’s new wind power installed capacity in 2024 decreased by 31.25% year-on-year, with photovoltaic curtailment losses exceeding 15%. The National Interconnected System (ONS) was forced to cut renewable energy transmission in the northeast by up to 30% due to grid bottlenecks.
