By Brazil Stock Guide – CPFL Energia S.A. (B3: CPFE3) announced on Thursday, Aug. 28, that its generation portfolio is now fully renewable. The milestone was confirmed at an event hosted by Brazil’s Ministry of Mines and Energy (MME) in Brasília. The achievement came after CPFL shut down the Epasa thermal plant in Paraíba, which accounted for 4% of output, marking its definitive exit from fossil-fuel assets.

“By anticipating by five years the goal of reaching 100% renewable generation, we reaffirm the seriousness of our ESG 2030 commitments and show our ability to go beyond planned targets,” said Gustavo Estrella, CPFL’s CEO.

Portfolio Fully Renewable

CPFL now operates 4,044 megawatts (MW) of installed capacity, with 60% from hydropower, 35% from wind, and 5% from biomass and solar. The utility also has a pipeline exceeding 4.4 gigawatts (GW) of renewable projects under development.

The company pledged to remain carbon neutral starting in 2025. By 2024, it had already cut greenhouse gas emissions by 59% versus its 2021 baseline, reporting the lowest emissions intensity in Brazil’s power sector. The targets are certified by the Science Based Targets initiative (SBTi).

Lorena Melo Perim, head of transmission planning at the MME, said the accelerated target should “serve as an example” for other companies. “New challenges will come as the company must deliver energy access and security,” she added.

ESG Strategy Backed by State Grid

CPFL’s efforts are aligned with the ESG strategy of its parent company, State Grid of China. In 2024, CPFL invested R$5.8 billion (US$1.1 billion) across its businesses and plans to invest R$29.8 billion (US$5.6 billion) through 2029.