WHO EXPLOITS WIND AND SOLAR ENERGY IN BRAZIL AND CHINA?

A STUDY ON FOREIGN DOMINATION IN THE BRAZILIAN ENERGY MARKET AND LESSONS FROM THE CHINESE MODEL FOR CAPITAL RETENTION

Abstract

In Brazil, the Northeastern semiarid region is emerging as a strategic territory for renewable energy generation, particularly wind power. However, the expansion of energy complexes—driven primarily by foreign companies—has replicated processes of land concentration, land devaluation, the marginalization of local communities, and systematic capital flight. Land-use contracts, characterized by restrictive clauses, long terms, and meager compensation, transfer land rent to the international private sector, while profits are rarely reinvested to foster regional development. In contrast, China employs a model based on centralized state planning, a strong presence of state-owned enterprises, and tax and financial instruments that ensure energy-related revenue remains within the territory, linking it to national development goals. Against this backdrop, this article analyzes—through the lenses of accumulation by dispossession, land rent, financialization, and the commodification of nature—the extent to which Brazil’s prevailing contractual and regulatory framework facilitates the capture of land rent by foreign companies and the resulting capital outflow, as opposed to the Chinese model of renewable energy expansion. The study employs a qualitative, comparative methodology based on a review of academic literature, Brazilian and Chinese legislation, case law, contracts, and pending regulatory proposals. This approach confirms the hypothesis that the Brazilian model favors the private appropriation of land rent and capital flight, whereas the Chinese model ensures greater state control and a distributive approach to revenue.