According to a new report from GlobalData, Brazil will overtake the U.S. in biopower energy. Brazil’s biopower installed capacity will rise from 11.5 GW in 2013 to nearly 17.10 GW by 2018 when it will overtake the U.S. as the world’s leading biopower market.

“Global Biopower Market – Capacity, Generation, Market Size, Major Feedstock, Regulations, and Key Country Analysis to 2025,” finds that the U.S. had the world’s largest biopower installed capacity in 2013, with 15.43 GW, but this will only rise to 16.49 GW by 2018. The country will witness slow growth due to its large existing capacity, which has saturated the market.

Harshavardhan Reddy Nagatham, GlobalData’s analyst covering alternative energy, said of the findings, “A major share of the US’ biopower capacity was installed in the 1980s and 1990s, meaning the country already had 12.82 GW by 2006, while Brazil only had 3.59 GW by that time. The nascent Brazilian market is being driven by the government, which has made it necessary for local utility service providers to obtain at least 2 GW of installed biomass capacity through auctions annually, for ten years from 2007.”

Nagatham points out that while there is a possibility of feedstock supply interruptions due to increased deforestation in certain areas, the rise in sugarcane plantations is expected to compensate for this. “The abundance of sugarcane in Brazil makes the installation of biomass technology a very viable option for power generation. Biomass projects will also generate electricity from both sugarcane waste and non-food energy crops, such as eucalyptus and pine trees.”

Biopower will face competition from other sectors, such as hydropower, natural gas and wind. The report finds the biggest challenge to bioenergy will be Brazilian utility companies’ inclination towards wind power and the large drop in wind energy capital expenditure. However, it is predicted Brazil will see a positive outlook for biopower through 2025.