Electricity sector in Brazil

"Source": Eletrobrás, CESP, Cemig, Copel, Tractebel Energia, AES Tiete, Ministry of Energy and Mines⁽¹⁾ Considering 6,300MW of Iguaçú

Currently, about 27 percent of the generation assets are in the hands of private investors. Considering the plants under construction, as well as the concessions and licenses already granted by ANEEL, this figure is expected to grow up to 31 percent in the medium term and to reach almost 44 percent over 5–6 years. Private capital participation in the generation business will likely represent 50 percent of the installed capacity in the years to come

Transmission

Brazil’s transmission system is gaining growing importance since adequate transmission capacity is essential to manage the effects regional droughts, allowing to move power from areas where rainfall is plentiful. As a matter of fact, the rationing that occurred in Brazil during 2001-2002 (See The 2001-2002 crisis below), could have largely been averted if there had been adequate transmission capacity between the south (excess supply) and the southeast (severe deficit).

Transmission has remained almost exclusively under government control through both federal (Electrobras) and state companies (mainly Sao-Paulo-CTEEP, Minas Gerais-Cemig, and Parana-Copel) until recently. However, under the new sector regulatory model, there are about 40 transmission concessions in Brazil. Most of them are still controlled by the government, with subsidiaries under federal company Electrobras holding 69% of total transmission lines.

Electricity and the environment

Responsibility for the environment

The Ministry of the Environment holds the environmental responsibilities in Brazil. One of its associated institutions is Ibama, the Brazilian Institute for the Environment and Renewable Natural Resources, which is in charge of executing the environmental policies dictated by the Ministry regarding environmental licensing; environmental quality control; authorization of the use of natural resources; and environmental monitoring and control among others. [ [http://www.ibama.gov.br/ Brazilian Institute for the Environment and Renewable Natural Resources (Ibama)] ]

Greenhouse Gas Emissions

[http://www.olade.org OLADE] (Latin American Energy Association) estimated that CO2 emissions from electricity production in 2003 were 20 million tons of CO2, which corresponds to less than 7% of total emissions from the energy sector [ [http://www.olade.org/informe.html OLADE] ] . This low contribution to emissions from electricity production in comparison with other countries in the region is due to the high share of hydroelectric generation.

CDM projects in electricity

Brazil is host to the largest number of CDM projects in the Latin America region. Registered projects represent 40% of the total in the region and account for 45% of Certified Emission Reductions (CERs) (up to 2012). [ [http://www.uneprisoe.org/ UNEP Riso Center. CDM pipeline, March 2008] ]

As for the power sector, there were 91 projects registered in March 2008, adding up to an estimated total of 9 million tons of CO2 per year. The distribution of projects by category is as follows [http://cdm.unfccc.int/Projects/projsearch.html UNFCCC] ] :

"Source": UNFCCC

External assistance

Inter-American Development Bank

The Inter-American Development Bank ((IDB) is currently (April 2008) supporting several projects and contributing to various technical assistance initiatives in the power sector in Brazil. The most relevant projects with financing from the IDB are:

* The [http://www.iadb.org/projects/Project.cfm?project=TC9901028&Language=English The Renewable Energy Service Delivery Project] is a technical cooperation that seeks to implement several pilot projects that demonstrate three promising, private-sector-led business models to provide renewable energy services to isolated communities in Brazil. The IDB supports this US$45 million technical assistance with US$2.25 million.

* The [http://www.iadb.org/projects/Project.cfm?project=BR-L1042&Language=English Celpa Capital Investment Program] aims to expand and improve Celpa's distribution electrical system allowing the Company to (i) provide electricity to new customers mostly in rural areas; (ii) allow productivity gains and redce costs and (iii) improve quality and reliability of its network distribution. The IDB supports this US$400 million project with a US$75 million loan.

* In February 2008, the IDB approved a US$95.5 million loan for the [http://www.iadb.org/projects/Project.cfm?project=BR-L1074&Language=English ATE III Transmission Project] , a US$402 million project for the development, construction, erection, commissioning, operation and maintenance of approximately 459-kilometer transmission lines from the State of Pará to the State of Tocantins.

World Bank

The World Bank is currently (April 2008) supporting three rural poverty reduction projects that include the provision of access to electricity services:

* [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P050880 Rural Poverty Reduction Project in Pernambuco] : US$60 million loan (10% electricity component)
* [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P050875 Rural Poverty Reduction Project in the State of Ceara] : US$50 million loan (10% electricity component)
* [http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P093787 Bahia State Integrated Project – Rural Poverty] : US$54.35 million (16% electricity component)

Sources

* Economist Intelligence Unit, 2007. Industry Briefing. Brazil: Energy and electricity forecast. Aug 22, 2007

* Economist Intelligence Unit, 2008. Industry Briefing. Brazil: Energy and electricity profile. Jan 30, 2008

* Lock, R. 2005. [http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6VSS-4F60NKJ-3&_user=1916569&_rdoc=1&_fmt=&_orig=search&_sort=d&view=c&_acct=C000055300&_version=1&_urlVersion=0&_userid=1916569&md5=36ddd4968fd7cf90c597dc32ace6cdfd "The new electricity model in Brazil: An institutional framework in transition"] . The Electricity Journal.

* Millán, J. 2006. "Entre el mercado y el estado. Tres décadas de reformas en el sector eléctrico de América Latina". Chapter 3:"La reforma en Brasil". Inter-American Development Bank.

* Ministry of Energy and Mines, 2007. [http://www.mme.gov.br/site/menu/select_main_menu_item.do?channelId=14753 Decennial Electricity Expansion Plan 2007-2016] .

* World Bank, 2007. [http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/05/23/000090341_20070523152800/Rendered/PDF/397410Electricity0gap01PUBLIC1.pdf "Closing the Electricity Supply-Demand Gap. Case Study: Brazil"] .

Notes

See also

* Brazil
* Economy of Brazil
* Energy policy of Brazil
* Ethanol fuel in Brazil
* Water supply and sanitation in Brazil
* Irrigation in Brazil
* Environment of Brazil
* History of Brazil

External links

* [http://www.mme.gov.br/ Ministry of Mines and Energy]
* [http://www.aneel.gov.br/ National Regulatory Agency (ANEEL)]
* [http://www.ons.org.br/home/ National System Operator (ONS)]
* [http://www.mma.gov.br/ Ministry of Environment]
* [http://www.ibama.gov.br/ Brazilian Institute for the Environment and Renewable Natural Resources (Ibama)]
* [http://www.ccee.org.br/cceeinterdsm/v/index.jsp?vgnextoid=2e09a5c1de88a010VgnVCM100000aa01a8c0RCRD Power Commercialization Chamber (CCEE)]
* [http://www.abraceel.com.br/ Brazilian Association of Energy Traders (ABRACEEL)]
* [http://www.abradee.org.br/ Brazilian Association of Electricity Generation Companies (ABRADEE)]
* [http://www.abrage.com.br/ Brazilian Association of Electricity Generation Companies (ABRAGE)]
* [http://www.abrh.org.br/ Brazilian Association of Hydric Resources (ABRH)]
* [http://www.abrh.org.br/ Brazilian Association of Big Industrial Energy Consumers (ABRACE)]
* [http://www.abrh.org.br/ Brazilian Association of IPPs (APINE)]
* [http://www.eletrobras.gov.br/elb/portal/main.asp?View=%7BA2EC2813-0E43-473D-97CB-E451F93A3CE0%7D&langid=en Electrobras]
* [http://www.cesp.com.br/ Sao Paulo Electricity Company (CESP)]
* [http://www.cemig.com.br/index_ing.asp Minas Gerais Energy Company (CEMIG)]
* [http://www.copel.com/pagcopel.nsf Paranaense Energy Company (COPEL)]
* [http://www.cepel.br/ Electrical Energy Research Center (CEPEL)]
* [http://www.aestiete.com.br/ AES Tiete]
* [http://www.suezenergyint.com/content/activities/southamerica/brazil_energia.asp Tractebel Energia]
* [http://www.eolica.org.br/cbtte_ing.html Brazilian Wind Energy Center (CBEE)]
* [http://web.worldbank.org/external/projects/main?query=brazil&menuPK=51526214&pagePK=218616&piPK=217470&status=A&theSitePK=40941 List of World Bank projects in Brazil]
* [http://www.iadb.org/projects/index.cfm?language=English List of IDB projects in Brazil]