According to study, ’Brazil Power Market Outlook to 2030, Update 2018 – Market Trends, Regulations, and Competitive Landscape’ some of the major companies that are currently working in the Brazilian power sector include CentraisEletricasBrasileiras S.A., EngieBrasilEnergia SA, PetroleoBrasileiro SA, CompanhiaEnergetica de Minas Gerais SA, CompanhiaParanaense de Energia SA.
Brazil, one of the fastest growing economies and the largest power market in South America and it is moving towards the sustainable development of power sector. The power sector in Brazil is dominated by hydro power which accounts for more than 70% of the overall capacity in 2016. Brazil’s focus remained on hydro-electric capacity development of its electricity supply policy for a significant length of time. Renewable energy has significant share in the overall generation mix of country. Hydropower power is dominant source in the renewable energy followed solar and wind power generation.
As a result of the ongoing drought, Brazil has built additional short-term natural-gas-fired generation in order to reduce the burden on the nation’s hydro-electric dams, with reservoir levels falling to near-critical capacity. Moreover Brazil also has a high potential for the use of solar energy. The country has above 150 solar water heater manufacturers, providing installations for residential-scale applications as well as hotels, hospitals and other larger projects. Recent targets from the government for 1,400 MW of distributed solar generation by 2022 have accelerated market development.
For wind power Brazil currently has significant capacity of wind power installations projects in the pipeline, and the government’s Decennial Energy Plan sets a 16 GW wind installed capacity goal by 2021. The use of biofuel (ethanol) is being promoted through the Brazilian Alcohol Program, which encourages the production of renewable biomass fuel as an oil substitute.
Energy auctions are one of the main instruments adopted by the Brazilian federal government to ensure that the pre-defined quality standards are met by the energy services along with lowest prices. Auctions, as wind or solar, have been an important mechanism to increase the participation of some sources in the national energy mix.
An analysis brazil power market with some of the key companies occupied in the transmission, power generation, and distribution is provided, along with an analysis of key upcoming and pipeline projects in each of these segments has been accomplished.
Brazil has emphasized its plan to remain a clean energy leader by expansion towards renewable energy sources such as wind and solar power rather than fossil fuels or nuclear. Brazil is credited as the first country to successfully hold reverse energy auctions, in which bidders have submitted the lowest-cost bids. The auctions, have provided bidders three and five year terms to develop their projects, these bids were conducted by the Electric Energy Trade Chamber on behalf of The Brazilian Electricity Regulatory Agency. The Ministry of Mines and Energy is responsible for supervision the electricity sector in Brazil. The Brazilian government created the Energy Research Company (Empresa de Pesquisa Energética, EPE), a federal public company responsible for carrying out studies and research in the strategic energy sector.
Brazil is requirement of the projects which involves energy auctions in which they have transmission lines secured prior to participating in the auctions. This can reduce the problems of interruptions associated with insufficient transmission infrastructure, while helping to drive the market for T&D equipment. Some of the other challenges include aging transmission lines that lose efficiency as they deliver power over long distances and rampant electricity theft in segments of the distribution network. The Brazilian government also identifies the need to upgrading power sector infrastructure, but a lack of finance and an uncertain investment climate have made attracting investments difficult.
In the upcoming years there would an extreme investment, change in government’s policies in favor of these resources and auctions which are expected to promote electricity generation from renewables. Opportunities exist for the transmission system to connect the remote areas. The Transmission build-outs and solutions are expected to ensure supply/demand balance which have good potential in Brazil. Electricity delivery and demand side management solutions as smart grid deployments are expected to advance in the future period.
To know more, click on the link below:
Ankur Gupta, Head Marketing & Communications