Power Opportunities in Brazil

An Expert's View about Renewable Energy in Brazil

Posted on: 22 Sep 2010

Brazil has the third-largest electricity sector in the Americas, behind the United States and Canada. Opportunities for UK electricity companies in Brazil are growing.

Sector briefing Power Opportunities in Brazil Why Brazil? Brazil has the third-largest electricity sector in the Americas, behind the United States and Canada, with a power consumption that is more than double the combined consumption of Argentina, Bolivia, Chile and Uruguay. Access to electricity has widened strongly throughout the past years. In 2009, the overall electrification rate reached 97.8%, placing Brazil amongst the group of Latin American countries with near universal electricity access. Find general information on the Brazilian Hydroelectricity generation meets over 80% of market conditions on UKTI?s website. The its electricity demand. In order to increase Doing Business Guide for Brazil gives an energy security, the Government has overview of Brazil?s economy, business culture, announced continuous investments in potential opportunities and an introduction to hydropower and an emphasis on new other relevant issue. renewable energy sources, including wind and biomass. Strong investments are also planned to increase the country?s transmission and ?Brazil has the third-largest distribution capabilities. electricity sector in the Americas, behind the United A new legislative framework was defined in 2004 to establish clear, stable and transparent States and Canada, and the rules aimed at ensuring the supply and the largest market in South continuous expansion of generation, America.? transmission and distribution activities, linked to a fair return on investments, universal service access and tariff adjustments. UK Trade & Investment Sector briefing: Power opportunities in Brazil country energy generation, this is expected to Opportunities change as the country builds its 3rd plant (Angra 3) and plans the construction of at least Opportunities for UK electricity companies in 4 new nuclear power plants over the next 15 Brazil are growing ? key areas are detailed years. below: Transmission and Distribution Generation The National Interconnected System (SIN) A 5.1% growth in electricity demand is comprises the electricity companies in the expected per year during the 2010-2019 South, Southeast, Centre-West, Northeast and period, which requires 6,300 MW of new part of the North region. Only 3.4% of the capacity per year to be added to the system in country's electricity production is located the next 10 years. According to the Brazilian outside the SIN, in small isolated systems Energy Planning Company (EPE), the main located mainly in the Amazon region. During source to supply this expanded demand will the next 10 years, Brazil will install 36,797 km continue to be hydroelectricity, and alternative of new transmission lines, representing a 38% sources will complement hydroelectric energy increase in the existing network. This with 14,655 MW being added during this expansion will allow the transmission of the period, representing 23% of the installed generation from the new projects, as well as capacity that will be added to the system. the connection between diverse regions of the country, guaranteeing an increased security to Renewables the SIN. Much of Brazil?s energy comes from renewable sources, particularly hydroelectricity. The Many of Brazil's hydropower generating country has the largest capacity for water facilities are located far from the main demand storage in the world, being highly dependent centres (the more industrialized South and on hydroelectricity generation, which meets Southeast regions), resulting in high over 80% of its electricity demand. In order to transmission and distribution losses, estimated increase energy security, the Brazilian at around 16% of the total domestic supply. Government has announced in its 10-year Intelligent solutions that can provide better (2010-2019) energy plan an emphasis on new control, decrease losses and increase renewable energy sources, especially Wind, productivity levels are currently being Biomass (most using sugar cane bagasse) and evaluated by both government-owned and Small Hydro Plants. Investments, fiscal and private companies in Brazil. Smart grid financial incentives have been introduced to technologies are being considered, but, increase the participation of new sources. considering the size of the Brazilian system, cost is an important variable. Today some of Brazil has an estimated Wind energy potential the equipment is operated remotely from (onshore, measured at 50 metres height) of operation centres throughout the country, but 143 thousand MW, of which 605 MW (a 77.7% a great part of the network needs to be increase over 2008) is installed (at the end of automated. 2009), which corresponds to 0.4% of the potential. Preliminary measurements indicate that, at 100 metres height, the Brazilian potential would be superior to 220 GW. A true If you have any questions on the opportunities benchmark for the Brazilian electric power above, contact the UKTI Brazil contacts named industry, the first auction for wind energy in this report. Business opportunities aimed which took place in December 2009 will attract specifically at UK companies are added daily to investments close to R$ 19.6 billion (£6.5 UKTI?s website. These leads are sourced by our billion). staff overseas in British Embassies, High Nuclea Commissions and Consulates, across all sectors r Generation from the nuclear source is and in over 100 markets. considered an excellent strategy for the diversification of the Brazilian matrix. Brazil, You can be alerted to business opportunities on Russia and the United States form the group of a regular basis by registering on the UKTI three countries that dominate the uranium website. Find out more on UKTI?s business enrichment technology and have extraordinary opportunities service on the UKTI website. reserves of the mineral. Although nuclear still has a small participation (3.12%) in the UK Trade & Investment Sector briefing: Power opportunities in Brazil Major events and activities UKTI contacts In Brazil: Laura Netto Sector Manager UK-Brazil Energy Seminar Power, Biofuels and Education & Training Contact: Laura Netto British Consulate-General, Rio de Janeiro Email: laura.netto@fco.gov.uk Tel: (+55 21) 2555 9619 Time: November 2010 Email: laura.netto@fco.gov.uk Venue: Rio de Janeiro, RJ www.ukti.gov.uk UKTI is expecting to take to Brazil around 40 UK companies, which will join 4 missions Fabiana Andrade focused on Wind, Nuclear and Oil & Gas Assistant Sector Manager (Upstream and Downstream). Missions should Power, Biofuels and Education & Training take place before and/or after the event. British Consulate-General, Rio de Janeiro Tel: (+55 21) 2555 9615 Email: fabiana.andrade@fco.gov.uk Find full details of all events in this www.ukti.gov.uk country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events. UK Trade & Investment Sector briefing: Power opportunities in Brazil Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Brazilian market are advised to you to meet contacts and promote your undertake as much market research and company in the Brazilian market planning as possible in the UK. UKTI?s team in Brazil, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Brazilian market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Power opportunities in Brazil
Posted: 22 September 2010

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