Showing posts with label Brazil Power Market Competition. Show all posts
Showing posts with label Brazil Power Market Competition. Show all posts

Friday, July 27, 2018

Shifting Landscape Of Brazilian Power Industry Market Outlook: Ken Research

Brazil provides a good system for being a carbon neutral energy system. The growth in the Brazilian power market is expected to be immense during the forecast period. This growth shall be tapped by many companies which might lead to huge competition in the field of power generation in Brazil. According to the study, ‘Brazil Power Market Outlook To 2030, Update 2018 - Market Trends, Regulations  And Competitive Landscape’, some of the major companies that are currently operating in the Brazilian power generation industry include CentraisEletricasBrasileiras S.A., EngieBrasilEnergia SA, PetroleoBrasileiro SA, CompanhiaEnergetica de Minas Gerais SA, CompanhiaParanaense de Energia SA. The companies currently hold majority of the market share under their hood which makes the market slightly consolidated. Even though hydro is the most popular source, studies suggest that the cost of producing electricity in Brazil via hydro projects is expensive as compared to generation via wind which makes wind a profitable option for companies to explore.

The electric power generation in Brazil is regulated by the Brazilian Electricity Regulatory Agency which is an independent body that was setup in 1992 to work as a regulatory authority over matters concerning power generation. Renewable sources of energy are abundantly present in the country which makes it only one of the few countries to have majority of its power generation from renewable sources of energy. Majority of the electricity generation in Brazil takes place from the Hydrological sources due to abundance of rivers. Not only this, but Brazil has abundance of bio energy sources of power creation. Brazil is recently also gaining popularity with the wind and solar modes of energy creation. Brazil as a country has plenty of renewable sources of energy with the potential to explore many more. Brazil is only one of the few countries that currently has majority of its energy dependence on renewable forms which would prove to be one of the biggest asset in the coming years which are characterized by falling quantity of fossil fuels.

The high percentage of electricity generation by renewable sources of energy implies a significantly lower share of power generation via coal or oil resources thereby showcasing a slower growth in these sectors. On the other hand, Gas as a source of energy generation is picking up space. Gas although has a small share, but it is rapidly picking up pace. The growth rate of gas as a source of energy generation is doubling itself year on year making it one of the fastest growing energy sources.

In Brazil, renewable forms have energy have the majority share in production. Within the renewable sources, the market is currently led by hydro projects however, looking at the growth rate of Gas as a source of energy production; it could change the market dynamics completely. The competition in this industry is characterized by huge capital investments and stiff competition with only a few companies holding a significant share of the market which makes the entry of new players very difficult. The companies that look forward to entry into the Brazilian power industry need to provide uninterrupted electricity using cheapest source in order to gain some significance in the overall industry.

For more information on the research report, refer to below link:-

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