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.
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