The brazilian energy matrix

ANEEL data for December 2009 shows that Brazil had a total of 2,203 plants in operation with approximately 107,241 MW of installed generating capacity. This was made up of about 74% from hydro power sources, 23.55%, thermal, 1.9% nuclear energy and 0.67% from wind power. An additional 37,407 MW of generation capacity is expected to be brought on stream in Brazil over the next few years as a result of the installation of 165 projects currently under construction and more than 435 projects with granted concession rights and/or authorization. It is worth pointing out that Brazil has always held an outstanding position on the world stage in the hydroelectric segment being among the countries with the greatest installed hydro capacity. As informed in the National Energy Balance – BEN of 2008 published jointly by the MME and the Energy Research Company – EPE, only about 30% of domestic hydroelectric potential has been effectively harnessed since the larger part of this potential is located in the Amazon Basin region.
Brazil is interconnected by more than 90.3 thousand kilometers of high voltage transmission lines (230 kV or more) comprising the National Interconnected System (SIN) which meets about 98% of the country’s electric energy demand. The installed capacity of the Brazilian generating complex linked into the SIN is 89.1 GW, of which approximately 83% is hydro. This installed capacity includes half the installed capacity of Itaipu – a total of 14,000MW held in equal parts by Brazil and by Paraguay. The North Region (states of Amapá, Roraima, Rondônia, Acre, Pará and Amazônia) is not interconnected to the SIN, and for this reason the region is denominated the Stand-alone System – covering 45% of Brazilian territory although representing only 7% of total domestic demand.

The Stand-alone System is supplied by thermal sources powered principally from fuel oil or diesel oil.

A levy on the electricity sector is paid into the Fossil Fuel Consumption Account – an ANEEL sponsored Fund designed to cover the cost of replacing these fossil fuel sources by financing the installation of renewable energy projects.

The current composition of Brazil’s energy matrix is shown in the table below:

MME data envisages a slight change in the Brazilian energy matrix over the next few years as shown in the following graphs:

Summary of Current Situation of the Projects

The evolution of the Brazilian electric energy sector has concentrated on the use of hydroelectric and thermoelectric sources of energy generation and also the use of wind, photovoltaic and tidal sources to a lesser degree.

The electric energy segment in Brazil

Hydroelectric sources of energy have a major competitive advantage in Brazil being a renewable source which can be harnessed using the technology and manufacturing capability of Brazilian industry – which is able to produce domestically more than 90% of goods and services needed. Additionally, Brazil has among the strictest environmental legislation in the world, its hydroelectric plants being constructed according to the dictates of sustainable development.

Electricity generators are subject to approval of concession rights, authorization or registration according to the classification of the type of power plant, installed capacity and final use of the energy. On a final use basis, generators are classified as:

• Producers in which the concession grant specifically requires that the energy shall be supplied as a public utility service;
• Independent producers (assuming the commercialization risk of electricity with distributors or directly with free consumers); and
• Self-generators (production of energy for own consumption with any excess being commercialized on the basis of prior authorization).