The Brazilian electrical power industry has particular and complex structure characteristics and management models.
The potential growth in per capita demand for electricity and economic growth (GDP) will likely require hefty investments in power generation. Just to give you an idea, over the last 47 years, electricity consumption grew by 6.4% per year on average, while GDP had an annual growth rate of 4.4%, according to information published in the Prospectus on Public Distribution of First Issuance Ownership Shares in the Investment Fund in Infrastructure Shares FIP-IE BB Votorantim Sustainable Energy III.
A change in the investment profile is currently underway: from concentration in large hydroelectric plants to projects geared towards diversification of the energy mix, with use of sustainable energy, such as wind, solar, Small Hydro and sugarcane bioelectricity.
The Ten-Year Energy Growth Plan (PDE 2023), published by Empresa de Pesquisa Energética (EPE), puts investments in expanding generation at BRL 223.1 billion for the period of 2014 to 2023, 52.1% of which is in renewable energy (wind, sun, small hydro and biomass), 38.4% in hydroelectric plants and 9.5% in thermoelectric plants.
In total, the PDE 2023 estimates investments of BRL 301 billion for the period of 2014 to 2023, with BRL 223 billion in generation and BRL 78 billion in transmission. It forecasts the addition of 77 GW of total installed generation capacity, 70,000 kilometers of transmission lines and 163 GVA in substations.
Source: Renewable Energies Industry Analysis – Valor Econômico