GDPE0709ICR Brazil Power Market Outlook To …BRAZIL POWER MARKET OUTLOOK TO 2030, UPDATE 2014 – MARKET TRENDS, REGULATIONS AND COMPETITIVE LANDSCAPE Brazil Power Market Outlook

REFERENCE CODE GDPE0709ICR | PUBLICATION DATE MARCH 2014

BRAZIL POWER MARKET OUTLOOK TO 2030, UPDATE 2014 – MARKET TRENDS, REGULATIONS

AND COMPETITIVE LANDSCAPE

Brazil Power Market Outlook to 2030, Update 2014 – Market Trends, Regulations and Competitive Landscape 2 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.

BRAZIL POWER MARKET OUTLOOK TO 2030, UPDATE 2014 – MARKET TRENDS, REGULATIONS AND COMPETITIVE LANDSCAPE

Executive Summary

Hydropower is the Dominant Source of Power in Brazil

Brazil derives the majority of its power

requirements from hydropower, making use of its

most abundantly available natural resource. In

2013, XX% of Brazil’s total installed capacity was

derived from hydropower. Thermal power from gas

was the second largest source of power, with a

XX% share of installed capacity in 2013, followed

by biomass with XX% and thermal oil power with

XX%. Other technologies, such as onshore wind,

thermal power from coal, and nuclear power,

biogas, and solar Photovoltaic (PV) contributed the

remaining XX% of total installed capacity in 2013.

Power Market, Brazil, Cumulative Installed Capacity by Type of Fuel (%), 2013

HydropowerGas (thermal)

Biomass

Oil (thermal)

Wind (onshore)

Coal (thermal) NuclearOther renewables such as biogas and solar PV

Source: GlobalData, Power eTrack, Capacity and Generation Database [Accessed on February 28, 2014]

Continued Increase in Electricity Consumption and Generation

Annual electricity consumption in Brazil increased

at a Compound Annual Growth Rate (CAGR) of

XX% from XX Terawatt hours (TWh) in 2000 to XX

TWh in 2013. The increase in electricity

consumption was a result of the growth of the

economy and of the population. Annual electricity

generation also increased during this period, from

XX TWh in 2000 to XX TWh in 2013 at a CAGR of

XX%.

Power Market, Brazil, Annual Power Consumption and Generation (TWh), 2000–2013

2000 2007 2013

Ann

ual p

ower

con

sum

ptio

n an

d ge

nera

tion

(TW

h)

Annual power consumption Annual power generation


Renewables to Account for More than XX% of Brazil’s Generation Capacity by 2030

Brazil’s renewable power sector is expected to

grow tremendously, especially in the wind,

biomass, and solar energy segments, as a result of

government initiatives and increased private sector

participation. Wind energy development has

gained prominence in the Brazilian power market


Table of Contents


1 Table of Contents

1 Table of Contents ....................................................................................................................... 4

1.1 List of Tables ...................................................................................................................... 7

1.2 List of Figures ..................................................................................................................... 9

2 Introduction ............................................................................................................................... 10

2.1 GlobalData Report Guidance ............................................................................................ 11

3 Brazil, Power Market, Snapshot ................................................................................................ 12

3.1 Brazil, Power Market, Macro-economic Factors ................................................................ 12

3.2 Brazil, Power Market, Supply Security .............................................................................. 14

3.3 Brazil, Power Market, Generation Infrastructure ................................................................ 15

3.4 Brazil, Power Market, Transmission Infrastructure ............................................................ 15

3.5 Brazil, Power Market, Opportunities .................................................................................. 15

3.6 Brazil, Power Market, Challenges ..................................................................................... 16

4 Brazil, Power Market, Market Analysis ...................................................................................... 17

4.1 Brazil, Power Market, Supply Structure ............................................................................. 17

4.2 Brazil, Power Market, Key Market Players ........................................................................ 17

4.2.1 Financial Performance .................................................................................................. 18

4.2.2 Key Financial Ratios and Inference ............................................................................... 19

4.3 Brazil, Power Market, Financial Deals ............................................................................... 20

4.3.1 Deal Volume and Value Analysis, 2004–2013 ............................................................... 20

4.3.2 Deals by Type, 2013 ..................................................................................................... 22

4.4 Brazil, Power Market, Demand Structure .......................................................................... 23

4.4.1 Electricity Consumption by Sector, 2013 ....................................................................... 25

5 Brazil, Power Market, Regulatory Scenario ............................................................................... 26

5.1 Brazil, Power Market, Key Electricity Policies .................................................................... 26

5.1.1 New Model Electricity Law............................................................................................. 26


Table of Contents


5.1.2 New Electricity Market Regulations ............................................................................... 27

5.1.3 Continued Subsidy: Power Sector under Pressure ........................................................ 27

5.1.4 Renewable Energy Development .................................................................................. 28

5.1.5 The Inova Program........................................................................................................ 29

5.2 Brazil, Power Market, Foreign Investment Scenario .......................................................... 30

6 Brazil, Power Market, Capacity and Generation Overview ........................................................ 31

6.1 Brazil, Power Market, Cumulative Installed Capacity, Breakdown by Type of Power Plant, 2013 .................................................................................................................................. 31

6.2 Brazil, Power Market, Cumulative Installed Capacity and Annual Power Generation, 2000–2030 .................................................................................................................................. 32

6.2.1 Cumulative Installed Thermal Capacity and Annual Thermal Power Generation, 2000–2030 ............................................................................................................................. 35

6.2.2 Cumulative Installed Hydropower Capacity and Annual Hydropower Generation, 2000–2030 ............................................................................................................................. 40

6.2.3 Cumulative Installed Nuclear Capacity and Annual Nuclear Power Generation, 2000–2030 ............................................................................................................................. 45

6.2.4 Cumulative Installed Renewable Capacity and Annual Renewable Power Generation, 2000–2030 ................................................................................................................... 48

7 Brazil, Power Market, Transmission and Distribution Overview ................................................. 53

7.1 Brazil, Power Market, Transmission Overview .................................................................. 53

7.2 Brazil, Power Market, Distribution Overview ...................................................................... 54

7.3 Brazil, Power Market, Grid Interconnection ....................................................................... 55

7.3.1 Future Developments in International Interconnections ................................................. 56

7.3.2 Electricity Import and Export Trends, 2000–2013 .......................................................... 56

7.4 Brazil, Power Market, Electricity Trading ........................................................................... 58

8 Brazil, Power Market, Competitive Landscape: Snapshot of Top Power Generating Companies

................................................................................................................................................. 59

8.1 Key Company in the Brazil Power Market – Centrais Eletricas Brasileiras S.A. ................. 59

8.1.1 Company Overview ....................................................................................................... 59


Table of Contents


8.1.2 Business Description ..................................................................................................... 59

8.1.3 SWOT Overview ........................................................................................................... 60

8.2 Key Company in the Brazil Power Market – Companhia Energetica de Minas Gerais ....... 63



8.2.3 SWOT Overview ........................................................................................................... 64

8.3 Key Company in the Brazil Power Market – Companhia Energetica de Sao Paulo ........... 68



8.3.3 SWOT Analysis ............................................................................................................. 69

9 Appendix ................................................................................................................................... 73

9.1 Market Definitions ............................................................................................................. 73

9.1.1 Power ............................................................................................................................ 73

9.1.2 Installed Capacity .......................................................................................................... 73

9.1.3 Electricity Generation .................................................................................................... 73

9.1.4 Electricity Consumption ................................................................................................. 73

9.1.5 Thermal Power Plant ..................................................................................................... 73

9.1.6 Hydropower Plant .......................................................................................................... 73

9.1.7 Nuclear Power............................................................................................................... 73

9.1.8 Renewable Energy Resources ...................................................................................... 74

9.2 Abbreviations .................................................................................................................... 75

9.3 Bibliography ...................................................................................................................... 75

9.4 GlobalData’s Methodology ................................................................................................ 79

9.4.1 Coverage ...................................................................................................................... 79

9.4.2 Secondary Research and Analysis ................................................................................ 79

9.4.3 Primary Research and Analysis..................................................................................... 80

9.5 Disclaimer ......................................................................................................................... 81


Table of Contents


1.1 List of Tables

Table 1: Power Market, Brazil, Gross Domestic Product ($bn), Population (million), and Annual Power

Consumption (TWh), 2000–2018 ................................................................................................. 14

Table 2: Power Market, Brazil, Market Share of Power Generation Companies (%), 2013 .............................. 18

Table 3: Power Market, Brazil, Selected Financial Ratios, Eletrobras, 2012, 2013 .......................................... 20

Table 4: Power Market, Brazil, Deal Value ($bn) and Deal Volume, 2004–2013 ............................................. 21

Table 5: Power Market, Brazil, Deals by Type (%), 2013 ................................................................................ 22

Table 6: Power Market, Brazil, Annual Power Consumption (TWh), 2000–2030 ............................................. 24

Table 7: Power Market, Brazil, Electricity Consumption by Sector (%), 2013 .................................................. 25

Table 8: Power Market, Brazil, Foreign Direct Investment ($bn), 2008–2013 .................................................. 30

Table 9: Power Market, Brazil, Cumulative Installed Capacity by Fuel Type (%), 2013 ................................... 32

Table 10: Power Market, Brazil, Cumulative Installed Capacity (GW) and Annual Power Generation (TWh),

2000–2030 .................................................................................................................................. 34

Table 11: Power Market, Brazil, Leading Active Thermal Power Plants, 2013 ................................................. 36

Table 12: Power Market, Brazil, Leading Upcoming Thermal Power Plants, 2014–2020 ................................. 37

Table 13: Power Market, Brazil, Cumulative Installed Thermal Capacity (GW) and Annual Thermal Power

Generation (TWh), 2000–2030 .................................................................................................... 39

Table 14: Power Market, Brazil, Leading Active Hydropower Plants, 2013 ..................................................... 41

Table 15: Power Market, Brazil, Leading Upcoming Hydropower Plants, 2014–2020...................................... 42

Table 16: Power Market, Brazil, Cumulative Installed Hydropower Capacity (GW) and Annual Hydropower

Generation (TWh), 2000–2030 .................................................................................................... 44

Table 17: Power Market, Brazil, Cumulative Installed Nuclear Capacity (GW) and Annual Nuclear Power

Generation (TWh), 2000–2030 .................................................................................................... 47

Table 18: Power Market, Brazil, Leading Active Renewable Power Plants, 2013 ............................................ 49


Table of Contents


Table 19: Power Market, Brazil, Leading Upcoming Renewable Power Plants, 2014–2020 ............................ 50

Table 20: Power Market, Brazil, Cumulative Installed Renewable Capacity (GW) and Annual Renewable

Power Generation (TWh), 2000–2030 ......................................................................................... 52

Table 21: Power Market, Brazil, Transmission Line Length (Ckm), 2000–2020 ............................................... 54

Table 22: Power Market, Brazil, Distribution Line Length (Ckm), 2000–2020 .................................................. 55

Table 23: Power Market, Brazil, Annual Electricity Imports and Exports (TWh), 2000–2011 ............................ 58

Table 24: Power Market, Brazil, Centrais Eletricas Brasileiras S.A., SWOT Profile, 2013 ............................... 60

Table 25: Power Market, Brazil, Companhia Energetica De Minas Gerais, SWOT Profile, 2013 ..................... 64

Table 26: Power Market, Brazil, Companhia Energetica de Sao Paulo, SWOT Profile, 2013 .......................... 69

Table 27: Abbreviations ................................................................................................................................. 75


Table of Contents


1.2 List of Figures

Figure 1: Power Market, Brazil, Gross Domestic Product ($bn) and Population (million), 2000–2018 .............. 12

Figure 2: Power Market, Brazil, Annual Power Consumption (TWh), 2000–2018 ............................................ 13

Figure 3: Power Market, Brazil, Market Share of Power Generation Companies (%), 2013 ............................. 18

Figure 4: Power Market, Brazil, Deal Value ($bn) and Deal Volume, 2004–2013 ............................................ 21

Figure 5: Power Market, Brazil, Deals by Type (%), 2013 ............................................................................... 22

Figure 6: Power Market, Brazil, Annual Power Consumption (TWh), 2000–2030 ............................................ 23

Figure 7: Power Market, Brazil, Electricity Consumption by Sector (%), 2013 ................................................. 25

Figure 8: Power Market, Brazil, Cumulative Installed Capacity by Fuel Type (%), 2013 .................................. 31

Figure 9: Power Market, Brazil, Cumulative Installed Capacity (GW) and Annual Power Generation (TWh),

2000–2030 .................................................................................................................................. 33

Figure 10: Power Market, Brazil, Cumulative Installed Thermal Capacity (GW) and Annual Thermal Power

Generation (TWh), 2000–2030 .................................................................................................... 38

Figure 11: Power Market, Brazil, Cumulative Installed Hydropower Capacity (GW) and Annual Hydropower

Generation (TWh), 2000–2030 .................................................................................................... 43

Figure 12: Power Market, Brazil, Cumulative Installed Nuclear Capacity (GW) and Annual Nuclear Power

Generation (TWh), 2000–2030 .................................................................................................... 46

Figure 13: Power Market, Brazil, Cumulative Installed Renewable Capacity (GW) and Annual Renewable

Power Generation (TWh), 2000–2030 ......................................................................................... 51

Figure 14: Power Market, Brazil, Annual Electricity Imports and Exports (TWh), 2000–2013 ........................ 57



Introduction

2 Introduction

Brazil, which is a developing country with well-established agricultural, manufacturing and service

sectors, is the largest and the most populous country in South America, and one of the fastest

growing countries in the world. It has a democratic republican form of government, with a

presidential system in place, and is a founding member of the United Nations, the G20, the Latin

Union, the Organization of Ibero-American States, the Organization of American States, Mercosur,

and the Union of South American Nations.

The Brazilian economy is fairly liberal, and it attracts the largest amount of Foreign Direct

Investment (FDI) among the South American countries. The US continues to be the primary

investor in Brazil. The government is also endeavoring to strengthen existing trade relationships

with other developing nations as part of Mercosur, a trade bloc of which Argentina, Brazil,

Paraguay, Uruguay and Venezuela are members. In 2008, Mercosur entered into a free trade

agreement with Israel, before entering into another with Egypt in 2010. Brazil and China recently

reached an agreement to trade in their local currencies to the equivalent of $XX billion per year

(Flak et al., 2013).

With an estimated Gross Domestic Product (GDP) of $XX billion in 2013, Brazil registered a GDP

growth rate of XX%, in 2013, and XX% between 2000 and 2013. The country’s economy was

affected by the global economic recession in 2008, which resulted in a negative annual growth rate

of XX% for 2009. Following this, it registered a comparatively rapid rate of recovery following the

recession. A GDP growth rate of XX% was registered in 2010 (IMF, 2013).

In 2012, the services sector contributed the majority share of GDP, with an estimated XX%,

followed by the industry sector with XX% and the agricultural sector with XX% (CIA, 2013). The

total value of Brazil’s exports amounted to an estimated $XX billion in 2012 compared with $XX

billion in 2013, a reduction of XX% (MDICE, 2014). The country’s major export items include

aircraft, electrical equipment, automobiles, ethanol, textiles, footwear, iron ore, steel and coffee. Its

major export markets are China, the US and Argentina (CIA, 2013).

Economic growth and the growth of the population have led to an increase in electricity

consumption in Brazil. Annual electricity consumption increased in size at a Compound Annual

Growth Rate (CAGR) of XX% between 2000 and 2013 and is expected to grow at a CAGR of XX%



Introduction

between 2014 and 2030. Hydropower is the source of the majority of the electricity generated in

Brazil.

The Ministry of Mines and Energy (MME) is responsible for overseeing the electricity sector in

Brazil. The Brazilian Electricity Regulatory Agency (Agência Nacional de Energia Elétrica: ANEEL)

is a regulatory authority that functions under the supervision of MME. On August 16, 2004, 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. The unbundling and privatization of the electricity sector took place in 1993.

2.1 GlobalData Report Guidance

The report opens with an executive summary that captures the key growth trends in the

Brazilian power market.

Chapter three provides a snapshot of the key parameters affecting the power sector in Brazil

and key points about the Brazilian power market.

Chapter four provides a power market analysis for Brazil.

Chapter five details the regulatory scenario of the power market and the inward foreign

investment scenario in Brazil.

Chapter six provides information regarding Brazil’s cumulative installed capacity and annual

generation trends as a whole and also by individual generation source.

Chapter seven describes Brazil’s power transmission and distribution infrastructure and

includes information on interconnectors with neighboring countries. The section details

electricity imports and exports and upcoming grid-related projects.

Note: all 2013 market numbers provided in the report are estimates, except where actual data were

available.



Brazil, Power Market, Market Analysis

4.4 Brazil, Power Market, Demand Structure

Annual electricity consumption in Brazil increased from XX TWh in 2000 to XX TWh in 2013 at a

CAGR of XX%. Between 2014 and 2030, the CAGR is expected to amount to XX%, with annual

consumption increasing from XX TWh in 2014 to XX TWh in 2030.

The increase in the rate of growth in annual consumption in the forecast period is expected to be

driven by the high usage of electrical appliances by the residential sector and the growing national

population. As a result, the government is now focusing on the expansion of its generation

capacity, particularly hydropower capacity, in order to meet increasing power demand.

Figure 6: Power Market, Brazil, Annual Power Consumption (TWh), 2000–2030

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Annu

al p

ower

con

sum

ptio

n (T

Wh)





Table 6: Power Market, Brazil, Annual Power Consumption (TWh), 2000–2030

Year Annual power consumption

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030





4.4.1 Electricity Consumption by Sector, 2013

The industrial sector was the largest power consuming sector in Brazil, accounting for an estimated

XX% share of total electricity consumption in 2013, followed by the residential sector with XX%.

Trade, commerce, and other services contributed a further XX% of the total consumption in 201,

followed by the agriculture and transport sectors with respective XX% and XX% shares. The

remaining XX% was accounted for by other sectors such as the energy sector and public utilities.

Figure 7: Power Market, Brazil, Electricity Consumption by Sector (%), 2013

Industrial

Residential

Trade, commerce, and other services

Agriculture

Transport

Other

Source: GlobalData; MME, 2013

Table 7: Power Market, Brazil, Electricity Consumption by Sector (%), 2013 Sector Electricity consumption

Industrial

Residential

Trade, commerce, and other services

Agriculture

Transport

Other

Source: GlobalData; MME, 2013


Appendix


9 Appendix

9.1 Market Definitions

9.1.1 Power

Power refers to the rate of production, transfer or energy use, usually related to electricity. It is

measured in Watts (W) and often expressed in kilowatts (kW) or Megawatts (MW). It is also known

as real power or active power.

9.1.2 Installed Capacity

Installed capacity refers to the generator’s nameplate capacity as stated by the manufacturer, or

the maximum rated output of a generator under given conditions. It is given in Megawatts (MW) on

a nameplate affixed to the generator.

9.1.3 Electricity Generation

Electricity generation refers to the process of generating electricity from other forms of energy. It

also refers to the amount of electricity produced, expressed in Gigawatt hours (GWh).

9.1.4 Electricity Consumption

Electricity consumption is the sum of electricity generated, plus imports, minus exports and

transmission and distribution losses. It is measured in Gigawatt hours (GWh).

9.1.5 Thermal Power Plant

A thermal power plant is a plant in which turbine generators are driven by burning fossil fuels.

9.1.6 Hydropower Plant

A hydropower plant is a plant in which the turbine generators are driven by falling water.

9.1.7 Nuclear Power

Nuclear power is the energy released from the fission of nuclear fuel in a reactor.


Appendix


9.1.8 Renewable Energy Resources

Renewable energy resources are those that provide energy that is naturally replenished but limited

in the amount of energy available per unit of time. Biomass, geothermal, solar, small hydro and

wind are examples of renewable resources.


Appendix


9.2 Abbreviations

Table 27: Abbreviations ACL Ambiente de Contratação Regulada (Regulated Contract Environment)

ACR Ambiente de Contratação Livre (Non-regulated Contract Environment)

ANEEL Agência Nacional de Energia Elétrica (Brazilian Electricity Regulatory Agency)

BNDES Banco Nacional de Desenvolvimento Econômico e Social (National Development Bank)

BRIX Brazilian Intercontinental Exchange

CAGR Compound Annual Growth Rate

CCEE Câmara de Comercialização de Energia Elétrica (Electric Energy Commercialization Chamber)

CCGT Combined Cycle Gas Turbine

Ckm Circuit kilometer

CN Concrete

Cogen Cogeneration

EPE Empresa de Pesquisa Energética (Energy Research Company)

ER Rock Fill

FDI Foreign Direct Investment

FINEP Financiadora de Estudos e Projetos (Brazilian Innovation Agency)

G20 Group of 20

GDP Gross Domestic Product

GW Giga Watt

GWh Gigawatt hour

HVDC High Voltage Direct Current

kV kilovolt

MME Ministry of Mines and Energy

MW Megawatt

ONS Operador Nacional do Sistema Elétrico (National Grid Operator)

PG Gravity Dam

PV Photovoltaic

SIN Sistema Interconectado Nacional (National Interconnected System)

TE Earth Fill

TWh Terawatt hour

Source:

9.3 Bibliography

Biller, D and Lima, MS (2012). Brazil Suffers Fifth Power Outage Since Crackdown on Utilities.

BLOOMBERG L.P., October 26, 2012. Available from: http://www.bloomberg.com/news/2012-


Appendix


10-26/brazil-suffers-fifth-power-outage-since-crackdown-on-utilities.html [Accessed on

February 27, 2014]

BNamericas (2013). Uruguay to begin Brazil power imports next year. BNamericas, April 22,

2013. Available from: http://www.bnamericas.com/news/electricpower/uruguay-to-start-

importing-power-from-brazil-next-year [Accessed on: February 18, 2014]

BP (2013). BP Statistical Review of World Energy June 2013 [database]. British Petroleum.

Available from: http://www.bp.com/content/dam/bp/excel/Statistical-

Review/statistical_review_of_world_energy_2013_workbook.xlsx [Accessed on February 26,

2014]

Brazil Windpower. (2014). WHY MAKING PART OF BRAZIL WINDPOWER 2014? Brazil

Windpower. Available from: http://www.brazilwindpower.org/en/ [Accessed on February 26,

2014]

CIA (2013). Brazil: The World Factbook. Central Intelligence Agency. Available from:

https://www.cia.gov/library/publications/the-world-factbook/geos/br.html [Accessed on February

18, 2014]

EIA (2013a). Total Electricity Imports: Brazil [Database]. US Energy Information Administration.

Available from:

http://www.eia.gov/cfapps/ipdbproject/XMLinclude_3.cfm?tid=2&pid=2&pdid=&aid=3&cid=BR&t

itleStr=Total%20Electricity%20Imports%20(Billion%20Kilowatthours)&syid=2000&eyid=2012&f

orm=&defaultid=0&typeOfUnit=STDUNIT&unit=BKWH&products= [Accessed on February 18,

2014].

EIA (2013b). Total Electricity Exports: Brazil [Database]. US Energy Information Administration.

Available from:

http://www.eia.gov/cfapps/ipdbproject/XMLinclude_3.cfm?tid=2&pid=2&pdid=&aid=4&cid=BR&t

itleStr=Total%20Electricity%20Exports%20(Billion%20Kilowatthours)&syid=2000&eyid=2012&f

orm=&defaultid=0&typeOfUnit=STDUNIT&unit=BKWH&products= [Accessed on February 18,

2014]

Flak, A et al. (2013). BRICS members China and Brazil agreed on Tuesday to trade in their

own currencies the equivalent of up to $30 billion per year, moving to take almost half of their

trade exchanges out of the U.S. dollar zone. Thomson Reuters, March 26, 2013. Available


Appendix


from: http://in.reuters.com/article/2013/03/26/brics-summit-china-brazil-currencies-

idINDEE92P08O20130326 [Accessed on February 28, 2014]

Goy L. and Soto A. (2014). UPDATE 1-Brazil power regulator proposes rate hike; may stoke

inflation”, Thomson Reuters, February 11, 2014. Available from:

http://uk.reuters.com/article/2014/02/11/brazil-economy-energy-idUKL2N0LG1D220140211

[Accessed on: February 12, 2014].

IDB (2013). Four energy companies, the AFD, and the IDB agree to explore electricity

interconnection of Northern Arc countries. Inter-American Development Bank, March 15, 2013.

Available from: http://www.iadb.org/en/news/news-releases/2013-03-15/northern-arc-

project,10385.html [Accessed on: February 14, 2014]

IMF (2013). World Economic Outlook Database, October 2013 [database]. International

Monetary Fund. Available at:

http://www.imf.org/external/pubs/ft/weo/2013/01/weodata/download.aspx [Accessed on

February 18, 2014]

Lima MS (2013). Brazil Energy Auction Sells 2.3 Gigawatts of Wind-Power Projects.

Bloomberg L.P., December 13, 2013. Available from: http://www.bloomberg.com/news/2013-

12-13/brazil-energy-auction-sells-2-3-gigawatts-of-wind-power-projects.html [Accessed on:

February 26, 2014]

MercoPress (2014). Brazil current account deficit ended 2013 at its widest in twelve years.

MercoPress, January 28, 2014. Available from: http://en.mercopress.com/2014/01/28/brazil-

current-account-deficit-ended-2013-at-its-widest-in-twelve-years [Accessed on: February 14,

2014]

MME (2013). BALANÇO ENERGÉTICO NACIONAL. Ministério de Minas e Energia. Available

from: http://www.mme.gov.br/mme/galerias/arquivos/publicacoes/BEN/2_-_BEN_-

_Ano_Base/1_-_BEN_Portugues_-_Inglxs_-_Completo.pdf

MDICE (2014). Balança Comercial Brasileira, 2013. Ministério do Desenvolvimento, Indústria e

Comércio Exterior. Available from:

http://www.desenvolvimento.gov.br/arquivos/dwnl_1388692200.pdf

Norton Rose Fulbright (2013). The Inova Energia Program – Promoting Energy Efficiency and

Renewable Energy in Brazil. Norton Rose Fulbright, May 2013. Available from:


Appendix


http://www.nortonrosefulbright.com/knowledge/publications/98881/the-inova-energia-program-

promoting-energy-efficiency-and-renewable-energy-in-brazil [Accessed on: February 14, 2014]

OECD (2013). FDI in Figures, April 2013. Organization for Economic Cooperation and

Development. Available from: http://www.oecd.org/daf/inv/FDI%20in%20figures.pdf

Orihuela R. (2013). “Brazil's Cheaper Electricity Comes at a Cost”, Bloomberg L.P., February

7, 2013. Available from: http://www.businessweek.com/articles/2013-02-07/brazils-cheaper-

electricity-comes-at-a-cost [Accessed on: February 12, 2014].

Soto A. (2014). “UPDATE 1-Brazil spending on power generation may stretch budget”,

Thomson Reuters, February 7, 2014. Available from:

http://www.reuters.com/article/2014/02/07/brazil-economy-power-idUSL2N0LC1CV20140207

[Accessed on: February 12, 2014].


Appendix


9.4 GlobalData’s Methodology

GlobalData’s dedicated research and analysis teams consist of experienced professionals with

advanced statistical expertise and marketing, market research and consulting backgrounds in the

energy industry.

GlobalData adheres to the codes of practice of the Market Research Society (www.mrs.org.uk)

and Strategic and Competitive Intelligence Professionals (www.scip.org) .

All of GlobalData’s databases are continuously updated and revised. The following methodology

has been followed for the collection and analysis of data presented in this report.

9.4.1 Coverage

This report covers Brazil’s power market, examining the market structure and provides historical

and providing generation, capacity and consumption forecasts until 2030. It also looks at the

market’s regulatory structure, import and export trends, competitive landscape and leading active

and upcoming power projects.

9.4.2 Secondary Research and Analysis

The capacity, generation and consumption data is collected and validated using a number of

secondary resources including but not limited to:

Government agencies, ministerial websites, industry associations, the World Bank and

statistical databases

Company websites, annual reports, financial reports, broker reports and investor presentations

Industry trade journals, market reports and other literature

GlobalData’s proprietary databases such as the Capacity and Generation Database, Power

Plant Database and Transmission and Distribution Database

Further to this, the following secondary information is collected and analyzed to project Brazil’s

power market scenario to 2030, analyzing factors such as:

Macro-economic scenario

Government regulations, policies and targets

Government and private sector investment


Appendix


Contract and deal announcements

Utility expansion plans

The sector’s historic track record

Other qualitative insights built through secondary research and analysis of company websites,

annual reports, investor presentations, industry and trade journals, and data from industry

associations.

9.4.3 Primary Research and Analysis

Secondary research is further complemented through primary interviews with industry participants

to verify the market numbers obtained through secondary research and obtain first-hand

information on industry trends.

The participants are drawn from a diverse set of backgrounds, including equipment manufacturers,

industry associations, government bodies, utilities, distributors, and academia. The participants

include but are not limited to C-level executives, industry consultants, academic experts, business

development and sales managers, purchasing managers, plant managers, government officials

and industry spokespeople.


Appendix


9.5 Disclaimer

All Rights Reserved.

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