References

Sadia is one of the world’s leading producers of chilled and frozen foods. Established in Brazil in 194...
Copersucar S.A. is the largest Brazilian sugar, ethanol and bioenergy company and a significant player in...
CPFL Energia is a holding company in Brazilian electricity sector, operating through its subsidiaries in ...
Cyrela Brazil Realty is the largest residential real estate developer in Brazil. Considered one of the m...
Today, Banco do Brasil is the largest financial institution in the Country with 24.4 million clients and ...

Power Industry

Brazil ranks as the 10th largest country in the world in term of power consumption. It is also the largest power-consuming nation on the South American continent. Over the years, the consumption of power among Brazilians has increased significantly. Today per capita power consumption among Brazilians is about 2,235 kilowatts per year.

 

The power distribution in Brazil can be classified as follows: Nuclear energy accounts for about 3% of the total power supply in the country. Nuclear energy produces approximately about 13 billion kilowatts of power every year. Hydropower is the most significant contributor of power in Brazil, it accounts for about 92%.

 

Apart from producing power from hydro and nuclear energy, Brazil is also among the leading countries in the world to produce power from Bio-diesel fuel. Bio-diesel fuels are derived from renewable organic elements like methyl or ethyl esters.

 

In the year 2001, Brazil experienced a major crisis in power supply. The crisis mainly resulted due to the occurrence of a severe drought throughout the country. The hydropower supplying plant went un-operational because of the drought. To avoid any further power crises in the country, and avoid over-dependence on hydro electricity to provide power for industrial and residential use, the Brazilian government decided to decentralize the power industry.

 

With a view to boosting the power industry in the country, the Brazilian government has undertaken several policy measures that are mainly focused on improving the industry and making Brazil self-sufficient in power production for both commercial and residential use.

 

Restructuring the power industry is one of the prime focus regions of the Brazilian government and, to attain this, the government is making huge investment in the sector. To meet the rising need for power among Brazilians the government is also encouraging foreign investment in the sector.

 

The government has also been undertaking several projects to give a boost to the power industry in the country. All the projects require massive investments, and the Brazilian government has kept the projects open for foreign investment. Investors looking for an opportunity to invest in the power industry of Brazil can cash in on this opportunity. Investors can invest in the Brazilian government’s ambitious projects and earn good returns on their investments.

 

Business Analysts in Brazil are of the view that the power consumption in Brazil is likely to increase drastically by about 3.6% over the next few years. Investors looking to invest in Brazil can take it as a positive sign, and can consider investment in the power industry of Brazil. 

 

Thus, the anticipation in an increase in the power consumption amongst the Brazilian population, and the positive initiative by the government to encourage investment in the sector, presents a very lucrative platform for foreign investors to invest in the country.  Brazil is one of the fastest developing countries in the world, and is an ideal destination for making investments. Any investor looking for investing in the Brazilian power industry is sure to earn profitable returns on their investment.