Brazil Planning to Invest $94.3 Billion for 8,857 Megawatts by 2019

---

Researched by Industrial Info Resources (Sugar Land, Texas)--On Tuesday, Brazil's Empresa de Pesquisa Energética (EPE), an energy research bureau within the Ministry of Mines and Energy, submitted the 2019 Energy Expansion Decennial Plan (PDE) for public approval, up until July 2. The plan foresees a $94.34 billion investment to increase Brazilian installed power generation capacity by 8,857 megawatts (MW).

PDE emphasizes raising generation capacity from renewable sources, particularly small hydroelectric sources, biomass-fueled thermoelectric sources, and windfarms. However, larger hydroelectric plants still have a bigger relative importance within the plan's provisions. In this last case, run-of-the-river hydro plants have been prioritized above traditional ones, which require the construction of dams.

It is anticipated that a $53.9 billion investment will go to hydro-generation projects. Due to increasing opposition to the installation of large hydroelectric projects from all sides, and to the fact that as time moves on it is getting more difficult to get all necessary environmental permits, it is very likely that new projects will consist of plants with a smaller capacity and a smaller lake area.

Projects that are based on renewable sources of energy are expected to attract a total investment of $25.8 billion during the next 10 years. On the other hand, thermo projects based on conventional sources will draw nearly $15.2 billion.

PDE forecasts that windfarm installed capacity will go from 1,436 MW in 2010 to 6,041 MW in 2019; that is, by a 320.68% increment. Regarding small hydroelectric plants, the increase would be of a 72.3%, from 4,043 MW in 2010 to 6,966 MW in 2019. Biomass-fueled thermo plants would experience a 58.38% increase in installed capacity, from 5,380 MW this year to 8,521 MW at the end of the decade.

Nonetheless, these estimations might need to be revised along the way. For example, some sectors have argued that PDE underestimates Brazil's windpower potential, and that any analysis of biomass-fueled power generation must be done side-by-side with a thorough analysis of the sugar industry, in particular with the trend regarding ethanol production.

PDE also provides figures regarding the future expansion of the oil and gas industry.

An overall investment of approximately $378.7 billion would be applied to natural gas production, raising total output from 49 million cubic meters per day in 2010 to 116 million in 2019, which represents a 67% increase. For the same time frame, crude oil production would go up by 155%, from the current 2 million barrels per day to 5.1 million in 10 years.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.