Electricity sector in Brazil
Brazil has the largest electricity sector in Latin America. Its capacity at the end of 2021 was 181,532 MW. The installed capacity grew from 11,000 MW in 1970 with an average yearly growth of 5.8% per year. Brazil has the largest capacity for water storage in the world, being dependent on hydroelectricity generation capacity, which meets over 60% of its electricity demand. The national grid runs at 60 Hz and is powered 83% from renewable sources. This dependence on hydropower makes Brazil vulnerable to power supply shortages in drought years, as was demonstrated by the 2001–2002 energy crisis.
| Data | |
|---|---|
| Electricity coverage (2016) | 97% (total), (LAC total average in 2005: 92%) |
| Installed capacity (2021) | 181,532 MW |
| Share of fossil energy | 17% |
| Share of renewable energy | 83% (60% hydroelectric) |
| GHG emissions from electricity generation (2003) | 20 MtCO2 |
| Average electricity use (2007) | 2,166 kWh per capita (USA: 12,300 kWh per capita) |
| Distribution losses (2005) | 14% |
| Consumption by sector (% of total) | |
| Residential | 34% (2006) |
| Industrial | 25% (2006) |
| Commercial | 22% (2006) |
| Public sector | 13% (2006) |
| Rural | 6% (2006) |
| Tariffs and financing | |
| Average residential tariff (US$/kW·h, 2007) | 0.153; (LAC average in 2005: 0.115) |
| Average industrial tariff (US$/kW·h, 2005) | 0.113; (LAC average in 2005: 0.107) |
| Average commercial tariff (US$/kW·h, June 2005) | 0.142 |
| Services | |
| Sector unbundling | Yes |
| Share of private sector in generation | 10% |
| Competitive supply to large users | Yes |
| Competitive supply to residential users | No |
| Institutions | |
| No. of service providers | 6 main (generation), 5 main (transmission), 49 (distribution) |
| Responsibility for regulation | ANEEL-Electricity Regulatory Agency |
| Responsibility for policy-setting | Ministry of Mines and Energy |
| Responsibility for the environment | Ministry of the Environment |
| Electricity sector law | Yes (2004) |
| Renewable energy law | No |
| CDM transactions related to the electricity sector | 91 registered CDM project; 9,034,000 tCO2e annual emissions reductions |
In 2023, the output of Brazil's electricity system, serving over 88 million consumers, exceeded that of all other South American nations combined. Anticipated investments surpassing $100 billion by 2029 aim to expand utility-scale and distributed generation, alongside transmission and distribution projects.
The National Interconnected System (SIN) comprises the electricity companies in the South, South-East, Center-West, North-East and part of the North region. Only 3.4% of the country's electricity production is located outside the SIN, in small isolated systems located mainly in the Amazonian region.