Government announces investments of $53.28 bn in energy
The Electricity Investment Program was launched today by President Dilma Rousseff, along with vice-President Michel Temer and ministries
In a move to expedite projects to expand power generation and transmission in Brazil, the federal government launched a program Tuesday (Aug. 11) called the Electricity Investment Program (PIEE in the Portuguese-language acronym), which will target $53.28 billion to energy projects. Out of this total, $33.23 billion will go to generation and $20.05 billion to power lines.
By expanding the country's energy supply, the government is looking to increase competitiveness in the sector as a strategy to reduce the cost of energy in the country. Upcoming power generation projects will be funded with $12.03 billion by 2018 and another $21.20 billion after that year. These projects will boost the current energy generation with an extra 25,000-31,500 megawatts (MW).
A total 37,600 kilometers of power lines will be auctioned at an estimated cost of $20.05 billion. Out of this total, $11.17 billion will be executed by 2018, and the other $8.88 billion as of 2018.
Projects in the pipeline include building the Tapajós and Jatobá dams on the Tapajós river, according to the Minister of Mines and Energy, Eduardo Braga. “We're planning to hold these auctions by the end of this year,” the minister said.
The Ministry of Mines and Energy reports that Brazil expanded its power generation capacity by 67% between 2001 and 2014, going from 80,000 MW to 134,000 MW. In 2014, another 7,500 MW was added to the National Electrical Grid. As for transmission, the expansion was 80% in the period, reflecting an increase from 70,000 kilometers of power lines to about 125,000 – of which about 9,000 km was added in 2014 alone.
Wind power has been a government priority. The National Development Bank (BNDES) financed 291 wind farms between 2005 and 2014, adding more than 7,500 MW to Brazil's installed capacity. By 2023, wind farms are expected to account for 11.4% of the total electricity produced in the country – equivalent to an installed capacity of 22,400 MW.
Translated by Mayra Borges
Fonte: Government announces investments of $53.28 bn in energy
