MercoPress. South Atlantic News Agency

Brazil electricity demand to increase 50% in ten years

Brazil needs to increase its electricity generation capacity by 50% over the next 10 years said Energy Minister Edson Lobao, who described the task as an “enormous challenge”.

"Adding 51,000 megawatts to the country's current power capacity, (or) an average of more than 5,000 megawatts per year," saying that would be an "enormous challenge", said Lobao. Nevertheless, he said that target may have to be revised depending on the impact of the global financial crisis in Brazil, since the country's electricity needs have been calculated on the basis of estimated economic growth of 4.9% annually, a forecast made prior to the financial meltdown. The Brazilian Central Bank estimates that because of the crisis, the country will grow at a rate of around 3%, although the International Monetary Fund and other organizations are forecasting growth of between 1.8 and 2% in 2009 and 3.5% in 2010. Lobao said that in addition to boosting output the country must shift to different methods of generating electricity; he said the goal is a reduction of at least 10 percentage points in the amount produced by hydroelectric plants, which today accounts for 85% of the country's electricity consumption. He said the plans call for more wind energy plants and the construction of four new nuclear plants, in addition to the two currently in operation at Angra dos Reis, a coastal city 150 kilometres from Rio de Janeiro. Construction of the four nuclear power plants is to be put out to tender in the middle of this year, according to Lobao, who said those plans could change depending on Brazil's economic performance. Lobao added that the government hopes to encourage consumers to replace 10 million old, inefficient refrigerators with others that are more modern and energy-efficient and less contaminating.