Brazil needs to invest US$58.7 billion in power sector by 2015

Sao Paulo, Brazil, 15 March – The Brazilian power sector needs investments of US$58.7 billion over the next ten years in order to met electricity requirements, a report published Tuesday in Sao Paulo showed.

Of the total investment US$39.9 billion must be invested in power production, according to the report.

Production capacity in the country must increase from the current 100,000 megawatts (MW) to 149,000 MW by 2015, according to the Brazilian government’s ten year power plan.

A further US$18.8 billion will be invested in building transmission lines, the report said.

A further 60,000 kilometers of new lines will be needed to integrate isolated power systems in order to improve the current transmission networks.

The total forecast for investment needed was based on an annual increase in demand for electricity of 5.2 percent per year until 2015.

The ten year plan was based on economic market surveys as well as alternatives for producing electricity.

On June 12, the Brazilian government is due to launch a public tender for building new hydroelectric dams as well as for contracts for supplying electrical power.

Similarly to the latest public tender, launched in December 2005, the concessions for building the dams and power supply will be valid for a 30 year period.

Source:Macauhub