Copying and distributing are prohibited without permission of the publisher
01 December 2001
Is Brazil doing enough, fast enough, to solve the electricity crisis?
By Julian Nichol, Senior Associate specialising in energy project finance at Clifford Chance Rogers & Wells, São Paulo, Brazil.
Open the pages of a Brazilian broadsheet and it is rare nowadays not to find an article on the ?apagão? ? the Brazilian energy crisis. Although the demand centres of São Paulo and Rio de Janeiro are bearing the brunt, electricity rationing in Brazil is affecting everyone, from the micro-economic effects on companies and consumers, to the adverse macro-economic effects on the Brazilian economy.
The writing has been on the wall for some time. Brazil's 92% hydro-dependent electricity market has been seriously undermined by low precipitation over past years, while the inauguration of the Brazil-Bolivia natural gas pipeline in 1999 and increased natural gas-harvesting from Brazil's Campos Basin, failed to energise the much hoped development of gas-fired IPP's.
Brazil urgently needs more electrical capacity and the government is pinning its hopes on gas-fired thermoelectric projects to provide it under the guise of the ?PPT? ? the Thermoelectric Priority Programme. The PPT...
Take a free website trial to read this article. It’s easy to get a trial – just follow this link or email email@example.com.
Or, if you’re a subscriber or have an active trial, simply log in below to read the article.
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Taking a free trial will give you access to the latest news and analysis, as
well as the online deals database, BenchBase. Start your free trial today.