Energy profile: Brazil
Fuel mix (fossil fuels vs renewables)
In 2019 Brazil derived roughly one third of its total energy supply from oil, and another third from biofuels. Other contributors to the national energy matrix include natural gas (13%), hydro power (12%), coal (5%), and nuclear (1%), along with small but growing amounts of wind and solar power. Hydro power accounts for nearly two thirds of the country's electrical generation and installed capacity, with fossil fuels providing roughly 15%, wind and biomass 9% each, and solar energy making up the remainder.
Greenhouse gas emissions targets
As of 2020, Brazil was the world's sixth largest emitter of greenhouse gases. CO2 emissions from deforestation of the Amazon rose nearly 10% in 2019 under the environmental policies of Brazilian president Jair Bolsonaro, and by 2020 more than 25,000 kilometers of Brazilian rainforest had been destroyed during the first two years of Bolsonaro's tenure. Brazil's NDC (Nationally Determined Contribution) targets for 2025 and 2030 call for reductions in GHG emissions of 37% and 43%, respectively, from 2005 levels; these targets have remained unchanged since 2015.
Government energy agencies & other key players
National energy agencies
MME (Ministerio de Minas e Energia) is the Brazilian government ministry in charge of energy policy.
EPE (Empresa de Pesquisa Energética) is Brazil's energy research agency, providing energy policy and planning support to the MME in the oil, natural gas, biofuels and electricity sectors. EPE publishes regular reports including the Plano Decenal de Expansão de Energia, which offers a 10-year perspective on Brazil's energy expansion plans.
IBAMA is Brazil's environmental regulatory agency, responsible for granting licenses for new power generation projects.
ANP (Agência Nacional do Petróleo, Gás Natural e Biocombustíveis) is the government regulator for Brazil's oil, natural gas, and biofuels sector.
ANEEL is Brazil's national regulatory authority for electricity, managing the generation, transmission and distribution of electricity nationwide. ANEEL, in conjunction with MME, oversees Brazil's annual energy auctions, in which companies bid to supply generation capacity to the national grid.
State-owned Eletrobras is Brazil's largest electric utility company.
National oil company
Majority state-owned Petrobras is Latin America's largest and most profitable oil producer, and a leader in deep water exploration and production. Petrobras is involved in oil and gas exploration, production, and distribution, and operates refineries, power plants, and LNG terminals throughout the country.
Leading energy companies
Eneva, EDP, Enel, Engie, and New Fortress Energy are among the largest private energy companies operating in Brazil.
Brazil's electricity sector is one of the world's largest, ranking eighth internationally and third in the Western Hemisphere behind the United States and Canada. As of 2019, Brazil's total installed capacity was 172.3 GW. Hydro accounted for 109.2 GW (63.36%), followed by non-renewable thermal sources (26.2 GW, 15.23%), wind (15.4 GW, 8.93%), renewable thermal sources (15.0 GW, 8.73%), solar (4.5 GW, 2.59%), and nuclear (2.0 GW, 1.16%).
Brazil produced 626.3 TWh of electricity in 2019. Hydro power has long been the dominant generation source, accounting for nearly two-thirds of the country's production (63.52%) in 2019. Other sources of electricity include natural gas (9.65%), wind (8.94%), biofuels (8.70%), coal (3.85%), nuclear (2.58%), oil (1.63%), and solar PV (1.06%), with wind and solar growing most rapidly over the past decade.
Brazil consumed 529 TWh of electricity in 2018, ranking 9th in the world.
Coal in Brazil
Brazil has Latin America's largest proved reserves of coal, estimated at 6.6 billion tonnes in 2019. However, it is only the region's third largest producer, lagging far behind Colombia and Mexico. Coal development in Brazil is concentrated in the southern state of Rio Grande do Sul, which is home to all of Brazil's significant coal mines, 88% of national coal reserves, and the majority of its operating and proposed coal-fired power plants.
Brazil consumed 5.96 million short tons of coal in 2019, ranking 27nd globally.
Imports & Exports
Proposed new sources & projects
Brazil's proposed Guaíba Mine project, which has been seeking environmental approval since 2014, would be the largest open pit coal operation in Latin America, with the potential to produce more than 6 million tonnes per year. However, the mine has encountered ongoing legal challenges and fierce opposition from concerned citizens and environmental groups.
Oil & Natural Gas in Brazil
In 2020, Brazil was Latin America's leading producer of petroleum and other liquids and ranked 7th globally, with domestic production totaling 3.79 million barrels per day. In 2019, Brazil ranked eighth worldwide in crude oil production, ninth in oil products production, and 22nd in natural gas production. Recent development has focused on the the pre-salt layer off Brazil's southeastern coast, which accounts for more than half of the country's oil and natural gas reserves.
Brazil was Latin America's largest consumer of petroleum and other liquids in 2018, consuming more than 3 million barrels per day. In 2019, Brazilians consumed 35.8 billion cubic meters of natural gas, ranking third in Latin America behind Mexico and Argentina.
Imports, exports & source countries
Brazil is Latin America's third largest crude oil exporter (after Venezuela and Mexico), ranking 15th globally in 2018 with shipments totaling 832,000 barrels per day. Brazil supplements its own natural gas production with a smaller volume of international LNG shipments from Asia and imports via pipeline from Bolivia. Pipeilne imports have decreased following the expiration of Brazil's 20-year contract to purchase gas from Bolivia at the end of 2019, and demand for imported gas has waned as Brazil develops its own substantial gas fields in the pre-salt layer.
Proposed new projects
Growing demand for natural gas, coupled with the country's 2021 gas law, which opened the market to competition, have prompted proposals for several new gas-to-power projects and LNG terminals on Brazil's Atlantic coast. Projects already licensed and in development include the Cosan LNG Terminal, Terminal Gás Sul, Tepor Macaé LNG Terminal, Porto do Açu FSRU, and Celba LNG Terminal.
Brazil imports natural gas from Bolivia via the 3150 km Gasbol gas pipeline and the 645 km Cuiabá pipeline. The country's other major gas pipeline system, operated by TAG, runs up the east coast from Rio de Janeiro state to Ceará state. The centerpiece of this network is TAG's 1387 km Gasene Gas Pipeline. Brazil has three long-established LNG import terminals in Guanabara Bay, Bahia, and Pecém and a newer one that opened in 2020 in the northeastern state of Sergipe.
Renewable energy in Brazil
Hydro power dominates Brazil's renewables sector, led by the 14 GW Itaipu hydroelectric plant on the Paraná River between Brazil and Paraguay, which supplies nearly 11% of Brazil's electricity. Wind energy is steadily growing in importance, with the largest wind farms concentrated in Brazil's northeast. Solar energy is also on the rise, spearheaded by states in southern and southeastern Brazil; in 2020, installed photovoltaic capacity grew to 5.6 GW, surpassing the combined capacity of coal and nuclear power. In 2005, Brazil became one of the first countries in Latin America to hold national energy auctions focused on the commissioning of renewable energy projects.
Iron & Steel in Brazil
Brazil is Latin America's leading iron and steel producer, with 46,200 ttpa of steelmaking capacity and 37,422 ttpa of ironmaking capacity. Nearly three-quarters of Brazil's steel is produced using the older, more energy-intensive blast furnace/basic oxygen furnace technology.
Brazil's Amazon basin is especially vulnerable to the impacts of extractive industries and large-scale energy infrastructure, due to the region's unparalleled biodiversity and the deep interconnections between indigenous communities and the natural environment. Among Brazil's most environmentally destructive developments is the 11.2 GW Belo Monte hydroelectric plant, the fourth largest hydro project on earth. Construction of the Belo Monte dam displaced over 20,000 people and caused irreversible damage to endemic species, flooding more than 260 square miles along the Xingu River in 2015. Brazil's plans for additional hydro mega-projects in the Amazon were scaled back in 2018, but other threats, most notably deforestation, have subsequently intensified.
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