Energy profile: Brazil

From Global Energy Monitor

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This page is part of Global Energy Monitor's Latin America Energy Portal.
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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.[1][2] 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.[1][2] 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.[1]

Greenhouse gas emissions targets

As of 2020, Brazil was the world's sixth largest emitter of greenhouse gases.[3] CO2 emissions from deforestation of the Amazon rose nearly 10% in 2019 under the environmental policies of Brazilian president Jair Bolsonaro[4], and by 2020 more than 25,000 kilometers of Brazilian rainforest had been destroyed during the first two years of Bolsonaro's tenure.[5] 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.[6][7]

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.[8]

Permitting agencies

IBAMA is Brazil's environmental regulatory agency, responsible for granting licenses for new power generation projects.

Regulatory agencies

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.

Electric utilities

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[9][10], and a leader in deep water exploration and production.[11] 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.

Electricity usage

Installed capacity

Brazil's electricity sector is one of the world's largest, ranking eighth internationally[12] and third in the Western Hemisphere behind the United States and Canada.[13] 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%).[1]

Brazil's Electricity Generation by Source: 2019[14]

Production

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.[1][2]

Consumption

Brazil consumed 529 TWh of electricity in 2018, ranking 9th in the world.[15]

Coal in Brazil

Domestic Production

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.[16] 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.[17]

Consumption

Brazil consumed 5.96 million short tons of coal in 2019, ranking 27nd globally.[18]

Imports & Exports

Brazil's largest coal plant, the 1085 MW Porto do Pecém, is supplied with imported coal from Colombia.[19] Brazil only exports small amounts of coal (1300 short tons in 2019).[18]

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.[17][20]

Oil & Natural Gas in Brazil

Domestic Production

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.[18] In 2019, Brazil ranked eighth worldwide in crude oil production, ninth in oil products production, and 22nd in natural gas production.[12] 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.[21]

Consumption

Brazil was Latin America's largest consumer of petroleum and other liquids in 2018, consuming more than 3 million barrels per day.[22] In 2019, Brazilians consumed 35.8 billion cubic meters of natural gas, ranking third in Latin America behind Mexico and Argentina.[23]

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.[18] 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.[24][25][26]

Proposed new projects

Growing demand for natural gas, coupled with the country's 2021 gas law, which opened the market to competition[27][28], 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.[29]

Transport

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.[30] Wind energy is steadily growing in importance, with the largest wind farms concentrated in Brazil's northeast.[31][32] Solar energy is also on the rise, spearheaded by states in southern and southeastern Brazil[33]; in 2020, installed photovoltaic capacity grew to 5.6 GW, surpassing the combined capacity of coal and nuclear power.[34] 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.[35]

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.[36]

Environmental & social impacts of energy in Brazil

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.[4][37][38]

References

  1. 1.0 1.1 1.2 1.3 1.4 "Panorama energético de América Latina y el Caribe 2020 (p 98)". OLADE. November 2020.
  2. 2.0 2.1 2.2 "IEA Policies and Measures Database © OECD/IEA". IEA. Retrieved 2021-04-10.
  3. "STATEMENT: Brazil Sets Weak 2030 Emission Reduction Target". World Resources Institute. December 10, 2020.
  4. 4.0 4.1 "Brazil's carbon emissions rose in 2019 with Amazon deforestation". Al Jazeera. November 7, 2020.
  5. Jeff Goodell (June 9, 2021). "What to Do About Jair Bolsonaro, the World's Most Dangerous Climate Denier". Rolling Stone.
  6. "Intended Nationally Determined Contribution towards Achieving the Objective of the United Nations Framework Convention on Climate Change" (PDF). Federative Republic of Brazil. September 21, 2016.
  7. "Paris Agreement: Brazil's Nationally Determined Contribution (NDC)" (PDF). Government of Brazil. December 9, 2020.
  8. "Plano Decenal de Expansão de Energia". EPE (Empresa de Pesquisa Energética). Retrieved 2021-04-17.
  9. "Venezuela falls to fourth-largest oil producer in Latin America". World Oil. May 20, 2019.
  10. "Latin America's biggest national oil companies revise strategies, but Petrobras has profit advantage over PEMEX". Moody's. November 25, 2019.
  11. "Perfil: Petrobras". Petrobras. Retrieved 2021-06-21.
  12. 12.0 12.1 "World Energy Statistics | Enerdata". yearbook.enerdata.net. Retrieved 2021-03-18.
  13. "International - U.S. Energy Information Administration (EIA)". www.eia.gov. Retrieved 2021-03-18.
  14. "Anuário Estatístico de Energia Elétrica 2020 (p 63)" (PDF). EPE (Empresa de Pesquisa Energética). 2020.
  15. "Brazil: 2018 primary energy data". U.S. Energy Information Administration (EIA). Retrieved 2021-06-15.
  16. "2020 Statistical Review of World Energy" (PDF). BP. June 2020.
  17. 17.0 17.1 "Vereadores mobilizam contra mineração no principal reduto de carvão do Brasil | Diálogos da Transição". EPBR. May 26, 2021.
  18. 18.0 18.1 18.2 18.3 "Brazil". U.S. Energy Information Administration (EIA). Retrieved 2021-06-18.
  19. "The Power Plant". EDP Pecém. Retrieved 2021-06-19.
  20. "Coal from Guaíba, Latin America's largest open-pit mine, will stay in the ground". 350.org. Retrieved 2021-06-19.
  21. "Pre-salt | Upstream Guide | Oil and Gas | Deloitte Brazil". Deloitte. Retrieved 2021-04-12.
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  25. "El gas boliviano, entre la falta de extracción y la falta de mercados". Sputnik Mundo. January 16, 2021.
  26. "A Complicated Major Gas Pipeline System on the Drawing Boards in South America". Pipeline Technology Journal. September 18, 2020.
  27. "Nova Lei do Gás é aprovada no Congresso Nacional". Ministério de Minas e Energia. March 17, 2021.
  28. "Brazil's new gas regime opens market, but development of rules still necessary". S&P Global Platts. May 24, 2021. Retrieved 2021-06-22.
  29. "Terminais de GNL no Brasil (pp 24-25)" (PDF). EPE (Empresa de Pesquisa Energética). October 2020.
  30. "Geração". Itaipu Binacional. Retrieved 2021-06-21.
  31. "Nordeste gera 85% da energia eólica do Brasil". FIERN. August 4, 2020.
  32. "Produção de energia eólica aumenta no Brasil com falta de chuvas no Nordeste". R7. May 23, 2021.
  33. "Energia eólica e solar: Os 5 estados brasileiros que mais produzem". Órigo Energia. Retrieved 2021-06-21.
  34. "Fonte solar ultrapassa carvão e nuclear no Brasil". CanalEnergia. June 4, 2020.
  35. "¿Pueden las renovables llevar a una recuperación verde de América Latina?". Dialogo Chino. October 2, 2020.
  36. "Steel Dashboard". Global Energy Monitor. Retrieved 2021-04-12.
  37. "How a Dam Building Boom Is Transforming the Brazilian Amazon". Yale E360. September 26, 2017. Retrieved 2021-06-21.
  38. "Mega-Dams May Be History in the Brazilian Amazon!". Amazon Watch. Retrieved 2021-06-21.