The electric sector in Brazil requires a large amount of investment, either in terms of economic growth and consequent expansion of demand, or to maintain the existing structure.
In 2009, the national consumption of electric energy totalized 388.204 Gwh, which represents a drop of 1.1% compared to 2008 after the international financial crisis impacts that mainly affected the industrial class.
The consumption in the industry suffered a retraction of 8% while the residential and commercial consumption raised 6.2% and 6.1%, respectively. The addition in the residential demand was created both by the increase in the number of consumers and by the average consumption of the residences, with the highest raise in this segment taking place in the Northeast region (9.1%). In 2008 the Brazilian consumption grew 3.8% and 5.4% in 2007.
In order to ensure the supply safety and electrical power reasonable pricing, the Accelerated Growth Plan (PAC) predicts, in the period of 2011 to 2014, the application of R$ 140.3 billion in the Brazilian electric sector, R$ 113.7 billion in generation and R$ 26.6 billion in transmission.
Part of the sector growth due to the national program of electric power globalization, task assigned to the National Agency of Electrical Power (ANEEL). Since 2003 a federal law ensures that consumers with up to 50 kW of installed load, serviced in secondary voltage (low voltage) must be integrated to the distribution network at no cost to the applicant. Hence the need of partnerships of the Government with private distributors.
Light for All Program
The area of the most visible effort is the globalization of Light for All Program , whose objective is to take the electrical power benefits to the whole population of the Brazilian rural areas. Launched in November 2003, the program was initially intended to promote the connection of 2.5 million consumers in the rural area, benefiting 12 million people. Due to the new demand of more than 1 million people registering, the program was postponed until the end of 2010.
NEOENERGIA Group has been an important partner of the Federal Government in this project. In 2008, the distributors of Grupo made 84.206 new connections. NEOENERGIA Group has already made more than 520 thousand new connections, reaffirming its commitment to social inclusion and universalization of electricity.
See the table below that indicates the action of Neoenergia in the Light for All Program. Bahia, area of Coelba, is the Brazilian state that will receive the biggest investment from the whole project.
For more information on the investments of the Neoenergia Group, click here and access our site of Relation with Investors.
Sources: State Agency, BNDES, ANEEL, EPE
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