Federative Republic of Brazil

Energy Policy

•Largest Country in South America, 4,655 miles.•5th largest in the world•Population 190 million

Climate- Tropical North, Temperate South

•Brazil has the largest economy in South America, the eighth largest economy in the world in terms of market exchange rates, and the seventh largest economy in the world in terms of Purchasing Power Parity. •%70 Roman Catholic

Exports•Brazil’s major exports include aircraft, electrical equipment, automobiles, ethanol, textiles, footwear, iron ore, steel, coffee, orange juice, soy beans and corned beef.

Energy

Energy ResourcesBrazils major energy resources are oil, natural gas, coal, oil shale, and uranium.

In 2010 Brazil’s energy consumption increased by 7.8%, to 419 GW. Brazil gets 50% of its energy from oil, 34% from hydroelectric, 8% from natural gas, 5% from coal, 2% from renewables and 1% from nuclear.

Brazil is the 15th largest oil producer, but the offshore Tupi oil field may actually make Brazil one of the largest oil producers in the world. Brazil became self-sufficient in oil in 2006 after offshore oil fields were discovered, and are now net exporters of oil.

Hydro•Brazil has the largest capacity for water storage in the world and thus gets an incredible 72.6% of their electricity from hydro, and another 8.5% from imported hydro. •The massive 14GW Itaipu hydro plant alone produces a fifth of the country’s electricity needs.

Natural GasBrazilian officials are hoping to increase domestic production to 100 million cubic meters per day by 2015. At this rate they would deplete their reserves in three decades. In anticipation of this eventual shortage they plan to make partnerships with other gas producing nations in South America.

NuclearNuclear power accounts for only 1% of energy production and 2.5% electrical energy production but efforts to add a third reactor to the Angra nuclear station are underway, as well as plans for a fourth. Marcio Zimmerman, Brazil’s Energy Minister, stated that, "The nuclear development process in Brazil is irreversible," he said. "It's a clean source of electricity."

BiogassBiogass is relatively significant contributor at 4.8% of Brazil’s total electrical energy production. The most important biogass fuel for Brazil is “Bagass,” a fibrous residue from sugar cane processing.

Specific Policies

10 Year Plan & Climate Action Plan- In 2010 Brazil adopted

a plan to phase out fossil fuel power plant construction by 2019. The gap will be filled by substantial increases in hydro, biogass and wind. In order to keep up with growing energy consumption (52% BY 2019) renewable energy resources will need to increase 13% each year.

-In 2008 Brazil’s president signed the National Climate Change Plan, which aims at increasing efficiency to reduce electricity consumption by 10% by 2030, and to increase the share of electricity renewable energy generated with the goal of reducing deforestation by over half by 2017.

Mandatory Bio-fuel & Reverse Auction System- In 2005 Brazil

enacted a law that requires all diesel fuel to have 2% biodiesel concentration in order to stimulate the market for renewable and clean burning fuel. They have slowly increased that percentage to 5% in 2010.

-Brazil created a reverse auction system where they auctioned off 1,805 MW of power from 71 wind power projects in 20 year power purchase contracts. The projects that could create the most power for the least amount of money won the contracts.

Thermoelectric plants