International Experience with Private Sector Participation in Power Grids : Brazil Case Study

The power sector which consisted almost exclusively of enterprises under Federal and State control was severely affected by the repercussions of this negative phase for the Brazilian economy. The tariffs for sales between generators and distributors (wholesale trading) and from the latter to end‐consumers (retail sales) were all established by the Brazilian Government. Frequently used as tools for curbing inflation, they fell well below the real costs of the services rendered. As demonstrated below, these tariff constraints had severe consequences for the power generation, transmission and distribution segments in Brazil. A clear awareness of these problems is apparent in the preparation and promulgation of Brazil’s 1988 Constitution, which established that only the Federal Government would be in charge of services and activities linked to power services in Brazil, handled either directly, or through concessions. Tenders will be required to select the concessionaires, either public or private. This was the situation of the Brazilian power sector during the 1990s, fraught with difficulties and with its intra‐sector payment flows severely undermined by the financial situation of the concessionaires, almost all under State control. Quite naturally, many new power generations, transmission and distribution projects ground to a halt, or never even got off the ground, with collateral effects on the construction and equipment industries working with this sector.

Bibliographic Details

Main Author:	World Bank Group
Format:	Report biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2012-10
Subjects:	PRIMARY SOURCES, CANE, NATURAL GAS, PUBLIC UTILITIES, POWER PLANTS, FREE ENERGY, HYDRO‐POWER, FOSSIL FUELS, ACCESS TO ELECTRICITY, ENERGY PRICES, ELECTRICITY TARIFF, FUEL CONSUMPTION, ACTIVITIES, GENERATION, ENERGY SOURCE, WIND, CLEAN ENERGY, WIND FARMS, OLD ENERGY, POWER SYSTEM, POWER GRIDS, THERMAL POWER PLANTS, ELECTRICITY DISTRIBUTION, NUCLEAR POWER PLANT, GAS, PRICE, VOLTAGE, TRANSMISSION SYSTEM, TRANSMISSION FACILITIES, ELECTRICITY CONSUMPTION, BIOMASS, POWER DISTRIBUTION, AMOUNT OF POWER, ENERGY POLICIES, OIL, RENEWABLE SOURCES, POWER SYSTEMS, POWER GENERATION, RENEWABLE ENERGY, ENERGY SOURCES, SUSTAINABLE ENERGY, POWER SECTOR, TARIFF LEVELS, SOLAR POWER PLANTS, ENERGY SUPPLY, TRANSMISSION GRID, OIL PRODUCTS, WATER, ENERGY RESOURCES, DISTRIBUTION FACILITIES, ELECTRICITY SUPPLY, SUGAR CANE, INVESTMENT OPPORTUNITIES, DEMAND FOR ELECTRICITY, DIESEL OIL, FUELS, THERMAL POWER, POWER PRODUCERS, OIL CRISIS, POWER PURCHASE AGREEMENTS, ENERGY CONSUMPTION, TRANSMISSION LINES, ELECTRIC ENERGY, BALANCE, TARIFF STRUCTURE, SOURCE OF ENERGY, ALTERNATIVE ENERGY, UTILITIES, POWER, ELECTRICITY SALES, ELECTRICITY, HYDROPOWER PLANT, ENVIRONMENTAL IMPACTS, HYDROPOWER, POWER LINES, ELECTRICITY TARIFFS, POWER PRODUCTION, POWER CONSUMPTION, HYDRO‐POWER PLANTS, ENERGY PRODUCTION, SOLAR POWER, THERMAL POWER PLANT, WIND FARM, ENERGY EFFICIENCY, ENERGY DEMAND, ELECTRICITY PRICES, ACCESS COSTS, POWER PRODUCER, SUGARCANE, ENERGY BALANCE, TRANSMISSION LINE, INVESTMENT, ENERGY DEVELOPMENT, COAL, NUCLEAR POWER, TARIFF, DISTRIBUTION NETWORK, FUEL, FUEL OIL, AVAILABILITY, ETHYL ALCOHOL, FACILITIES, INVESTMENTS, ENERGY PRODUCTION ACTIVITIES, ELECTRICITY PRODUCTION, DIESEL, FOSSIL, PRICES, APPROACH, POWER PLANT, ENERGY,
Online Access:	http://documents.worldbank.org/curated/en/2015/12/25666034/international-experience-private-sector-participation-power-grids-brazil-case-study http://hdl.handle.net/10986/23614
Tags:	Add Tag No Tags, Be the first to tag this record!