Electricity Sector in Brazil

Electricity Sector In Brazil

Brazil has the largest electricity market in South America, with a power consumption that is more than double the combined consumption of Argentina, Bolivia, Chile and Uruguay. Its installed capacity is comparable to that of Italy and the United Kingdom, although with a much larger transmission network. The country has the largest capacity for water storage in the world, being highly dependent on hydroelectricity generation capacity, which meets over 80% of its electricity demand. This reduces the country's generation costs relative to countries with more diverse supply mixes. However, this dependence on hydropower also makes Brazil especially vulnerable to power supply shortages in drought years, as was demonstrated by the 2001-2002 energy crisis.

The National Interconnected System (SIN) comprises the electricity companies in the South, South-East, Center-West, North-East and part of the North region. Only 3.4% of the country's electricity production is located outside the SIN, in small isolated systems located mainly in the Amazonian region.