Investment and Financing
In the last 20 years, Brazil has been one of the main recipients of private capital investment in its power sector. Total investment by private actors in the power sector between 1994 and 2006 amounted to US$ 56,586 million in 124 projects. However, despite Brazil's deregulation and higher tariffs in the "new energy" auction system, investment, particularly in generation, has slowed significantly. This situation is not considered to be the result of concerns about the regulatory model or auction pricing caps, but it reflects the lack of available projects. The existing delays in granting environmental licenses and the uncertainties on the Bolivian gas supply, explain to a great extent the lack of hydroelectric and gas-fired thermoelectric projects respectively.
The investment required in power generation over the next 10 years is R$40 billion or around US$24.2 billion (April 29, 2008). This high investment will only be realized if the government succeeds in attracting greater private-sector investment.
Read more about this topic: Electricity Sector In Brazil
Famous quotes containing the word investment:
“There is something fascinating about science. One gets such wholesale returns of conjecture out of such a trifling investment of fact.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)