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Brazilian power consumption continues climbing - BNamericas English

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Brazilian power consumption continues climbing - BNamericas
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Brazilian power consumption continues climbing

Electricity consumption in Brazil increased 2% year-on-year in the first half of December, energy trading chamber CCEE reported on Wednesday. 

Disregarding the effects of consumer migration, the regulated market saw a 1% increase in demand, while the free market grew 4.5%. 

Taking into account all load transactions, consumption was down 1.3% year-on-year in the regulated market and up 9.5% in the free power market. 

Source: CCEE

Excluding the power transportation sector, where consumption decreased 1.8% in the first half of December, all sectors showed growth in demand, led by sanitation (+31%). 

Other areas with intensive energy requirements also saw consumption surge, including the metallurgical industry (+12%), automobiles (+11.4%), food (+11%), non-metallic minerals (+6.8%) and chemicals (+3.6%). 

Espírito Santo was the state that showed the highest growth in power consumption, at 13%, followed by Goiás (+10%), Mato Grosso (+7%), Minas Gerais (+6%), Rio de Janeiro (6%) and São Paulo (+1%). 

Source: CCEE

OUTLOOK

On Wednesday, national grid operator ONS said it forecasts 3.3% year-on-year growth in electricity consumption for January 2021, reaching 73,012MWa (average MW). 

The north region of the country is expected to see a 6.4% increase to 5,830MWa, followed by the southeast/center-west (3.9% and 42,409MWa) and the northeast (3.7% and 11,866MWa). 

The south region, in its turn, is projected to report a 0.2% drop in power load to 12,907MWa. 

Despite the increased demand in recent months, Franceli Jodas, a partner at KPMG, believes the upward trend could be interrupted by a second wave of COVID-19 in the country. 

“The electric power sector is very much aligned with economic performance. This second COVID-19 wave is significant, so we have to be cautious,” she told BNamericas. 

Jodas said that, although many companies have adapted their businesses amid the social distancing measures, it is inevitable that some stoppages will occur. 

“Brazil has demonstrated impressive resilience. Water and sanitation utilities, for example, barely saw their revenues impacted. But, after the year-end celebrations, I can’t tell you what the outcome will be,” the consultant said. 

GENERATION

Electricity generation in the first half of December grew 2.2% year-on-year, according to CCEE. Hydroelectric and PV solar power plants showed 6.7% and 4.0% decreases, respectively, while all other types of energy generation increased, especially thermoelectric (+25.8%) and wind power (+25.2%).

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