Brazil revises down power demand forecast

Monday, August 11, 2014

Brazilian power regulator Aneel revised down its electric energy demand forecast, as fresh concerns emerge about the country's sputtering economy.

The watchdog said it expected 2014 consumption to average 64.7GW, down from the previous forecast of 65.9GW earlier this year.

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"Lower economic growth also means less demand for energy," Aneel director Reive Barros dos Santos told Agência Brasil.

The new estimate follows a reduction in expected 2014 GDP growth to 3.5% from 4.4%, reported the news service.

Aneel also slashed projected power demand growth over the next four years by an average 1.59GW/y.

According to Barros dos Santos, the revised consumption figure pointed to fewer investments and reduced operating costs for generators.

After expanding by 7.5% in 2010, Brazil's economy grew by 2.7% in 2011, 1% in 2012 and 2.3% last year, according to the country's statistics agency Ibge.

BNamericas will host its fourth LatAm Power Generation Summit in Santiago, Chile, on August 13-14. Click here to download the agenda.