09/17/2015 14h07

EPE: Power and oil sectors to receive R$1.4tn investment

Valor International

The power sector of Brazil, as well as the oil and gas industry, could receive R$1.4 trillion in investments over the next ten years, according to the Ten-Year Energy Plan 2015-2024 prepared by the government's Energy Research Company (EPE). Despite the recession and consumption slowdown, EPE still forecasts 11% higher investments from the previous strategic plan. The electricity sector could receive 26.7% of the total, with 73GW of expansion over the next decade, or a 55.3% increase to 206.4GW. EPE also sees great prospects in wind power, which would rise to 11.5% of generation capacity from today's 3.7%. Oil and gas will receive the lion's share of investment at 70.6%, EPE forecasts. That's 13% higher than the previous plan, despite the prolonged decline in global oil prices. The think tank forecasts Brazilian oil production doubling to 5.1 million barrels a day by 2024, considered an ambitious prediction, but admits that the strategic plan may be adjusted as conditions change.