Rio - There is no real risk of electricity shortages in Brazil between now and the year 2008, says Aloísio Vasconcelos, the Eletrobrás director of Special Projects. He adds that that is not an optimistic forecast, but a realistic evaluation of the country's energy situation at the moment.

According to Vasconcelos, there is presently a surplus of 5,000 MW. Forecasts are for consumption to rise by 4,000 MW by the end of 2005, but with investments and a speeding up of environmental impact studies, there shouldn't be any problems, he says.

Vasconcelos went on to say that the government's incentive program for alternative energy sources (Proinfa) has added 3,300 MW to the grid. There is also the fact that with centralized planning it is possible to ensure that supply will rise more than demand, he explains. The idea is to raise supply 50% above growth. "So, if there is GDP growth of 4%, we intend to increase the availability of electricity by 6%," he declared.

Vasconcelos called on the Ministry of Environment to speed up impact studies by the Environmental Protection Agency (Ibama) which are holding up work on 23 hydroelectric projects.

"We need more investments, by both domestic and international investors. Eletrobrás is willing to provide models and pay 49% of the necessary investments for new projects," said Vasconcelos.

Agência Brasil
Reporter: Nielmar de Oliveira
Translator: Allen Bennett
08/11/2004