Generators of the Sao Paulo Power Plant in Brazil

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Case History

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An Overview

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6 Frequently Asked Questions about “Generators of the Sao Paulo Power Plant in Brazil”

How will Brazil's growth in power generation impact corporate ratings?

Fitch Ratings-Rio de Janeiro/Sao Paulo-05 February 2025: The pace of growth in power generation capacity in Brazil, significantly surpassing demand and primarily focused on solar sources, is increasing curtailment and its impact on cash flows of power producers, according to Fitch Ratings. However, corporate ratings have not been affected.

How does the Brazilian electricity sector work?

The Brazilian electricity sector is divided into generation, transmission, and distribution. The generators produce the energy, which will be transported by the transmission companies from the point of generation to consumer centers, where the distributors are responsible for delivering it to the consumers' homes.

How does energy work in Brazil?

With more than a century of use and with a large installed capacity, the electric energy sector in Brazil has a complex network of transmission lines that runs through Brazil, allowing a family's refrigerator in the interior of São Paulo to work with energy generated by a hydroelectric plant in the north of the country.

What is the most used energy source in Brazil?

In Brazil, the most used energy sources are renewable. With great emphasis on hydroelectric power, the main base of our energy matrix. According to 2019 data from the National Interactive Energy Balance, 64.9% of the energy consumed in Brazil comes from a hydraulic source.

What is Brazil's energy matrix?

In addition, to more sustainability, this also generates lower operating costs for plants that choose renewable energy. In addition to hydropower, Brazil's energy matrix is also divided into natural gas (9.3%), wind (8.6%), biomass (8.4%), coal and derivatives (3.3%), nuclear (2.5%), petroleum derivatives (2.0%), and solar (1.0%).

How did the energy cuts affect Auren & ENGIE Brasil?

The energy cuts tend to be stronger in the third quarter when wind farms usually produce more. The cuts affected 14.2% of Auren's wind and solar generation (including AES Brasil's portfolio) and 12.9% of Engie Brasil's in the third quarter. These levels are close to the average observed for the national integrated system, at 13.0%.

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