Brazil's energy crisis complicates progress in gas, power markets, but outlook brightening

10/15/2001
Brazil is in the middle of a dramatic electricity crisis. The electricity shortage is leading the government to imple- ment a rationing program under which three fourths of the 170 million Brazilians have been told to immediately cut consumption by 20% or face blackouts and power interruptions.The government claims that the measures are needed because Brazil is facing its worst drought in decades. This has affected the country's power generation capacity, which is 95% dependent on hydroelectric plants. However, at least two other important factors can be pointed out as causes for the current energy crisis: 1) the country's negligence in perceiving that energy demand growth had bee...
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