World Energy Outlook 2006

Investment
The cumulative amount of investment needed to underpin the projected
growth in energy supply in Brazil is $470 billion (in year-2005 dollars) over
the period 2005-2030 in the Reference Scenario. The electricity sector
accounts for 54% of this spending, half for generation and the other half for
investment in new transmission and distribution infrastructure (Figure 16.16).
The $127 billion needed for generating capacity is two-thirds of that needed
to meet all the additional demand in the rest of Latin America.
Figure 16.16: Brazil’s Cumulative Investment in Energy-Supply Infrastructure
in the Reference Scenario, 2005-2030
Exploration
and
development
LNG
Transmission
and
distribution
Exploration
and
development
Refining
74%
26%
55%
9%
36%
Oil
28%
Gas
10%
$138 bn
Biofuels
7%
$31 bn
$48 bn
Coal
0.4%
$252 bn
50%
50%
Total investment = $470 billion (in year-2005 dollars)
Note: See Chapter 2 for an explanation of the methodology used to project investment.
Power
generation
The private sector will be increasingly called upon to meet investment
requirements. But that will require reform of the pricing structure and Brazil’s
regulatory regime to become more transparent and consistent. Investment in
Brazil’s transmission and distribution systems amounts to about $125 billion
over the Outlook period.
Cumulative oil and gas investments amount to over $185 billion over the
projection period. Upstream oil investment, at about $102 billion, or
$4.1 billion per year, accounts for the majority of this. Expansion of the oil
486 World Energy Outlook 2006 - FOCUS ON KEY TOPICS
Electricity 55%
Transmission
and
distribution