Brazil: Continuing to be a hotbed for hydro

摘要

Significant new hydroelectric development work is ongoing in Brazil, although the current drought raises questions as to whether consumer demand can be met by these facilities. Energy tax reform announced by Brazilian President Dilma Rousseff in September 2012 will force power distributers to slash tariffs by 18% for residential customers and more than 30% for industries. The new policy is expected to have a marked effect on utility company and hydro project operator Eletrobras' budget, with profits projected by some analysts to drop at least 30% through the next year.