Brazilian companies that use large amounts of electric power plan to invest 4bn reais (US$1.6bn) in generation projects over the next five years. Sectors like aluminum, iron ore, nickel and cement want to increase electric power output and avoid risks of future energy rationing, such as that imposed last year and early 2002. Mining giant CVRD plans to invest 1.7bn reais (US$680mn) in self-generation projects. Votorantim Energia, part of the industrial conglomerate Votorantim Group will invest 350mn reais (US$140mn). Alcan has slated another 212mn reais, and BHP Billiton (NYSE: BHP) 330mn reais (US$132mn). A study by state-run development bank BNDES says the big consumers of electric power will need energy supply to increase by 19,300GW a year until 2010 to satisfy growth projections. The forecast is based on annual growth of 2.5% in the mining and metals sectors. In 2000, these industries only produced 17% of the energy they consumed. Broken down by sector, aluminum and nickel self-sufficiency both reached 13%, while cement and steel produced 21% and 36%, respectively. All the sector investments are aimed at achieving self-sufficiency, except for CVRD which also wants to sell power on the domestic market. The iron ore mining giant is investing in seven projects, of which it holds on average a 44% stake. Total capacity amounts to 3,000MW. CVRD only produces 10% of the energy it consumes. Votorantim Energia plans to boost self-sufficiency from 38% in 2001 to 65% by 2006. Output capacity will increase from 820MW to 1,850MW in the same period.
