Jan 25, 2021 · Relying on primary data, provided by the Brazilian Electricity Regulatory Agency, mapping changes in the ownership structure of Brazil''s 8,728 power plants in operation in
Terminal Bandeira, São Paulo, Brazil via Unsplash. By Pedro Henrique Batista Barbosa Since 2010, when the first Chinese investment in Brazil’s electricity sector happened, China’s presence in the Brazilian electricity sector has expanded considerably in a relatively short period of time.
This study has identified at least 14 Chinese electric companies that were or are investing or operating in Brazil, including State Grid, China Three Gorges (CTG), China General Nuclear Power (CGN) and State Power Investment Corporation (SPIC).
In terms of the technology mix, 70 percent of Chinese electricity capacity in Brazil in 2019 was in hydropower (11798 MW). Wind power took up 17 percent (2888 MW), and biomass, solar, oil, and coal comprised 5 percent (759 MW), 4 percent (680 MW), 3 percent (532 MW) and 1 percent (79 MW), respectively.
In terms of mode of entry in Brazil, Chinese companies mostly resorted to M&A, in contrast to greenfield investments. These projects represented 76 percent of the total, or $27.6 billion. Except in 2013, 2014 and 2018, the amount of brownfield deals was higher than greenfield ones in all years.
In the end of 2019, these companies owned or partially owned 304 power plants in Brazil, which totaled 16,736 MW. This is close to 10 percent of the national system. In terms of the technology mix, 70 percent of Chinese electricity capacity in Brazil in 2019 was in hydropower (11798 MW).
Source: see working paper for full source details. In terms of the geographical distribution of FDI and construction projects, Chinese firms are active in all Brazil’s five macro-regions, 22 states in total. The Southeast received 66 percent of the total invested, especially because Sao Paulo’s (SP) was the major destination of funds.
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