Brazil

Index rank 34

Balance Score

ABC

Energy Sustainability Index Rankings and Balance Score

 2011  2012  2013  Trend Score
Energy Performance  35  39  30   
Energy Security  36  43  27  B
Energy Equity  91  89  86  C
Environmental Sustainability  13  12  17  A
         
Contextual Performance  64  65  58   
Political Strength  60  62  63   
Societal Strength  64  66  66   
Economic Strength  64  64  37   
         
Overall Rank  43  44  34  ABC
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Fossil Fuel Reserves

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Key Metrics

Industrial sector (% of GDP) 27.4
TPEP / TPEC  (net energy importer) 0.84
Emission intensity (kg CO2 per USD) 0.20
Energy affordability (USD per kWh) 0.19
GDP / capita (PPP, USD); GDP Group 11,666 (III)
Energy intensity (million BTU per USD) 0.13
CO2 emissions (metric tons CO2 per capita) 2.02
Population Access to Electricity (%) 98.9
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Index Commentary

Brazil improves by 10 places in this year’s Index, a gain mainly driven by the country’s stronger performances on energy security and economic strength. However, Brazil’s balancing of the energy trilemma remains lopsided, with high rankings in energy security and environmental sustainability, but low levels of energy equity. The past year’s continued diversification of the electricity fuel mix and larger oil reserves lead to a better performance in energy security. However, transmission and distribution losses of electricity still remain fairly high. Although the relative affordability of both gasoline and electricity improves, Brazil’s energy equity ranking still lags behind the country’s performance on the other energy dimensions. Brazil’s environmental impact is relatively low and earns a very good ranking because its electricity is mostly generated by hydropower. Contextual performance in terms of societal and political strength remains mostly unchanged, but a substantial improvement in macroeconomic stability leads to a better ranking of economic strength.

Trends and Outlook

The country’s recent energy policy developments were directed to: 1) the development of large offshore oil and gas reserves found under a layer of salt in 2007 (pre-salt oil); 2) the development of renewable energy sources including wind and solar power, and biomass derived energies, including ethanol, bagasse, biodiesel; and 3) implementation of energy prices that encourage energy efficiency and saving. The transportation sector is expected to contribute to energy efficiency measures, including electrical vehicles, roads improvement, as well as increased railroads and waterways transportation. These developments are expected to have a strong impact on, and lead to improvements in, all three dimensions of the energy policy trilemma.

Policymakers should focus on: 1) the possibilities presented by biomass, including sugar cane, planted wood and other crops; and 2) the opportunities arising from the successful exploitation of the pre-salt oil and gas deposits. Both will impact positively on the country’s energy security and change Brazil’s role in the global energy market, but the effects on the environment need to be considered. Lastly, the development, financing and implementation of energy efficiency programmes, involving thousands of processes and appliances and millions of consumers on which the success of such measures depend, should advance more quickly.