The election of President Luiz Inácio Lula da Silva, in 2003, had as one of the main items on the campaign platform the criticisms against Fernando's previous administration Henrique Cardoso in relation to investments in infrastructure, which can be exemplified in the modernization of ports, recovery of rail transport and the production of energy. The Blackout took place in the year before the presidential elections, which eroded the FHC government's popularity, something readily used during the PT campaign.
Lula's two terms of office had concrete for the sector the works financed by the PAC (Program for the Acceleration of Economic Growth) and the PAC 2, in addition to the Luz project For All, which has achieved relative success in directing investments in energy generation to areas that do not have transmission networks and that depend on diesel generators and other improvisation mechanisms to meet the basic needs of riverine and rural populations, mainly in the North and North East.
Still, constant failures in recent years are causing concern, as the prominent position that Brazil has achieved on the international scene, for different reasons, depends a lot on the sector. energy. A country that seeks this reaffirmation in a new reality defined by economic multipolarization needs to review its energy generation strategies. Even after the Blackout, the electricity transmission system suffers from maintenance and integration problems between generation sites and consumer centers. In years of drought, hydroelectric plants operate close to the limit, forcing the country to resort to plants thermoelectric plants powered by fossil fuels, such as diesel oil and natural gas, which makes electricity much more expensive.
The driest years are sporadic and are not the main cause of the power generation problem. In fact, there are many factors that are interrelated and capable of causing a new crisis in the sector. As an example, we can highlight two of the most important characteristics of the Brazilian economy in recent years. One of them was the growth of the so-called class C, which represents the social ascension of many individuals, capable of increasing their consumption pattern and, consequently, energy consumption. Another recent feature is Brazil's insertion in the BRICS group, formed by countries with the greatest potential for economic growth. The consolidation of a stable economy capable of continuing to grow, and the consequent stimulus to internal consumption demands, require more precise investments for the energy sector.
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Also worthy of note is the fact that Brazil will soon host the two biggest sporting events on the planet, the Soccer World Cup and the Olympics. Among so many difficulties that need to be overcome for the organization of the games, such as the construction of stadiums and the expansion of the hotel network, the efficiency in the production and transmission of energy is essential, as the proper functioning of stadiums, airports and other tourist services depend on this segment.
Amidst so many discussions and at a time when the country had low economic growth, President Dilma announced a project to reduce electricity bills, which can reach 18% for residential consumers, and 32% for the sector industrial. This measure is part of a package of government actions to foster the country's economic growth and keep the national consumer market heated. With cheaper energy, business can save their expenses and promote new investments. Residential consumers, on the other hand, can continue to use their domestic appliances and, theoretically, use the money saved on electricity bills to spend on other goods and services. As well as the fall in interest rates, the cut in the value of electricity bills represents one of the biggest bets of the current government to unlock the Brazilian economy.
Julio César Lázaro da Silva
Brazil School Collaborator
Graduated in Geography from Universidade Estadual Paulista - UNESP
Master in Human Geography from Universidade Estadual Paulista - UNESP
Would you like to reference this text in a school or academic work? Look:
SILVA, Julius César Lázaro da. "Brazil's Energy Planning"; Brazil School. Available in: https://brasilescola.uol.com.br/geografia/planejamento-energetico-brasil.htm. Accessed on July 27, 2021.
