Brazil's power crisis is having a severe impact on the country's economy, bringing downward revisions in growth forecasts. But the crisis could be good news for investors with numerous opportunities for generation and transmission capacity opening up.
The National Electric Energy Agency (Aneel) has given permission to the first three companies in the Wholesale Energy Market to begin operating. Electrobras will sell excess power from the Itaipu hydropower plant, while the Cien consortium will import power from Argentina. AES Sul will also participate. Aneel has received ten other requests to participate.
The new governor-elect of Minas Gerais state is disputing the legality of the 1997 sale of 33 per cent of state-owned generator Cemig to a Southern Energy-AES consortium. Sr. Itamar Franco has also pledged to prevent further sale of Cemig stock.