Brazil's Energy Consumption Projection and the Rise of Datacenters and Green Hydrogen Plants
Key Ideas
  • Brazil's energy consumption is projected to increase by 22.5% in the next decade, with potential growth driven by new datacenters and green hydrogen plants.
  • The importance of electricity and natural gas consumption is expected to rise, while oil derivatives will see a slower growth rate due to competition from hydrous ethanol and biodiesel.
  • The transport sector is projected to increase its share of final energy consumption, and industrial consumption will rise with the use of energy sources like natural gas.
  • Energy demand in Brazilian households is forecasted to grow, supported by factors like rising household income and the adoption of new technologies.
Brazil's energy consumption is set to grow significantly in the next decade, reaching 353Mtoe from 288Mtoe, driven by factors like economic growth, new datacenters, and green hydrogen plants. The country anticipates an average annual energy consumption growth rate of 1.6% per capita, with electricity and natural gas playing increasingly vital roles. Despite oil derivatives continuing to dominate, their growth rate is slower due to competition from alternative fuels. The transport sector is expected to see a rise in energy consumption share, emphasizing road transport. Industrial consumption will also increase, fueled by the use of natural gas and electricity. Household energy demand is projected to rise, supported by factors such as rising income and technology adoption. The study highlights the potential impact of datacenters and hydrogen production plants on energy load growth, with significant projects planned in states like São Paulo, Rio Grande do Sul, and Ceará. Nine hydrogen projects have filed for access to the national grid, with warnings of potential delays in transmission asset implementation affecting investment decisions.
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