Energy supplies

Seite 1

BRAZIL

Bio ethanol

History

To address the country's dependence on oil imports and its surplus of sugar cane, the government implemented policies to encourage ethanol production and consumption beginning in the 1970s.

Although Brazil is a major ethanol producer, the country also imports ethanol because of several factors. Historically, droughts in Brazil have forced the country to import ethanol, mostly from the United States. Additionally, if sugar cane is not quickly processed into ethanol, the crop is prone to rot. The seasonality of sugar cane harvests leaves Brazil with a January-to-March off-season. In Brazil, ethanol production is also highly sensitive to commodity prices. For example, because sugar cane is used for ethanol production, high sugar prices may entice producers to switch to sugar production instead of ethanol production.

Background

Total bio fuel production in Brazil in 2014 was 16.7 million tons of oil equivalent, a 5.5% increase from 2013.

Changes

The Brazilian government raised the ethanol blend requirement in gasoline to 27% in February 2015. The government is now considering an increase to 27.5% as a measure to reduce gasoline imports. However, the ethanol industry is struggling, because of land and labor cost increases as well as government-imposed gasoline price controls, which are undermining the competitiveness of ethanol as an oil substitute.

HEP

History

Brazil is planning new hydroelectric power projects, such as the Belo Monte plant, which upon completion will be the third-largest hydroelectric power plant in the world.

Background

Brazil generated 373 billion kWh of hydroelectric power in 2014, a decrease of 4.5% from 2013. Many of Brazil's hydropower generating facilities are located far from the main demand centers, resulting in high transmission and distribution losses. The world's largest hydroelectric plant by generation is the 14,000 MW Itaipu hydroelectric dam on the Paraná River, which Brazil operates with Paraguay. According to Itaipu Binacional, the facility generated 87.8 billion kWh of electricity in 2014, a decrease of about 11%.

Changes

Although Brazil plans to move away from hydropower to mitigate the risk of supply shortages as a result of dry weather, new hydro projects continue to move forward. Most notable among these projects is the Belo Monte plant in the Amazon Basin, which upon completion will be the third-largest hydroelectric plant in the world behind China's Three Gorges Dam and the Itaipu Dam.

Seite 2

UK

History

Electricity generation from fossil fuels accounts for the majority of electricity produced in the UK, with coal occupying the top spot among all sources. Renewable energy, especially wind, continues to grow and reached almost 15% of total generation in 2013.

The industrial sector's share of electricity demand has declined since 2005. This decline was mainly the result of the economy's continued shift toward a service-based economy but also to some extent as a result of improved efficiency. Following the global recession, growth in gross domestic product slowed and contributed to further declines in demand, which dropped by 13% between 2008 and 2012, according to PFC Energy.

Background

Most electricity generation comes from fossil fuels (64%), particularly coal (36% of total generation), followed by nuclear (20%), hydroelectricity (2%), and other renewable sources (15%). Although coal's share of electricity generation decreased in 2013, it is still high compared to the period between 2008 and 2011, when it contributed about 30% of the UK's electricity generation.

Changes

The UK government has introduced a number of regulations to increase the amount of renewable energy in the country. These regulations call for an increase in the use of renewables to 30% of total electricity generation in 2020. While these plans include hydropower, wind resources are central to the government's plans.

Renewables accounted for nearly 15% of total generation in 2013. Renewable electricity generation increased by 28% from 2012, with wind generation up by 40%. The UK is a world leader in offshore wind capacity, last month the UK government approved the construction of the world's largest offshore wind farm, the 1.2-gigawatt East Anglia ONE project.