Snapshot: The latest investments announced by Brazil’s energy ministry

Brazil’s mines and energy ministry (MME) announced in recent weeks a number of initiatives involving multimillion-dollar investments to assure energy supply and economic development for low-income consumers.

MME and integration and regional development ministers, Alexandre Silveira and Waldez Góes, signed on Wednesday the concession contract for the Jequitaí hydro-agricultural project in Minas Gerais state.

The auction, held in March and won by the Jequitaí consortium, secured 1.5bn reais (US$280mn) in investments for the project, which will allow for irrigation, water supply and energy generation, benefiting around 150,000 people, as well as creating 84,000 direct and indirect jobs. Construction should begin in early 2025.

The dams will have installed capacity of 20MW. 

At the end of June, MME launched the Luz Para Todos Minha Casa Minha Vida program, which will bring renewable energy to the homes covered by the Minha Casa Minha Vida housing program. 

Some 3bn reais will be invested in the project, which will install photovoltaic panels in 500,000 consumer units across the country.

Minas Gerais will be included in the first phase of the program, benefiting around 16,000 families in 40 municipalities.

On the occasion, Silveira also presented the Minas Gerais energy transition investment initiative, which provides for 58bn reais in several areas.

Of the total, 31bn reais are resources for the generation of renewable electricity. Investments in transmission total 23bn reais, which will generate 40,000 jobs, while the other 4bn reais are earmarked for biofuels, the ministry says.

In early July, the MME minister signed a term of commitment for the Luz para Todos program in Bahia state. 

The agreement provides for more than 29,000 electricity connections over the next two years, with an approximate investment of 1.5bn reais and more than 10,000 works to be carried out in the state. 

The new stage aims to assist approximately 118,000 people from low-income, indigenous and quilombola communities (descendants of slaves).

Some 3bn reais will be invested this year to boost social and economic development in Bahia.

Also this month, MME ordered the release of 224mn reais to electricity consumers in Amapá state to offset the 44% power rate increase approved by electricity watchdog Aneel at the end of 2023 for the state. 

"The north of Brazil, thanks to our hydroelectric dams, is the region that produces the most energy but pays the most for this service. It's not fair that the states that generate the most energy are the ones with the highest rates. The publication of this decree represents a major step forward and we are definitely solving this problem," said Silveira.