Eletrosul plans return to generation

Brazilian electricity transmission company Eletrosul is planning a return to the generation sector, with participation in a large hydro project on the horizon, local daily Zero Hora quoted the president of Eletrosul's parent company as saying. Eletrosul's return to generation was outlined in a draft of a presidential decree modifying the country's energy model that circulated in the market on November 21. While government officials denied the validity of decree, Luiz Pinguelli, president of Eletrosul's parent company, federal electric power holding Eletrobras, reaffirmed the subsidiary's return to generation. The upcoming hydro project is advancing, although financing remains a problem. Eletrobras' annual investments could reach some 10bn reais (US$3.4bn) in 2006 to reach 5% growth levels, Pinguelli said in an Eletrobras statement.