Electricity is not an issue of 110 or 220 volts...
It is an issue of 160 million brazilians!

Energy and water are the riches of humanity

Energy shortage is one of the dominant discussion issues throughout Brazil. People are afraid of energy shortages and the increase of energy prices, something though, that is already happening. The Movement of the Dam Affected People - MAB, has for a long time now been alerting the society about the irresponsible management of the electric sector by the government. There is no research, planning or investment in energy production from the Brazilian government, which has conceded this vital sector for the development of the country to the private initiative. The factors contributing to the crisis are:

a) The current energy production model based exclusively on hydroelectric energy and on the energy exporting model;

b) The federal government should be held accountable for applying this model and for its concessive policies regarding public properties and strategic sectors for the development of the country;

c) The big companies that only care for their super-profits from the construction of big dams and which after the conclusion of these dams are benefited by consuming a big slice of the produced energy in prices subsidized by the federal government.

Brazil has a huge energy production potential from rivers, the sun, wind, biomass, etc... Despite this potential, the government opts to produce energy through big dams which not only destroy the environment but also expel big parts of the local people, thus contributing to the exodus of the rural populations towards urban centres.

In Brazil 92% of the produced energy is hydroelectric. We have an installed hydroelectric potency of 61.000 MW. The current energy crisis is due to the lack of investments which has turned the system vulnerable and insecure.

1.2. How the energy is consumed

Brazilian industry consumes 48,4% of the energy while the residential sector is responsible for only 25,3% of the consumption. The remaining energy is distributed between trade and services (13,5%), rural populations (3,8%) and public services (8,7%). In order to prove that high energy consumption is not necessarily translated into development, let’s see an example:

These electro-intensive industries (which spend a lot of energy, generate few jobs, pollute heavily and pay subsidised energy prices) are banned for example from operating in Japan and many other countries. Therefore, the electro-intensive industries export almost everything they produce to these countries and we can say that these are exporting companies of energy in the form of products.

Surprisingly enough, the whole energy related propaganda refers to the residential consumers, blaming them for the lack of energy and recommending for them to save energy and pay higher tariffs. There are more than 20 million Brazilians without electricity. Only 33% of the rural population have access to electricity.

Tariffs in Brazil are different for residential consumers and industry. There are subsidies from the federal government to big industries. 2001 data show that the residential sector paid R$ 171 per MWh and the industry sector R$ 74 per MWh. The Japanese company ALBRAS in the State of Para which consumes energy produced by the Hydroelectric Power Plant of Tucuruí, pays only R$ 20 per MWh.

According to the journal Folha de Sao Paulo, energy prices will be defined by the supply and demand law from 2003 onwards and the energy companies will be charging whatever they want.

Are we going to be able to pay these prices at the end of the month?

We present some energy production alternatives which if applied within the current model could bring an end to the energy crisis quickly and with low cost.

The Brazilian electric system presents technical losses of around 15%. If Brazil opts to achieve a 6% losses index, which is acceptable by international patterns, we could have another 6.500 MW available in the network.

It is estimated that the Brazilian electric sector produce another 7.600 MW, by repairing, renovating and modernizing the hydroelectric power plants older than 20 years.

Annel’s resolution n.º 394 defines as SHP, the plants with total installed potency of up to 30.000 KW (or 30 MW) and a maximum reservoir area of 3 km^2.

According to data from ELETROBRAS (2000), Brazil has an extra potential of 9.800 MW which can be obtained with the construction of 942 SHPs. The social and environmental impacts are generally small.

Wind power has a huge potential especially in the Northeast with 30.000 MW, particularly in the State of Ceara. Big wind power potential also exists in the States of Parana, Rio de Janeiro and Rio Grande do Sul.

Summing up, we can increase by 26.900 MW the installed potency, or in other words, increase by 40% the installed capacity without building a single big dam. All this, without considering the enormous potential existing with solar energy throughout the country.

Irregardless of these alternatives to the current model, it should be pointed out that a serious energy production policy can only be implemented by a popular government, not submissive to IMF and the big multinational corporations; a government which would bring water and energy under the control and to the service of the Brazilian people.

Is it possible to plan our energy development in a different way? Is it possible to produce and distribute electricity in a different manner, and not making it abundant and cheap for some, while scarce and expensive for others? Yes, it is possible.

a) The model should foresee the participation of the population in the planning, decision and execution phases;

b) It should guarantee the prior consent of the populations which: is achieved through a collective and democratic process; prioritizes the relevant social and environmental issues; always considers the whole hydrographical basin;

c) It should correct the current distortions of the electric sector, putting an end to energy wasting during transmission, distribution and consumption, as well as eliminating the subsidies to big consumers;

d) It should contemplate a serious energy conservation programme;

e) It should privilege the research, development and implementation of energy production alternatives such as solar energy, wind power, small dams in appropriate places with predefined criteria, etc...

f) It should demand from companies wanting to construct dams in Brazil, to respect the national laws, as well as the laws of their country of origin;

g) It should demand that 20% of the international capital invested in dam construction, be invested in research and alternative energy sources;

h) It should bring the electric sector under the control of the state and society, by renationalising privatized companies and requesting compensation from multinational companies for damages and losses caused by them;

i) It should secure that the management of water and energy resources, the two strategic goods of the State, is under the control and at the service of the Brazilian people.

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