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Natural Gas and Thermoelectric Generation
This program will be fundamental in transforming the Brazilian energy matrix, and will increase the generation of thermoelectric energy by 7 - 20% in the next 10 years. This change will confer more reliability to energy generation plants, avoiding the risk of energy deficits caused by water level reduction in the reservoirs of hydroelectric plants. Actions to start the program were launched in the first quarter of 1999, when the Ministry of Mines and Energy began coordinating meetings with entrepreneurs and investors willing to take part in priority thermoelectric program projects. Today, it is estimated that the program will count on investments of R$ 12 billion. The BNDES will participate of the program, financing up to 30% of the total cost of the enterprise for the construction of plants. Thermoelectric generation has advantages with respect to the environment, since natural gas used by most of the projected plants pollutes less than other types of fossil fuel. Moreover, the thermoelectric plants will be installed close to energy consumption centers, which demand lower construction time and assures easier financing. The realization of the Priority Thermoelectric Program, besides increasing the utilization of natural gas, also guarantees the utilization of national fuels such as coal and oil slate. The program will involve the participation of Petrobras, Eletrobras, The National Bank of Social and Economic Development(BNDES), The National Electric Energy Agency (Aneel), and the National Petroleum Agency (ANP). According to the Secretariat of Energy of the Ministry of Mines and Energy, the Priority Thermoelectric Program should generate approximately 25 thousand direct jobs at the plants implementation phase, 50 thousand indirect Jobs in regions where the thermoelectric plants will be installed, and 2 thousand definite jobs in the operation of the plants. National industry will be in charge of at least 20% of the equipment production. This program will also have a positive impact on the national engineering sector due to the extension of the job market in areas of the project’s development, consulting, construction and assembly. About 50 large energy firms, national and foreign, will partake in the program. The commitment protocols have already been signed. The Minister of Mines and Energy pointed out that "the thermoelectric program, conceived with a private focus, did not need to fall back on any type of incentives or subsidies". The Minister stated that it was the government's duty to guarantee the supply of gas, to elaborate adequate legislation for the sector, to establish rules about the price of gas and the electric tariffs, and to allocate resources from The BNDES to finance a portion of the enterprises. According to Rodolpho Tourinho, the thermoelectric program "is another decisive step toward total reformulation of the Brazilian Electric Sector". Tourinho emphasized that privatization will allow the government to spend more in social projects, such as the Rural Electrification Program, which will utilize resources from Eletrobras to provide access to energy for about 50 million people who live in the rural areas.
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