Electricity consumption in May: Strong Growth

Electricity consumption in May went up 10.5% YoY, according to the Federal energy research bureau (EPE). Industrial segment was the main responsable for this figures.

Industrial consumption reached +15.4% YoY. It means that   industrial activity is growing fast.g relevant growth.

“After the financial crisis, we highlight the mining and steel sector, with consumption growing 50.7% and 34.1%, respectively. Furthermore, the Southeast region posted the fastest growth (+18% YoY), with Espírito Santo and Minas Gerais states reporting the highest rates, due to generalized recovery of the mining and steel industries.” says Wladimir Pinto, energy analyst with Bradesco Corretora.

GDP and Energy, highly correlated

The bureau also revised its estimates for energy consumption growth in 2010 from 7% to 7.7%, as a result of higher GPD expectations as well as the behavior of energy consumption over the last 5 months. Wladimir thinks that  energy consumption in Brazil will continue to grow at high rates, mainly driven by industrial consumption, especially energy-intensive industries.

Furthermore, commercial and residential consumption are also resilient, having posted +7,9% and +6.5% YoY, respectively.

Advertisements

About Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists. She is a member of the Brazilian Investment Analysts Association (APIMEC-Rio) where she served as Corporate Relations Director and later, on the board. Hildete advises companies doing business in Brazil.
This entry was posted in Economy and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s