BMI View: With hydroelectric sources of power dominating – they accounted for around 80% of electricity generating capacity in 2012 – Brazil’s electricity sector depends on what is an unreliable source of power. The government is keen to rectify this, and power auctions scheduled between mid- and end-2013 will offer firms the chance to bid for thermal, renewable, and hydroelectric power projects. But the terms of these auctions have been shifted to focus on reliability of supply: in a change to standard conditions, the government now gauges capacity based on how much electricity is guaranteed 90% of the time, as …
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