Free market drives increase in electricity consumption in Brazil in 2022

CCEE balance shows that the Free Contracting Environment used 7.2% more energy last year than in 2021
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30-01-23-canal-solar-Consumo brasileiro de energia elétrica subiu 1,5% em 2022, aponta CCEE
Brazilian electricity consumption rose 1.5% in 2022. Photo: Freepik

A balance released by the CCEE (Electricity Trading Chamber) pointed out that theconsumption of electricity in Brazil increased by 1.5% in 2022, compared to 2021, and reached 67,275 MWmed.

It was the second consecutive year of increase, a sign of the recovery of sectors of the economy that, at the beginning of the decade, faced the challenges imposed by the Covid-19 pandemic.

According to the survey, the free market is what has pushed the result upwards. The environment used 7.2% more energy last year than in 2021, a total of 24,496 MWmed.

In total, the market already represents 36.4% of all national consumption. Highlights include the Services (16.2%), Wood, Paper and Pulp (12.7%) and Commerce (10.5%) sectors.

“We are once again seeing growth in the energy market, which is good news, but the pace is still lower than what we considered the historical average for the sector. For this, however, a faster recovery of economic activity will be necessary”, said Rui Altieri, president of the CCEE Board of Directors.

Regarding ACR (Regulated Contracting Environment), CCEE reported that there was a drop of 1.4%. The load totaled 42,769 MWmed. Three factors explain the retraction: the migration of consumers to the free market, the spread of solar panels and the influence of lower temperatures than those recorded in 2021, which reduces the use of air conditioning devices.

Fonte: CCEE
Source: CCEE

Branches of economic activity

Of the 15 sectors that contract energy on the free market monitored by the Chamber, 13 registered an increase in consumption in the annual comparison. Services and Commerce show significant recovery after the end of restrictions to combat the pandemic.

The Wood, Paper and Pulp sector expanded its production to meet the global demand for Brazilian raw materials, which increased after the start of the conflict between Russia and Ukraine. The textile industry was negatively affected by cyclical factors, such as high interest rates and accumulated inflation, in addition to a shortage of raw materials.

Fonte: CCEE
Source: CCEE

Regional consumption

Among the states, Maranhão had the biggest increase, with a variation of 13.5%, followed by Rondônia (10.4%) and Mato Grosso (6.4%). In addition to the influence of the free market, the climate factor, with temperatures above those recorded in 2021, boosted consumption in the regulated environment, with greater use of refrigeration equipment.

The opposite scenario, with more rain and below-average minimum temperatures, especially in the second half of the year, led to a retraction in much of the Northeast, with emphasis on Paraíba (-2.2%), Piauí (-4.2%) and Rio Grande do North (-4.7%).

Fonte: CCEE
Source: CCEE
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Matthew Badra
Journalist graduated from PUC-Campinas. He worked as a producer, reporter and presenter on TV Bandeirantes and Metro Jornal. Has been following the Brazilian electricity sector since 2020.

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