Industry Research Report on the Energy in Brazil¶
Value Chain outline¶
The energy industry in Brazil is broadly divided into the electricity sector and the oil and gas sector, each with its distinct value chain.
Electricity Value Chain¶
The electricity value chain in Brazil consists of four main steps: Generation, Transmission, Distribution, and Commercialization.
Generation¶
Identification and description of segments: This step involves producing electricity from various sources. The segments are defined by the primary energy source used. Brazil's matrix is predominantly renewable.
List of types of players: Companies that own and operate power plants. These can be large corporations, government-owned entities, or smaller independent power producers.
Detailed description of the main activities within each segment:
- Hydroelectric: Operating dams and turbines to convert the potential energy of water into electricity. This is the largest source in Brazil.
- Thermal: Generating electricity by burning fuels such as natural gas, coal, biomass, or derivatives, or using nuclear power to heat water and produce steam that drives turbines.
- Wind: Utilizing wind turbines to convert wind energy into electricity. This is the second largest renewable source after hydro.
- Solar: Converting sunlight directly into electricity using photovoltaic panels (centralized large plants or distributed smaller systems).
- Biomass: Generating electricity by burning organic matter, such as sugarcane bagasse.
- Nuclear: Generating electricity using nuclear fission in power plants.
List examples of key players with detailed profiles: (Profiles are detailed in a later section)
- Eletrobras
- Itaipu Binacional
- Neoenergia
- Engie Brasil
- Cemig
- Copel
- CPFL Energia
- EDP Brasil
- Auren Energia
- Eneva
- AES Brasil
- Light S.A.
- Serena
- Omega Energia
- CTP
Transmission¶
Identification and description of segments: This step involves transporting high-voltage electricity over long distances from generation sites to distribution networks. The primary segment is the high-voltage transmission grid.
List of types of players: Companies that build, operate, and maintain the high-voltage transmission lines and substations. These companies typically hold concessions from the government.
Detailed description of the main activities within each segment:
- Maintaining and expanding the national grid infrastructure.
- Ensuring the stability and security of the power flow across the system, often coordinated by a national system operator (ONS).
- Operating substations to manage voltage levels.
List examples of key players with detailed profiles: (Profiles are detailed in a later section)
- Taesa
- Isa Cteep
- Alupar
- Engie Brasil
- Neoenergia
- Cemig
- Copel
- Eletrobras
- Energisa
- Equatorial Energia
- Light S.A.
Distribution¶
Identification and description of segments: This step involves delivering medium and low-voltage electricity from the transmission substations to the final consumers (residential, commercial, industrial). Segments are defined by the geographic area covered by a concession.
List of types of players: Companies that hold concessions to distribute electricity within a specific region. These are often the companies consumers interact with directly for billing and service.
Detailed description of the main activities within each segment:
- Operating and maintaining the local distribution network (power lines, transformers, etc.).
- Connecting new consumers to the grid.
- Metering electricity consumption.
- Billing and collecting payments from consumers.
- Providing customer service and technical assistance.
- Implementing government policies like universal access and social tariffs.
List examples of key players with detailed profiles: (Profiles are detailed in a later section)
- Neoenergia (Neoenergia Elektro, Coelba, Pernambuco, Cosern, Brasília)
- Enel Brasil (Enel Rio, Ceará, São Paulo)
- Cemig Distribuição
- Copel
- Energisa (various state-level distributors)
- Equatorial Energia (various state-level distributors)
- CPFL Energia
- Light S.A.
- EDP Brasil (EDP Espírito Santo, EDP São Paulo)
- Celesc
- Amazonas Energia
- Roraima Energia
Commercialization¶
Identification and description of segments: This step involves the buying and selling of electricity. There are two main segments: the Regulated Contracting Environment (ACR) and the Free Contracting Environment (ACL).
List of types of players:
- Commercializers: Companies that buy energy from generators or other commercializers and resell it to free consumers or distributors.
- Generators: Sell energy, particularly in the free market.
- Distributors: Primarily buy energy in the regulated market through auctions, but can also buy from commercializers in specific cases.
- Free Consumers: Large consumers (industries, large businesses) who can choose their energy supplier and negotiate contracts directly with generators or commercializers in the ACL.
Detailed description of the main activities within each segment:
- ACR: Distributors buy energy through public auctions organized by the government and regulated by ANEEL to supply captive consumers.
- ACL: Commercializers and generators negotiate bilateral contracts for the purchase and sale of energy directly with free consumers or other market agents. The Câmara de Comercialização de Energia Elétrica (CCEE) regulates and facilitates operations in both environments.
List examples of key players with detailed profiles: (Profiles are detailed in a later section)
- Raízen Power
- Auren
- BTG Pactual
- Cemig Comercialização
- Neoenergia
- Engie Brasil
- CPFL Energia
- Comerc Trading
- Grupo MGO
- Perfil Energia
Oil and Gas Value Chain¶
The oil and gas value chain in Brazil typically comprises the following steps: Exploration and Production (Upstream), Refining and Processing (Midstream/Downstream), Transportation and Distribution (Midstream/Downstream), and Commercialization (Downstream).
Exploration and Production (Upstream)¶
Identification and description of segments: This step involves the search for potential underground or underwater crude oil and natural gas fields (Exploration) and the extraction of these resources (Production). Segments can be defined by the location of operations (onshore or offshore, particularly pre-salt).
List of types of players:
- National Oil Companies (NOCs): State-owned companies like Petrobras.
- International Oil Companies (IOCs): Large multinational corporations.
- Independent Oil Companies: Smaller companies focused primarily on E&P.
Detailed description of the main activities within each segment:
- Exploration: Geological surveys, seismic studies, and exploratory drilling to identify commercially viable reservoirs.
- Production: Drilling wells, installing platforms and infrastructure (especially offshore), and extracting crude oil and natural gas from the reservoirs. This includes the operation of wells and separation of oil, gas, and water.
List examples of key players with detailed profiles: (Profiles are detailed in a later section)
- Petrobras
- Shell Brasil
- Equinor
- Petrogal Brasil S.A.
- TotalEnergies Brasil
- Repsol Sinopec Brasil
- Chevron Brasil
- 3R Petroleum
- PRIO (formerly PetroRio)
- Enauta
- PetroRecôncavo S.A.
- Karoon Petróleo e Gás S.A.
- ExxonMobil Exploração Brasil
- Eneva
- OGX Petroleo
Refining and Processing (Midstream/Downstream)¶
Identification and description of segments: This step transforms crude oil and natural gas into various usable products. Segments include refining crude oil into fuels like gasoline, diesel, and jet fuel, and processing natural gas to remove impurities and extract natural gas liquids (NGLs).
List of types of players: Companies that own and operate refineries and natural gas processing plants.
Detailed description of the main activities within each segment:
- Refining: Cracking, distillation, and other chemical processes to separate crude oil into fractions and produce refined products.
- Natural Gas Processing: Removing water, sulfur, and other impurities from raw natural gas, and separating NGLs.
- Producing petrochemical feedstocks.
List examples of key players with detailed profiles: (Profiles are detailed in a later section)
- Petrobras
- Acelen
- Refinaria de Petróleo Riograndense S.A.
- Braskem S.A. (petrochemicals)
- Shell PLC
- Repsol SA
- Chevron Corporation
Transportation and Distribution (Midstream/Downstream)¶
Identification and description of segments: This step involves moving crude oil, natural gas, and refined products from production and processing sites to consumption areas and export terminals. Segments include pipeline networks, maritime transport (tankers), road transport (trucks), and rail transport. Distribution networks deliver natural gas to homes and businesses ( piped gas) or fuels to retail stations and large consumers.
List of types of players:
- Pipeline operators: Companies managing crude oil, natural gas, and product pipelines.
- Logistics companies: Companies providing maritime, road, or rail transport of energy products.
- Gas distribution companies: Companies operating local piped natural gas networks.
- Fuel distributors: Companies supplying gasoline, diesel, ethanol, and other fuels to service stations and large consumers.
Detailed description of the main activities within each segment:
- Operating and maintaining pipelines, terminals, and storage facilities.
- Managing logistics for transporting products via various modes.
- Operating local natural gas distribution networks.
- Managing the supply chain of fuels to retail points and end-users.
List examples of key players with detailed profiles: (Profiles are detailed in a later section)
- Nova Transportadora do Sudeste S.A. – NTS
- Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG)
- Logum Logistica S/A
- BR Partners Logística Internacional
- Vibra Energia (formerly Petrobras Distribuidora)
- Raízen Combustíveis
- Ipiranga Produtos de Petróleo S.A.
- Companhia Ultragaz S.A. (LPG distribution)
- Copagaz (LPG distribution - divested by Copel)
- Bahiagás (piped gas distribution)
- COMGÁS – Companhia de Gás de São Paulo (piped gas distribution)
- Naturgy (piped gas distribution)
- Supergasbras Energia Ltda (LPG distribution)
- TotalEnergies Brasil Distribuidora
- Distribuidora Equador
Commercialization (Downstream)¶
Identification and description of segments: This step involves the sale of refined petroleum products and natural gas to wholesalers, retailers, and final consumers. Segments include wholesale marketing of fuels, retail sales at service stations, and the sale of natural gas to industrial, commercial, and residential customers.
List of types of players:
- Fuel distributors: Companies selling fuels to service stations and large consumers.
- Petrochemical companies: Selling petrochemical products.
- Natural gas commercializers: Selling natural gas to different consumer segments.
- Service station operators: Retailers selling fuels to vehicles.
Detailed description of the main activities within each segment:
- Marketing and selling refined products (gasoline, diesel, jet fuel, lubricants, etc.).
- Operating and franchising service stations.
- Negotiating and selling natural gas supply contracts.
- Selling petrochemical products to various industries.
List examples of key players with detailed profiles: (Profiles are detailed in a later section)
- Vibra Energia
- Raízen Combustíveis
- Ipiranga Produtos de Petróleo S.A.
- Petrobras Comercializadora de Gás e Energia
- Braskem S.A.
- Mgás Comercializadora
Show estimates of volumes and sizes of each step in the value chain.¶
Electricity Sector:
- Generation: Brazil's supervised electric power capacity reached nearly 200,000 MW (200 GW). As of November 2024, solar energy alone reached 50 GW of installed capacity. In 2023, renewable sources accounted for 93.1% of the electricity generated, with hydroelectric representing about 58% of the installed capacity. Wind and solar sources combined had over 42.6 GW installed capacity in early 2024. The total installed capacity of renewables in Brazil is expected to reach 204.36 GW in 2024 and grow to 294.66 GW by 2029.
- Transmission: The transmission network in Brazil has over 140,000 km of lines, connecting generators to distributors. Projections for 2023 estimated the network would reach approximately 185,500 km. Neoenergia alone has over 6,000 km of transmission lines in operation and under construction.
- Distribution: Distribution companies serve millions of consumers across the country. Neoenergia serves over 15 million consumer units with its distributors. Cemig serves approximately 9.41 million clients. Energisa covers a concession area equivalent to 24% of the national territory.
- Commercialization: The free energy market has been expanding, with all medium and high-voltage consumers gaining access in 2024. The 20 largest commercializing companies were responsible for negotiating over 51% of the total volume in the free market between July 2023 and July 2024.
Oil and Gas Sector:
- Exploration and Production: In 2024, the production of oil and gas in Brazil was approximately 4.31 million barrels of oil equivalent per day (boe/d). The pre-salt layer accounted for 78% of the national production in 2024. In 2021, Brazil produced an average of 2.9 million barrels of oil per day and 134 million cubic meters of natural gas per day. Offshore basins, particularly the Santos Basin (around 70%), are dominant. Brazil's proven oil reserves reached 14.857 billion barrels in 2022, the highest volume since 2014. Total oil reserves are around 26.9 billion barrels. Proven natural gas reserves increased to 406.5 billion m³ in 2022, the largest volume since 2015. Investments of around US$ 180 billion are projected in E&P between 2022 and 2031, aiming for a national oil production of 5.2 million barrels per day by 2031. Independent companies accounted for about 51% of onshore production in 2024.
- Refining and Processing: Brazil has significant refining capacity. Acelen's refinery alone accounts for over 14% of Brazil's total refining capacity. Specific total capacity volumes were not readily available in the provided snippets for 2024/2025.
- Transportation and Distribution: The natural gas transportation network is extensive, with Engie operating the largest network. Specific total volumes for transported oil, gas, or derivatives were not available. Fuel distribution involves a vast network of service stations across the country.
- Commercialization: Brazil is a significant exporter of crude oil, with approximately 54.5% of the average daily oil production in 2024 destined for export. Internal commercialization of fuels and natural gas involves large volumes distributed through various channels.
Value Chain Summary Table¶
Value Chain Step | Segments | Types of Players | Main Activities |
---|---|---|---|
Electricity Generation | Hydroelectric, Thermal, Wind, Solar, Biomass, Nuclear | Power Plant Owners/Operators (State-owned, Private, Independent) | Converting primary energy sources into electricity |
Electricity Transmission | High-voltage grid | Transmission Concessionaires (State-owned, Private) | Transporting high-voltage electricity over long distances; Grid operation and maintenance |
Electricity Distribution | Geographic concession areas (Low and Medium Voltage) | Distribution Concessionaires (State-owned, Private) | Delivering electricity to final consumers; Network maintenance; Metering, Billing, Customer Service |
Electricity Commercialization | Regulated Contracting Environment (ACR), Free Contracting Environment (ACL) | Commercializers, Generators, Distributors, Free Consumers | Buying and selling electricity contracts; Market operation and regulation |
Oil & Gas E&P | Onshore, Offshore (Shallow Water, Deepwater, Ultra-deepwater, Pre-salt) | National Oil Companies (NOCs), International Oil Companies (IOCs), Independents | Exploration (surveys, drilling), Production (well operation, extraction, infrastructure) |
Oil & Gas Refining & Processing | Refineries, Natural Gas Processing Plants | Refinery/Plant Owners/Operators | Transforming crude oil into fuels/derivatives; Processing natural gas; Petrochemicals production |
Oil & Gas Transportation & Distribution | Pipelines, Maritime, Road, Rail; Piped Gas Networks, Fuel Distribution Networks | Pipeline Operators, Logistics Companies, Gas Distributors, Fuel Distributors | Moving crude oil, gas, and products; Operating networks and terminals; Supplying fuels and piped gas |
Oil & Gas Commercialization | Wholesale, Retail (Fuels, LPG); Natural Gas Sales; Petrochemical Sales | Fuel Distributors, Petrochemical Companies, Gas Commercializers, Retailers | Marketing and selling refined products, natural gas, and petrochemicals |
Examples of Main Players:¶
Here are some of the most relevant players in the energy industry in Brazil, with profiles and case studies based on the provided information, organized by their primary areas of operation within the value chain. Many of these companies are integrated and operate in multiple segments.
Integrated Electricity Players:
- Eletrobras: A major Brazilian power company historically involved in generation and transmission. It was privatized in 2022 and is now a corporation without a defined controlling shareholder. It is one of the companies with the largest installed capacity in Brazil, possessing 21.7% of the national market share and 44.3 GW of capacity as of a 2024 report. It is a fundamental pillar for Brazil's energy security, responsible for nearly a third of the national generation capacity, including operations at large hydroelectric plants like Itaipu.
- Neoenergia: Operates across the entire electricity value chain: generation, transmission, distribution, and commercialization. Controlled by the Spanish group Iberdrola, it is the largest private company in the Brazilian electricity sector by number of clients, serving over 15 million consumer units through its five distribution companies in states like Bahia, Pernambuco, Rio Grande do Norte, São Paulo, Mato Grosso do Sul, and the Federal District. It has a significant installed capacity of 5 GW, with a strong focus on renewables (hydro, wind, and solar). Neoenergia also has 15 transmission assets.
- Engie Brasil: A significant player in generation, transmission, and commercialization of electricity, also operating the largest natural gas transport network in Brazil. Controlled by the Franco-Belgian group Engie, it is one of the main private energy companies in the country. Engie focuses on renewable generation and transmission lines, with significant investments in solar and wind projects. As of 2024, Engie had approximately 13 GW of installed capacity from renewable and low-emission sources and added 1.2 GW of 100% renewable capacity in 2024, reaching 9.6 GW in this segment. The company made significant investments of R$ 9.7 billion in 2024, its largest investment year to date.
- Cemig: A state-owned integrated energy company based in Minas Gerais, active in generation, transmission, distribution, and commercialization of electricity. Cemig Distribuição is responsible for supplying energy to nearly 9 million consumers. Cemig Geração e Transmissão operates extensive networks. Cemig Comercialização is a leader in the free energy market for free clients. The company achieved its highest net income and Ebitda in history in 2023 and reported R$ 39.819 billion in net revenue in 2024.
- Copel: An integrated energy company primarily operating in Paraná, involved in generation, transmission, and distribution of electricity. It transitioned into a corporation without a defined controlling shareholder in 2024. Copel successfully renewed concessions for major hydroelectric plants in 2024, securing operation of 64% of its installed capacity until 2054. The company operates hydro plants with a combined installed capacity of 4,176 MW after renewals. Copel invested R$ 2.5 billion in 2024, mainly in distribution.
- Enel Brasil: Part of the global Enel Group, operating in electricity distribution, generation, transmission, and energy solutions. It holds distribution concessions in important states like Rio de Janeiro, Ceará, and São Paulo. The company focuses on innovation and improving operational efficiency. Enel Brasil had revenue of €5.665 billion in the first 9 months of 2024.
Major Oil and Gas Players:
- Petrobras: A state-owned Brazilian company and the largest energy company in Brazil, involved in the entire oil, natural gas, and derivatives value chain: exploration, production, refining, transportation, and commercialization. Petrobras is a global leader in deep and ultra-deepwater exploration and production technology, with significant operations in the pre-salt layer. While still dominant, its share in national production has seen a slight decrease over the years with the rise of other players. Petrobras reported R$ 490.82 billion in sales revenue in 2024.
- Raízen: A joint venture between Cosan and Shell, involved in the production and commercialization of sugar, ethanol, biofuels, and fuel distribution under the Shell brand. Raízen is a major player in the biofuels segment and a significant fuel distributor. It also has a presence in the electricity commercialization market through Raízen Power. Raízen had net revenue of R$ 57.8 billion in Q1 of the 2024/2025 harvest year.
- Vibra Energia: One of the largest fuel distribution companies in Brazil, formerly the distribution arm of Petrobras (BR Distribuidora). It operates under the BR brand and is a major player in the downstream commercialization of fuels. Vibra Energia was included in the Fortune Global 500 list for 2023 based on its revenue.
Other Notable Players (Electricity and O&G):
- Taesa: A prominent transmission company in Brazil, recognized as one of the best companies to work for in the GTD segment in 2023.
- Energisa: Operates in generation, transmission, distribution, and commercialization of electricity, with a strong presence in distribution across several states.
- Equatorial Energia: An integrated energy company with operations in distribution, transmission, generation, and commercialization, primarily focused on distribution concessions in several Brazilian states.
- CPFL Energia: One of the largest energy companies in Brazil, controlled by State Grid, involved in generation, distribution, and commercialization, with a strong presence in São Paulo.
- 3R Petroleum: An independent oil and gas company focused on exploration and production, particularly on revitalizing mature fields.
- PRIO: Another independent E&P company, formerly PetroRio, focused on optimizing production from existing fields.
- PetroRecôncavo S.A.: An independent oil and gas company focused on onshore E&P.
- Braskem S.A.: The largest petrochemical company in Latin America, with significant operations in Brazil.
Volumes and Sizes:¶
Electricity Sector:
- Installed Capacity (Total): Approaching 200 GW. Expected to reach 238.97 GW in 2024 and 336.10 GW by 2029.
- Installed Capacity (Renewables): Expected to reach 204.36 GW in 2024 and 294.66 GW by 2029. In 2023, total renewable generation was 70,206 MWa, accounting for 93.1% of the total.
- Hydroelectric Capacity: Over 60% of the generation matrix. Generated almost 50,000 MWa in 2023.
- Wind and Solar Capacity: Combined installed capacity of over 42.6 GW in early 2024. Solar capacity reached 50 GW in November 2024 (33.5 GW distributed, 16.5 GW centralized).
- Transmission Network: Over 140,000 km of lines, projected to reach around 185,500 km.
- Distribution Customers: Neoenergia serves over 15 million units. Cemig serves approximately 9.41 million clients.
Oil and Gas Sector:
- Total Production (Oil Equivalent): Approximately 4.31 million boe/d in 2024. Slightly lower than 2023 (4.34 million boe/d).
- Oil Production: Average of 3.35 Mbbl/d in 2024. In 2021, averaged 2.9 million bbl/d.
- Natural Gas Production: Averaged 134 million m³ per day in 2021.
- Pre-salt Production: Accounted for 78% of national production in 2024.
- Proven Oil Reserves: 14.857 billion barrels in 2022.
- Total Oil Reserves: 26.9 billion barrels.
- Proven Natural Gas Reserves: 406.5 billion m³ in 2022.
- Exports (Crude Oil): Approximately 54.5% of average daily oil production in 2024 was exported.
- Petrobras Production Share: Responsible for 73% of national production in April 2021, down from 84% in April 2016. Independent companies are gaining ground, particularly in onshore production.
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