Brazil to invest $440 mn in energy projects

Sao Paulo, July 31 (IANS/EFE) Brazilian Mines and Energy Minister Edison Lobao said the federal government planned to invest 1 million reais ($440.5 million) in energy projects over the next 10 years through its Growth Acceleration Program, or PAC.

Lobao participated Monday in a debate on renewable energies and energy efficiency that was organized by the Lide business leadership group.

The minister touted the country's energy matrix, noting that the bulk of total installed electricity capacity comes from hydroelectric plants and pointing to the growth in biofuels production.

According to Lobao, the country's biofuels output is expected to increase by 11 percent to 26 billion liters next year.

Separately, the minister said sector funds would be able to pay up-front monetary compensation to electrical energy companies that agreed to the early renewal of their generation and transmission concessions due to expire between 2015 and 2017.

The Brazilian government last year offered to pay compensation to companies that accepted early renewal of their 30-year concessions. Under the new concession terms, the companies must charge sharply lower rates.

The National Treasury is there to cover the compensation owed to companies if the sector funds do not have the money, Lobao said.

--IANS/EFE

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