Page 58 - InvestmentGuideBrasilEng

AUTO PARTS INOVAR-AUTO POLICY BRAZIL’S ENERGY MIX:

DOMESTIC SUPPLY (2011)
Brazil has a strong automotive supply chain with Inovar-Auto is an innovative new program by the
significant operations belonging to global com- Brazilian government aimed at ensuring that
panies such as Magnetti Marelli, Bosch, Visteon, Brazil’s automotive industry leads in innovation,
Delphi, among others. These companies have energy efficiency, environmental sustainability
been improving their investments in developing and professional skills training to strengthen the
customized auto parts in partnership with OEMs competitiveness of Brazil’s automotive industry.
(co-design). Domestic content in Brazilian cars The program offers incentives for investment
has reached nearly 90%. Sao Paulo state is home by creating new, sophisticated supply chains, so-
to the main cluster for both auto parts and OEMs. phisticated R&D programs for new products and
The automotive industry encompasses an technologies, including tax rebates. Inovar-Auto OIL AND DERIVATIVES
extensive list of products, such as car bodies and will anchor Brazil as an international hub for the BIOFUELS
cabs, electrical and electronic components, sus- automotive industry as it starts to develop new
pension and steering systems, breaks, engines, products, increasing exports to regional and in- HYDROELECTRICITY
the transmission system and so on. Brazil has ternational markets. NATURAL GAS
various industrial units specialized in producing FIREWOOD AND CHARCOAL
them. According to RAIS (a government database
that provides annual social information in Brazil), COAL
Brazil has 9,672 factories in the sector, which em- BLACK LIQUOR AND OTHER RENEWABLES
ploy a total of 481,681 workers. URANIUM

Source: 2012 National Energy Balance:
Preliminary Results, EPE/MME
Energy

Brazil is the 9th-largest consumer of energy in the
world, but also an emerging global energy heavy-
weight that should become energy self-sufficient
and an energy exporter. Driving Brazil’s energy
sector are massive renewable energy resources,
such as hydroelectric, wind and solar power, as
well as the discovery of the largest oil deposits
to be found in the Americas in the past 30 years. INOVA-ENERGIA
Brazil is also promoting bidding rounds to develop
onshore, non-conventional oil and gas reserves
such as shale. In cleaner fuels, Brazil is the world’s On April 1, 2013, the Brazilian Development Bank sector, one of the key areas for growth in Brazil.
largest biofuels producer that uses a non-food (BNDES), the electricity regulator (ANEEL) and Companies selected will have an opportunity to
source (sugarcane). the Brazilian Innovation Company (FINEP) signed access credit with special conditions, with grants
Brazil’s generation capacity is due to increase a Technical Cooperation Agreement to create a and non-reimbursable financing for research
from 110,000 MW to 171,000 MW by 2020, led by Support Plan for Technological Innovation in the conducted at science and technology institutes,
advances in renewable energy sources such as hy- Electric Sector – INOVA-ENERGIA. The budget among other instruments.
dro power, wind power, biomass and small hydro. available for this Support Plan will be $1.5 billion, of INOVA-ENERGIA is aimed at promoting and
The latest three energy sources will represent 16% which $300 million will come from ANEEL, $600 selecting business plans that include research,
of the energy matrix in Brazil by 2020, led by wind million from BNDES and $600 million from FINEP. development, engineering and technological ab-
power, which will account for almost half of this The joint effort of these three agencies will sorption; production and trade of goods; as well
total, increasing from 1% to 7%. ensure a more extensive coordination effort as innovative processes and services.
Demand for energy is growing at a faster pace among government programs aimed at fostering The program will contribute to developing Bra-
than production, which is fuelling investment in a innovation, as well as bringing together various zilian companies and technology in the production
wide range of energy producers. instruments that provide support for research, chain of smart grids, solar energy and wind power,
development and innovation in Brazil’s energy hybrid vehicles and vehicle energy efficiency.
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