Brazil, the second-biggest producer of hydroelectricity, is seeking to increase the use of fossil fuels after the worst drought in 50 years depleted reservoirs, underscoring a limit to renewable energy.
Brazil’s government will enforce a Dec. 4 deadline it gave power companies to decide whether to renew concessions and won’t change any terms of its offer, Deputy Energy Minister Marcio Zimmermann said.
Petroleo Brasileiro SA ’s planned $25 billion share sale and swap of stock for oil will go ahead in September and won’t be derailed by presidential elections the following month, Energy Minister Marcio Zimmermann said.
Brazilian President Luiz Inacio Lula da Silva ’s administration will have the “final word” on the price of oil reserves that Petroleo Brasileiro SA will buy from the government, Energy Minister Marcio Zimmermann said.
Centrais Eletricas Brasileiras SA rose the most in 13 years, leading gains by Brazilian power companies, after the government increased compensation by 50 percent for utilities that agree to cut electricity rates.
Petroleo Brasileiro SA is still negotiating a price for oil reserves that it plans to buy from Brazil’s government in exchange for stock, which may delay approval by a panel of ministers and officials, Energy Minister Marcio Zimmermann said.