1. São Paulo faces widespread blackouts and disruption due to chronic underinvestment in its grid.
2. Enel, the Italian energy group operating São Paulo’s grid, is blamed for the blackouts by city officials and the Brazilian Federal Government.
3. Brazil is set to host the UN COP30 climate summit in 2025 and aims to triple its global renewable energy capacity by 2030 as part of its national net-zero plans.
São Paulo, Brazil, is facing widespread blackouts and service disruptions due to chronic underinvestment in its grid. The city, one of the largest in the Americas, has experienced large-scale power outages, leaving hundreds of thousands without power for days. City officials blame Italian energy group Enel, which operates the grid, while others point to government underinvestment. The mayor warns of a potential grid collapse within three years without increased investment.
Brazil has suffered from power cuts, affecting major cities like São Paulo. Last year, the president announced a $76bn infrastructure program, but analysis suggests infrastructure spending will remain low. Private sector investment dominates, with the power sector relying heavily on private companies. The energy minister has called for disciplinary action against Enel, citing insufficient investment.
Enel defends its compliance with obligations and warns that revoking the concession could harm investor relations. Brazil aims to triple its renewable energy capacity by 2030 and phase out coal, with over 80% of its energy currently coming from renewable sources. As Brazil prepares to host the UN COP30 climate summit in 2025, maintaining good relations with Enel becomes crucial.