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Brazil Studies Local Content for Electricity, Ministry Says

Brazil is studying the possibility of requiring a percentage of local content for the electric energy industry as is currently done for oil exploration, said the country’s Energy Ministry.

Brazil’s Energy Ministry is looking at the possibility, it said today in an e-mailed statement. Local content requirements weren’t discussed at yesterday’s biannual ministers meeting, the ministry said.

Oil producers are required to buy as much as 70 percent of goods and services locally, reducing the suppliers state- controlled oil producer Petroleo Brasileiro SA (PETR4) can tap as the country seeks to more than double output by 2020.

The same mechanism will be added to the new mining code that the government plans to send to Congress for appreciation, said a government official who participated in drafting the new rules on Feb. 6.

To contact the reporter on this story: Mario Sergio Lima in Brasilia Newsroom at mlima11@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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