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The Increase in Energy Consumption Is Related, Among Other Factors, to the Rising Demand for Pulp Due to the War in Ukraine
As reported by CNN Brasil last Tuesday (the 26th), Brazil experienced a 17.6% increase in electricity consumption in the wood, paper, and pulp sectors in the first half of this year. The survey was conducted by the Electric Energy Commercialization Chamber (CCEE).
In May, the increase reached 22.6%, which, according to CCEE, can be explained by the rising demand for basic inputs, given the scenario of the war in Ukraine.
Manager of Market Analysis and Information at CCEE Discusses the Rise in Energy Consumption in the Country
Ricardo Gedra – manager of market analysis and information at the institution – clarifies the roots of the movement in the country, which is the world’s largest exporter of pulp.
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According to him, data from the Energy Research Company (EPE) and the National Agency of Petroleum, Natural Gas, and Biofuels (ANP) show that Brazil has a 22% market share. Russia, on the other hand, is also a significant exporter, but is involved in the war and is now dealing with the consequences of a blockade, which contributes to the increased demand from those who can meet the supply.
Gedra also states that, although there is growth in energy demand in the wood and paper sectors, the largest consumption is concentrated in the production of pulp, given the high industrial demand for the product.
From this perspective, the specialist concludes that the material is an input for other products, in addition to heavily supporting the packaging chain, in a phase of the economy that precedes the delivery of the product. Thus, pulp acts as an economic indicator of trends, with its differentiating factor being the environmental aspect, as it replaces plastic, which is not biodegradable.
Increase in Energy Consumption in the Pulp Sector Is Also Justified by the Inauguration of a New Factory in Paraná
In addition to the previously mentioned factors, the increase in energy consumption was also driven by the inauguration of a pulp factory in Paraná, which took place during the second half of last year. The unit is responsible for an energy consumption higher than that of the entire state of Acre, the state with the lowest energy demand in the country.
In the state of Paraná, the increase in consumption in the pulp sector was 58.8% due to the new factory. Following are the states of Minas Gerais (6.8%); Bahia (4.4%); São Paulo (4.3%); and Espírito Santo (3.9%).
CCEE Also Records a 1.4% Increase in Electricity Consumption Across All Sectors of the Country
Preliminary data obtained by the Electric Energy Commercialization Chamber (CCEE) also demonstrate that, compared to the same period in 2021, electricity consumption in Brazil grew by 1.4% in the first half of this year.
According to the institution’s assessment, the increase occurred primarily due to the resumption of activities in some important sectors of the economy, such as beverages, food, and services. In addition, there is a favorable moment for exports, which also contributes to the increased consumption.
In addition to the advancements in the Paper, Wood, and Pulp sector, which have already been mentioned, there were also increases in consumption in the Services (25.7%); Commerce (14.2%); Sanitation (12.1%); Food (9.2%); Beverages (7.7%); Transportation (5.6%); Chemicals (5.3%); Metallic Minerals Extraction (0.2%); among others.
