Main Risks and Preventive Measures for Investment and Operation in the Brazilian Power Grid Sector

Abstract

This study examines critical investment risks in Brazil's power grid sector amid deepening China-Brazil energy cooperation. Through analysis, we identify five critical risks: 1) Exchange rate volatility driven by fiscal deficits and commodity dependence; 2) Social instability; 3) Grid vulnerabilities highlighted by nationwide blackouts; 4) Regulatory complexity in labor and environmental compliance; 5) Corruption reflected in suboptimal governance indices. To effectively navigate Brazil's complex business environment, the study further proposes actionable prevention and mitigation strategies tailored to address these multifaceted challenges.