Goldman Sachs and Bradesco Forecast 7.5% to 9% Energy Sales Growth in Brazil via El Niño

Major Brazilian energy distributors and generators must record a combination of increased demand growth and rising volume expectations propelled by the El Niño climate event. Recent analyses from Goldman Sachs and Bradesco BBI suggest this trend will persist through early 2027 due to temperatures exceeding averages. Despite high interest rates and potential cost pressures, both institutions maintain a positive outlook for key sector participants. The Bradesco BBI report identifies Equatorial (EQTL3) and Energisa (ENGI11) among companies most benefited by expected consumption hikes. Consequently, the bank raised volume growth forecasts for the second half of the year, estimating sales increases of approximately 7.5% for Equatorial and 9% for Energisa. Goldman Sachs follows a similar trajectory based on Operator National of the Electric System projections, anticipating demand growth between 5% and 9% in the latter half of 2026, which surpasses prior market estimates.