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Officials said a fire in a substation in the Amazon knocked out the whole electricity grid of northeastern Brazil in the region's worst blackout since 2001. The outage lasted up to four hours in some places. In the city of Recife residents left without air conditioning and ventilators complained they could not sleep due to the heat and mosquitoes. "There was a total collapse of the northeastern grid," acting Energy Minister Marcio Zimmermann said. The government has not yet established the causes of a series of recent blackouts that have undermined confidence in Brazil's electrical system, Zimmermann said. He called the second emergency meeting in five weeks to discuss the problem. The power shortages have added to concerns that the South American country will not be ready to host two major global sports events, the World Cup soccer tournament in 2014 and the 2016 Olympic Games. The power outage, which affected 11 Brazilian states in the northern regions of the country, follows two other blackouts in as many months that affected millions of customers across the nation. "We are taking all the corrective and preventative measures ... to minimize this type of occurrence, which is dramatic for all of us and principally for consumers," Hermes Chipp, head of Brazil's National Electric System Operator, told the Globo television network. Brazil went through a so-called "blackout crisis" in 2001 and 2002 as a drought limited the output of hydroelectric dams. In response, the government forced electricity cuts in certain regions for hours at a time, severely crimping economic growth. While Brazil has invested heavily in electricity generation since then, it still has a long way to go, with the country planning to build as many as 48 new hydroelectric plants by 2020 to keep up with the energy demands of rapid economic growth. Energy policy has been at the forefront of government efforts to boost sluggish growth in Latin America's largest economy. Last month President Dilma Rousseff announced a major cut in electricity taxes in a bid to help boost industry and address the so-called "Brazil cost" - the mix of taxes, high interest rates, labor costs, infrastructure bottlenecks, and other issues that have caused the economy to become less competitive. But critics say lowering energy costs for consumers could discourage private investment needed to increase Brazil's generating capacity. They say electricity companies have not invested enough in generation and transmission lines since they were privatized over a decade ago. (Reporting by Anthony Boadle, Maria Carolina Marcello, Pedro Fonseca, Sergio Spagnuolo and Asher Levine; Editing by Todd Benson and Doina Chiacu) World Brazil Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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