Brazilians may be paying US$1.6 billion for idle thermal power plants – IDEC

RIO DE JANEIRO, BRAZIL – A study by the Brazilian Consumer Institute (IDEC) shows that Brazilians may be paying R$8.7 billion for energy from thermal plants, which are failing to deliver the contracted energy loads. IDEC identified 33 plants in this situation, or about 6,500 megawatts.

Within this group, according to the institute, there are coal, diesel, fuel oil, and natural gas thermoelectric plants.

“The most serious cases are Termorio, UTE Mauá 3 and Candiota 3, whose fixed annual revenues amount to R$1.2 billion, R$1.06 billion, and R$734.5 million, respectively,” explains IDEC, which conducted the study in partnership with the Climate and Society Institute and the support of consultancy Volt Robotics.

Even if they are not operating, thermal plants are guaranteed a fixed remuneration, the cost of which is passed on to consumers through electricity bills. Only after 3 consecutive years of idleness can the contract between distributors and power plants be terminated.

The unavailability of some thermal power plants in Brazil is also a concern of the Energy Research Company (EPE), which conducted a survey showing that between January and March, from 2,500 to 4,500 megawatts of thermal generation were left out of the National Interconnected System (SIN), either for lack of fuel or transmission lines to distribute the energy, or due to the advanced age of the units.

The EPE suggests that the penalties for this lack of operational capacity should be high, in order to discourage the problem.

“We have a thermal park that is apparently sufficient, but in practice part of it is unable to operate regularly,” said Adilson de Oliveira, a professor at the Federal University of Rio de Janeiro (UFRJ) and an energy expert.

The results of the study have been forwarded to the National Electric Energy Agency (ANEEL).

Source: Infomoney

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