Brazil more than doubles expensive imported electricity amid energy crisis
RIO DE JANEIRO, BRAZIL – Energy is imported from Uruguay and Argentina. Data from the National Electric System Operator show that in August Brazil bought a daily average of 1,338 megawatts from its neighbors, more than double the July average which stood at 617 megawatts, and almost 12 times more than in August 2020.
Clarice Ferraz, Professor at the Federal University of Rio de Janeiro and director of the Ilumina Institute draws attention to the higher price Brazil is paying for imported energy.
“Energy sold through a contract in a long-term auction, the MW/hour is costing around R$170 (US$33) and this imported electricity costs approximately R$2,000. More than 10 times. Compared to wind and solar, which are still at lower levels, electricity is 20 times more expensive, the proportions are starting to become very striking.”
Imports today represent almost 2% of the total energy produced in Brazil. It exceeds all the solar energy entering the system, and it is similar to the amount generated by the Angra II nuclear plant.
Experts say that due to the lack of planning to tackle the drought, the government is running out of alternatives. In the past three months, thermal energy consumption has increased by about 50%, and is reaching its limit. Importing electricity should be a last resort, according to Jerson Kelman, former director-general of the National Electric Energy Agency.
“When you are on a razor’s edge, with all resources running out, any additional resource, even if it is only a small percentage, becomes important. It becomes expensive and very important,” he says.
Imports are intended to mainly mitigate the impact of the water crisis in the southeastern region, the most affected by the drought over the past month. Reservoirs in the South are at less than 27% capacity. It can also relieve the supply in the Midwest, where water storage stands at 20.91%.
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