Brazil’s new government faces prospect of power rationing

Elections take place in Brazil later this month and whoever succeeds may have to address a power shortage crisis that may well see the return of power rationing.

Lack of rainfall has exposed the country’s huge dependency on hydroelectric power, with that energy driver responsible for 70 per cent of Brazil’s normal electrical capacity.
Brazilian flag
Present office holder Dilma Rousseff has reminded the electorate that her presidential challenger’s party were in power the last time rationing was introduced in 2001.

Erico Evaristo, head of energy trading company Bolt Comercializadora told Bloomberg that if drought conditions persist, the country may have to rely on expensive energy generated by thermal plants, meaning high energy prices and the possibility of rationing.

“We’re very worried about energy rationing for next year,” Evaristo said in telephone interview. “None of the models forecast the volume of rain necessary to recover the level of water in reservoirs. Everything depends on rains in the first quarter of next year,” Evaristo said. “The situation is pretty critical.”

The worst drought in more than 40 years has forced distributors to buy more expensive energy on the spot market, reselling it for a loss under a government-set price cap.

The Electricity Sector Monitoring Committee, which met at the Mining and Energy Ministry today, sees a 4.7 percent chance of an energy deficit in 2015, down from 4.8 percent last month, according to a statement on the ministry’s website.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...