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With severe drought affecting the North and Southeast regions, energy in Brazil could face a significant price increase in December
The electricity bill in Brazil may increase significantly in price in December. This scenario is due to the severe drought affecting the North and Southeast regions. As a result, hydroelectric plants, which represent the country's main source of electricity, are unable to operate at their maximum capacity. Thus, the government is forced to activate the thermoelectric plants, according to the website Olhar Digital.
Furthermore, energy import is considered an alternative to guarantee supply. However, these measures entail high costs, which must be passed on to consumers. Therefore, the current situation raises concerns on the continuity of supply and the financial impact on Brazilian families in the coming months.
Drought worsens energy crisis and triggers thermoelectric plants
The water crisis in Brazil, especially in the North and Southeast regions, directly affects the country's energy sector. The lack of rainfall means that hydroelectric plants do not operate at full capacity. Therefore, the government activates thermoelectric plants to guarantee energy supply, which increases production costs.
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These thermoelectric plants, although they guarantee the stability of the electrical system, have much higher operating costs. They run on fossil fuels such as natural gas, diesel and coal. This not only increases the cost of energy, but also negatively impacts the environment. According to the Electricity Sector Monitoring Committee (CMSE), the trend is for this crisis scenario persists until December. Thus, more thermoelectric plants will be activated during times of greatest demand.
Energy import is one of the alternatives to avoid blackouts
Faced with the scarcity of water resources, the crisis and high demand, the Electricity Sector Monitoring Committee (CMSE) discusses alternatives. Import energy from neighboring countries, such as Argentina and Uruguay, is a viable option. These countries have already exported energy to Brazil in times of crisis.
In addition, the National Electric System Operator (ONS) must mobilize other resources to meet the growing demand. This includes make the operating rules of the electrical system more flexible. This means that more plants can come into operation during critical periods. Although energy imports are temporary, they can increase costs and have a direct impact on Brazilians’ electricity bills.
Rain forecast could ease reservoir situation
Despite the current critical scenario, there is hope. Meteorologists predict an intensification of rainfall in the Southeast region in the coming weeks. This change can relieve pressure on hydroelectric reservoirs. The beginning of November should bring a significant increase in rainfall volume, helping to restore water storage levels at major power plants.
The ONS confirmed that there has been a small increase in rainfall in recent days. However, this still it is not enough to improve the situation of the reservoirs, the electricity bill and the crisis. For October, the expectation is that the natural inflow energy (ENA), which measures the amount of water that reaches the reservoirs, will remain below the historical average. In the worst-case scenario, this value could be the second lowest in 94 years.
