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The Partnership Between Eletrobras and BNDES Aims to Reduce Decarbonization in Electricity Generation in the Amazon
On September 24, Friday, at an event preceding the UN High-Level Energy Dialogue, Eletrobras and BNDES (National Bank for Economic and Social Development) closed a partnership aimed at reducing decarbonization in energy generation in the Amazon. The agreement is called the energy pact “Decarbonization of the electric matrix of isolated systems in the Amazon by replacing diesel generation with clean, renewable, and accessible energy.” Also read this news: With the privatization of Eletrobras, the Federal Government creates a new state company to take care of Eletronuclear and Itaipu
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Eletrobras Projects in the Amazon
The technical cooperation agreement between Eletrobras and BNDES aims to promote the replacement of diesel generation, which predominates in isolated systems in the Amazon region, with clean, renewable, and accessible energy. According to Eletrobras’ press office, there is currently no estimate of which solutions should be implemented.
Currently, there are 257 isolated systems with an installed capacity of 1,218 MW in the Brazilian Amazon, with more than 90% of this capacity based on diesel generation, which, in addition to high emission intensity, has elevated costs. The energy pacts of Eletrobras and BNDES are a means to promote voluntary commitments from all stakeholders and collaborate to accelerate Sustainable Development Goal (SDG) 7, which addresses Clean and Affordable Energy in the context of the 2030 Agenda.
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Investments to be Made in the Amazon
The investment amount is not defined. There is a budget forecast that should be around R$ 295 million per year, according to Article 7 of Law No. 14,182, which addresses the capitalization of Eletrobras for that region over a 10-year period. However, the law indicates that these resources will be used both for the program to structurally reduce energy generation costs in the Legal Amazon and, at a minimum, 20% for actions to ensure the navigability of the Madeira River and 10% for actions to ensure the navigability of the Tocantins River.
Brazil was chosen by the UN as one of the global leaders in the energy transition at the UN High-Level Energy Dialogue. According to the financial institution, with this pact, BNDES presents its contribution as one of the world’s largest financiers of renewable energy. The scope of work includes conducting diagnostic studies on the economic, technological, legal, and regulatory aspects to be considered in a plan to replace diesel generation.
Also Check This News: Eletrobras Plans to Invest R$ 8.3 Billion in Hydropower Plant Modernization
A new program developed by Eletrobras envisions an investment of R$ 8.3 billion, until 2025, for the modernization of large hydropower plants. The resources will be allocated for the purchase of more current equipment and the digitalization of the plants, which could increase the output of hydropower plants by 4,300 MW.
The modernization includes large hydropower plants of Eletrobras, such as Paulo Afonso IV, Sobradinho, Xingó, Marimbondo, Itumbiara, and Tucuruí. New technologies monitor leaks, vibrations, and tensions in the system, in addition to allowing remote operation. Eletrobras’ investment, which according to the Ministry of Mines and Energy depends on a redesign of market assessment and the potential of these plants, will reduce the downtime that hydropower plants experience for repairs and maintenance.
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