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Complementary energy sources are high-priced alternatives to hydroelectric power, solar and wind power, gaining more prominence in Brazil

Written by Paulo Nogueira
Published 23/05/2021 às 10:34
electricity electricity bill hydroelectric Aneel red flag wind energy solar thermoelectric thermoelectric
Source: Experta Media

Reduction in the level of water reservoirs led to the activation of thermoelectric plants, which made electricity bills more expensive.

The arrival of the drought further reduced the level of the country's water reservoirs and increased the costs of electricity production, making the electricity bill of Brazilians more expensive. For the month of May, Aneel (National Electric Energy Agency) triggered the red flag tariff level 1, which charges the amount of R$ 4,169 for every 100 kWh consumed. With no prospects of lowering the cost of production, consumers are aware of the possibility of using complementary sources to reduce the impact on their pockets.

According to Aneel, the 2020-2021 hydrological balance presented the worst historical result of the National Interconnected System (SIN), measured since 1931. With the beginning of the dry period and the reduction of reservoirs, the situation became even more unfavorable for the production of energy by hydroelectric plants, making it necessary to activate the thermoelectric park, which increased costs.

Already informed about the impact on the electricity bill, consumers are concerned about how long the situation will last. Projection carried out by MegaWhat Consultoria states that the red flag level 1 should also be triggered in July, August, September and October. In the other months of the year, the forecast is for the yellow flag to be in force, which charges R$ 1,343 for every 100 kWh consumed.

Energy crisis is ruled out

The National Electrical System Operator (ONS) guarantees that Brazil does not run the risk of facing an energy shortage crisis, but confirms that higher costs should remain until the end of the year. 

As a preventive measure, the Electricity Sector Monitoring Committee (CMSE) approved additional measures to meet demand, as the biggest activation of thermoelectric plants and even importing energy from other South American countries, such as Uruguay and Argentina. 

Wind and solar energy gain prominence

The challenging scenario makes room for other energy sources to gain more and more prominence in the country, such as wind and solar. Consumer interest has already been growing in recent years and, in the medium term, it may contribute to the consolidation of the use of these alternatives.

Wind energy reached 18 GW of installed capacity, according to the Brazilian Wind Energy Association (ABEEólica). The photovoltaic industry, on the other hand, registered a 70% growth in the installation of solar panels last year, compared to 2019, according to information from the Brazilian Association of Photovoltaic Solar Energy (ABSOLAR). The expansion corresponds to a capacity of 7,5 GW, equivalent to almost half of the capacity of the Itaipu hydroelectric plant.

Generator rental

In the short term, the water crisis experienced by the country should lead to an increase in temporary power usage. To mitigate risks and save on electricity bills, consumers tend to demand the leasing of generators.

For businesses and industries, these devices are already commonly used as part of energy cost planning. Generators are also commonly demanded by rural properties, especially the more remote ones, for the implementation of self-production systems. 

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Paulo Nogueira

An electrical engineer graduated from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), I worked for several years in the areas of offshore oil and gas, energy and construction. Today, with over 8 publications in magazines and online blogs about the energy sector, my focus is to provide real-time information on the Brazilian employment market, macro and micro economics and entrepreneurship. For questions, suggestions and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes for this purpose.

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