Expenditures on Thermal Power Plants Rise from R$ 9 Billion to R$ 13 Billion According to MME, Due to Water Crisis

Several Thermal Power Plants Are Being Reactivated Due to the Water Crisis Scenario in the Country, According to MME and ONS

According to an estimate made by the Ministry of Mines and Energy (MME), based on simulations from the National Electric System Operator (ONS), the increased use of thermal power plants, prompted by the water crisis scenario, will cost consumers R$ 13.1 billion this year, compared to a previous estimate reported in June that forecasted a cost of R$ 9 billion.

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With Activation of Thermal Power Plants, An Increase in Bills Is Expected

The calculation used in the MME estimate is based on simulations from the National Electric System Operator (ONS), considering the additional use of thermal power plants between January and November of this year. The increase in energy generation costs is passed on to consumers through the tariff flag, an extra charge applied to the electricity bill.

The MME and the Electric Energy Commercialization Chamber (CCEE) informed G1 that the actions taken by the government aim to preserve the water in hydroelectric reservoirs, leading to the activation of more thermal power plants, ensuring energy supply. With the activation, the cost estimate for the use of thermal energy this year increased from R$ 9 billion to R$ 13.1 billion, a 45% increase.

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Activation of Thermal Power Plants Amid the Water Crisis in the Country

The government published a measure on June 7 that authorizes, in an exceptional and temporary manner, differentiated regulatory conditions to allow the activation of thermal power plants without contracts for a period of up to six months, which may be extended. The initiative, announced by the MME in the Official Gazette, comes amid the historical drought that has pressured the levels of reservoirs in hydroelectric plants, the main source of generation in the country, raising concerns about energy supply.

The authorization, which had already been signaled due to the conditions of hydroelectric plants but would focus only on gas units, has been officially confirmed by the government, so that the thermal sector’s support for the water crisis is broader, calling for thermal power plants of other and more expensive sources.

See Also: Thermal Power Plant in Mato Grosso do Sul Will Be Reactivated and Will Help Supply Energy Amid the Water Crisis

The William Arjona thermal power plant, located in the state of Mato Grosso do Sul, may resume operations as early as June this year. The thermal power plant, located in the Imbirussu District, was taken over by the Delta Energy Group. The project had been inactive for 4 years without any type of operation and will now assist the country amid a water crisis.

In May, businesspeople and directors from the Delta Energy Group met with Agepen (State Agency for the Regulation of Public Services) to inform that they are in negotiations with Petrobras, TBG operators, and MSGás distributors to advance the resolution of all necessary operational procedures at the thermal power plant.