Despite Water Crisis, MME Reports No Risk of Energy Rationing in 2021

Minister of Mines and Energy, Christiano Vieira Says There Is No Risk of Power Rationing, Even Amid the Worst Water Crisis in 91 Years

In an interview given to the program “A Voz do Brasil,” the Secretary of Electric Energy of the Ministry of Mines and Energy (MME), Christiano Vieira da Silva, states that even in the face of the water crisis faced by Brazil this year – the country is experiencing the worst rainfall levels in the last 91 years – there is no indication of a lack of resources to meet the country’s energy demand in 2021. Check out this news: MME Launches Plan for Brazil to Become an Energy Exporter

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Minister of Mines and Energy Highlights Reservoir Levels

Silva stated that the Southeast region, responsible for 70% of Brazil’s storage capacity, is currently at only 26% of its capacity. The MME Secretary also added that the most affected basin is that of the Paraná River and its tributaries, such as the Tietê and Paranaíba.

Due to this scenario, the secretary explained that since October 2020, the National System Operator (ONS) has been recommending energy supplementation by activating thermoelectric plants. “And we have been dispatching thermal energy since then,” he said. In addition to this measure, the government has also been adopting others such as importing energy from neighboring countries, facilitating supply from uncontracted plants, and excess generation from biomass plants.

The Secretary of the Ministry of Mines and Energy spoke about the actions that Brazilians can take to help save electric energy, such as turning off lights in rooms that are not being used, closing the door to rooms using air conditioning or heaters, and avoiding opening the refrigerator unnecessarily. “These are small gestures, even at home, that consumers can make and that won’t disrupt their routine,” he says.

Use of Thermoelectric Plants

The government published a measure in June that authorizes, on an exceptional and temporary basis, differentiated regulatory conditions to allow the activation of uncontracted thermoelectric plants for a period of up to six months, which may be extended. The initiative, announced by the MME in the Federal Official Gazette, comes amid a historic drought which has pressured the levels of reservoirs in hydroelectric plants, the main source of generation in the country, raising concerns about energy supply.

The authorization disclosed by the MME, which had already been signaled due to the conditions of hydroelectric plants, but that would focus only on gas units, was formalized by the government, broadening the thermal sector’s support to the water crisis by calling on thermoelectric plants from other, more expensive sources.

Check Out Also: Spending on Thermoelectric Plants Rises from R$ 9 Billion to R$ 13 Billion According to MME, Due to Water Crisis

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 thermoelectric plants, prompted by the water crisis scenario, will cost consumers R$ 13.1 billion this year, compared to a previous estimate made in June that projected a cost of R$ 9 billion.

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

The MME and the Electric Energy Trading Chamber (CCEE) informed G1 that such actions taken by the government are to preserve the water in the reservoirs of hydroelectric plants, leading to the activation of more thermoelectric plants, ensuring the supply of energy. With this activation, the projected cost of using thermal energy throughout this year increased from R$ 9 billion to R$ 13.1 billion, a 45% increase.