After four years at a standstill, the thermoelectric plant in Campo Grande, in Mato Grosso do Sul, will resume operations

The William Arjona thermoelectric plant, located in the state of Mato Grosso do Sul, may return to operations in June this year. The thermoelectric plant, located in the Imbirussu District, was taken over by the Delta Energia Group. The enterprise stood still for 4 years without any type of operation and, today, it will help the country in the face of a water crisis. See also: Electric energy multinational EDF, which has a thermoelectric plant in Macaé, is targeting the natural gas market and will inject 200 million reais in the state of Rio de Janeiro

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Reactivation of the William Arjona thermoelectric plant, in Mato Grosso do Sul

In the month of May, businessmen and directors of Grupo Delta Energia met with Agepen (State Agency for Regulation of Public Services) to inform that they are in negotiations with Petrobras, TBG operators and MSGás distributors, to proceed with the resolution of all operating procedures required at the thermoelectric power plant.

Negotiations are also underway with Energisa Mato Grosso do Sul and the National System Operator (ONS) about the electricity generated by the thermoelectric plant and how it will be made available. Agepan executives are seeking regulatory information, as they are customers of inputs and supply of natural gas, which is carried out by MSGás, monitored by the State Agency for Regulation of Public Services.

Investments to be made in the thermoelectric plant

Ricardo Lisboa, founding partner of Delta Energia, says that they believed in Mato Grosso do Sul, aiming at favoring private investment, choosing to invest in the thermoelectric plant. Ricardo says that the company's goal is to carry out the activation of the thermoelectric plant in June of this year and he also reinforced that this investment in the plant was the Group's first project in generation.

The director-president of Agepan, Carlos Alberto de Assis, says that the State Agency for the Regulation of Public Services hopes to promote a balance between the relationship between the consumer and service providers, in addition to aid in development. With regard to regulatory issues, if they are sufficient and necessary, the agency will strive to achieve them.

About UTE: Delta Geração acquired the William Arjona thermoelectric plant from Engie, announcing its intention to resume the operation of the thermoelectric plant in the second half of 2020. At the end of 2017, Engie requested the revocation of the thermoelectric plant's authorization, claiming loss of economic viability.

The thermoelectric plant is located in Campo Grande, Mato Grosso do Sul, and can be operated by natural gas or diesel. The operating mode of the William Arjona thermoelectric plant requires it to be classified as an independent and non-mandatory consumer of natural gas, as the plant does not generate energy permanently. On that occasion, the equipment will be activated punctually according to the needs of the electrical system and the viability of the energy generation cost of the entire national system.

See also: Faced with a water crisis in Brazil, the government allows the activation of thermoelectric plants without a contract

The government published a measure that authorizes, on an exceptional and temporary basis, differentiated regulatory conditions to allow the activation of thermoelectric plants without a contract for a period of up to six months, which may still be extended. The initiative, announced by MME in the Official Gazette of the Union, comes amid the historic drought that has pressured the level of hydroelectric reservoirs, the main source of generation in the country, and raised concerns about the supply of energy.

The authorization, which had already been signaled given the conditions of the hydroelectric plants, but which would only focus on gas units, was made official by the Government, so that the thermal sector's support for the water crisis is broader, calling on thermoelectric plants from other fonts and more expensive.