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Home With the water crisis worsening, investments in wind, solar and biomass energy could double in a few months

With the water crisis worsening, investments in wind, solar and biomass energy could double in a few months

25 June 2021 to 11: 54
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water crisis - solar energy - wind energy - biomass - investments
Turbines in Ceará – Photo: Adriano Machado/Bloomberg via Getty Images

With the worsening of the water crisis, there is a huge possibility that wind, solar and biomass energy will gain more prominence in the Brazilian electricity sector

The blackout that occurred in 2001 brought a network of thermoelectric plants that have a more expensive energy source to Brazil. With the current water crisis, which is plaguing several states, the new trend of renewable energies will emerge, mainly wind, solar and biomass energy.

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Brazilian companies outline investment plans in renewable energies to avoid another blackout

In view of the difficulties, some companies look to these renewable sources as a way to prevent future droughts, which may become more frequent in view of climate change.

According to Rodrigo Sauaia, executive president of the Brazilian Association of Photovoltaic Solar Energy (ABsolar), the use of water sources will be analyzed based on their priorities, such as animal and human consumption, leaving energy generation as the last option.

According to the director of RZK Energia, Luiz Serrano, the high cost due to the water crisis will be a major driver for investment decisions in solar, wind and biomass energy sources. The price of a megawatt/hour (MWh) on the spot market went from R$300 in March to R$520 more recently.

The estimate of change with the help of renewable sources

According to the president of the Brazilian Wind Energy Association (ABEEólica), Elbia Gannoum, energy from large wind turbines could reach 18% of supply, double the current level, more specifically in September, when river levels should be with a bigger crisis.

The wind energy fields, which are in their final construction phase, have a capacity of 1 Gigawatt and should start their activities ahead of schedule, saving about three months in bureaucracy and works. Biomass, on the other hand, is still centered on landfills and sugarcane bagasse, but it has the potential to expand the materials.

According to Manuela Kayath, president of MDC, a company that operates steam from biomass and biomethane, sees an acceleration in projects in the area. She claims that it will be feasible to generate biogas from animal waste through a biodigestion process.

Even so, the Brazilian Association of the Sugarcane Industry states that the country uses only 15% of the sector's biomass potential, that is, if the country manages to make more investments, it will have a fast growth in the area.

FGV Energia researcher talks about solar energy, wind energy and biomass

According to FGV Energia researcher João Teles, the use of renewable sources is the reason why the country's water crisis has not turned into an energy crisis.

Different from the 2001 rationing, in which hydroelectric plants represented approximately 90% of the country's generation, they currently account for only 63,8%, according to the Energy Research Company (EPE). The renewable sources that stand out the most are wind energy with 9,2%, biomass and biogas with 9% and solar energy with 1,7%.

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