Arid Brazil resumes power imports from Argentina

OREANDA-NEWS. Dry weather across Brazil's southeast and center-west regions has pushed hydroelectric reservoirs to record lows, adding impetus to the dispatch of thermoelectric plants and a government drive to find alternative sources of power supply.

Reservoirs in the southeast/center-west subsystem, which holds roughly 70pc of Brazil's hydroelectric generation capacity, declined by 2.2 percentage points to 17.2pc on 23 January compared to 19.4pc on 1 January.

In typical years, rains are most intense in January and February, replenishing reservoirs following the dry season.

But this January is shaping up to be one of the driest on record, putting electricity supplies during the upcoming dry season at risk. The rainy season typically winds down in April.

In addition to maximizing thermoelectric output, including abbreviating plant maintenance, the government has been importing electricity from Argentina. The two countries have an exchange agreement which allow imports on an ad hoc basis.

Brazil imported the equivalent of 165MW on 20 January and another 90MW on 21 January, but has not imported any additional power since then, according to Brazil's dispatch agency ONS. The last time Brazil imported electricity from Argentina was in 2008.

Many of Brazil's thermoelectric plants operate on imported LNG.

Even with thermal plants fully dispatched, there are growing concerns that Brazil could face power shortages. The government has dismissed any risk of a shortfall.

Last week, power supplies were cut to 11 states and the federal district just minutes after power demand peaked.

Local think tank PSR says the risk of a power supply shortage now surpasses 50pc.