Drought-hit Brazil maxes out thermal energy

RIO DE JANEIRO, Jan 17 (Reuters) – Brazil is trying to offset falling water levels at drought-hit hydroelectric reservoirs with more thermoelectric generation, including using pricey fuel oil, but officials deny risks of energy shortages.

Outgoing acting Mines and Energy Minister Nelson Hubner said on Thursday the Cuiaba gas-fired plant, which stopped working last September after Bolivia reduced natural gas supplies, will go back on line, now running on fuel oil.


Cuiaba is owned by Shell and Ashmore Energy. In addition, the ministry authorized on Thursday the construction of three new plants that will use costly fuel oil and one that will consume sugar cane bagasse to produce electricity.

“There is no risk (of shortages), but water reservoirs in the northeast are very low and the Electricity Sector Monitoring Committee decided to keep all thermoelectric plants already working on-stream and add a bit more,” Hubner said.

Reuters