Surplus from electricity exports benefits Brazilian customers

Surplus from electricity exports benefits Brazilian customers

Most electricity exports were to Argentina and the rest to Uruguay

Brazil totaled a surplus of R$ 888 million (US$ 179.26 million) from electricity sales to neighboring countries, which helped President Luiz Inácio Lula da Silva’s administration ease the burden on Brazilian consumers, Agencia Brasil reported.

Brazil exported 844 average megawatts of electricity to Argentina and Uruguay in 2023. According to the Chamber of Electricity Trading (CCEE), this was the largest volume in the country’s history. The benefit for Brazil was reported to reach R$ 888 million, an amount that helps reduce the cost of production at hydroelectric plants and the impact on tariffs for Brazilian consumers, which are proportional to the total exported, it was explained.

Alexandre Ramos, chairman of CCEE’s Board of Directors, told Agência Brasil that this volume was exported in two phases between January and December 2023. One of them consisted of 354 average megawatts from hydroelectric origin, 86 % of which went to Argentina, representing R$ 106 million (US$ 21.4 million) in revenues reverted to the fares paid by consumers.

The remaining portion stems from hydroelectric power, which comes back in the form of a reduction in the value paid by hydroelectric plants. “A part of these amounts is reverted to consumers, especially in the case of the plants within the quota system,” said Ramos, adding that exports of this type of energy amounted to 490 average megawatts—77% of which went to Argentina and the rest to Uruguay, “generating a benefit for the [mechanism] of around R$ 782 million (US$ 157.86 million),” he concluded.

The excess water in the reservoirs is used for power generation. Ramos pointed out that the demand from the Argentine and Uruguayan markets coincided with a fairly positive scenario for Brazil, as reservoirs recovered in the wet season.

The renewable energy produced by wind and solar power plants contributed to this scenario. The priority, however, is supplying the Brazilian grid. According to the president, there is no forecast for exports at the beginning of the year due to the heat, which should increase consumer demand for energy in Brazil.

The Chamber of Electricity Trading is a non-profit association responsible for the purchase and sale of electricity in Brazil, ensuring that this essential resource reaches Brazilians as well as productive sectors.

“Since 1999, it has brought together generators, distributors, traders, and consumers under a single purpose: to develop efficient, innovative, and sustainable markets for the benefit of society,” the chamber declared.

(Source: Agencia Brasil)