Northern Brazil reduces use of hydropower due to persistent drought

By Leticia Fucuchima

SAO PAULO (Reuters) – A severe drought in an Amazon river that supplies electricity to two of Brazil’s largest hydroelectric plants has forced a policy shift in the northern region toward increased use of thermal sources and energy imports, a government agency said.

Citing the low water levels of the Madeira River, the Electric Sector Monitoring Committee (CMSE) recommended on Wednesday that the use of hydroelectric power in the region should be reduced to a minimum. To do this, electricity should be imported from Argentina and Uruguay. Large industries should also be encouraged to shift their consumption to times of lower demand.

The Madeira River, a key waterway affected by drought since mid-2023, is facing worse-than-expected weather for this time of year, with adverse conditions expected to last at least until November 30, Brazil’s National Water Agency (ANA) said last week.

Hydropower is Brazil’s main energy source, accounting for over 60% of installed capacity.

A drought of historic proportions in the Brazilian Amazon has caused grain supplies to come to a standstill and local indigenous communities have declared a climate emergency as rivers dry up and many people are left without drinking water.

(Reporting by Leticia Fucuchima; Writing by Fabio Teixeira; Editing by Richard Chang)