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Brazil issued emergency authorization for thermal generation
- Contracts to last up to six months
- Brazil faces its worst drought in 92 years
The Brazilian Ministry of Energy has issued emergency authorization for thermal electricity generation “on an exceptional and temporary basis”. This comes as the country is reeling from its worst drought in 92 years, which has affected water levels in a country highly dependent on hydropower generation for electricity consumption. This emergency measure will allow thermal plants to operate for up to six months. Plants without contracts for the sale of power will recover fixed costs in the Variable Unit Cost (CVU) revenue when the plant becomes operational.
The National Grid Operator (ONS) has said it would take measures to guarantee power supply, including power import from Uruguay and Argentina. The Ministry of Energy earlier asked industrial customers to implement consumption reduction strategies to ease the strain on the grid network.