- Severe drought in the River Madeira has led Brazil to shift from hydroelectric power to thermal sources and energy imports.
- The Electric Sector Monitoring Committee has recommended importing electricity from Argentina and Uruguay and adjusting industrial energy use to off-peak hours.
- The drought has disrupted grain shipments, prompted a climate emergency declaration by local Indigenous communities, and left many without adequate drinking water.
A severe drought affecting the River Madeira, which powers two of Brazil’s largest hydroelectric plants, has led to a significant policy shift in the country’s energy strategy. On August 7, the Electric Sector Monitoring Committee announced it would reduce hydroelectric power usage and increase reliance on thermal energy sources and electricity imports.
The committee’s decision comes in response to critically low water levels in the River Madeira, which has been grappling with severe drought conditions since mid-2023. The National Water Agency (ANA) has warned that these adverse weather conditions will continue until November 30, compounding Brazil’s energy infrastructure strain.
To mitigate the impact of the drought, the committee has recommended importing electricity from Argentina and Uruguay. This move will supplement the reduced hydroelectric output and ensure a stable energy supply. Additionally, the committee has advised large industries to adjust their energy consumption patterns, shifting usage to off-peak hours to lower overall demand and alleviate pressure on the energy grid.
The ongoing drought has had far-reaching effects beyond energy production. The disruption of hydroelectric power has led to significant challenges in other sectors, including agriculture. Grain shipments from the Amazon region have been halted, impacting local and international markets.
Local Indigenous communities have declared a climate emergency in response to the dire conditions. The drying up of rivers has severely affected their access to drinking water, highlighting the urgent need for comprehensive climate action.
Hydroelectric power has traditionally been a cornerstone of Brazil’s energy strategy, accounting for over 60% of the country’s installed energy capacity. However, the current crisis has placed this critical energy source under unprecedented strain. The shift toward increased use of thermal energy and imported electricity is aimed at stabilising the energy supply and addressing the immediate challenges of drought.
The policy change reflects a broader response to the climate crisis as Brazil grapples with the effects of prolonged drought and changing weather patterns. The situation underscores the need for adaptive strategies to manage energy resources and safeguard vital infrastructure amid ongoing environmental changes.