30 Aug. 2021 | Geraforte

Water Crisis in Brazil: why does the cost of energy keep rising?

The situation is not easy. Brazil already has the tariff flags at the red level, and the trend is not for improvement. But after all, why does the price of energy keep rising?

The main responsible for the increase in the electricity bill is the water crisis that affects hydroelectric plants. Brazil faces the worst drought in the last 91 years, with reservoirs in the Southeast close to 20% of maximum capacity*.

When the reservoirs are low, thermoelectric plants are activated, which produce energy at a higher cost (since the raw material used is coal, diesel oil and natural gas).

Covid-19 was also responsible for the price increase. "The covid-19 account was a loan made by the federal government to avoid the damage that energy distributors could have by reducing energy consumption (...) in commerce (...) and industry. Explaining in other way: the distributor had a contract to purchase R$100.00 in energy from a generation company, but needed less energy and then bought R$80.00. The R$20,00 difference will be financed by the population and will arrive at the electricity bill of all Brazilians in 2022"**.

Brazil has such a high energy cost that companies with high consumption have already moved to neighboring countries to not pay this bill.

Geraforte Solution:

Use of generator sets, powered by diesel or gas.

The use of gensets, mainly during peak hours (3h/day, weekdays), reduces the cost of energy in this period by up to 30%, as the energy produced by the generators is cheaper than coming from the power distributor company.

In addition to saving on electricity bills, Geraforte customers have protection against blackouts, protection against voltage variations in the network and greater security and reliability for their business.

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