The Ministry of Mines and Energy published on Monday (25) an order authorizing 15 companies to import electricity from Paraguay for sales contracts on the Brazilian free market, in a process that expands energy integration between partner countries in the power plant Itaipu hydroelectric plant.
The ordinance provides for the authorization for two companies of BTG Pactual, two of the Engie group, commercial companies of Enel, Itaú and Comerc, as well as the commercial companies Electra, Bolt Energy, Tradener, Minerva, Newcom, Simple Energy, RZK and Ecom.
Energy imported by these companies for sale on the free market will have to come from plants other than Itaipu, which operates under different rules for the sale of surplus energy, but will enter Brazil from the binational company’s right-bank substation.
Energy import operations, in continuous and uninterrupted mode, can take place up to a limit of 120 average megawatts (MW) per month, according to an ordinance issued in October by the Brazilian government. This amount of energy will become part of the operation program of the Brazilian electricity system by the operator ONS.
The importing companies will transport the energy to Brazil and will have to sign the CUST (transmission system use contract) and obtain other authorizations.
The import of energy from Paraguay for sale on the Brazilian free market is new and has been negotiated as part of diplomatic conversations between the two countries on future new rules for energy trading from Itaipu.
ANDE (Administración Nacional de Electricidad), responsible for the generation, transmission and distribution of energy in Paraguay, has already launched a tender this year to sell around 100 MW of energy generated by the Acaray hydroelectric plant to suppliers in Brazil.
The auction, in which several companies participated, produced price offers ranging from US$7 to US$21 (R$40.51 to R$121.54) per megawatt hour (MWh). There is no information yet on whether this process will be completed.
What are the potential economic benefits for Brazil from importing electricity from Paraguay?
Interview between Time.news Editor and Energy Expert
Time.news Editor: Welcome to Time.news! Today, we have a special guest, Dr. Sofia Mendes, an expert in energy policy and international relations. Dr. Mendes, thank you for joining us.
Dr. Sofia Mendes: Thank you for having me! I’m excited to discuss the recent developments in energy imports from Paraguay.
Editor: Absolutely! Let’s dive right in. The Brazilian Ministry of Mines and Energy recently authorized 15 companies to import electricity from Paraguay. Why is this decision significant for Brazil?
Dr. Mendes: This is a crucial step towards enhancing Brazil’s energy security and diversifying its energy sources. By importing electricity from Paraguay, Brazil is not only strengthening its energy integration with neighboring countries but also utilizing the resources of the Itaipu hydroelectric plant more effectively. This can help stabilize energy prices and potentially lower costs for consumers in the long run.
Editor: It appears that the ordinance allows companies from various sectors to engage in this import. What can you tell us about the diversity of these companies involved?
Dr. Mendes: Yes, the list of authorized companies is quite diverse, including financial groups like BTG Pactual, energy giants like Engie and Enel, and other commercial entities. This diversity indicates a growing interest from different sectors to tap into Paraguay’s electricity, which is crucial for ensuring competitive pricing and reliable supply in the Brazilian free market.
Editor: Speaking of competition, I noted that the energy imported will have to come from plants other than Itaipu. What implications does this have for the energy market?
Dr. Mendes: This is an interesting aspect of the ordinance. Since energy from Itaipu is subject to specific regulations regarding surplus energy sales, sourcing from other plants allows for more flexibility and potentially more competitive pricing. It encourages the development of other power plants in Paraguay, fostering a more diversified energy market that can benefit both countries.
Editor: How do you see continuous and uninterrupted operations of these imports affecting the overall energy market?
Dr. Mendes: If executed effectively, continuous and uninterrupted electricity imports can lead to a more stable energy supply in Brazil, especially during peak demand times. This could not only alleviate some pressure on local power plants but also enhance the resilience of the grid. Moreover, it signals to investors that there is potential for further integration within the region, which can attract more investments in energy infrastructure.
Editor: Many people might be concerned about the environmental impact of energy imports. How is Brazil addressing sustainability in this context?
Dr. Mendes: That’s an important question. Brazil and Paraguay both have a strong reliance on hydroelectric power, which is generally considered cleaner compared to fossil fuels. However, it’s crucial that while expanding energy imports, both countries continue to prioritize environmental protections and invest in renewable energy technologies. Additionally, transparency and monitoring will be key to ensuring that these energy transactions align with sustainability goals.
Editor: Thank you, Dr. Mendes, for your insights. It’s fascinating to see how interconnected our energy systems are becoming!
Dr. Mendes: Thank you! I believe these developments hold great promise for a more sustainable and robust energy future in the region.
Editor: And that wraps up our interview. We appreciate your time and perspectives, Dr. Mendes. This is certainly a topic to keep an eye on as it evolves!