Brazil resumes hydropower exports to Argentina and Uruguay with the aim of increasing flow

Industry officials have confirmed that Brazil is resuming energy exports from its hydroelectric plants to Argentina and Uruguay due to the excess water they have in their reservoirs as a result of heavy rains. The government also aims to improve the competitiveness of the sales.

Brazil's exports were halted for nearly the entire 2024 year due to a disappointing rainy season in Brazil and a severe drought that affected the Amazon. Sales resumed in January after Brazil sent 12 megawatts (aMW) in average of hydropower to both countries, according to CCEE.

The Brazilian government is also making adjustments to the way it transfers surplus hydropower to other countries. This could lead to an increase in export volumes.

According to Marisete Pereira of Abrage, a group that represents large hydroelectric generators, adjusting the time at which export offers are made should improve competitiveness over thermoelectric power and allow for larger volumes to exported.

In a press release, CCEE stated that it was "studying improvements in the system that maximize gains for the nation" with the Ministry of Mines and Energy.

Exports are only possible when plants accumulate excess water that cannot be used in the Brazilian system. This is a way to monetize energy that would otherwise be wasted.

In 2023, sales grew when Brazil was able to export energy to Argentina and Uruguay due to heavy rains, earning 782 million Reais ($136.55 millions) for energy companies.

Experts and generators still believe that the hydro export system can be improved. Abrage is developing a solution that will "anticipate", the export of excess hydropower to neighboring countries, before the plants start releasing water. This would minimize waste.

Pereira said that if we know 15 days ahead of time there will be an oil spill, we export energy to avoid wasting water.

(source: Reuters)