Business

Economic impact of Brazil’s energy crisis will last until 2023

Low levels in Brazil's hydroelectric reservoirs have sparked serious threats of blackouts and power rationing for the end of this year. Officials believe the crisis will linger for the next two years

energy Ilha Solteira reservoir. Photo: Henrique Manreza/CTG Brasil
Ilha Solteira reservoir. Photo: Henrique Manreza/CTG Brasil

Brazilian consumers are set to endure high utility bills for at least another two years. In September, energy tariffs jumped 7 percent as hydropower reservoirs continue to dry up — forcing the government to switch on its more expensive and polluting thermal plants. The crisis came after Brazil’s driest summer in 91 years.

According to the ONS, the operators of the national power grid, São Paulo state’s biggest hydroelectric plant in Ilha Solteira can no longer be used to produce energy. While its reservoirs are not empty, the latest ONS report shows water levels below the minimum...

Access all of The Brazilian Report
Start your 7-day free trial.
Free trial