Water crisis cost the Brazilian government billions

Welcome to “Number of the Week,” where we choose a single figure that helps understand what is going on in Brazil. This week, we show how much the water crisis cost the country last year. 

$5.2bn

the cost of the water crisis to Brazil

Last year’s water crisis hampered electricity generation and threatened blackouts and compulsory rationing programs. In response, the Brazilian government has prioritized increasing the energy supply rather than investing in energy efficiency or encouraging consumers to reduce consumption.

Due to the use of thermal plants to supply the market, as well as the decision to contract out the building of more expensive plants in the coming years through an emergency auction, the water crisis will likely exact a very high toll and continue to weigh on Brazilians’ pockets over the next few years.

Forecast. At an event this Thursday held by Credit Suisse, a bank, the general secretary of the Mines and Energy Ministry, Marisete Pereira, said that the water crisis in 2021 cost the country BRL 28 billion (USD 5.2 billion).