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The electricity sector in Brazil is the largest in South America. ... Brazil has the largest capacity for water storage in the world, being highly dependent on hydroelectricity generation capacity, which meets over 70% of its electricity demand. The national grid runs at 60 Hz and is powered 80% from renewable sources.
Brazil largely relies on hydropower for electricity generation; in 2020, hydropower supplied 66% of its electricity demand. Wind and solar generation have grown quickly in recent years and had a combined 11% share of the country’s electricity generation in 2020. Biomass accounted for an 8% share. Fossil fuel-fired plants made up another 12% of electricity generation, while nuclear power accounted for 2%.
Most of Brazil’s hydropower capacity is located north in the Amazon River Basin, but electricity demand centers are mainly along the eastern coast, particularly in the south. National electricity reliability is challenged because of the country’s reliance on one resource (hydropower), the long distance between hydropower generation and demand centers, continued drought conditions, and deforestation
Voluntary energy consumption reduction program generates BRL 2.4 billion in bonuses to consumers
Amount saved during the term of the program generated a relief of 4.5% in the residential consumer tariff
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Posted on 01/21/2022 14:18
Voluntary energy consumption reduction program generates BRL 2.4 billion in bonuses to consumers
The Program generated savings of 5.6 million megawatt hours in the period, which represents about 4.5% less in the residential consumer tariff - Photo: MME
Data collected by the Federal Government, through the Ministry of Mines and Energy (MME), indicate that the Incentive Program for the Voluntary Reduction of Electric Energy Consumption will give consumers about R$ 2.4 billion in bonuses on their electricity bills. January. In addition, it generated savings of 5.6 million megawatt hours (MWh) in the period, which represents about 4.5% less in the residential consumer tariff.
According to preliminary information, the so-called consumer bonus generated savings corresponding to the annual consumption of the state of Paraíba or Rio Grande do Norte. The 5.6 million MWh saved are enough to supply 32.8 million families per month.
The value also corresponds to 3.81% of the maximum storage capacity in the Southeast/Midwest subsystem, considered the “water box” of Brazil. Comparatively, the energy is equivalent to the generation of the thermoelectric plants of Angra I and II during about four months of the year.
It should also be noted that this reduction represents approximately 2.7% of the energy consumption verified throughout Brazil from September to December 2020, the reference year for the calculation, demonstrating the program's assertiveness and adherence to the purposes for which it was established.
The program ran from September to December 2021 and was proposed by the Federal Government within the scope of the Chamber of Exceptional Rules for Hydroenergetic Management (CREG) as one of the measures to face the worst water scarcity scenario in the country's history.
economic benefits
In addition to these energy benefits, consumers will receive, in terms of direct economic benefits, a total of approximately R$ 2.4 billion.
In terms of indirect economic benefits, considering that the cost of the most expensive plant dispatched from October to December was R$ 2,533.20/MWh (UTE Araucária) and that the cost of the program was R$ 500/MWh, it can be It is estimated that consumers saved four times more, that is, R$ 9.6 billion, if the program were replaced by additional thermoelectric generation at the cost of UTE Araucária.
Considering these indirect costs, it is estimated that there was a savings of at least 4.5% in the residential consumer tariff, since each additional kWh of generation would incur higher costs as more expensive sources had to be activated.
The Federal Government continues to seek to improve its processes and instruments of action, in a continuous effort to ensure the supply of electricity to all Brazilians, adding security at the lowest cost to society, respecting the citizen and valuing their conscious, voluntary and proactive approach, as conceived in this successful program.
With information from the Ministry of Mines and Energy
Energy, Minerals and Fuels


Mr. Alessandro Jacob speaking about Brazilian Law on "International Bar Association" conference

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