- Short week? Not for the energy sector.
- In general, we can say that it was a week of learning and looking to the future, of a market that is still looking for solutions to the obstacles of the present.
- Check out our selection of news to understand what happened this week.
Water crisis worries in 2022
One eye on the fish, one on the cat. Who has never heard that expression? The water crisis may have gained a refreshment from the rains in recent weeks, but the sector is keeping an eye on the conditions for meeting next year’s load.
For the October-December window, the National System Operator (ONS) emphatically discards the risk of energy rationing. Keeping an eye on the cat, or rather, the security of the system, he recommends maintaining the measures taken to increase hydropower supply and management in
2022.
Also, regarding the resumption of operation of the Uruguaiana thermoelectric power mill, the Operator highlighted that it will be an important resource for the moment, but if the supply of natural gas is not resumed, other alternatives can be used. No scares!
What still doesn’t seem to be closed in 2021 is the value of the deficit of the Conta Bandeiras. The government is looking for a solution to balance the
balance and not impact the financial sustainability of the distributors, who now have two crises in two years: water and the covid-19 pandemic.
An increase in electricity bills, however, would not yet be included in the “menu” of alternatives to find a balance, and a meeting between the Ministry of Mines and Energy (MME), the National Electric Energy Agency (Aneel) and the Brazilian Association of Electric Power Distributors (Abradee), is scheduled for next week with the topic on the agenda.
Today, the 7th meeting of the Chamber of Exceptional Rules for Hydroenergetic Management (Creg) takes place and the participants will have to deal with the recent announcement by the President of the Republic, Jair Bolsonaro, who declared on Thursday night, the 14th, that he would determine the Minister of the MME , Bento Albuquerque. the suspension of the water scarcity tariff flag in November. Will be?
Renewables Expansion
With an eye on the future, the Energy Research Company (EPE) indicates that now, the time is to take the lessons learned from the water crisis forward, trying to consider other factors that can provide greater predictability for the system.
One lesson learned this year is that the dynamics of the market have changed and,as a result, the regulated auctions of new energy start to play a complementary role for the expansion of the system. In order not to have difficulties in thisexpansion, the sector entities agree on the need for advances in the National Congress of PL 414/2020, which deals with the modernization of the sector.
Part of this new moment and market dynamics is related to the increase in wind and renewable projects in the Northeast, which should grow 20 GW by 2033. To handle this volume, EPE is studying, among other alternatives, the construction of a bipole that will connect the region to the Southeast/Midwest.
In addition, we must mention that with two weeks to go before the 26th United Nations Conference on Climate Change (COP
26), in Glasgow, Scotland, it is unlikely that the Federal Senate will approve the new legal framework for environmental licensing before the global meeting.
Victories of the Week
With an eye on the now, EDP Brazil won the privatization auction of Celg Transmissão (Celg T), this Thursday, October 14, at B3. The company presented a proposal of R$ 1.977 billion for the deal, with a premium of 80.1% in relation to the minimum amount foreseen in the notice, leaving behind Cymi Construções e Participações, MEZ, and ISA Cteep.
The other winner of the week – or weekend – was Vibra Energia, which went through Comerc’s IPO to acquire 50% of the company, taking the entire market by surprise.
We can also consider the victory of the week, at least for the government, the approval by the Chamber of Deputies of the project that sets a value for the ICMS on fuels.
