Energy exchange between South American countries represents an opportunity to expand business in the Brazilian free market, in the view of sector agents.
Ordinance 87 of 2024, published by the Ministry of Mines and Energy (MME) on October 30, authorized the import of 120 megawatts (MW) on an uninterrupted basis from Paraguay. The electricity is destined for the free contracting environment (ACL).
Continues after advertising
The loads will be delivered from the Margem Direita substation, linked to the Itaipu hydroelectric plant. Trading companies are now awaiting new developments to understand the impacts on the Brazilian market.
The president of the Brazilian Association of Energy Traders (Abraceel), Rodrigo Ferreira, believes that the amount of energy that will come from the neighboring country should still be insufficient to change prices and market dynamics, but it can serve as an experience for expanding these operations in the future.
Continues after advertising
“The volume is very small. I would even say that here in Brazil it is almost insignificant. This helps us to get to know this new modality, put it into practice, understand the benefits, understand if the regulations are correct, if there are any adjustments to be made”, he said.
Even so, the prospects for energy integration are welcomed by the sector, which could expand business possibilities.
Read more:
Continues after advertising
“At the same time as we have the capacity to export, we also need to import certain generation attributes. We have faced challenges to meet peak demand, to meet demand ramps at the end of the day, in such a way that increasing import and export opportunities from neighboring countries is extremely beneficial for all of Latin America”, he stated.
In the view of the commercialization sector, authorization for imports from Paraguay is a test so that Itaipu can, in the future, also sell energy to Brazil.
For this to happen, the two countries need to advance in the negotiation of Annex C of the Itaipu Treaty, which defines rules for commercial relations between the plant’s partners.
Continues after advertising
Also know:
Brazil already has physical facilities to receive and send energy to Argentina, Uruguay, Paraguay and Venezuela. Recently, the Minister of Mines and Energy, Alexandre Silveira, was in Bolivia and said that the construction of a transmission line that integrates the two countries is a real possibility.
Ferreira, from Abraceel, cites initiatives in European countries to talk about the viability of integration in South America.
“In the northern European market there is Nordpool, which brings together Sweden, Norway, Finland and other northern European countries. There is an important energy integration in Mibel, which brings together the Portuguese and Spanish markets. There is another energy integration between France and England. So there are several common markets elsewhere in the world. And why not have this here in Latin America too?”, he added.
High Performance Entrepreneur
ONLINE COURSE
Rian Tavares reveals the secret to business management based on the method of high-performance athletes.
