In recent months, Brazil has been experiencing one of the most severe droughts in the last 70 years, directly affecting the capacity of hydroelectric plants, which are the country’s main energy sources. According to Cemaden, in August 2024, 404 municipalities were in a state of extreme drought, and 1,361 faced severe drought. The most affected areas include critical states like São Paulo, Minas Gerais, and Goiás, as well as indigenous regions, exacerbating the water and energy crisis. The prolonged drought has forced the activation of thermoelectric plants, which are more expensive and polluting.
Brazil’s reliance on hydroelectric power, which accounts for around 60% of its energy matrix, is at the center of the crisis. According to Cemaden, the levels of major reservoirs, such as those of the Paraná River Basin and the Cantareira System in São Paulo, have sharply declined, leading to the activation of thermoelectric plants. This has raised the tariff flag to red level 2 in September 2024, resulting in a direct increase in the electricity bills for Brazilians.
Data from ANEEL shows that the Southeast/Central-West subsystems, crucial for energy supply, were operating at only 56.53% of their capacity by the end of August, a worrying level for energy stability.
Furthermore, wildfires, exacerbated by the drought, have indirectly contributed to rising energy costs. Burned vegetation reduces soil protection, leading to siltation of rivers and reservoirs, which further affects water availability for energy generation. The fires, which often occur near hydroelectric areas, also increase energy demand due to the overuse of cooling systems, further straining the electrical grid.
Brazil’s energy transition is imperative and urgent. The energy matrix, although predominantly renewable, needs to diversify further to reduce dependence on hydroelectric plants and the use of thermoelectric plants during critical periods. In 2024, the installed capacity of solar energy in Brazil reached 6.5 GW, a notable growth but still insufficient to fully relieve the pressure on hydroelectric plants.
Solar energy is one of the most promising sources for expanding Brazil’s energy matrix. With an abundance of sunlight in almost all regions of the country, especially in the Northeast, there is enormous potential to increase this share. The growth recorded in July 2024, with 494.82 MW added to the country’s solar capacity, is an example of how this source can be fundamental in diversifying the energy matrix.
Another underutilized resource is biogas, which takes advantage of agricultural, industrial, and urban waste to generate energy. With its vast agricultural production, Brazil has the potential to become a global leader in biogas production, especially in rural areas facing greater energy challenges. Biogas production not only contributes to clean energy generation but also helps in waste management, turning an environmental problem into an energy solution.
The 2024 water crisis has revealed the fragility of Brazil’s dependence on limited energy sources. The intensification of droughts, worsened by climate change, requires the country to accelerate the transition to safer and more sustainable sources, such as solar and biogas. Besides ensuring a more resilient energy matrix, this shift would reduce environmental and financial impacts on the population.
Expanding solar energy capacity and developing biogas technologies may be the key to Brazil’s energy future. The current crisis serves as a stark reminder that the time to act is now. Only with robust public policies, investments in renewable infrastructure, and awareness of sustainable energy use will Brazil be able to face future challenges and ensure a reliable and accessible energy supply for all.
