Brazil’s Roraima state power supply under the spotlight

Brazil’s mines and energy ministry (MME) and watchdog Aneel are evaluating a financial aid request presented by electric power utility Roraima Energia (formerly Boa Vista Energia) to avoid power shortages in Roraima state, a spokesperson for the MME told BNamericas. 

At the end of June, the company that operates in far north state Roraima asked the MME to pass on credits totaling 340mn reais (US$65.9mn) via the energy development account (CDE) to face a  274mn-real debt with fuel distributor Atem Distribuidora. 

Roraima is Brazil’s only state that is not connected to the national power grid and relies on diesel-fired power plants to meet demand. 

In a letter sent to minister Bento Albuquerque to which BNamericas had access, the company talks about the risk of blackouts in Roraima after Atem decided to interrupt fuel supply due to the lack of payments. 

“The resumption of full payments necessarily requires that the principle of energy cost neutrality be safeguarded, given that the current rules of [fuel consumption account] CCC reimbursement do not consider the nuances of the exceptional case of Roraima Energia,” the company said. 

The CCC is an account used to cover the costs of expenses associated with thermoelectric generation.

Energy distributors are obliged to collect their monthly quota approved by Aneel, which is passed on to consumers via power rates. 

A spokesperson for Roraima Energia told BNamericas that its “exceptional case” involves the “full responsibility” of a power distributor to assure energy supply for its market, as the state’s interconnection works to the grid have not been completed and also as a consequence of the interruption of Venezuelan power imports as of 2019. 

The spokesperson reinforced that the issue is being treated with the MME and Aneel. 

“The supply is continuing in order not to cause risk to electricity in the state. We have full clarity about the responsibility of the business and the population should be calm about the supply of electricity.”

According to the MME, Atem Distribuidora resumed fuel supply to Roraima Energia on July 7, after a one week suspension.

‘“We are following the fuel supply situation on a daily basis in order to guarantee the energy supply to the state of Roraima,” the MME spokesperson added. 

The Brazilian government expects to resume construction work this year on the Linhão de Tucuruí transmission line that will connect Roraima, which has a population of around 630,000, to the national grid.  

The project has gained a new incentive with the approval of Eletrobras’ privatization bill, which authorizes the federal government to start construction works on the line despite the project not having environmental approval from regulator Ibama.

BNamericas asked the MME if the government has considered resuming power imports from Venezuela, but the ministry did not respond.