Brazil’s main hydroelectric reservoirs closing year half full

The reservoir levels of Brazil’s southeast/center-west system are ending 2022 at approximately 50% of capacity, double what they were a year ago, according to national grid operator ONS. 

The southeast/center-west system is the country’s main hydroelectric generating region, accounting for 70% of national reservoir water storage capacity. 

Source: ONS

The north, northeast and south subsystems’ storage levels are closing the year at 55%, 60% and 80%, respectively, from 54%, 52% and 43% a year earlier. 

The recovery of the hydro reservoirs is a result of higher rainfall this year compared with 2021, when Brazil faced its worst drought in 91 years. 

Consequently, electric power prices in Brazil's non-regulated market are expected to remain close to the floor – possibly around 60 reais (US$11.55) per MWh – in the coming months. 

According to electric power trading chamber CCEE, on Wednesday spot prices were at 55.7 reais/MWh.

Source: CCEE

Hydroelectricity accounts for around 60% of Brazil's total installed power capacity of 191GW.