Brazil on energy rationing alert as dams drop to 14-year low

Thursday, October 23, 2014

Dam levels in Brazil's southeast and midwest have dropped to their lowest level since 2000 as drought continues to cripple hydroelectric generation.

Reservoirs in the region are on track to end October at 19.9% capacity, according to state news service Agência Brasil.

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The southeast and central-west account for about 60% of Brazil's energy consumption, according to sector regulator Aneel.

The outlook is also "worrying" in the country's northeast, where reservoirs are operating at 17.5% capacity, according to the news service.

Ongoing drought has led to fears Brazil is on the verge of energy rationing for the first time since 2001.

The country is currently reliant on backup thermoelectric plants to meet a supply shortfall caused by idle hydropower turbines.

BNamericas will host its 11th Southern Cone Energy Summit in Lima, Peru, on November 12-13. Click here to download the agenda.