The issue addresses the crisis of the Brazilian electric power sector.

A reflection on Energy Matrix and Security is the latest editorial theme of the most recent edition of the Energy Bulletin. The issue briefly presents issues widely discussed during the 5th Seminar on Brazil’s Energy Matrix and Security, held by FGV Energy and FGV’s Brazilian Institute of Economics (FGV/IBRE).  The issue also addresses the crisis of the Brazilian electric power sector. The opinion column provides an analysis of the wind power sector and its consolidation in the Brazilian market, with the columnist Elbia Gannoum, executive president of the Brazilian Wind Energy Association (ABEEólica).

In the oil sector, July recorded a 6.35% increase in national production compared to the previous month, and an 8.76% increase compared to the same month last year. Compared to the average of Brent crude oil prices in August, the decrease in oil prices, compared to the average of July, reflected the expectations of lower economic growth in emerging markets, increasing oil exports from Iran and continued growth in global stocks. As for oil products, the ratio between domestic and international prices of gasoline changed in July. While in June the difference was virtually zero, in the following month international reference prices were higher than domestic ones.

As for the gas sector, due to an increase in consumption, there was a 12.22% increase in imports compared to the previous month. Domestic production and the supply of domestic gas also increased. While pipeline imports decreased, LNG imports increased. Both the industrial and the electric power generation sectors recorded growth in gas consumption.

In the physical world of the electric power sector, there was a significant reduction in hydraulic energy supply in the reservoirs of the National Interconnected System (SIN). The hydraulic energy generation remained almost constant, but with a reduced generation from Itaipu. Wind generation increased significantly. At the end of the energy balance, the level of the area of SIN’s reservoirs recorded a reduction.

In the contractual world, due to a change in the General Operations Schedule of the Electric Power Trade Chamber (CCEE), no data was disclosed and, therefore, the studies associated with energy supply, the Energy Reallocation Mechanism (MRE) and free market consumption, will not be developed on this edition of the newsletter. Electric power consumption decreased in all categories, with a total reduction of 2.49% in the annual comparison. Regarding tariffs, this month’s issue of the Energy Affairs Newsletter provides important information about the six adjustments made in the period and presents the results of the two auctions held in August.

The bulletins are part of a set of regular publications released by FGV Energy and they are available in Portuguese on its website.

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