Brazil is the 2nd country with most expensive energy and may become the 1st, says International Energy Agency

RIO DE JANEIRO, BRAZIL – According to an analysis by the International Energy Agency (IEA) based on 2018 figures, Brazil is the second country with the most expensive energy tariff in the world. The pockets of Brazilians only don’t hurt more than those of Germans, who lead the survey.

For Roberto D’Araujo, director of the Ilumina Institute – an NGO that discusses the Brazilian electricity sector -, the country could reach the top of the ranking if the current system is maintained. “It is impossible to understand why Brazil, a continental country, all sunny, has 2.5% of solar plants,” he criticizes.

One of the main causes for this high energy tariff is the presence of thermoelectric plants, which have a high construction and maintenance cost. According to data from the National Electric Energy Agency (Aneel), there are 3229 plants of this type in Brazil, representing 24.66%. The hydroelectric plants are the majority in the country, with 56.71%.

D’Araujo explains that thermoelectric plants work as an “insurance” to avoid lack of energy since they don’t depend on rainfall, for example. However, in the evaluation of the director of Ilumina Institute, the public power doesn’t act to reduce this dependency and invest in photovoltaic (solar) or wind power plants.

COAL PRODUCTION

The words of the director of Ilumina Institute about the country prioritizing thermoelectric plants are in line with the decisions made by president Jair Bolsonaro and Congress. The law that renews the support policy for coal production from the Jorge Lacerda Thermoelectric Complex (CTJL) in Santa Catarina State was sanctioned on January 5, authorizing its operation for another 15 years.

Despite the renewal, the new law created the “Just Transition Policy” (PTJ), which focused on clean energy and reducing pollutants. It also establishes an energy transition program (TEJ) to zero carbon emissions by 2050.

The new law also guarantees a government promise of a power plant reserve power purchase agreement, defining a fixed revenue sufficient to cover generation costs.

List of countries with the most expensive energy:

1. Germany
2. Brazil
3. Italy
4. Turkey
5. Singapore
6. Indonesia
7. Japan
8. India
9. United Kingdom
10. South Africa