Brazil Could Face Energy Crisis

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Brazil Could Face Energy Crisis Sunday September 2, 2001 1:50 am

BRASILIA, Brazil (AP) - Failure to reach energy-rationing goals could force Brazil to adopt more drastic measures to avoid a collapse in its energy supply, the government's energy coordinator said Saturday.

According to the latest figures, Brazil will have reduced its energy consumption by only 15 percent in August, short of the 20 percent target - putting the whole energy plan at risk, energy coordinator Pedro Parente said.

The government began an energy-rationing plan in June, which included the threat of fines and power cuts of up to several days for those not reducing consumption by the required 20 percent.

Parente confirmed that Brazil ``must cut down on energy use to avoid blackouts, which would have the unwelcome side effects of paralyzing industry and compromising the security of citizens''.

For the moment, the government is not considering so-called rolling blackouts, where power is cut periodically in alternating cities. It is, however, looking at other ways to meet energy-reduction goals.

In June and July, the 20 percent target was reached, and even surpassed in some regions.

Savings took place by reducing energy use in homes, supermarkets, and most companies, but resulted in a slowed economy and increased unemployment.

Brazil's energy crisis came about after an unusually long drought reduced water stores at the country's main reservoirs to dangerously low levels. More than 90 percent of Brazil's power is supplied by hydroelectric plants.

According to Mines and Energy Minister, Jose Jorge Vasconcelos, Brazil has a production capacity of 65,000 megawatts, but during the past few months has been producing only 54,000 megawatts due to the low water levels in reservoirs.

The government is now building 49 thermoelectric plants, to be fueled by natural gas imported from Bolivia.

http://www.guardian.co.uk/breakingnews/International/0,3561,1143695,00.html

-- Martin Thompson (mthom1927@aol.com), September 01, 2001

Answers

Hmmm, no word on whether or not the drought has ended though.

-- Sparky (case@webtown.com), September 02, 2001.

They say this has resulted in a slowed economy and increased unemployment. Has to. Question is: how much? This is important because of Brazil's trade relationship with the Argentine mess.

-- RogerT (rogerT@c-zone.net), September 02, 2001.

Saturday, 1 September, 2001, 23:51 GMT 00:51 UK Brazil calls for more energy cuts

Brazilians could face more energy rationing measures after efforts to reduce consumption faltered in August.

We are all fighting for the same goal: to erase the word 'blackout' from our lives and replace it with the rational use of energy President Fernando Henrique Cardoso President Enrique Cardoso has warned consumers not to drop their guard if blackouts are to be avoided.

Brazil began rationing energy consumption in June after drought in many areas meant the country's hydro-electric production slumped, creating the worst energy crisis in decades.

The government called for 20% savings, a target which was met in the first two months.

Dry month ahead

In August, consumption crept up again, leaving only 15% of energy savings.

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The Brazilian president has called for renewed energy rationing efforts Speaking to the nation in a televised address on Saturday, President Cardoso warned that September was one of the driest months of the year.

He said the government would do all it could to avoid rolling blackouts of the kind that have affected California in the United States

"We are all fighting for the same goal: to erase the word 'blackout' from our lives and replace it with the rational use of energy," the president said.

The rationing has most affected the populous regions around Rio de Janeiro and Sao Paulo.

Mixed reactions

The government's emergency plan to force reduction with a mixture of incentives and penalties has had mixed reactions.

One of the most controversial measures is that which orders energy companies to cut off power supplies for periods of three or even six days to households or industries which exceed the new reduced quotas.

The problem is that these quotas are based on the average consumption during three months of last year, even if they were atypical.

For consumers' associations, this punitive measure goes against the energy companies' obligation to supply an essential service.

More than 90% of Brazil's energy comes from hydroelectric plants, although the government is now hoping to introduce 49 thermo-electric power stations using natural gas imported from Bolivia.

http://news.bbc.co.uk/hi/english/world/americas/newsid_1521000/1521188 .stm

-- Martin Thompson (mthom1927@aol.com), September 02, 2001.


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