Northern Brazil cuts hydro power use with prolonged drought

By Leticia Fucuchima

SAO PAULO (Reuters) - Severe drought in an Amazonian river that powers two of Brazil's largest hydroelectric plants has forced a policy shift toward using more thermal sources and energy imports in the northern region, a government agency said.

The Electric Sector Monitoring Committee (CMSE), citing low water levels in the River Madeira, recommended on Wednesday minimizing use of the region's hydro power by importing electricity from Argentina and Uruguay and encouraging large industries to shift consumption to times with lower demand.

River Madeira, a major waterway drought-stricken since mid-2023, is facing more severe weather than expected for this time of year. Unfavorable conditions are set to last until at least Nov. 30, Brazil's National Water Agency (ANA) said last week.

Hydroelectricity is Brazil's main power source, accounting for over 60% of installed capacity.

The historic drought in Brazil's Amazon region has halted grain shipments, and local Indigenous communities have declared a climate emergency as rivers are drying up, leaving many without drinking water.

(Reporting by Leticia Fucuchima; Writing by Fabio Teixeira; Editing by Richard Chang)