Brazil exporting electricity to Argentina under new model

Brazilian power trading firm Tradener started making electricity exports to Argentina on Saturday under a new model, which allows sales of interruptible power without return that is not dispatched from thermoelectric plants in commercial operation.

Brazilian power trading firm Tradener started making electricity exports to Argentina on Saturday under a new model, which allows sales of interruptible power without return that is not dispatched from thermoelectric plants in commercial operation.  

The firm has a contract with Argentina’s Cammesa for these deals that is valid until the end of 2021. Power is supplied by Engie and EDF Norte Fluminense and the exports take place through the Garabi I and II frequency converter stations (FCS). The estimates are that the amounts exported could reach an average 1,500MW per week, totaling US$20mn a week, for about a month.  

“Now, electricity is exported under the same rules as any other product. The new rules came into force in May and we believe this first transaction could lead to further improvements in the sales processes,” Tradener president Walfrido Ávila told BNamericas.  

Argentina usually increases electricity imports during the winter, due to greater use for heating systems. According to Ávila, a reduction in Brazilian red tape for such deals and greater integration between electricity markets in South America could simplify sales in the future.  

“International operations are always complicated in terms of bureaucracy. We’re available to discuss with the authorities ways to make trade between those markets easier. Creating a common South American power market would be interesting by integrating not only Brazil, Uruguay and Argentina, but also Chile and Bolivia, for example. This would provide advantages such as lower prices,” the executive said.  

Tradener has been working on power imports and exports between Brazil, Uruguay and Argentina since 2006.  

Brazil’s 2050 energy expansion plan, which put out to public consultation this month, points to a series of initiatives that could improve Brazil’s energy integration with other South American countries, such as the standardization of commercial agreements and arrangements, discussions on the creation of legal frameworks to resolve disputes and guarantee access to international infrastructure.  

Other recommendations include the creation of a database for generation and transmission data, expansion plans, prices, as well as sector policies and regulations in each country. 

Further integration is likely to benefit Brazil above all, since the 2050 plan shows its energy production potential far exceeds projected domestic demand, even in a high-growth scenario, which suggests further potential for exports. The country is expected to consume 562Mtoe (million tonnes of oil equivalent) while production potential reaches 280Btoe (billion tonnes of oil equivalent) by 2050.

Fonte: BN Américas

27.07.2020

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