Brazil will import about 900,000 metric tons of thermal coal this month, according to data from commercial ship traffic monitoring company Kpler. This is three times the monthly average for 2024.
Decline in Hydropower Generation
The ongoing drought in the country has brought hydroelectric power generation to its lowest levels in three years. The decrease in hydroelectricity production during the summer months, when electricity demand peaks, has led to serious problems in energy supply.
Demand for Fossil Fuels Increases
Brazil, which is trying to close its energy deficit due to drought, has increased not only coal but also liquefied natural gas (LNG) imports. While LNG imports reached their highest levels since late 2021, the production capacity of fossil fuel-fired power plants was also increased.
Brazilian power companies are turning to fossil fuel sources to compensate for the lack of energy from hydroelectric plants. However, this increases the country's energy costs and raises environmental concerns.
Comments
No comment yet.