SAO PAULO, Aug 27 (Reuters) – Rainfall in key energy-producing areas of drought-struck Brazil is prone to stay nicely beneath common in September, the nationwide grid operator ONS mentioned on Friday, doing little to alleviate excessive power costs and complications for agribusiness.
Brazil, one of many world’s agricultural superpowers, is grappling with considered one of its worst droughts in almost a century. The dearth of rainfall has harm farmers and compelled the nation to rely extra on pricey thermoelectric energy vegetation, stoking inflation and dragging on the economic system.
With reservoirs low at key hydroelectric dams, the federal government is encouraging Brazilians to eat much less energy, however has to date dominated out power rationing.
On Friday, the ONS mentioned it anticipated power utilization to rise 0.9% subsequent month in comparison with the identical interval final yr.
However it mentioned rainfall in areas the place hydroelectric energy is produced will stay beneath common in September. Within the southeast and midwest Brazil, the place the nation’s essential hydropower reservoirs are positioned, rainfall ought to attain simply 57% of the historic common for the interval, it mentioned.
(Reporting by Gabriel Araujo, Enhancing by Rosalba O’Brien)
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